Technical Assistance Consultant’s Report
Project Number: 44152
Regional — Capacity Development Technical Assistance (R–CDTA)
August 2012
The Kingdom of Cambodia: Updating and Improving
the Social Protection Index
(Cofinanced by the Republic of Korea e-Asia and Knowledge
Partnership Fund)
Prepared by Chey Tech
For Asian Development Bank
This consultant’s report does not necessarily reflect the views of ADB or the Government
concerned, and ADB and the Government cannot be held liable for its contents. (For project
preparatory technical assistance: All the views expressed herein may not be incorporated into
the proposed project’s design.)
ABBREVIATIONS AND ACRONYMS
ADB
AusAID
BETT
CARD
CBHI
CDC
CDCF
CDHS
CESSP
CHES
CMDG
CRC
CSES
DAC
DMC
DP
ECD
EEQP
EFA
EFG
FFW
FTI
GDCC
GDP
GNI
HEF
HIES
HIV/AIDS
IDPoor
ILO
IWG-SSN
M&E
MAFF
MDG
MEF
MoEYS
MoH
MoI
MoLVT
MoP
MoRD
MSW
MoSVY
MoWA
NCDM
NPA-WFCL
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Asian Development Bank
Australian Agency for International Development
Basic Education and Teacher Training
Council for Agricultural and Rural Development
Community‐Based Health Insurance
Council for the Development of Cambodia
Cambodian Development Cooperation Forum
Cambodia Demographic and Health Survey
Cambodia Education Sector Support Project
Children’s Empowerment through Education Service
Cambodian Millennium Development Goal
Cambodian Red Cross
Cambodian Socio-Economic Survey
Development Assistance Committee (OECD)
Developing Member Country
Development Partner
Early Childhood Development
Enhancing Education Quality Project
Education For All
Employment Guarantee Fund
Food for Work
Fast Track Initiative
Government–Donor Coordination Committee
Gross Domestic Product
Gross National Income
Health Equity Fund
Household Income Expenditure Survey
Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome
Identification of Poor Households
International Labour Organization
Interim Working Group on Social Safety Nets
Monitoring and Evaluation
Ministry of Agriculture Forestry and Fishery
Millennium Development Goal
Ministry of Economy and Finance
Ministry of Education, Youth and Sports
Ministry of Health
Ministry of Interior
Ministry of Labour and Vocational Training
Ministry of Planning
Ministry of Rural Development
Ministry of Social Welfare
Ministry of Social Affairs, Veterans and Youth Rehabilitation
Ministry of Women’s Affairs
National Committee for Disaster Management
National Plan of Action on the Elimination of the Worst Forms of Child
Labour
NP-SNDD
NPRS
NSDP
NSPS-PV
–
–
–
–
NSSF
OD
ODA
PTR
RGC
SESDP
SP
SPI
TB
TOR
TVET
WB
WFCL
WFP
WI
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–
–
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National Program on Sub‐National Democratic Development
National Poverty Reduction Strategy
National Strategic Development Plan
Cambodia National Social Protection Strategy for the Poor and
Vulnerable
National Social Security Fund
Operational District
Official Development Assistance
Poverty Targeting Rate
Royal Government of Cambodia
Second Education Sector Development Project
Social Protection
Social Protection Index
Tuberculosis
Term of Reference
Technical and Vocational Education and Training
World Bank
Worst Forms of Child Labour
World Food Program
Winrock International
CONTENTS
I.
INTRODUCTION
A.
Background
B.
The Definition of Social Protection
C.
Report Structure
1
1
1
3
II.
COUNTRY OVERVIEW
A.
Geography
B.
Demographic Profile
C.
The Economy
D.
Poverty Profile
E.
Labour and Employment
F.
Education
G.
Health
4
4
4
4
5
6
7
7
III.
SOCIAL PROTECTION ACTIVITIES AND PROGRAMS
A.
Data Collection
B.
Social Assistance
C.
Social Insurance
D.
Labor Market Programs
8
8
8
10
11
IV.
SOCIAL PROTECTION INDEX AND ITS DISAGGREGATION
A.
Basic Statistics
B.
Social Protection Expenditure and Beneficiaries
13
13
14
V.
ANALYSIS OF THE COUNTRY RESULTS
A.
Disaggregation by Social Protection Category
B.
Disaggregation by Depth and Breadth
C.
Disaggregation by Poverty
17
17
17
18
VI.
CONCLUSION AND RECOMMENDATIONS
A.
