ASEAN’s Social Protection Initiatives: Global Problem, Regional Approach

1. ASEAN’s Initiatives on Social Protection: Regional Approach to a Global Problem? Yuyun Wahyuningrum Policy Advisor on ASEAN, Oxfam International, yuyun@oxfam.org.hk, wahyuningrum@gmail.com

2. ASEAN: Overview • 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) • Founding Fathers of ASEAN: 5 Foreign Ministers - Adam Malik (Indonesia), Narciso R. Ramos ( Philippines), Tun Abdul Razak (Malaysia), S. Rajaratnam (Singapore) and Thanat Khoman (Thailand) • The Context in 1960S: Conflict, Communism, Poor, Dictatorship

3. Regional Inter-governmental Organization Est. 1967, 10 members 4.5million sq kms 580million people (growth1.5%)

4. The context in 1960s Conflict: Indonesia-Malaysia (Konfrontasi 1962-66), Philippines-Malaysia (over Sabah) Singapore secession from Malaysia Mindanao, Southern Thailand Thailand was brokering reconciliation among Indonesia, the Philippines and Malaysia Poor Communism Cold War, arms race, proxy wars Indochina War: Vietnam, Laos Cambodia Burma: 1962 Club of dictators: Marcos, Suharto, Thanom, Lee Kwan Yew, Abdul Rahman The context of 2000s GNP of about US $ 312 billion and per capita of US $ 496 Economic development: HDI (2004): Rank 25 to 133, GDP (2006): $208 to $29,499 Diversity: Political systems – democratic, semi-democratic, constitutional monarchy, absolute monarchy Power dynamics: Traditional most influential member – Indonesia The shift of power from ‘older 5’ to ‘newer 4’ (CLMV)? Bali Concord II 2003 declared that ASEAN aims to become a single market ASEAN is changing

5. We have been together for 41 years. Let register our marriage now!

6. Why ASEAN Need Charter? • To gain more international recognition • To have a legal personality (a constitution of ASEAN and a form of treaty) • To ensure members implement agreements (in the past 43 years only 30 per cent of ASEAN agreements were ratified or implemented; 55 per cent of Hanoi Plan of Action have not implemented) • To establish timeframe for cooperation, no procrastination • To end the habit of loose-talk only, more professional • To represent new ASEAN with new structure

7. What’s new? The Charter Regional Vision Adhering to rule of law, good governance, respect for and protection of HR and fundamental freedoms Blueprints of Cooperation Human Rights Commission Recognition of civil society participation What remain the same? Non-interference principle and consensus Consensus vs collective responsibilities No change to the equal sharing of the contribution to annual budget Equal rights = equal responsibilities Each member pays US$905,000 per year ASEAN annual budget of US$14 million The Charter: a More Predictable ASEAN?

8. ASEAN’s Commitment to Regionalism • 1976 – Bali Concord I – formally adopted political co-operation as part of ASEAN regular activities • 1992 – ASEAN Free Trade Agreement • 1997/98 – economic crisis – acceleration of economic integration initiatives – ASEAN Vision 2020 • 2003 - Bali Concord II – the launch of ASEAN Community by 2020 • 2005 – the launch of ASEAN Charter process • 2006/07 – the acceleration of ASEAN Community to 2015 • 2007 – ASEAN Charter drafting and the ASEAN Economic Community Blueprint • 2008 – ASEAN Charter ratification • 2009 ASEAN Political Community and Socio-Cultural Community Blueprints

9. Context: ASEAN Community Integration • One Vision, One Identity, One Caring and Sharing Community. • Principles of democracy, the rule of law and good governance, respect for the protection of human rights and fundamental freedoms. • Regional solidarity to realize an ASEAN Community that is politically cohesive, economically integrated and socially responsible in order to effectively respond to current and future challenges and opportunities. • Integrated community through regional cooperation: ASEAN Security Community, ASEAN Economic Community, ASEAN Socio-Cultural Community

10. Three Communities: Had been reflected in ASEAN structures of inter-governments and processes as well as ASEAN Secretariat as the graphs will show:

12. POLITICAL –SECURITY Blueprint • Rules based, shared norms and values • Cohesive, peaceful, stable, resilient with shared responsibility • Dynamic and Outward looking • ECONOMIC Blueprint • Single Market and production base • Competitive economic region • Equitable Economic development • Integration into global economy • SOCIO-CULTURAL Blueprint • Human Development • Social Welfare and Protection • Social justice and rights • Environmental Sustainability • ASEAN Identity ASEAN Community ASEAN Charter - One Vision, One Identity, One Caring and Sharing Community

13. ASEAN Economic Community Council ASEAN Security Community Council ASEAN Socio-Cultural Community Council Soc Welfare (AMMSWD) + ACWC Econ Min (AEM) AMM + AICHR DM (AMMDM) AFTA Council ARF Environment (AMME) Defence (ADMM) Investment (AIA) Labor (ALMM) + ACMW Law (ALAWMM) Finance (AFMM) Rural Dev (AMDPE) Trans Crime (AMMTC) Food, Agr, (AMAF) Education TEN NATIONS, ONE CARING & SHARING COMMUNITY

