Social protection: Focus shifts from relief to development

Bangladesh achieved its independence through the supreme sacrifice of three million people with the vision of creating an equitable society free from exploitation, poverty, hunger and deprivation. The Constitution of the People's Republic of Bangladesh, adopted within one year of independence, is based on the fundamental principles of nationalism, socialism, democracy and secularism (Article 8). In that spirit,  'social security' is mentioned in Article 15 as one of the basic necessities and defined as public assistance in cases of undeserved want arising from unemployment, illness or disability, or suffered by widows or orphans or in old age, or in other such cases.
Bangladesh has reached a watershed in the area of social protection. It has succeeded, against odds, in establishing an umbrella of safety net interventions that have eradicated food shortage, that underpin effective response to natural disaster, and that have contributed to a dramatic reduction in poverty. At the same time, and in partnership with NGOs (non-governmental organisations) and development partners, the country is internationally recognised as an accomplished innovator in large-scale livelihood promotion programmes which have demonstrably lifted millions out of poverty. Hence, starting as Vulnerable Group Feeding (VGF) as an innovation to address food shortage, the focus of social protection has now shifted from relief to development.
GOVERNMENT'S COMMITMENT: The Social Safety Net Programmes (SSNPs) to address marginalisation, risk and vulnerability have been an integral part of the anti-poverty strategy of the present government. Distressed people, particularly women, children and disabled persons, have been given priority under the SSNP. The strong commitment from the government to the SSNP is underscored by the fact that in 2008-09, the allocation for social safety net was Tk. 138.45 billion which was 1.96 per cent of GDP. The allocation for the SSNP in 2015-16 is Tk. 375.46 billion, which is 2.19 per cent of GDP.
There has been a rapid decline in the rate of poverty measured in terms of the percentage of population falling below the upper poverty line. The poverty incidence fell from 48.9 per cent in 2000 to 24.8 per cent in 2015. Commensurately, the percentage of chronic poor, defined as population below the lower poverty line, fell from 34.3 in 2000 to 12.9 in 2015. The government has brought 24.57 per cent of households under the benefits of the SSNPs. It is estimated that the contribution of the SSNPs alone in reducing poverty in 2010 was 1.5 percentage points. It is generally believed that the success of the SSNPs was very prominent in reducing inequality across the country from 2005 to 2010; Gini coefficient was reduced from 0.467 in 2005 to 0.458 in 2010; poverty gap has been reduced from 9.8 in 2005 to 7.4 in 2010, and severity of poverty has also been reduced from 3.1 in 2005 to 2.2 in 2010 (Household Income and Expenditure Survey 2010, BBS).   
NATIONAL SOCIAL SECURITY STRATEGY (NSSS): Notwithstanding past progress, out of 158 million population, some 39 million people are still living below the upper poverty line and 20 million people below the lower poverty line in 2015. Bangladesh's current social security system (SSS) is complex and multifarious as there are 145 programmes under the system currently financed through the budget and administered by as many as 23 line ministries/divisions. It is evident that there are weaknesses in the current processes for selecting recipients for social security schemes. There are challenges in a number of areas viz: i) in schemes directed at poor families and individuals; a high proportion of the poorest are excluded, while others who are ineligible are included; ii) around 33 per cent of recipients of the old age allowance appear to be below the age of eligibility; iii) procedures for identifying disability need strengthening and consistent application nationwide.
Another major shortcoming of the present social security system is the absence of an effective monitoring and evaluation (M&E) arrangement. There is no formal mechanism for regularly reviewing the performance of the SSS, which is critically important. Moreover, the impact on poverty reduction from the amount of money spent in the existing programmes is less than what is possible with a better social security system.
The multiplicity of resultant programmes spreads among a wide range of implementing agencies requires rationalisation, harmonisation and coordination. The social protection needs of an industrialised, urbanised, formalised and globalised middle-income Bangladesh are very different from those of the predominantly rural, agricultural, informal, low-income, disaster-prone past. In coming decades, the shocks to be dealt with will be as much macroeconomic as natural; the problems faced will be less about famine and more about inclusive growth; and the key issues will have to do with food security and more to do with social cohesion and equity. Considering this backdrop, the government of Bangladesh recently approved the National Social Security Strategy (NSSS) of Bangladesh 2015 which will consolidate the ongoing programmes emphasising a Life Cycle Approach and incorporate social insurance schemes as well as private voluntary pensions.