Structure of the SPI
B.
SPI’s Major Disaggregation
19
21
21
I.
A.
INTRODUCTION
Background
1.
Asian Development Bank’s (ADB) development of the social protection index contributed
to the strengthening of social protection programs in developing member countries (DMCs).
ADB continues its work on updating and improving the Social Protection Index (SPI). The SPI
update addresses and incorporates lessons learned from two technical assistance projects1 that
developed the SPI for 36 countries in Asia and the Pacific and introduces new components and
institutional arrangements to sustain the effective use of social protection indicators in policy
analysis and formulation in the DMCs.
2.
These initiatives implemented under the ADB commissioned regional technical
assistance project2 seeks to (i) improve the methodology in defining social protection for each
DMC in order to ensure comparability among DMCs; (ii) improve data gathering for statistical
analysis on social protection; and (iii) develop capacity of DMCs in monitoring the SPI and allow
comparisons between countries and over time on implementation performance.
3.
This country study provides updated information and data on social protection programs
and calculates the SPI for Cambodia in view of the revised SPI methodology. The SPI can be
updated periodically to assess progress in social protection arrangements in the country and
analyse deeper aspects of targeting, coverage and expenditures on various social protection
programs; for example, on the breadth (coverage) of social insurance versus social assistance
or labour market programs, or on the depth (size of benefit) of various categories of social
protection. The revised SPI methodology also provides scope to measure the gender
responsiveness of programs, and poverty targeting of programs.
4.
The primary objective of the Cambodia Country Report is to present the results on social
protection programs and policies in Cambodia from relevant government agencies in Cambodia
particularly the Cambodia Development Council, Council for Agriculture and Rural
Development, and National Institute of Statistics; and, summarize quantitative information on
these activities to enable the formulation of a national Social Protection Index (SPI).
B.
The Definition of Social Protection
5.
Social protection is defined as the set of policies and programs designed to reduce
poverty and vulnerability by promoting efficient labor markets, diminishing people’s exposure to
risks, and enhancing their capacity to protect themselves against hazards and interruption/loss
of income.
6.
This definition categorizes all programs under the traditional components of social
protection as social insurance, social assistance and labor market programs. Microfinance as a
form of social protection is excluded from the calculation of SPI since it does not involve a
transfer in cash or kind and beneficiaries incur loans or debt instead of transfers. Thus, by
eliminating microfinance from the coverage of social protection programs, three major programs
1
2
ADB. 2003. Technical Assistance for Social Protection Index for Committed Poverty Reduction. Manila (TA 6120REG); ADB. 2006. Technical Assistance for Scaling Up of the Social Protection Index for Committed Poverty
Reduction. Manila (TA 6308-REG).REG-TA 6120: Developing a Social Protection Index for Committed Poverty
Reduction and REG-TA6308: Scaling Up of the Social Protection Index for Committed Poverty Reduction
ADB. 2010. Technical Assistance for Updating and Improving the Social Protection Index. Manila (TA 7601-REG).
2
are left: (i) social insurance (i.e., the categories of old-age insurance, programs for the disabled,
and health expenditure on insurance and pensions; (ii) social assistance (i.e., the categories of
non-contributory health insurance, conditional cash transfers, child protection, and unconditional
cash transfers; and (iii) labor market programs as shown in Table 1.
Table 1: Social Protection Categories and Types of Programs
Social Protection Category
Social Insurance Programs
Social Assistance
•
•
•
•
•
•
•
•
•
•
•
•
•
Labor Market Programs
•
•
•
•
•
Type of Program
Pensions
Unemployment Benefits
Health Insurance - but not universal health insurance
Other social insurance (maternity, disability benefits)
Assistance for the elderly (e.g., non-contributory basic allowances
for the elderly, old-age allowances)
Health assistance (e.g., reduced medical fees for vulnerable
groups)
Child protection (school feeding, scholarships, fee waivers,
allowances for orphans, street children initiatives)
Family allowances (e.g., in-kind or cash transfers to assist
families with young children to meet part of their basic needs) –
excluding any transfers through the tax system
Welfare and social services targeted at the sick, the poor, the
disabled, and other vulnerable groups
Disaster relief and assistance
Cash/in-kind transfer (e.g., food stamps, food aid)
Temporary subsidies for utilities and staple foods - only if imposed
in times of crisis and if targeted at particular vulnerable groups.
