Recent developments in social accounting The ILO Social Security Inquiry | SSI

1. Recent developments in social accountingThe ILO Social Security Inquiry | SSI ADB/ILO/OECD/RCHSP technical workshop on social protection data (expenditure, financing and recipients)Seoul, 20 November 2008 Florence Bonnet Social Security DepartmentInternational Labour Office (ILO)

2. The ILO Social Security Inquiry recent developments | Outline • Point 1 | The social security inquiry in a few words • Point 2 | Latest developments • Geographic coverage • Technical improvements • Contextual changes • Point 3 | One or two words about measure of coverage • Point 4 | Current situation

3. Point 1 | The ILO Social Security Inquiry Main objective • Building a knowledge base at the global level • Objective: Collect, store and disseminate, on a regular and sustainable basis, comparable statistics on social securitysystems/programs financing, expenditure, benefitlevels and coverage. • Aimed at becoming an integrated and common database • The central point for integration of part of more specific departmental databases (micro insurance, actuarial activities, textual social security information) • Aimed at becoming a Common Database (non ILO « limited ») and available for all • Systematic approach compatible with existing statistical standards (Methodological framework based on ESSPROS and OECD) and with ADB SPI • Objective: collection and dissemination through alliances and partnerships with other Organizations

4. Point 2 | SSI Latest developments • The idea: consolidating and making the database attractive and useful to potential users and contributors • both in terms of countries covered (from all regions), data, indicators and functions available • The latest developments concern mainly • Geographical extension • Technical improvements of the online utility • Other changes: development & improvement of other databases to support the Social Security Inquiry and contextual changes

5. Point 2 |Geographical extension and consolidation • Including new countries • All ADB countries (SPI data on expenditure and beneficiaries) are in SSI with three exceptions where there were already some data • Focus on countries with specific SECSOC projects with a data collection component: e.g. Tanzania, Zambia, Mozambique in the last year • Try to fill the gap for regions that are not yet or badly coveredUnder process of data collection in the Middle East (building on social security specialists’ activities in the field) • Includes countries where information is found in annual reports and online: Mauritius, Israel, Costa Rica, Malta, Turkey, St Kitts&Nevis, etc. • Countries from OECD are now included: as a general principle, try to fill the gap regarding missing information both qualitative and quantitative • Completing and updating information for countries already in SSI: • ISSA countries: Update and complete information for additional branches (other than old age & employment injury) & discuss with ISSA the possibility data collection from their members to other branches • Start updating and completing — when possible — information for ADB countries (e.g. China, Pakistan, Philippines..) but still very partial

6. Point 2 | Geographical extension

7. Point 2 | Technical improvements • Changes in the indicators’ section • New indicators | will be an ongoing process to answer to user needse.g. Desegregation of expenditure according to OECD classification of expenditure: public, private mandatory and private voluntary • New presentation including graphs • Multi countries selection for a given indicator • Development of functions which facilitate inter-databases “direct or indirect links” • Utility to import OECD data in SSI and to export SSI data for all countries into OECD SOCX format [expenditure data] • Automatic links and views between the various SECSOC databases [Micro insurance, Social security expenditure, Programmes & mechanisms databases] as well as with the GESS platform • Work on the screens for a public free access to a limited set of information • Indicators section, Macro data, List of scheme and scheme level of information, list of benefits without detailed information

8. National level • What? • Economic & financial information • Including national social security data • Population • Employment • Sources • International data sources (automatic insertion) • National sources Point 2 | main page levels of information Scheme level Core data in SSI National | scheme data Automatic calculation of indicators

9. Overview SSI | Inventory of schemesPhilippines • Definition of each scheme • Nameof the scheme • Type of scheme: • Provident fund schemes • Defined contribution schemes • Defined benefit schemes • - Contributory | non contributory • - Private(voluntary or mandatory) |public • If public, level of government • National, regional or local level

10. Scheme and benefit informationPhilippines | Pensions - Social Security System (SSS) Philippines | Pension [Social Security System] • General information at scheme level • Target groups • No. of affiliated members, active contributors & Avg. gross earnings • Expenditure at the scheme level • Revenue at the scheme level • Benefits inventory • Expenditure associated to the benefit • Guaranteed minimum: Yes | No • Average benefit – and periodicity (Annual, Daily, Monthly) • Total expenditure • Unit • Data quality • Number of beneficiaries • Stocks of beneficiaries at a given moment (i.e. end of reporting period) • By sex and age group (0-14, 15-64, 65+) • Average benefit levels • Average benefit in payment at a given date (i.e. in December each year) • By sex and age group (0-14, 15-64, 65+)

