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The State of Social Protection in ASEAN at the Dawn of Integration

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The State of Social Protection in ASEAN at the Dawn of Integration viii Chapter 1 Chapter Social protection for older persions The state of social protection in ASEAN at the dawn of integration i Background and methodologyBackground Chapter 1 The state of social protection in ASEAN at the dawn of integration Copyright © International Labour Organization 2015 First published 2015 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Licensing), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected]. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with a reproduction rights organization may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Ong, Cheng Boon ; Peyron Bista, Céline The state of social protection in ASEAN at the dawn of integration / Cheng Boon Ong and Céline Peyron Bista ; ILO Regional Office for Asia and the Pacific. – Bangkok : ILO, 2015 ISBN: 9789221303305 ; 9789221303312 (web pdf) ILO Regional Office for Asia and the Pacific social protection / social security / universal benefit scheme / scope of coverage / ASEAN countries 02.03.1 ILO Cataloguing in Publication Data The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications and digital products can be obtained through major booksellers and digital distribution platforms, or ordered directly from [email protected]. For more information, visit our website: www.ilo.org/publns or contact [email protected]. Cover photos © ILO Printed in Thailand ii Chapter 1 Chapter Social protection for older persions The state of social protection in ASEAN at the dawn of integration Cheng Boon Ong and Céline Peyron Bista iii Background and methodologyBackground Chapter 1 The state of social protection in ASEAN at the dawn of integration iv Chapter 1 Chapter Foreword Social protection for older persions The Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) will become a reality at the end of 2015. The AEC will affect 600 million men and women. It has the potential to drive innovation, create new jobs, increase productivity and thus accelerate growth. This accelerated growth will necessitate changes in skills and jobs. To smooth this transition, ensure that no vulnerable people are left behind, and that the majority of men and women benefit from these changes, effective social protection must be a priority. At the 23rd ASEAN Summit in Brunei Darussalam in October 2013, the ten ASEAN leaders adopted a Declaration on Strengthening Social Protection, which reaffirmed their commitment to building an ASEAN community that is “socially responsible and people-oriented” (ASEAN Member States, Cambodia, 2012), through the establishment of nationally-defined social protection floors (SPFs) for all. The Declaration channels a growing consensus in the region that the establishment of SPFs is fundamental for reducing poverty and inequality and promoting inclusive and sustainable growth. Despite differing levels of coverage and speeds of change most countries are now moving towards establishing sound policy and institutional frameworks to deliver social protection effectively and efficiently. Based on the principle of universal protection, SPFs are an investment with both immediate and long-term effects on millions of lives, enhancing political stability and social cohesion. Social protection and SPFs also contribute to economic growth by supporting household incomes and thus domestic consumption. They also enhance human capital and productivity and empower people to find decent jobs. Consequently, they are a critical policy tool for supporting transformational national and regional development and the formalization of economies. v Background and methodologyBackground Chapter 1 The state of social protection in ASEAN at the dawn of integration This report comes at a historic moment. Social Protection is increasingly recognized as a key component of the new global development agenda, gaining a prominent space in the recently approved United Nations Sustainable Development Goals (SDGs). This is exemplified by the use of social protection systems and measures, including floors, as an indicator for Goal No. 1, on ending poverty in all its forms everywhere. Substantial coverage of the poor and vulnerable sections of the population should be achieved by 2030. Within ASEAN, the extension of social protection should be done in ways that will provide an adequate level of protection to its people. Risk pooling and social solidarity principles should be encouraged, and in some countries strengthened, to ensure that the increases in economic growth and social protection reach everyone, including those in temporary and vulnerable employment. To achieve universal social protection, ASEAN countries will need to boost their efforts to expand both their effective population coverage and level of protection, through both the establishment of new and the improvement of existing social insurance and tax-funded schemes. The International Labour Organization has traditionally been a close partner of the ASEAN Member States and the ASEAN Secretariat in the promotion of social protection in the region. Since 2011, the ILO Regional Office for Asia and the Pacific, with the support of the ILO/Japan Multi-bilateral Programme and in collaboration with the ASEAN Secretariat, has implemented the project, Promoting and building social protection in ASEAN. The present report is a product of this project. The study provides an overview of the social protection situation in each of the ten ASEAN Member States, using the framework of the four Guarantees adopted in 2012 under the ILO’s Social Protection Floors Recommendation (No. 202). The report documents country experiences that can inspire ASEAN Member States in their work to develop effective social protection systems. The study also offers recommendations for practical strategies and policy options for extending social protection coverage in the region and provides baseline information against which to measure progress. I trust that the report will provide an important resource that will enrich the continuing social protection-related discussions among ASEAN Member States and inspire policymakers at national and regional levels. Finally, I hope that the study will help to advance the realization of social protection floors for all and thus social progress in ASEAN. Tomoko Nishimoto Assistant-Director General and Regional Director ILO Regional Office for Asia and the Pacific vi Chapter 1 Chapter Table of contents Social protection for older persions Page Foreword........................................................................ v Acknowledgements ........................................................ xiii Executive summary ........................................................ xv Towards universal health coverage ............................................... xvii Social protection for children ...................................................... xvii Ensuring income security and access to decent work ................... xviii Preparing for old-age ................................................................... xix Cross-cutting issues influencing the effectiveness of social protection ................................................................................... xx Way forward ............................................................................... xxi Key messages ................................................................. xxiv Abbreviations ................................................................. xxvii Chapter 1: Background and methodology ..................... 1 The ASEAN context ................................................................... 3 Methodology............................................................................... 5 Defining “social protection” ........................................................ 7 Chapter 2: Access to essential health care ....................... 9 Population coverage .................................................................... 10 Service and cost coverage............................................................. 12 Service provision and quality ....................................................... 13 Health system financing .............................................................. 15 vii Background and
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