General subsidies are excluded even if their rationale is to assist
the poor
Land tax exemptions
Direct employment generation through public works programs –
including food for work programs
Direct employment generation through loan-based programs –
included if loans are subsidized and/or job creation is an explicit
objective of the program
Labor exchanges and other employment services – if distinct from
social insurance and including retrenchment programs
Unemployment benefits – if distinct from social insurance and
including retrenchment programs
Skills development and training – included if targeted at particular
groups (e.g., the unemployed or disadvantaged children. General
vocational training is excluded).
Source: ADB. 2011. The Revised Social Protection Index: Methodology and Handbook. Manila.
7.
The Constitution of Cambodia3 is the framework for the scope of social protection
provision to all citizens. It covers the right of all citizens to obtain social security and other social
benefits, as well as provide special provisions for social security in the formal sector. The
Constitution also identifies particular groups that may require special assistance, such as poor
3
http://www.constitution.org/cons/cambodia.htm
3
women and children, people living with disabilities, and the families of combatants who have
died serving their country.
8.
The Constitution of Cambodia addressed the various forms of social protection for
Cambodian people, including rights of citizens and responsibilities of the Government which are
related directly or indirectly to social protection.
Article 36: “Every Khmer citizen shall have the right to obtain social security and other
social benefits as determined by law. Khmer citizens of either sex shall have the right
to form and to be member of trade unions. The organization and conduct of trade
unions shall be determined by law.”
Article 46: “The commerce of human beings, exploitation by prostitution and obscenity
which affect the reputation of women shall be prohibited…The state and society shall
provide opportunities to women, especially to those living in rural areas without
adequate social support, so they can get employment, medical care, and send their
children to school, and to have decent living conditions.”
Article 72: “The health of the people shall be guaranteed….Poor citizens shall receive
free medical consultation in public hospitals, infirmaries and maternities. The State
shall establish infirmaries in rural areas.”
Article 75: “The State shall establish a social security system for workers and
employees.”
9.
Government legislation also provides provisions that support social protection
components; particularly labor market programs, social assistance, and social insurance. The
Labor Law4 (1998) complies with most of the International Labour Organization’s conventions on
core labor standards. The Law on Social Security Schemes for Persons Defined by the
Provisions of the Labor Law (2002) entitles all workers defined by the provisions of the Labor
Law to medical, disability and survivor benefits. Also, the Insurance Law5 (2000) provides a
legal framework for better regulation of insurance market activities.
C.
Report Structure
10.
The Cambodia report is structured as follows:
(i)
(ii)
(iii)
(iv)
(v)
4
Chapter II contains a brief overview of the social and economic development in
Cambodia.
Chapter III describes the current SP activities and programs in the country using
ADB’s typology.
Chapter IV provides an overview of the derivation of SPI and its disaggregation.
Chapter V presents the analysis of the country results.
Chapter VI discusses policy assessment and implications.
GoCambodia:Laws. Law on Labor.
http://www.gocambodia.com/laws/data%20pdf/Law%20on%20Labor/Law%20on%20Labor(EN).pdf
5
Insurance Law of the Kingdom of Cambodia. Unofficial Translation.
http://www.forteinsurance.com/styles/images/resources/Insurance_Law.pdf
4
II.
COUNTRY OVERVIEW
11.
This chapter presents a brief overview of the socio-economic characteristics of
Cambodia, main features of the country’s current developmental situation and recent trends.
A.
Geography
12.
The Royal Government of Cambodia is a coastal country in a dynamic region in
Southeast Asia, bordering the Gulf of Thailand, between Thailand, Viet Nam, and Laos. The
country lies in the tropics and consists of rolling plains and landforms such as the Tonle Sap
Lake and the Mekong River that traverses the country as it flows through the Mekong lowlands
to the South China Sea.
B.
Demographic Profile
13.
Emerging from almost three decades of conflict and instability, the country is continuing
a process of regional integration and economic growth after the UN mandated resolution for a
ceasefire and withdrawal of foreign forces under the Paris Peace Agreement in 1991. The total
population estimate for Cambodia is about 13.98 million in 2009 and 14.14 million in 20106 with
an estimated 1.2% annual rate of population change between 2010-20157. There is an annual
increase of 1.65% in 2009, with a slightly predominant female population of 51.4%. Cambodia
also has a relatively young population with almost one-third (32%) of the population at 15 years
old and below in 20098.
14.
