Social Protection for Older Persons

321 Pages·2012·1.27 MB·English

by  Asian Development Bank

Social Protection
for Older Persons
Social Pensions in Asia
Edited by Sri Wening Handayani and Babken Babajanian
Social Protection
for Older Persons
Social Pensions in Asia
Edited by Sri Wening Handayani and Babken Babajanian
© 2012 Asian Development Bank
All rights reserved. Published in 2012.
Printed in the Philippines.
ISBN 978-92-9092-726-6 (Print), 978-92-9092-727-3 (PDF)
Publication Stock No. BKK124774
Cataloging-In-Publication Data
Sri Wening Handayani and Babken Babajanian.
Social protection for older persons: Social pensions in Asia.
Mandaluyong City, Philippines: Asian Development Bank, 2012.
1. Pensions. 2. Older person. I. Asian Development Bank.
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Contents
Tables, Figures, and Boxes xi
Abreviations xv
Foreword xvi
Acknowledgments xviii
Contributors xix
Overview
The Challenge of Rapid Aging: Development of Social Pensions in Asia 1
Sri Wening Handayani
Introduction 1
Economic Growth and Social Protection 2
Potential Benefits of Social Pensions 2
Structure of the Book 3
Chapter 1
The Political Economy of Social Pension Reform in Asia 11
Katja Hujo and Sarah Cook
Abstract 1
Introduction: The Case for Social Pensions and Their Relevance
for Asia 11
The Regional Context: Aging, Poverty, and Social Protection in Asia 15
An Analytical Framework: Understanding Policy Reform 17
Explaining the Origins and Evolution of Welfare Regimes 18
Explaining Policy Reform 22
Toward a Political Economy of Social Pension Reform 23
Experiences from Other Regions: The Political Economy of
Social Pensions in Latin America and Sub-Saharan Africa 27
Latin America: Origins and Reforms 27
iii
iv Contents
Sub-Saharan Africa: Origins and Reforms 31
Factors Facilitating or Constraining the Introduction of
Social Pensions in Latin America and Sub-Saharan Africa 33
Social Pensions and the Politics of Welfare Policy in Asia 34
Problem Analysis and Reform Strategy:
When Are Social Pensions Prioritized? 38
Social Pension Reform: Relevant Actors 39
Variety of Approaches and Outcomes 40
Conclusions 42
References 45
Annex 52
Chapter 2
Social Pensions for the Elderly in Asia: Fiscal Costs and
Financing Methods 60
Mukul G. Asher
Abstract 60
Introduction 61
Selected Asian Countries’ Financing Experience 63
Determinants of Fiscal Costs 66
Rights-Based versus Discretionary Approaches 66
Targeted (Selective) or Universal (Categorical) Social Pensions 68
Design and Fiscal Costs 71
Projections of Fiscal Costs 73
Enhancing Fiscal Space 75
Conclusions 79
References 80
Chapter 3
The Design and Implementation of Social Pensions for
Older Persons in Asia 84
Michael Samson
Abstract 84
Introduction 84
Contents v
Overview and Impact of Social Pensions in Asia 85
Poverty Reduction 86
Food Security and Nutrition 87
Access to Health Care 87
Human Capital Development 88
Livelihoods and Labor Market Engagement 89
Extended Economic Impact 89
Social Impacts 89
Design Issues with Social Pensions in Asia 90
Targeting versus Universalism 90
Benefit Size 96
Implementation of Social Pensions in Asia 99
Administrative Systems 99
Beneficiary Selection 100
Targeting Errors of Exclusion and Inclusion 101
Challenges with Targeting and Registration Systems 104
Payments Systems 104
Coruption 105
Rights Protection 106
Capacity and Administrative Feasibility 107
The Importance of Management Information Systems 107
The Importance of Monitoring and Evaluation Systems 108
Progressive Realization with Limited Capacity 109
Development Partner Support for Capacity Building and Scaling Up 110
Conclusions, Policy Lessons, and a Road Map Forward 113
Identification of an Appropriate Social Protection Instrument 113
Design 13
Implementation 14
Monitoring and Evaluation 115
References 16
Chapter 4
Gender and Old-Age Pension Protection in Asia 120
Athina Vlachantoni and Jane Falkingham
vi Contents
Abstract 120
Background and Objectives 120
Gender-Specific Vulnerabilities and Old-Age Social Protection 121
Higher Life Expectancy of Women 121
Rapid Aging 123
