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  • Christian, democratic RP
    trails in social protection
     
    By Cai U. Ordinario, A. Tiemsin

    SO the Philippines is a Christian and democratic country, but in ensuring its people a life at decent levels, why is it lagging behind many other Asian—not one a Christian and a number not democratic—nations?

    This may be gleaned from the Asian Development Bank’s Social Protection Index (SPI), a rating system the bank developed. The results of its initial application has highlighted the need for the Philippines to double its efforts in providing social protection for its citizens.

    The index is a new tool for assessing the extent to which Asian and Pacific countries provide welfare, labor-market, social-security, health-insurance, microcredit, child-protection, targeted-education and health-support programs to their citizens, especially those living below the poverty line.

    The SPI can be used by governments and international agencies to assess and compare the social-protection efforts of countries throughout the Asia-Pacific region, and become aware of where a particular country may not be doing enough for its people.

    The SPI showed the Philippines’ index value—on a scale of 0 to 1—was only 0.21 while the Asian average was 0.36. The country ranked 22nd among 33 countries that participated in the development of the SPI.

    The final SPI score was averaged from the results of the countries’ performance on social-protection coverage, expenditure, distribution or poverty targetting and impact.

    On its performance on social-protection coverage, the Philippines  scored 0.33; and 0.22 in government spending on social protection vis-à-vis its gross domestic product (GDP); 0.30 in the extent policies and programs reach the target population; and 0.05 in the beneficial effect of social protection measures on an individual’s income.

    Axel Weber, one of the three authors of the book Social Protection Index for Committed Poverty Reduction, said that in the case of the Philippines, increasing social protection coverage could target the 30 percent of Filipinos not covered by PhilHealth; and noted the Social Security System (SSS) also does not cover a large part of the informal sector.

    “The Philippines needs to work on extending coverage. There should be a focus on the quality and depth of the coverage,” said Weber at a briefing in Pasig City on Wednesday.

    ADB vice president Ursula Schaefer-Preuss, also at the briefing, said the score of the Philippines, like many of its Asian neighbors, reflects the two sides of Asia—“high growth and high inequality.”

    Schaefer-Preuss said even with PhilHealth and the SSS already established, social-protection coverage remains unsatisfactory because the performance of these agencies are below average, as indicated by the country’s scores on the four SPI indicators.

    “We recognize that despite the impressive economic records, there are still too many people in our region not benefitting from the fruits of growth,” she said.

    “Here in the Philippines, the study shows that despite the fact that the country is quite advanced with its social- protection instruments like the SSS and PhilHealth, its performance is below the Asian average. The index of the Philippines is 0.21 on a scale between 0 and 1, the Asian average is 0.36. And this is in spite of the fact that the Philippines is on the way to be a middle-income country,” she added.

    Overall, the ADB said that attaining a high score in the index does not mean a country needs to be wealthy, but that even poor countries can afford basic social protection like financing health care, cash transfers to the poor and elderly and child protection.

    “While social protection is growing in importance in the fight against poverty and in meeting the Millennium Development Goals, there have been very few attempts to systematically quantify the overall impact of social-protection activities in terms of expenditure, beneficiaries or the impact of the programs. The SPI was created to fill this void,” said the ADB in a statement.

    The bank said that even if Japan and South Korea topped the list, countries considered relatively wealthy didn’t always score higher than poorer neighbors.

    While India and Pakistan have similar levels of per capita GDP, they score very differently on the SPI. India rates a 0.46 while Pakistan is at 0.07.

    On average, countries in the region spend just under 5 percent of their GDP on social protection and achieve an overall average coverage level of 35 percent of key target groups, which include the unemployed, elderly, poor, and disabled.

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