Eighty percent of Cambodia’s population lives in the rural areas although the trend of
urbanization is increasing. Cambodia also has a relatively young population with approximately
half of the population below 20 years of age, and about 250,000 youth entering the workforce
each year9.
15.
The average household size in Cambodia is estimated to be 4.7. Furthermore, the
estimated average population density is 81 persons per square kilometer. In terms of
population distribution, over 83% of the population live in rural areas while 17% of population
live in other urban areas.
16.
Ethnically, the population consists of 95.7% Khmer, 2.4% Islam (Cham), 0.1% percent
Chinese, 0.4% Vietnamese, and other 1.4%. In addition, Buddhist is the predominant religion in
Cambodia, accounting for more than 90% of total population most of which is Khmer, followed
by 5% Islam (Cham), and a small percentage of Christian and other spiritual beliefs.
C.
The Economy
17.
The Cambodian economy has undergone structural transformation since 1991 as a
result of greater integration with the global economy. There is a movement of jobs from
agriculture to service sectors, demographic transition, and migration from rural to urban areas.
Cambodia has enjoyed robust economic growth of about 11 % per annum from 2004-2007.
6
7
8
9
World Bank. World Development Indicators (WDI) and Global Development Finance (GDF).
http://databank.worldbank.org/Data/Views/Reports/TableView.aspx?IsShared=true
United Nations Department of Economic and Social Affairs. World Population Prospects: The 2010, Volume II:
Demographic Profiles. http://esa.un.org/unpd/wpp/country-profiles/pdf/116.pdf
National Institute of Statistics. 2009. Cambodia Socio-Economic Survey (CSES).
United Nations. 2010. Cambodia Common Country Assessment 2009. Cambodia.
5
Despite achieving a poverty reduction rate of 1.2% per year, 2009 poverty data reveal that
around 27.4% of Cambodians (about 3.82 million people) still live below the poverty line. As a
result of the consolidated peace process since early the 1990s, the country has transitioned
from a centrally-planned to a free market-oriented economy.
18. Cambodia experienced a period of rapid economic growth for almost a decade. The
economy performed strongly with an average 9.8% growth rate10 prior to the 2009 global
economic crisis although the economy recovered the following year. Despite the period of
sustained growth, the economic benefits still have to reach most of the rural areas where the
vast majority of the population resides.
19.
The export-driven economic growth in the country led to infrastructure development and
an influx of foreign-direct investment. Other direct sources of economic growth include tourism;
industry and services, particularly construction; agriculture; and, the garment industry benefiting
from preferential arrangements under the Multi-Fiber Arrangement (MFA), with quota
agreements complying with core labor standards. In contrast, the agricultural sector
experienced a period of stagnation due to severe flooding over the last 6-7 years. Cambodia is
also highly dependent on aid. According to the Paris Declaration Survey 2011, official
development assistance to Cambodia totaled $884.5 million11.
D.
Poverty Profile
20.
The rise in food and fuel prices in 2009 exacerbated the economic gains achieved in the
last 10 years and contributed to the growing socio-economic inequality in the country. The
global financial crisis caused job losses and decreased remittance flows to rural areas, affecting
30% of the population who still live below the national poverty line of $0.60 a day12. A recent
study by Cambodia’s Ministry of Planning and the World Bank in 2009 suggest that Cambodia’s
poverty headcount has been reduced from 47% in 1993-94 to 27.4% in 2009, or around 1% per
annum. Despite the progress in reducing poverty, the country still needs to identify further
sources of economic growth in order to achieve its commitment to the Millennium Development
Goals by 2015, which would require an average poverty reduction rate of 1.5% per annum.
21.
The Royal Government of Cambodia’s commitment in alleviating poverty through social
protection is reflected in the ‘Rectangular Strategy’ introduced after the formation of the new
Government in July 2004. The strategy has been conceptualized as a structure of three
interlocking rectangles, with the rectangles most closely linked to social protection consisting of:
i) enhancement of the agricultural sector; ii) private sector growth and employment; and iii)
capacity building and human resource development.
22.
The Rectangular Strategy outlines the Government’s poverty reduction strategy,
operationalised by the National Strategic Development Plan (NSDP) that presents the key
sector strategies for achieving the Cambodian Millennium Development Goals’ poverty
reduction targets. The NSDP 2006-2010 recognizes the need to address rural development
including improving the livelihoods of the rural poor, creating jobs in the formal and informal
sectors, ensuring improved working conditions, and providing social safety nets for the
vulnerable and disadvantaged.