SOCIAL DEVELOPMENT FRAMEWORK (SDF):  The government's social security policy has to be seen as a core element of other policies and programmes that together comprise the broader Social Development Framework (SDF). The main objective of the SDF is to have a comprehensive and consistent set of policies that can help Bangladesh achieve better equity and social justice in the context of its development effort. The long-term vision of the NSSS is to build an inclusive social security system for all deserving Bangladeshis that can effectively tackle and prevent poverty and inequality and contribute to broader human development, employment and economic growth. However, over the next five years, the goal is to reform the NSSS by ensuring more efficient and effective use of resources, strengthened delivery systems and progress towards a more inclusive form of social security that effectively tackles lifecycle risks prioritising the poorest and most vulnerable members of society.
CHALLENGES FOR THE MEDIUM-TERM: The priority challenges for the medium-term that will need to be addressed over the next five years are:
* A shift from current discretionary to a targeted universal approach,
*  Expanding coverage of core schemes for the hard-core poor and most vulnerable people, focusing on mother and child, adolescent and youth, working age, the elderly and people with disabilities,
* Consideration will need to be given to progressive but substantive scaling up of the 'graduation' programmes that offer real and direct income earning opportunities and formal and informal work to the poorest,
*  Ensuring that the most vulnerable women are provided with income security and greater opportunities to engage in the labour market,
*  Initiating a social insurance system that enables people to invest in their own social security, providing protection against risks of old age, disability, unemployment and maternity,
*  Expanding coverage to the residents of urban areas,
* Ensuring that the social security system supports an effective disaster response system and
*  Strengthening the delivery systems for priority transfers by establishing advanced Management Information Systems,
The NSSS will strengthen transformation towards a lifecycle system by consolidating programmes in a small number of priority schemes by gradually increasing coverage of priority schemes and ensuring that selection processes prioritise the inclusion of poor and vulnerable families. Its benefits will be non-discriminatory and will be available to all poor and vulnerable people who satisfy the income and other selection criteria relating to life-cycle or disability, irrespective of religion, ethnicity, profession and location.
CORE LIFE CYCLE PROGRAMMES: The four core life cycle programmes suggested by the NSSS are described below:
(a)    Programmes for children:
*  A child grant for children of poor and vulnerable family up to age 4. The child grant will be limited to a maximum of two children per family,
*  A school stipend for all primary and secondary school-going children belonging to the poor and vulnerable households,
*  The children will also have disability benefit, the school meals programme, the orphans' programme and the legal provision to ensure that abandoned children get financial support from the responsible parent and
* Supply side interventions relating to immunisation, childcare, health and nutrition, water supply and sanitation and nutrition outreach will be strengthened.
(b)    Programmes for the working age:
*  Strengthening education and training programmes to motivate the adolescents and youth to complete education and to enable the working youth and the older workforce to acquire required skills,
* Implementing a strengthened workfare programme for the unemployed poor,
* Exploring possibilities of providing unemployment, sickness, maternity and accidental insurance as a part of a National Social Insurance Scheme (NSIS),
*  Implementing a programme of financial support to vulnerable women (widows, divorced, destitute, single mother, and unemployed single women including adolescent girls) and facilitate their participation in the labour market. The strategy advocates a consolidated income transfer under a reformed Vulnerable Women's Benefit (VWB) programme,
*  Expansion of the Maternal Health Voucher Scheme (MHVS) administered by the Ministry of Health and Family Welfare.
(c)    Comprehensive pension system for the elderly:
*  The old age allowance for senior citizens who are aged 60 years and above and who belong to the poor and vulnerable population,
*  Examining possibilities to establish a National Social Insurance Scheme (NSIS) based on the principle of employers and employees jointly paying contribution,
*  Private Voluntary Pension (PVP), which is open to all citizens irrespective of occupation or formality of employment,
(d) Programmes for people with disabilities:
*  A disability benefit for children with disabilities and
* A disability benefit for working age population with disabilities
Prof. Shamsul Alam is Member (Senior Secretary), General Economics Division, Bangladesh Planning Commission. The article is adapted from a paper he presented in the Working Session of the Bangladesh Development Forum (BDF) meeting held on  November 16, 2015, at BICC, Dhaka, Bangladesh.     
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