Social Protection for Older Persons: Social Pensions in Asia

1. BOOK LAUNCH: Social Protection for Older Persons:Social Pensions in Asia

2. Social Protection for Older Persons: Social Pensions in Asia • This book is an outcome of a study to gather evidence on the effectiveness and relevance of social pensions in Asia. • The study commissioned thematic papers to examine specific themes and issues related to social pensions, and distill policy lessons. • It also supported country case studies to capture the breadth and variety of different initiatives in the region. • The papers were presented and findings discussed at a regional workshop in February 2011.

3. Structure of the Book The book is divided into three sections: • The first part discusses the conceptual framework of social pension • The second part presents case studies on design and implementation of social pension • The book concludes with implications for policy, practices and research.

4. Rationale/Background • Older people already constitute a large proportion of the poor in Asia. • The existing schemes are historically weak and fragmented. • Majority of older people in Asia are without pensions and health care insurance. • Traditional family and informal support systems for older people have weakened. • Social pensions remain underutilized for protecting the elderly in Asia.

5. Poverty Reduction and Gender Aspects • The impacts of social pensions on poverty reduction and development outcomes are quite substantial. • Few systems take women’s diverse life courses into account and social pensions tend to contribute to lifting women out of poverty. • Universal programs are less susceptible to corruption, tend to have lower administrative costs, ensure larger coverage, and carry less potential of social stigma

6. The Political Economy of SP Reform in Asia • Social pensions are attractive for policymakers where poverty rates are high; • Social pensions must be linked with the national poverty agenda; • Developing and expanding social pensions regionally faces challenges – need for adequate financing and political support

7. Fiscal Costs and Financing Methods • In the short and medium term (3−5 years), additional fiscal space equivalent to 1%−1.5% of GDP, and 2.5% - in the long run will be needed. • Two actions are needed for creating fiscal space: • Reallocation of budgetary expenditure and creating appropriate balance between development priorities • Reducing administrative costs and leakage through better design, implementation, and governance of social pensions

8. Challenges • Fiscal sustainability • Beneficiary identification in targeted systems • Low coverage of beneficiaries • Leakage and corruption in delivery systems • Inadequate administrative and institutional capacity • Weak monitoring, evaluation, and impact assessments