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Time for Equality: the Role of Social Protection

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Time for Equality: the Role of Social Protection Time for Equality The Role of Social Protection in Reducing Inequalities in Asia and the Pacific United Nations publication Copyright © United Nations, 2015 All rights reserved Printed in Bangkok ST/ESCAP/2735 This publication has been issued without formal editing. The publication may be reproduced in whole or in part for educational or non-profit purposes without special permission from the copyright holder, provided that the source is acknowledged. The ESCAP Publications Office would appreciate receiving a copy of any publication that uses this publication as a source. No use may be made of this publication for resale or any other commercial purpose whatsoever without prior permission. Applications for such permission, with a statement of the purpose and extent of reproduction, should be addressed to the Secretary of the Publications Board, United Nations, New York. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. The opinions and estimates set forth in this publication are the responsibility of the authors and should not necessarily be considered as reflecting the views or carrying the endorsement of the United Nations. For further information on this publication, please contact: Social Development Division Economic and Social Commission for Asia and the Pacific United Nations Building Rajadamnern Nok Avenue Bangkok 10200, Thailand Tel: (66-2) 288-1513 Fax: (66-2) 288-1030 Email: [email protected] Website: www.unescap.org Time for Equality The Role of Social Protection in Reducing Inequalities in Asia and the Pacific Foreword Social protection is central to ESCAP’s vision of a resilient Asia and the Pacific founded on the principles of shared prosperity, social equity and sustainability. Since its establishment in 1947, ESCAP has promoted social protection as part of an overall strategy of reducing inequality, particularly addressing the exclusion of the most vulnerable groups, and offering a path out of poverty and dependence. The Asia-Pacific region has in the past decades experienced remarkable economic growth. As a result, living standards have drastically improved, allowing hundreds of millions to lead better and more productive lives. Yet despite this progress, the rich have got richer at the expense of the poor, and unequal social opportunities persist. These inequalities suggest that market-led growth alone is not enough to close the existing development gaps. With the recently adopted 2030 Agenda for Sustainable Development, inequality and social protection have moved to the centre of the policy agenda, both globally and in the region. National Governments are also increasingly recognizing that inequality serves as an impediment to sustainable development and that social protection is an effective instrument for narrowing development gaps, and, in particular, for reducing inequality. This report explores the linkages between inequality and social protection. Overall, it argues that inequality, in its multiple forms, is on the rise in Asia and the Pacific, and that this is having an adverse impact on sustainable development. The report provides evidence that social protection is an effective instrument to reduce inequalities, and, by so doing, contributes to the integration of the economic, social and environmental dimensions of sustainable development. While countries in the region are increasingly recognizing the importance of social protection, important coverage gaps still remain. It is encouraging, nevertheless, that substantial steps are being taken to ensure that all individuals have access to income security and health care along the life-course. Some of these country experiences in expanding social protection are examined here. Building on its strength as the most comprehensive regional intergovernmental forum in Asia-Pacific and its unique convening authority, ESCAP’s work has focused on supporting governments in moving towards more comprehensive and robust social protection systems based on the principle of universality. ESCAP member States, in adopting resolution 67/8 of on “Strengthening social protection systems in Asia and the Pacific,” recognized that “social protection is an investment in people and in long term social and economic development.” They further acknowledged that, “Political commitment at the highest level and the partic- ipation of multiple actors, including the beneficiaries themselves, are crucial to formulate and implement social protection policies that effectively meet the needs of all in society.” It is hoped that the analysis and findings