(Response to Questions from The Sub – project of the ASEAN – EU Programme)
1. Social Protection Schemes in Thailand
The existing Social Protection Schemes in Thailand can be summarized as Social Services, Social Insurance, and Social Assistance. They are mainly as follows: a) Social Services aimed at social risk reduction for the population include: - Education : free mandatory 6 years, and 9 years compulsory education for all children, - Health Care : Universal Health Care under the 30-baht Health Care scheme, - Employment Services : including Labor Market Information and placement assistance for all job Seekers at government’s employment offices, - Skills Development : including skills development training for new entrants to the labor market, and Skills upgrading training for those already in the labor force, - Child Protection : by labor Protection Act, which made employment of children under 15 years of age illegal, and enforced by labor inspections, - Minimum-Wage Regulation : to protect workers from being exploited by employers, enforced by Ministry of Labor, - Occupational Health and Safety : by the OSH law and regulations enforced through inspections of establishment, and by OSH promotion activities, - SME Development Promotions : by technical and marketing assistance, as well as management training by several programs such as One–Tambon–One–Product (OTOP), entrepreneurs development training, occupational training, group enterprise promotions, etc. - Micro - Finance Schemes : by providing micro credit for occupational development under several programs such as the Village Fund, Occupational Funds, saving groups, Co-operatives micro financing, etc. b) Social Insurance-Providing insurance – type services for the working population including - Social Security : covering formal private employee by collecting contributions from employers, employee, and government contribution to provide benefits to the employee. Benefits include healthcare, maternity, child support, disability compensation, death, retirement, and unemployment, - Workmen Compensation : covering formal private employee who are injured or ill caused by working, by collection contribution from employers to provide expenses and compensations to the workers, - Pension schemes -several mandatory pension schemes, apart from the social security, induced the Government Pension Fund covering government employee, Teachers Association Pension covering teachers, and several voluntary Provident Funds for private employee, c) Social Assistance Provide assistance to the needy and disadvantaged population. The assistance includes: - Residential home and shelter, - Disaster relief, - Occupational assistance for the handicapped, - Occupational assistance for disadvantaged women, - Cash and In – kind transfer for elderly and poor family, - Scholarships and assistance for children in poor family, - Public work Programs for disadvantaged unemployed people,
2. Priority Issues in Social Protection
a) Income Generation for the population under poverty, b) Expansion of coverage of Social Protection including pension to the informal workers, which is almost two – third of the working population including farmers, self – employed, and informally employed workers, c) Adjustment of existing Social Protection towards the increasingly aging of population profile, and the increasing burden on pension for retired population, d) Localization, the transfer of social services and social assistance to Local Administration, with full community participation and empowerment, e) Social Protection with regard to migrant workers.
3. Key Measures to Address the Issues.
a) Income Generation - SME Development activities through OTOP, and micro-financing programs, - Human Resource Development planning to develop a master plan for the development of the population, b) Social Protection for informal Workers. - Research and Studies to formulate policies and programs for the informal workers such as: Occupational Safety and Health, Pension, Social Security, etc. c) Aging Population - Policy formulation for multi-pillar National Pension Program including mandatory and voluntary schemes, d) Localization and Empowerment - Develop legal and budgetary framework for the transfer of social services and assistance to local administration, and community empowerment, - Capacity building for local administration, - Provide support for community-led activities and empowerment, - Proposal for community-based pension and welfare for informal workers in rural areas, f) Migrant Workers. - Registration of migrant workers. - Basic health care for registered migrant workers, - Labour welfare and protection under the Labour Protection Act.
4. Challenges in the Implementation of Policy Measures.
a) Increased global competition and globalization posed a threat to grass-root SME development. Local entrepreneurs and promoters have to be well informed and be able to adapt to the changes and the dynamism of the market requirement as well as technology development, which will impact on the business. b) The lack of experience in social protection, especially on pension for informal workers, makes it difficult to develop suitable policies and programs. There was no proven programs or model that can be used or adopted for the Thai informal sector. More knowledge and information are needed in order to develop a program with high likelihood of success. For example, while universal pension would be too costly to the country, the mechanism to calculate and collect contribution and pay benefits to informal workers throughout the country seems to be extremely difficult. c) Caring for the elderly in the increasingly aging population will become highly costly to the society if proper preparation and adjustments are not in place. d) The majority of the population need to be informed, educated, and motivated to participate in the local administration in order to successfully empowering the community and local administration to efficiently manage the delivery of social services and assistance. This is a major undertaking for the 63 million population scattered in 76 provinces of Thailand.
5. Budgetary Implications
As new programs have been recently developed such as the village Fund, Universal Health care, Education Reform, OTOP, etc., more budget has been allocated to the Social Protection. This was achieved by the consistent growth in the economy and the government’s income. With the growth, the government has been able to allocate more budget to the social issues while maintain the spending on security and government administration, thus avoiding sacrificing one over the others. However, with several social issues, such as those discussed previously, still require yet more efforts and budgets, the country will need to maintain the healthy rate of growth in order to provide for sufficient funding of new programs without having to sacrificing others. This will be a challenge especially when considering the very high cost of caring for the aging population, and the social protection for the informal workers which is still the majority of Thailand’s workforce.
6. Inter-Agency committee or Mechanism
There are only a couple of social protection programs in Thailand that use the Inter-Agency Committee or mechanism. One group is the Social Security, minimum-Wage, and Labor Protection programs which use the Tri-Partite committee to manage and oversee the programs. The Tri-Partite committee consists of government representative, representative of employers association, and representative of labor associations. These programs are all within the Ministry of Labor. Another program that has inter-agency mechanism is the OTOP program. Several agency such as Ministry of Interior, Ministry of Industry, Ministry of Agriculture and Agriculture Cooperatives, and Ministry of Commerce, works together to help promote the grass-root micro enterprises through out Thailand. Apart from these, there are several intra-ministry mechanisms in which agencies within the same ministry cooperate to deliver social protection, such as the Housing Authority and the Micro-Credit Scheme under the Ministry of Social Development and Human Security Cooperate to provide housing for the poor, among others.
7. Bilateral co-operations with ASEAN member countries.
To my knowledge, apart from conferences and technical discussions there some cooperation between Thailand and other ASEAN member countries such as Loas, Combodia, and Vietnam. Most are small technical collaborations or assistances such as scholarship, capacity buildings, and joint researches.
8. Key Social Protection Issues at Regional/ASEAN Level
Some Social Protection issues at regional/ASEAN level include: a) Human Trade and trafficing, b) Migrant workers, c) Cross-border illegal activities, d) Other common issues such as: aging society, informal workers, OSH, Labor Protection, etc.
9. Integrated regional framework of Social Protection.
Possible integrated regional framework can be: a) Common Social Protection measures for local and migrant workers in all member countries, b) Common programs for promoting indigenous micro-enterprise and cultural tourisms, Policy options to support the Framework could be the opened–border for free flow or movement of the people , trade, and tourism.
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