10
World Bank. 2009. Cambodia: Sustaining Rapid Growth in a Changing Environment. Country Economic
Memorandum Report No. 49158. Washington, DC.
11
UNDP. 2011. Annual Report 2010: Empowered Lives, Resilient Nations. Cambodia.
12
UNDP.
6
23.
In response to Cambodia having one of the highest disparities between the rich and poor
in Asia, the Government adopted the National Strategic Development Plan (NSDP) in April 2010
and engaged development partners in preparing the National Social Protection Strategy for the
Poor and Vulnerable (NSPS) that will protect the rural poor against shocks and focus
agricultural development as a source of sustainable livelihood.
E.
Labour and Employment
24.
Between 2004 and 2009, the population in Cambodia increased by 1.3 million or 10.3%
according to the Ministry of Planning in 2008. During the same period, the working age
population increased almost as much as the population, from 6.7 million to 8.9 million or 16.8%.
The increase of the working age population resulted in decreasing dependency ratio from 67%
in 2004 to 58% in 2009.
25.
In contrast to the rapidly increasing working age population, the labor force participation
rate fairly slowed by 2.7%. In Phnom Penh, the labor force participation rate remained
unchanged. The labor force participation rate fell by 1.7% in other urban areas but increased by
3.5% in other rural areas.
26.
According to the Cambodia Development Research Institute (CDRI) projection in 2010,
about 3% are unemployed, while about 80%-90% are in the active labor force. Table 2 presents
an overview of Cambodia’s population and labor force.
Table 2: Population and Labor Force, 15-64 years (in %)
Cambodia
Total population (000)
13,967
Total working age (000)
8,864
population
Labour force (000)
7,480
Labour force participation rate (%)
Both Sexes
84.4
Women
80.4
Men
88.8
Employment rate
Both Sexes
84.3
Women
80.3
Men
88.6
Unemployment rate
Both Sexes
0.1
Women
0.1
Men
0.2
Phnom
Penh
1,383
1,002
Other
urban
1,428
955
Other
rural
11,156
6,907
688
737
6,055
68.7
61.5
77.2
72.2
72.7
82.1
87.7
84.3
91.3
68.5
61.4
76.9
77.0
72.6
81.7
87.6
84.2
91.2
0.3
0.2
0.3
0.3
0.1
0.4
0.1
0.1
0.1
Source: Cambodia Socio-Economic Survey (CSES), 2009
27.
Almost half of the population in Cambodia is employed as skilled agricultural, forestry
and fishery workers. Nearly twice as many women than men are employed in the service and
sales industries. In addition, the results of Child Labor Survey (2001) estimate that 2.3 million or
53% of children (aged 5 to 17) are considered to be economically active.
7
F.
Education
28.
Poor access to quality education is a source of vulnerability for young Cambodians. The
lack of basic school facilities, shortage of textbooks, and inadequate supply of trained teachers
are key constraints. Cambodia suffers in particular from a severe shortage of teachers in
primary and secondary education. Dropout rates along with low educational outcomes remain a
concern along with particular challenges in writing and mathematics. While enrolment rates are
high in primary school (82%), attendance decreases sharply to 29% when students reach lower
secondary schools, decreasing more considerably to 13% in upper secondary school. Children
in rural areas are more than twice less likely to continue lower secondary school (25%) than
children in Phnom Penh (61%). Table 3 shows the enrollment rates by gender.
Table 3: Enrolment Rates and Gender Disaggregation (in %)
Description
Primary Schools (000)
Net Enrollment
Total
Boys
Girls
Completion Rate at Grade 6
Lower Secondary Schools (000)
Net Enrollment
Completion Rate at Grade 9
Literacy 15-24 years
Total
Boys
Girls
2008
6,635
94.4
94.8
94
85.6
1,451
2009
6,685
95
95
95
86
1,521
2010
6,785
96
96
95
88
1,600
33.9
32
35
49.1
87.5
40
38
42
51
88
43
41
45
53
89
Source: National Strategic Development Plan Update 2009-2013, 2011
G.
Health
29.
Cambodians experience high costs of access and utilization of essential healthcare
services. Total annual health expenditure is about US$119 per capita, which is 5.8 percent of
GDP13. Access to quality healthcare is limited for the poor due to inaccessibility and limited
operational hours of health facilities; high transportation costs; and, lack of qualified health staff,
equipment, and, medicine in remote facilities. Serious outcomes of poor access to quality health
care are persistently high maternal and under‐five mortality rates. Children in the poorest
quintile are almost three times at risk of dying before the age of five than those in the highest
wealth quintile14.