14. ASEC Structure

15. How then the new ASEAN respond to social protection as a regional body?

16. ASEAN Framework on Social Protection • ASEAN Social Cultural Community Blueprint • Under B.2: Social safety net ad protection from negative impacts of integration and globalization • Strategic Objective: ensure that all ASEAN peoples are provided with social welfare and protection from the possible negative impacts of globalization and integration by improving the quality, coverage and sustainability of social protection and increasing the capacity of social risk management • Initiatives: • Survey on existing social protection regimes in SEA • Exchange best practices in social security system • Social Protection in ASEAN labor practices cooperation • Establish social insurance system to cover informal sector • Network of social protection agencies

17. ASEAN Framework on Social Protection • ASEAN Social Cultural Community Blueprint • Under C1. Promotion and protection of the rights and welfare of women, children, the elderly, and persons with disabilities • Strategic objective: safeguard the interests and rights as well as provide equal opportunities, and raise the quality of life and standard of living for women, children, the elderly and persons with disabilities • Initiatives: • Improve social protection for the elderly in ASEAN Member States, through networking, and exchange of information • Develop social security standards in each ASEAN Member states

18. As you can see, in ASEAN … Social protection is seen as a shield from the negative impact of integration& globalization and NOT as a HUMAN RIGHT In fact social cultural blueprint was designed to respond the negative impact of the economic cooperation blueprint The intervention to the social protection is still very basic

19. Recent Evolution of Social Protection System in ASEAN In the context of Pre-Financial Crisis versus Trends in Social Protection Reforms

20. Pre-Financial Crisis … • SP approaches were quite different from one country to another in ASEAN but there are common characteristics: • Strong emphasis on self-reliance through employment and on family and other informal support networks – State as provider and as the last resort • Public spending focused on more on human capital acquisition than welfare transfers • Concentration of social insurance in the civil service and formal private sectors, contributing to low coverage in most ASEAN economies where informal employment was dominant

21. Trends in Social Protection System Reforms in ASEAN Member States • Expanding the scope of core social insurance programs • Shifting from a dominance of food and fuel subsidies to a greater reliance on targeted cash transfer program • Adoption of “anti-poverty” programs that utilize and integrated rural development approach, especially in low-income and rural settings, • On Education – increased scholarships, fee waivers and conditional cash transfers • On Health – greater efforts to ensure health services and access to the poor • Increased emphasis on improving targeting systems

22. Reflection • The Blueprint demonstrates that the negative impacts of the regional integration and globalization should be anticipated, and the current context told us that crisis should be expected to be happened again, therefore: • There is a need to reform social protection system into a transformative and people-oriented system is needed to improve people’s resilience, • There is a need to policy coherence between ASEAN Social Cultural Community and ASEAN Economic Community, • ASEAN can take a role as repository of resources, database and tools to effective social [impact] monitoring • There is a need of regional exchange of good practices on social program and documenting the practices,

23. Proposed Strategies for CSOs: • Engage the ASEAN to develop social security standards at both national and regional level and call on ASEAN to apply rights-base approach to the standard, • Work in Coalition to monitor the implementation of Social Protection Reform in ASEAN and report annually, • Call on ASEAN to come up with a regional policy coherence on social protection system that address the problems of the future: such as cost of catastrophic health issues, costs of education, weather and disaster insurance and protection to climate change, and including migrants into the protection systems, etc.

24. MEMBER STATES Get the member state(s) to champion Social Protection Reform in ASEAN INTER-GOVERNMENTAL MEETINGS Use SOMSWD (meets annually) and AMMSWD (meets once every 3 years), ASCC Council (meet annually): as a venue to introduce the idea and negotiate Document: ASEAN Strategic Framework and Plan of Action for Social Welfare, Family and Children for the period of 2011 to 2015 Saving Face Politics: Under Indonesia chairmanship 2011? Cambodia chairmanship 2012? Brunei chairmanship 2013? Malaysia chairmanship 2014? ASEAN Organs: ASEC, ASEAN SG, CPR AICHR – TOR Art 4.2: drafting ASEAN Dec HR ACWC & ACMW Target of Influences:

25. ASEAN Strategic Framework and Plan of Action for Social Welfare, Family and Children for the period of 2011 to 2015 • Timeline: • April-June 2010: drafting process • July 2010: SOMSWD Meeting in Hanoi to comment the Draft • Aug-October 2010: inputs from civil society? • November 2010: AMMSWD Meeting in Brunei to approve the draft. • Contact: ASEC, Dept. Women, Labor and Social Welfare

26. Thanks! yuyun@oxfam.org.hk, wahyuningrum@gmail.com