Unescap: Widening social protection crucial in post-pandemic recovery

EFFORTS to expand social protection are crucial in a postpandemic world that could lift a third of the poor from poverty, according to the United Nations Economic and Social Commission for Asia and the Pacific (Unescap).

In the report, titled Beyond the Pandemic: Building back better from crises in Asia and the Pacific, Unescap said providing a basic social protection package would require an investment of 2 percent to 6 percent of gross domestic product (GDP), which many countries can afford.

Currently, many countries invest less than 2 percent of GDP on social protection, while the average investment across countries in the Asia Pacific is about 5 percent or less than half the global average of 11 percent of GDP.

“In the poorest households in Indonesia, Maldives, the Philippines and Sri Lanka, this basic social protection package would increase purchasing power by around 50 percent,” the report stated.

“Countries need, therefore, to extend coverage to everyone, while also ensuring that benefits are sufficiently high to make a difference to people’s lives,” it added.

Unescap said more than half or over 50 percent of the region’s people are not covered by social safety nets. However, without China, this increases to 75 percent.

This is mainly due to the size of the informal sector in many countries. Unescap also said this is a reflection of the lack of political will to provide adequate social protection.

The lack of safety nets leave many children suffering from malnutrition and other deficiencies that have long-term consequences and many households become vulnerable to poverty after an illness or pregnancy.

Further, Unescap said persons with disabilities often mean living below poverty or with meager incomes and the absence of adequate pensions.

“Most individuals and families in Asia and the Pacific manage life’s risks on their own—which not only leaves them very exposed but reduces their opportunities and life prospects,” the report stated.

Unescap said building back better must involve the creation of universal social protection in countries. This can be done through a mix of contributory and non-contributory schemes.

Apart from social protection, Unescap said enhancing regional cooperation is crucial, especially in a post-pandemic world. This could be done while dealing with climate change; taking into consideration population aging; and technological innovation and new forms of work.

Countries in the region, Unescap said, should also invest in a sustained socioeconomic recovery that is aligned with the Sustainable Development Goals.