30.
The negative consequences of health shocks are often detrimental to the poor and
vulnerable and can drive near-poor households into irreversible and damaging poverty with
serious, long‐lasting consequences. Health shocks affect poor households with higher
prevalence of injuries and illnesses, lesser savings, and mostly trapped in a vicious cycle of high
health care costs and debt. Once the cycle starts, it is very difficult to escape. Thus, it is
important to prevent the poverty cycle by tackling high health care costs and out‐of‐pocket
expenditures at the onset15.
13
World Health Organization. 2009. http://www.who.org
Cambodia’s Millennium Development Goals Report. 2011.
15
CARD. 2010. National Social Protection Strategy for the Poor and Vulnerable.
14
8
31.
The elderly, people living with chronic illness, and the disabled often depend on
assistance from communities and other poor relatives to survive. The elderly need special care
given their limited ability to participate in economic life. Cambodia’s elderly have lower health
status than older adults in neighboring Asian countries. Even marginal reductions in wealth can
result in substantial rises in health problems among the elderly. Elderly women are particularly
vulnerable with 10% being sole adults in the household, compared to only 2% for elderly men.
32.
Cambodians living with chronic illnesses have very little support to pursue independent
and sustainable livelihoods. Children in these households are often at greater risk. According to
the Cambodia Demographic and Health Survey (CDHS) in 2005, children with chronically ill
parents are significantly less likely to have basic possessions (e.g., shoes, two or more sets of
clothes, etc.). In a 2004 study, monthly per capita household income is 42% lower in HIVaffected households. Cambodia has the highest rate of prevalence of HIV/AIDS in the region
and also ranks 21st among the countries with the highest burden of tuberculosis with an
estimated 64% of Cambodians infected with M. tuberculosis. The twin burden of tuberculosis
and HIV epidemics can have severe consequences on poor and vulnerable households.
33.
Cambodians living with disability also have little assistance and often rely on limited
family support to survive. Very few people living with disability have access to rehabilitation and
basic services. Their vulnerability goes further than mere lack of financial resources at the
individual or family level to encompass cultural and social barriers such as inadequate
availability and access to education, health and rehabilitation services; lack of rights awareness;
and economic dependency on employed members of the household.
III.
SOCIAL PROTECTION ACTIVITIES AND PROGRAMS
34.
This chapter presents an overview of the data collection process, objectives, and current
social protection activities in the Royal Kingdom of Cambodia including challenges and
difficulties encountered during the course of the study. The two-fold objectives of this chapter is
to present the main features of the social protection programs in the country and provide
quantitative information that will serve as the basis for the formulation of the Social Protection
Index.
A.
Data Collection
35.
There are 9 major existing social protection programs in Cambodia. These programs are
classified into three major social protection components: (i) social insurance; (ii) social
assistance; and (iii) labour market programs.
36.
The study used various data collection sources, such as literature and desk review,
interviews of relevant government officials and project directors, and statistics and information
from the Cambodia Development Council (CDC), Council for Agriculture and Rural
Development (CARD), National Institution of Statistics (NIS), and international development
agencies.
B.
Social Assistance
37.
There are 3 major social assistance programs: (i) Food for Emergency Relief program;
(ii) People Living with HIV/AIDS (PLWHA) program; and, (iii) Maternal and Child Health
9
program. Despite a strong commitment by the Royal Government of Cambodia to reduce
poverty by targeting the most poor, the annual budget expenditure on social assistance is to
some extent, limited. Most Government expenditure on social assistance are in-cash or in-kind
transfers to the poor, channeled through the Ministry of Social Affairs, Veterans and Youth
Rehabilitation and the National Committee for Disaster Management (NCDM). These benefits
include food-aid relief and housing rehabilitation for the poor. In addition, the Royal Palace has
also allocated some budget for social assistance, through His Majesty the King, although the
amount of expenditure cannot be quantified.
1.
Food for Emergency Relief
38.
The Food for Emergency Relief program targets households affected by drought,
resulting in crop damage and food insecurity. Many drought-prone areas in Cambodia require
food relief assistance to address gaps in food access and availability. This program has
provided economic support in preventing the sale of assets in order to supplement household
income affected by natural disasters. The relief distributions were implemented in collaboration
with the National Committee for Disaster Management (NCDM)16 and NGO partners. In 2009,
about 0.7 US$ million worth of rice was released to 84,205 beneficiaries.
