Social Protection

Social Protection Strategy

• Strategy background
• Strategic Guiding Principles for ADB Activities
• Social Protection Action Plan

Background

Asia and the Pacific is largely a young, rural, and poor region. Social protection programs and policies should be built to respond to its needs.

The region is still experiencing the effects of the demographic explosion with 40% of its population below 19.

The region's population is 3.1 billion, half of the world's total, and of this, 900 million people are poor.

About 60% of the total population live in rural areas and most of the population belong to the informal sector.

Generally, the main types of risks to population are those related to

• the individual lifecycle
• economy
• environment
• social/governance

While anybody can be vulnerable, the poor are at risk since they have fewer assets, reserves, or opportunities to fall back on.

The majority of Asian and the Pacific countries have some form of institutionalized social protection system but most of these have low effectivity due to

• limited coverage
• insufficient funds
• inadequate instruments

Most employees in the informal sector are unable or unwilling to contribute a relatively high percentage of their incomes to financing social protection benefits that do not meet their priority needs. In general, the informal sector prioritizes immediate needs such as health, employment or the source of livelihood, shelter, food, clothing, and survival from natural disasters, rather than traditional social security schemes such as unemployment or old-age insurance. Reforming existing social security systems to extend protection to the majority of citizens in the Asia and Pacific region is a critical priority.

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Strategic Guiding Principles for ADB Activities

ADB's Social Protection Strategy identifies common issues to be addressed in the region, but recognizes that individual countries have specific needs. Country initiatives will be developed based on the

• country's needs
• available resources
• feasible institutional arrangements
• political economy of reforms

Selected social protection interventions include:

• providing adequate coverage
• targetting vulnerable groups and gender issues
• ensuring sustainability and good governance
• having an integrated approach

ADB designs and implement all projects in compliance with national and international labor standards. National labor standards may concern minimum wages, safe working conditions, and social security contributions. The international core labor standards relate to the eradication of forced and child labor, the elimination of workplace discrimination, and freedom of association.

ADB has been conducting social impact assessments to ensure that its projects do not adversely affect vulnerable groups. Where needed, mitigation programs, such as social safety nets, are developed to compensate affected people.

Learn more on the Priorities for Social Protection and ADB Operational Implications of the Social Protection Strategy

Learn about the

• first Progress Report on the Social Protection Strategy, September 2002
• second Progress Report on the Social Protection Strategy, September 2004

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Social Protection Action Plan

The implementation of the strategy will require the institutional arrangements presented in the action Plan.

Learn more about the ADB Social Protection Strategy Action Plan [ PDF: 17kb | 1 page ]

To ensure coordination of efforts, the International Labour Organization (ILO) and ADB have signed a Memorandum of Understanding.