ADB: Asia-Pacific countries need to expand social protection

The Asian Development Bank (ADB) stressed on Monday the need to expand the social protection programs of many countries in the Asia and Pacific to ensure adequate coverage for most of their populations.

New studies on social protection conducted by the Manila-based bank showed that many countries in the region lack government support for social insurance such as pensions and health insurance, social assistance such as child welfare programs and assistance to the elderly, and labor market programs such as cash-for-work programs.

The studies, titled The Social Protection Indicator (SPI): Assessing Results for Asia, and Social Protection Indicator (SPI): Assessing Results for the Pacific, incorporate data from 25 countries in Asia and 13 countries in the Pacific.

The studies, released on Monday, also found that on average government expenditure on social protection programs in Asian countries is equivalent to 3.7 percent of gross domestic product per capita and 1.9 percent in the Pacific, in both cases far too low to ensure sufficient coverage for most of the population.

Social insurance continues to dominate social protection spending in Asia and the Pacific, according to the studies.

"Almost three quarters of GDP per capita spent on social protection is allocated for social insurance. Social assistance accounts for only 0.9 percent of GDP per capita, while active labor market programs account for only 0.1 percent GDP per capita," the studies said.

"This updated, comprehensive set of indicators gives governments an effective mechanism for devising new and improved social protection programs, which are essential element of the new Sustainable Development Goals and go to the heart of efforts to promote inclusive growth and reduce poverty," said Sri Wening Handayani, principal social development specialist with ADB's Sustainable Development and Climate Change Department.

For the first time, the ADB said the 2016 SPI report assesses progress on social protection over time by tracking spending for 14 countries in Asia between 2004 and 2012.

"Mongolia, China, and Vietnam made appreciable progress, while the low income countries, Cambodia and Nepal, made significant progress primarily through cash or in-kind transfers," the bank said, adding that social protection coverage levels remain weak in other countries, particularly in the Pacific, where little progress was made between 2009 and 2012.

Across Asia and the Pacific, the studies said that national social protection systems fail to effectively reach poor and vulnerable persons, and deliver more benefits to men than women.

"Social assistance in Asia-Pacific countries provides limited support to people with health problems who lack social insurance and to persons with disabilities," said the studies.

"This highlights the importance of expanding coverage to support low-income and vulnerable groups, including the elderly and persons with disabilities," it said.

The two reports recommended more ambitious active labor market programs, as these tend to be small and weal in most countries, and that unemployment insurance and social assistance benefits be extended to include employment promotion measures such as vocational training and support for entrepreneurship.