Photo credit: ILO/F.Latief
Bangkok (ESCAP news) – The COVID-19 pandemic has highlighted the need for well-functioning social protection systems in the region as never
before. A new UN report released today reveals that despite their rapid socioeconomic ascent, most countries in the
Asia-Pacific region have weak social protection systems riddled with gaps.
About half of the region’s population has no social protection coverage, according to the publication The Protection We Want: Social Outlook for Asia and the Pacific, jointly produced by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and
International Labour Organization (ILO) Regional Office for Asia and the Pacific. Only a handful of countries have
comprehensive social protection systems with relatively broad coverage.
“Comprehensive social protection creates the foundation for healthy societies and vibrant economies. The COVID-19
pandemic has brought this imperative into sharp focus, by demonstrating the stabilizing effect well-functioning social
protection systems have and how their absence exacerbates inequality and poverty,” said United Nations
Under-Secretary-General and Executive Secretary of ESCAP Armida Salsiah Alisjahbana.
She added, “Delivering effective social protection to all people across our region is already shaping our approach, as
we advocate combining short-term relief with longer-term strategies to build back better in the aftermath of the
pandemic.”
The scope and scale of existing programs is still limited. Most poverty-targeted schemes are failing to reach the
poorest families and the pandemic risks further reversing progress to eradicate poverty by almost a decade. Many
countries are also facing high levels of inequality, both in outcomes and opportunities, which the pandemic has
exacerbated. Population ageing, migration, urbanization, natural disasters and climate change, as well as technological
advancements are further compounding these challenges.
The report identifies significant underinvestment as one of the main factors for the huge coverage gap. Excluding
health, many countries in the region spend less than 2 per cent of GDP on social protection. This low level of
investment in people stands in stark contrast to the global average of 11 per cent. Another key reason is the high
prevalence of informal employment in the region, representing close to 70 per cent of all workers.
“The COVID-19 crisis has exposed the precarious situation of many working women and men and especially those in the
informal economy. There is a clear need for further investment in public social protection systems if we are to avoid
the stagnation of social and economic progress made across the region in recent decades,” said Ms Chihoko
Asada-Miyakawa, Regional Director ILO Regional Office for Asia and the Pacific.
Expanding social protection would have an immediate impact on reducing poverty, inequality and purchasing power
disparities. For example, the proportion of households living in poverty would fall by up to 18 percentage points if
governments were to offer basic child benefits, disability benefits and old-age pensions.
While the required investment of two to six per cent of GDP is significant, the report demonstrates that it is within
the grasp of most countries. The report recommends governments to reprioritize existing resources, boost public
revenues, tap into new technologies and embed social protection into national development strategies, underpinned by
social dialogue.
The report was launched on the sidelines of the fifth Regional Conversation Series on Building Back Better. The
high-level dialogue on “Social Protection: A Right for All, or A Privilege for a Few?” featured eminent personalities
from across the region including Mr. Guy Ryder, ILO Director General; H.E. Ms. Mereseini Vuniwaqa, Minister of Women,
Children and Poverty Alleviation, Fiji; H.E. Ms. Sania Nishtar, Special Assistant on Poverty Alleviation and Social
Safety to the Prime Minister, Pakistan; H.E. Mr. Kung Phoak, Deputy Secretary-General for ASEAN Socio-Cultural
Community; Ms. Haiyani Rumondang, Director General of Industrial Relations and Worker’s Social Security, Ministry of
Manpower, Indonesia; Ms. Sarah Cook, Director, Institute for Global Development, University of New South Wales; and Mr.
Michael Cichon, Professor Emeritus, Graduate School of Governance at UNU, Maastricht.
Read the full report: http://bit.ly/APSocialOutlook2020
View the Regional Conversation: http://bit.ly/WatchRC5