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OECD WORK ON SOCIAL PROTECTION Asia-Pacific Social Protection Week, Session 6: Capacity Building for Monitoring

OECD WORK ON SOCIAL PROTECTION

Asia-Pacific Social Protection Week, Session 6: Capacity

Building for Monitoring Social Protection Programmes Tools and Indicators.

August 3 2016, Manila

Willem Adema, D.Phil

Senior Economist, OECD Social Policy Division

DISCLAIMER: This presentation does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

reflect the views of ADB or the Government concerned, and ADB and the Government cannot be

OECD work on social protection - tools and indicators

OECD social data cover a wide range of items, including:

Social Expenditure,

Gender,

Social Benefit Recipients,

Pensions

Tax and Benefit systems,

Labour market programmes

Income Inequality and Poverty,

Health and

Families and Children

Affordable Housing (in 2017)

How to build cross-national datasets with comparable indicators?

The art of developing indicators for policy analysis: illustrating good

practice, prompting change where needed.

OECD work on social protection - outreach

Focus on Asia/Pacific with the OECD Korea Policy Centre in Seoul:

Health, Pensions and Society at a Glance Asia/Pacific series

Social expenditure and health accounting technical papers

Quality of health-care survey (2015)

Work on Family and Child indicators (to start in 2017)

OECD Development Centre, Finland’s National Institute for Health and Welfare implementing the EU Social Protection System Programme to support low and middle income countries building sustainable and

inclusive social protection systems.

Work in 10 partner countries in Africa and Asia, including Indonesia and Viet Nam.

Developing cross-nationally comparable social datasets

A common methodology: defining concepts, expert meetings, training programmes and many bilateral exchanges with national correspondents

Collecting social statistics based on administrative data is often more complicated than in other areas as it potentially involves many different agencies (e.g. Social Insurance, Health, Welfare and Tax) at different levels of government each potentially with their own sources and methods.

The different sources and methods necessitate careful use and interpretation of indicators.

Comprehensive social systems were developed over a long period of time

Public social spending in selected OECD countries, per cent of GDP, 1960-2016

in selected OECD countries, per cent of GDP, 1960-2016 Note: Social spending aggregates based on detailed

Note: Social spending aggregates based on detailed data for 1960-2013/14; national aggregates for 2014-2015 and estimates for 2016 Source: OECD (2016), OECD Social Expenditure database, (www.oecd.org/social/expenditure.htm ).

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Tax systems and reliance on the private sector to provide

protection can affect “real” social spending levels across

countries

Gross public and total net social spending, as a percent of GDP, 2013

and total net social spending, as a percent of GDP, 2013 Source: OECD (2016), Social Expenditure

Source: OECD (2016), Social Expenditure (SOCX) via www.oecd.org/social/expenditure.htm

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Public social spending reduces poverty, especially if

systems are effective in getting support to low-income

households

Panel A: Public social expenditure and poverty rate

Panel A: Public social expenditure and poverty rate Panel B: Does social support reach low-income households?

Panel B: Does social support reach

low-income households?

Percentage of public social benefits in cash paid to the lowest quintiles and social expenditures as % GDP, working age population

and social expenditures as % GDP, working age population Source : World Bank, World Development Indicators,

Source : World Bank, World Development Indicators, http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators, as in August 2015. ILO The World Social Protection Report 2014-15, http://www.social-protection.org/gimi/gess/ShowTheme.action?th.themeId=3985, ADB staff estimates based on country reports Social Protection Indicator, 2015, World Health Organisation Database (WHO), OECD (2014), Social Expenditure database, (www.oecd.org/social/expenditure.htm) and OECD Income Distribution Database (IDD, http://oecd/idd ).

Panel B: Data refer to current transfers received from public social security.

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Coverage of social insurance systems is a major challenge in many countries

Pension coverage in selected countries, 2014 Per cent of the labour force Per cent of
Pension coverage in selected countries, 2014
Per cent of the labour force
Per cent of the population aged 15-64
China
HongKong, China
Indonesia
Malaysia
Philippines
Singapore
Thailand
Viet Nam
100%
80%
60%
40%
20%
0%
0%
20%
40%
60%
80%
100%
Source: OECD (2016) Pensions at a Glance Asia/Pacific ( forthcoming )

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There are gaps in public investment in children, especially when they are very young

Public expenditure on family benefits and education, by type of spending and age of child, USD PPP per capita, selected countries

France Other benefits in kind+ALMP
France
Other benefits in kind+ALMP

EducationChildcare Cash benefits and tax breaks

Education Childcare Cash benefits and tax breaks

Childcare

Education Childcare Cash benefits and tax breaks

Cash benefits and tax breaks

PPP per capita (USD)

Netherlands

EducationOther benefits in kind+ALMP Childcare Cash benefits and tax breaks

Other benefits in kind+ALMPEducation Childcare Cash benefits and tax breaks

ChildcareEducation Other benefits in kind+ALMP Cash benefits and tax breaks

Cash benefits and tax breaksEducation Other benefits in kind+ALMP Childcare

PPP per capita (USD)

25000

20000

15000

10000

5000

0

breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 25000 20000 15000 10000 5000

25000

20000

15000

10000

5000

0

20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in
20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in
20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in
20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in
20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in
20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in
20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in
20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in
20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in
20000 15000 10000 5000 0 25000 20000 15000 10000 5000 0 Sweden Education Other benefits in

Sweden

EducationOther benefits in kind+ALMP Childcare Cash benefits and tax breaks

Education Other benefits in kind+ALMP Childcare Cash benefits and tax breaks

Other benefits in kind+ALMP

Education Other benefits in kind+ALMP Childcare Cash benefits and tax breaks

Childcare

Education Other benefits in kind+ALMP Childcare Cash benefits and tax breaks

Cash benefits and tax breaks

PPP per capita (USD)

25000

Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD

20000

15000

10000

5000

0

breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD average Education Other benefits
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 OECD average Education Other benefits

OECD average

EducationOther benefits in kind+ALMP Childcare Cash benefits and tax breaks

Other benefits in kind+ALMPEducation Childcare Cash benefits and tax breaks

ChildcareEducation Other benefits in kind+ALMP Cash benefits and tax breaks

Cash benefits and tax breaksEducation Other benefits in kind+ALMP Childcare

PPP per capita (USD)

25000

Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note:
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note:
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note:
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note:
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note:
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note:
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note:
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note:
Cash benefits and tax breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note:

20000

15000

10000

5000

0

breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note: data for the Netherlands
breaks PPP per capita (USD) 25000 20000 15000 10000 5000 0 Note: data for the Netherlands

Note: data for the Netherlands includes mandatory private expenditure on maternity and paternity leave (under cash benefits and tax breaks) Source: OECD Social Expenditure Database and OECD Family Database

Concluding remarks

Developing social statistics is often complicated as it involves many different agencies, sources and methods.

Capacity building is key to developing cross-nationally

comparable quality indicators

These quality indicators are crucial to meaningful international

comparisons that can illustrate policy challenges…

… and contribute to the exchange of good policy practices and social policy development.