39.
The World Food Program (WFP) also provides food assistance to tuberculosis patients
in Cambodia to supplement nutrition, offer incentive to complete treatment, and provide the
needed income transfer during illness. The World Health Organization (WHO) classifies
Cambodia as one of the 22 high burden countries with tuberculosis in the world17. The disease
is more severe in rural areas, particularly affecting the poor and vulnerable population. Food
assistance programs help tuberculosis patients stay in medical care and complete their
treatment. In 2009, about $2.9 million worth of rice was released to 38,268 beneficiaries.
2.
PLWHA Program
40.
The (People Living with HIV/AIDS or PLWHA program targets vulnerable groups
affected by HIV/AIDS. The PLWHA program was established by the WFP and implemented in
collaboration with the National Centre for HIV/AIDS, Dermatology STI (NCHARDS) of the
Ministry of Health, and non-governmental organizations. In 2009, about $4.2 million worth of
rice was released to 75,879 beneficiaries.
3.
Maternal and Child Health Program
41.
The Maternal and Child Health (MHC) program aims to reduce the number of
underweight children under the age of five, increase awareness of child nutrition and health
practices, and build the capacity of health care center staff and village health volunteers in
program monitoring. About 63,000 pregnant and lactating women and children under the age of
five received nutritional food supplements and health education to aid specific food and
nutritional needs. The WFP also provided fortified blend food, rice, vegetable oil, and sugar to
enhance the nutritional status of mothers and children, which are the target beneficiaries of the
program.
16
17
CARD. 2010. National Social Protection Strategy for the Poor and Vulnerable.
ADB (2011): Handbook for the Revised Social Protection Index
10
C.
Social Insurance
42.
The Royal Government of Cambodia has two major social insurance programs
implemented by the Ministry of Social Affairs, Veterans and Youth Rehabilitation (MoSVY) and
Employment Guarantee Fund. These programs are pension and health insurance.
1.
Pensions
43.
The Royal Government of Cambodia pays a pension to an extensive number of its
retired civil servants, military, police, disabled people and dependents. The private sector,
donors and NGOs also offer pensions to their employees in compliance with the Labour Law.
This is normally in the form of a withholding percentage of salary that will be paid as a lump sum
upon completion of contract or upon retirement.
44.
In 2009, average payments by the Ministry of Social Affairs, Veterans and Youth
Rehabilitation (MoSVY) to its civil servants, military, police, disabled people and military, and
their dependents, is estimated to be about $16.305 million; benefiting 119,807 persons. Table 4
shows the pension schemes and their beneficiaries.
Table 4: Type of Pension Schemes and Beneficiaries
Type of Pensioners
Retired civil servants
Retired military
Disabled military (retired)
Disabled civil servant (retired)
Dependents of dead patriot military
Dependents of dead civil servants
Total
Estimated
Number of
Beneficiaries
19,489
5,151
31,121
5,151
54,895
4,000
119.807
Amount of
Benefits
(in million, USD)
4.02
1.14
7.01
1.13
2.40
0.61
16.31
Source: Annual report of MoSVY and CARD; and interviews, 2010
2.
Social and Health Insurance
45.
There has been some success in piloting community social health insurance schemes,
which have been recently operated and assisted by donors and non-governmental
organizations. A few NGOs have operated this scheme targeting the rural poor and urban
community.
46.
There are a number of health reform proposals that have been adopted by the
Government, including official user fees, sub-contracting government health services delivery to
nongovernmental providers, and Community Based Health Insurance (CBHI). These
approaches have tended to reduce the burden of the poor on public health services. As the
result of these reforms, Social Health Insurance policies (SHI), led by the Ministry of Health
(MoH) is being devised. This policy includes developing legislative and guidance Social Health
Insurance (SHI) schemes; with substantial technical support from various donors including GTZ,
the World Bank, ADB, and other development agencies. There are legitimate concerns that a
mandatory SHI scheme for the private sector may raise labor costs that they could threaten or
damage the competitiveness of the economy.
11
47.
The establishment of SHI would possibly emerge from the Health Equity Fund (HEF), a
new model for financing health of the poor, and microfinance institutions. The Ministry of Health
(MoH) and NGOs have provided financial support for the HEF. The Ministry of Health, in
collaboration with donors and NGOs, considered shifting HEF to be a Health Insurance Scheme
(HIS). HEF aims to ensure financial sustainability, with the poor paying premiums as a member
of HIS. All patients are identified and classified into poor or very poor households in the
community and provided with health card certificates. This certificate of identification can be
shown to provincial, district, and healthcare centers to receive subsidized or free services.