contained in this publication will provide member States and other stakeholders with a solid foundation to pursue evidence-based policies that reduce social vulnerabilities, build resilience and promote equality for all. Shamshad Akhtar Under-Secretary-General of the United Nations and Executive Secretary of ESCAP Acknowledgements This publication was prepared by the Social Development Division, under the overall direction of Nanda Krairiksh and Laura Lopez, Directors of the Social Development Division of ESCAP. The report drafting team was led by Patrik Andersson and comprised of the following members: Manuel Mejido (lead author), José Ramón Aguín Ferradás, Chad Anderson, Derek Atkinson, Thérèse Björk, Silvia di Gaetano, Nathalie Meyer, Marco Roncarati, Ermina Sokou and Vanessa Steinmayer. The team is grateful to Jerry Huguet for his inputs and comments. Comments to an earlier version of the report were also received from Beverly Jones, Jacqueline Paul, Srinivas Tata and Sayuri Cocco Okada. Statistical support was received from Chol O Han, Bryce Hartley, Panuwat Cholbushpakul and Lorenzo Motta. The graphic design and layout were developed by Daniel Feary. Contents 3 FOREWORD 5 ACKNOWLEDGEMENTS 12 EXECUTIVE SUMMARY 16 CHAPTER ONE Inequalities take centre stage 32 CHAPTER TWO The pivotal role of social protection in reducing inequalities 54 CHAPTER THREE Tackling the inequalities faced by children 68 CHAPTER FOUR Tackling the inequalities faced by working-age individuals 84 CHAPTER FIVE Tackling the inequalities faced by older persons 98 CHAPTER SIX Tackling unequal access to affordable health care 110 CHAPTER SEVEN Enhancing social protection for shared prosperity, social equity and a sustainable Asia-Pacific region 124 REFERENCES 7 FIGURES, taBLES AND Boxes Figures, tables and boxes 19 FIGURE 1.1 The income of the rich is increasing at the cost of those at the bottom 22 FIGURE 1.2 There are stark disparities in higher education 23 FIGURE 1.3 There are three main types of inequalities 25 FIGURE 1.4 The richest 10 per cent have twice as much income as the poorest 40 per cent 36 FIGURE 2.1 A majority of countries have increased investments in social protection 39 FIGURE 2.2 Countries with higher investments in social protection also have higher labour productivity 41 FIGURE 2.3 Countries with higher investments in social protection are less susceptible to social unrest 43 FIGURE 2.4 Countries with higher investments in social protection have better environmental track records 45 FIGURE 2.5 The majority of countries spend less than one-fifth of Government expenditures on social protection 48 FIGURE 2.6 More countries are prioritizing investments in social protection over military spending 52 FIGURE 2.7 The Social Protection Floor is an important framework for building synergies 57 FIGURE 3.1 Stunting is a serious issue for a majority of countries 61 FIGURE 3.2 Number of births attended by skilled personnel rises sharply with income 8 71 FIGURE 4.1 Vulnerable employment is pervasive throughout the region 73 FIGURE 4.2 The rural-urban gap accounts for the lowest share of total income inequality in most countries 74 FIGURE 4.3 Women are less likely than men to participate in the labour force 76 FIGURE 4.4 The economic prospects of women vary widely across the region 77 FIGURE 4.5 Youth are up to ten times more likely to be unemployed than adults 87 FIGURE 5.1 The region is experiencing population ageing at an unprecedented pace 88 FIGURE 5.2 By mid-century the number of older persons potentially depending on working-age individuals will increase substantially throughout the region 91 FIGURE 5.3 Ageing well remains a challenge in most countries 92 FIGURE 5.4 Important pension gaps exist throughout the region 101 FIGURE 6.1 Out-of-pocket health-care expenditures remain high in a third of Asia-Pacific countries 103 FIGURE 6.2 Young women face barriers in access to health-care services 26 BOX 1.1 Disparities across key population groups constitute a large component of overall inequalities in the region 29 BOX 1.2 Pathways of inequality traps 120 BOX 7.1 Countries have begun to explore innovative schemes to finance social protection 37 TABLE 2.1 Social protection prominently appears in the Sustainable Development Goals 59 TABLE 3.1 Number of years in school increases with family income 113 TABLE 7.1 Examples of the growing importance of social protection 9 ACRONYMS AND REGIONS Acronyms ADB Asian Development Bank MDGs Millennium Development Goals AIDMI All India Disaster Mitigation Institute MGNREGA Mahatma Gandhi National Rural Employment Guarantee Act ASEAN Association of Southeast Asian Nations MIP Medical Insurance Programme BMIUW Basic Medical Insurance
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