Domestic and Informal Care 124
Intergenerational Living Arrangements 125
Old-Age Social Protection and Women in the Labor Market 126
Women in the Formal Labor Market 126
Women in the Informal Labor Market 129
The Role of Social Pensions in Providing Old-Age Protection
for Women 131
References 134
Chapter 5
Providing Social Security in Old Age: The International Labour
Organization View 137
Krzysztof Hagemejer and Valérie Schmitt
Abstract 137
The Objectives and Standards of Pension Systems 137
Access to Old-Age Pensions 140
Universal Pension as Part of the Social Protection Floor 144
Policy Options for Pension Protection 146
The Cost of Basic Social Protection 149
References 151
Chapter 6
Development of the Old-Age Allowance System in Thailand:
Challenges and Policy Implications 153
Worawet Suwanrada and Dharmapriya Wesumperuma
Abstract 153
Introduction 153
Contents vii
Old-Age Pension System 154
Public Officials’ Pension Scheme 155
Old-Age Benefits under the Social Security Fund 155
Introducing Universal Social Pensions 158
Coverage and Financing 159
Economic, Social, and Institutional Impacts of the Social Pension 161
Income Poverty Reduction 161
Social Impact 163
Institutional Impacts 164
Implications for Policy and Practice 165
Thailand 165
Other Asian Countries 166
References 167
Chapter 7
Social Pensions in Viet Nam: Status and Recommendations for
Policy Responses 168
Giang Thanh Long and Dharmapriya Wesumperuma
Abstract 168
Introduction 168
Aging, Income Insecurity, and Old-Age Pension 169
Main Features of the Social Pension Scheme 172
Impacts of the Social Pension Scheme 173
Income Poverty Reduction 173
Participation in the Labor Force 175
Access to Health Care 175
Supporting Other Household Members 176
Current Issues in Design and Implementation 176
Identifying Beneficiaries 176
Benefit Delivery 178
Administrative Capacity for Outreach, Implementation,
and Monitoring 179
Scaling Up Social Pensions: Potential Poverty Impacts and
Fiscal Costs 180
Implications for Policy and Practice 182
viii Contents
Promoting and Strengthening the Role of Social Pension
in Reducing Old-Age Poverty 182
Implications for Other Developing Countries 183
References 184
Chapter 8
Overview of the Old Age Allowance Programme in Bangladesh 187
Sharifa Begum and Dharmapriya Wesumperuma
Abstract 187
Introduction 187
Safety Net Programs in Bangladesh 189
Main Features of the Old Age Allowance Program 193
Program Administration 193
Beneficiary Selection 194
Selection Criteria 195
Allowance Delivery 196
Grievance Procedures 196
Coverage 197
Impacts of the Program 198
Food 198
Health Care 199
Psychosocial Well-Being 200
Economic Security 201
Social Impact 201
Design and Implementation Issues 202
Benefit Size 202
Candidate Selection 203
Benefit Delivery 204
Administrative Challenges 205
Potential for Scaling Up 206
Implications for Policy and Practice 207
Strengthening and Scaling Up the
Old Age Allowance Programme 207
Lessons for Other Asian Countries 210
References 212
Contents ix
Chapter 9
Nepal’s Senior Citizens’ Allowance: A Model of Universalism
in a Low-Income Country Context 214
Michael Samson
Abstract 214
Introduction 215
Background 216
Rationale 218
Features 219
Benefits 219
Coverage 20
Impacts on Individual and Household Well-Being 223
Income Poverty Reduction 223
Increasing Access to Basic Services and Health Care 226
Supporting Other Household Members 227
Issues Related to “Stigma” 229
Opportunities and Challenges in Design and Implementation 230
Institutional Arrangements 230
Targeting Effectiveness, and Errors of Inclusion and Exclusion 233
Accountability and the Extent of Capture and Corruption 236
Administrative Capacity for Outreach, Implementation,
and Monitoring 236
Financing, Fiscal Cost, and Affordability 237
Implications for Policy and Practice 241
Strengthening and Scaling Up the Social Pension Scheme
in Nepal 241
Drawing Lessons for Other Asian Countries 243
References 24
Chapter 10
Social Protection for Older People in Central Asia and
the South Caucasus 246
Jane Falkingham and Athina Vlachantoni
Abstract 246
Introduction 246