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UNESCO-ICSSR Joint WORSKSHOP ON SOCIAL PROTECTION IN South Asia. Social Protection against Crises in Nepal: Some Challenges. Bishwa Nath Tiwari Professor, Tribhuvan University, Nepal New Delhi 18 – 19 March 2010. five sections. Background - why social protection
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UNESCO-ICSSR Joint WORSKSHOP ON SOCIAL PROTECTION IN South Asia Social Protection against Crises in Nepal: Some Challenges Bishwa Nath Tiwari Professor, Tribhuvan University, Nepal New Delhi 18 – 19 March 2010
five sections • Background - why social protection • Effects of recent crises • Coverage of social protection in Nepal • Challenges to manage emerging risks • Suggestions/recommendations
PART I WHY SOCIAL PROTECTION
Apart from income and human poverty, exclusion and vulnerability are the important poverty dimensions in Nepal
Spatial Exclusion:HDI varies widely from 0.435 to 0.602 Spatial Exclusion:CDR moves to 3rd position when Kathmandu is excluded
Spatial and Social Exclusion:Women of remote areas have lowest level of HD.
Social Exclusion: Even among the C/E of Tarai, the HDI varies high, from 0.383 to 0.625; therefore social protection is necessary
Education: a significant driver - An improvement in the education of the excluded can bring a significant change
PART II RECENT RISKS & THEIR IMPACT
4 recent risks/crises • Maoist conflict • Three F’s • Fuel • Food • Financial crisis
Effects of Food & Financial Crises • Fuel and Food crisis • macro effects – increased prices of food grains – almost 50% of rice, legumes • micro effects – affected families with reduced access to food • Financial crisis • Depreciation of Nepali Rs • Increase in remittances in the beginning but now the rate of increase decreased.
PART III SOCIAL PROTECTION IN NEPAL
social insurance • It is the most important component • Pension • Gratuity • Provident fund • Others • Beneficiaries – civil service holders, army, police, teachers, corporation, and to a limited extent in private sector (around half a million)
social assistance • Senior citizens • Single women, widow • Dalits • Indigenous people
percent share of SP programmes in total SP expenditure, 2002/03
PART IV CHALLENGES
challenges for risk management • Declining indigenous risk management practices • Limited and scattered coverage of SP • Inefficient targeting • Limited fiscal space • Revenue generation • Expenditure management • ODA • Budget deficit
inefficient targeting • 75 per cent of elderly allowance was being used by non-poor households, • 72 per cent of widow’s allowance was going to non-poor single women. • NRs 3.5 billion could have been saved in 2008/09 if the scheme had been targeted only to poor
inefficient targeting • more than 50 per cent of those receiving scholarships were from better-off households (top three wealth quintiles), • 64% Dalits receiving scholarships came from poorer households, and • Dalit scholarship scheme is targeted more effectively than girls’ scholarship scheme.
fiscal space - expenditure management • Inter-sectoral – expenditure on social sector is one-third of the total development budget • Intra- sectoral allocation • There is some possibility of generating resources for social protection
PART V CONCLUSION AND RECOMMENDATION
conclusion • Social protection is an investment • Poor, excluded and other vulnerable groups must be protected • Despite limited fiscal space, SP is affordable • It is the political will which is more important than resources
Recommendations:Government • Implement a comprehensive social protection programme. • Devise self-targeting mechanism • Dialogue with private sector to extend measures • Extend to informal sector • Maintain macroeconomic stability • Encourage indigenous practices and diversify food crops.
Recommendations:donors • UN agencies needs to work as “One UN” and pool their resources • Honour the commitments made at Monterrey and other international forums regarding ODA • Disburse as per the commitments
Recommendations:private sector and civil society • Create decent employment opportunities • Implement social protection mechanism