11. Point 2 | From raw data to indicators Changes in the indicators section Old age demographic protection ratio | Active contributors

12. Point 2 | Technical improvements Multi-countries selection

13. Point 2 | Technical improvements Export of SSI data in OECD format • Possible for any country available in the Social Security Inquiry • Export expenditure data in Excel format • In line with the structure of SOCX database for • public and mandatory or voluntary private programmes • branches (1-9) • type of expenditure (cash / in kind)

14. Point 2 | Developments of other complementary databases to support SSI • Expansion of other complementary databases to support the social security inquirybefore future integration within SSI • Expansion of the Social Security Expenditure database • Developed some years ago and based on existing international databases on social security • Offers some information on social security expenditure, total and per branch and some basic contextual indicators collected from various existing international sources • The database counts at present more than 80 indicators • It will be merged with the Social Security database • Update of the Mechanisms and Programmes database • Related qualitative information, including existence of social security laws for the different branches, types of programmes, legal retirement age, maximum legal replacement rate, etc.

15. Other ILO| SECSOC databases OECD SOCX Data Other ILO SP DB OECD SOCX SSI ILO-ISSAcommon DB ILO-ISSA-OECDcommon DB Insertion OECD SP Pgs & Mech. DB [Based on ISSA/SSPTW] OECD SOCX Data Export Prod. of required indicators | tables ISSA  ISSA Data from ISSA Members Ideal – Data entry online Social Security Inquiry – SSI Micro-insurance schemes DB Oracle ISSA ADB -SPI ADB | SPI Data from Excel – SPI & Additional data (Report) Automated transfer of data compatible with SSI ADB - Raw data for SPEXP, SPCOV - Automatic of SPI calculation? Output According to databases: raw data, performance indicators per country and for a set of countries, other indicators, survey data, methods, models to download, results Users Internal users and external users A Common database | Overview of latest changes • Data included - Semi-automatized insertion and export are operational • Would need to be completed with information on beneficiaries and protected persons ILO-ISSA-OECD-ADBcommon DB • New countries (including all OECD & ADB countries) • Countries in process of data collection • Consolidation of existing countries • Technical improvements • Development & update of complementary databases before future integration • Direct “views” into the “Mechanisms & programmes” and “Microinsurance databases” will be developed from SSI ILO On-going update and plan to be expanded to other branches Countries are included. Look for additional information & contributions for completion & update

16.       Point 3 | Main questions on coverage data What do we want to measure?

17. Point 3 | Methodological issuesHow to measure coverage • the concept of ProtectedPersons relates to those groups of the population who are protectedagainst a specificrisk or contingencyin casetheywouldneedit • Active contributors • Affiliated or protectedpersons Measuringcoverageis not straightforward • FirstMeasures of social security coverage need to be first established by function or policy area • People may have access to health care, but not to old age pensions, or vice versa. A differentiated approach to measuring coverage is necessary. • Aggregate coverage measures can be built (like SP index) only through aggregating separate coverage indicators for different policy areas or functions. • SecondCoverageagainstspecific social risks and contingenciescanbeunderstood in twoways: ProtectedPersons and ActualRecipients (and eventhird one « legalcoverage ») • ThirdImportance of the choice of numerator and denominator • FourthThe issue of double counting • the concept of ‘actualrecipients’ relates to thosereceivingbenefitsat a certain point in time • Thesetwo concepts are complementary to eachother and shouldbeassessedseparately

18. Point 3 | The ILO social security as a tool to answer to at least one question • What can the ILO social security inquiry do in this respect? • Provides indicators on Protected persons and Actual recipients for different groups of the population and for each function • Try to deal with double counting by making the difference between • Basic and supplementary benefits • Lookingatcoverage by functionlimits in a certain extent the magnitude of this issue • Based on administrative data, it allows mainly to answer to the first question: • Estimate of coverage: Information on the number of beneficiaries (and benefit level) and their characteristics • Other questions will call for complementary data collection tools, mainly surveys

19. Point 3 | The ILO social security Asian countries - Old age pension recipients ratio 60+ (or 65+) | incl. mean-tested periodic benefits

20. Point 3 | The ILO social security Correlation between labour Force participation of population over 65 and Old age recipients ratio 60+ or 65+

21. Point 4 | Situation • The inquiry is still in a development phase • Including OECD countries, SSI includes almost one hundred countries … with “some” data • For most countries the picture of the social security system is unfortunately incomplete, with a direct incidence on results for indicators • More data on expenditure | Less on coverage & benefit level • Lack of information on health • look for possible use of the work done in health accounting • At the country level, the main challenges still the same, they concern • Production & quality of statistical information in particular in developing countries • Fragmentation of interventions: multiplicity of actors and higher share of non governmental interventions (especially in developing countries) • Deficit of coordination & network of social protection providers and social protection statistics providers at the national level • Difficult to get a global viewat the national level of social protection programmes, expenditure, and even more of coverage

22. Useful links • ILO social security inquiryhttp://www.ilo.org/dyn/ilossiadmin/ssimain.home?p_lang=en • Username: SPI1 • Password: welcome • Public access | under development http://www.ilo.org/dyn/ilossi/ssimain.home?p_lang=en • ISSA • ISSA Website http://www.issa.int/ • social security statistics databasehttp://www.issa.int/engl/homef.htm • Micro-insurance scheme databasehttp://www.ilo.org/gimi/ • The Social Security Programmes and Mechanisms database & the social security expenditure databasehttp://www.ilo.org/dyn/sesame/IFPSES.SSDBMenu • Platform on Global Extension of Social Security | GESShttp://www.socialsecurityextension.org/gimi/gess/

23. Point 5 | Plans and main orientations • In the short run, the strategy is • to consolidate countries that are in the database (including those under process of data collection) to achieve a situation that makes the database useful and attractive • to potential users and • to potential contributors at the national, regional and international levels • To complete the development of the public access, to make it more visible and user-friendly • Concerning coverage • The need for data on coverage is not to be demonstrated … • Some data start to be available from the social security inquiry and joint efforts are necessary to go ahead

24. Point 5 | Plans and main orientations • They present a number of limitations due mainly • To the nature of administrative data, their availability and quality • To the limited scope of these data allowing to answer only partly to the questions raised about coverage • For many (if not most) countries, the need to complete and update the picture that is, at present, only partial • There is a need for data on all dimensions | branches and in particular on health coverage, where the needs are huge • For Asian countries in particular: need for data on protected persons and not only beneficiaries, data differentiated by sex and if possible look for possible use of the work done in health accounting • There is a clear need for complementary tools of data collection on coverage • The ILO has developed a module of questions to be used in regular surveys and is ready to support any country that is ready to do so

25. Point 5 | Plans and main orientations On a on going basis and in the run • Collecting data is time and resource consuming and only a joint and collective effort of actors involved in this field could allow • To build & consolidate the knowledge base • To contribute to build capacity at the national level to set up sound and effective information systems to monitor and manage social security schemes activities • To set up agreed and shared methodologies • To test some complementary tools

26. Merci….. Thank you 고마워요   

27. Countries covered [1]

28. Countries covered [2]

29. Point 2 | Focus onOECD expenditure data in SSI • Benefits grouped when possible by scheme or programme • Established correspondence between OECD classifications and ILO functions and schemes | benefits features • Add information as required in SSI when possible and necessary • Try to establish systematic default values based on the information available in OECD SOCX database but would need further work country by country A “semi-automatized” import procedure to insert data into SSI • As a general principle, try to fill the gap regarding missing information: Protected persons (contributors | affiliated; Beneficiaries and levels of benefit • For some countries, already start adding • Qualitative information (at the scheme and benefit levels) • Data on beneficiaries and level of benefits (ADB data, annual reports, statistical reports) • Australia, New-Zealand, Japan

30. Australia | Unemployment scheme – List of benefits Australia | Unemployment – Mature Age Allowance (MAA) Australia | Unemployment scheme / programmeInformation at the programme level : Qualitative information, Sources and links, Quantitative information Australia | Inventory of schemes Point 2 | Focus onOECD expenditure in SSI

31. Other ILO SP DB OECD SP Pgs & Mech. DB [Based on ISSA/SSPTW] Social Security Inquiry – SSI ILO Micro-insurance schemes DB Oracle ISSA ADB The ILO internet platform on the global extension of social security | GESS • Databases are part of the Gess platform • And contribute directly to it, notably through country profiles

32. SSI | General events and activities that impact SSI visibility and influence SSI priorities • The development of the ILO internet platform on the global extension of social security | GESS • A window to increase potential visibility for the database or inter-related databases • An interactive tool that makes possible direct contributions and exchange of information • Some direct links are already in place between the various databases and the country profile pages displayed through the platform • Tripartite meeting of experts on the measurement of decent work • 10 dimensions are identified to measure progress towards decent work • For social security dimension, 3 main indicators are identified • Public Social expenditure in % of GDP & of total government exp. • Number of old age pension beneficiaries aged 60+ or 65+ in percentage of the population aged 65+ • Health expenditure not financed by out of pocket payment in percentage of total health expenditure

33. Point four | The ILO social security Old age demographic protection ratio | Active contributors

34. Correlation between labour Force participation of population over 65 and Public non health social protection expenditure as percentage of GDP (2005)