Transportation costs and meals are covered. As of 2006, 33,122 people received consultation
and 38,705 people received hospitalization benefits.
48.
In the absence of a public health insurance scheme, a few NGOs have been operating
Community Based Health Insurance schemes (CBHI) in Cambodia. These include the
Cambodian Organization for Assistance to Families and Widows (CAAFW), which emerged
from HEF, and microfinance schemes that operate in the Banteay Meanchey province, requiring
each member to pay around $3 per annum as a membership fee ($1 being subsidized by the
organization). Another example of a CBHI scheme is the Sky Health Insurance Project operated
by a French NGO, Groupe de Recherche et d'Echanges Technologique (GRET). The Sky
Health Insurance Project prevents poor rural households from selling their productive assets,
secures the income of rural Cambodian households by providing protection from large health
expenditures caused by illness and accidents; and, facilitates access to appropriate quality
health care. The project operates in two provinces, Takeo and Kandal, with sub-contracting to a
referral hospital, district hospital, and a government health center.
D.
Labor Market Programs
49.
The major labor market programs in Cambodia are the Vocational Training Program,
Skills Training program, and the Food for Asset program. The three ministries working to
generate potential employment opportunities for the poor in Cambodia are the (i) Ministry of
Labour and Vocational Training (MoLVT); (ii) Ministry of Social Affairs, Veterans and Youth
Rehabilitation (MoSVY); and, (iii) Ministry of Women’s Affairs (MoWA).
1.
Vocational Training Program
50.
Majority of vocational training programs is under the jurisdiction of the General
Directorate of the Department of Technical Vocational and Educational Training (TVET), and the
Ministry of Labour and Vocational Training (MoLVT). There are currently 40 training centers that
provide short-term and long-term training courses. The short-term training courses target poor
households and are designed to be demand-driven, with a training period between one to four
months. The Technical and Vocational Training (TVET) provides mobile training centers to poor
communities. These short-term training courses include agricultural development, handicraft,
industry, and services. In 2005, the Government supported 13,000 students who received shortterm vocational training in Cambodia, at $60 per student for two months. In comparison, longterm training courses provide training modules and an associate degree, which can take up to
two years.
51.
Vocational training programs are conducted through the municipal and provincial centers
in collaboration with NGOs and other development agencies. Vocational training programs are
based on labor market needs to expand the National Employment Policy in accordance with the
policy on vocational training. Other NGOs and development agencies also provide capacity
12
building through vocational training and micro-finance to poor households, aiming to increase
income-generating activities. The MoSVY also provides vocational training for disabled people
that aim to improve income-generating activities of target beneficiaries. In 2005, there were 9
state-run rehabilitation centers that offered vocational training to 1,318 disabled persons, with
1,058 persons securing employment in industries such as the private sector.
2.
Skills Training Program
52.
The Department of Family Economic Development of the Ministry of Women’s Affairs
(MoWA) through Women in Development (WID) centers provides training skills for orphans,
widows, and poor female head of households. Skills-training areas include make-up, sewing,
handicraft, and services. The courses last an average of one and a half months.
53.
There are 20 training centers, seven of which are under WID, and located in different
provinces. The Government, development agencies, and private foundations provide financial
support to these centers. In 2003, there were roughly 2,447 beneficiaries who received training
skills from MoWA at an estimated $0.110 million.
3.
Food for Asset Project
54.
The World Food Program in 2009, provided rice through food-for-work in local
communities under the Food for Asset Project. This program aims to reduce risk and impacts
associated with natural disasters. The remuneration of work for vital food commodities provides
villagers with a stake in the asset they are constructing (e.g., rehabilitated roads, constructed
ponds, raised paddy field bunds, etc). The vast majority of beneficiaries are the poor that
provide labor skills in a village project. Table 5 presents expenditures and beneficiaries of labor
market programs in Cambodia.
Table 5: Labor Market Programs Expenditures and Beneficiaries (2008-2010)
SP Programs
Short-term training course to the poor households
Provide training skills for orphans, window, and
poor female headed households
Food for work
Food for work (emergency food assistance project)
Cash for work (emergency food assistance project)
Source: Country sources
Note: Figures derived based on 2009 Gender Target Rates
Expenditures
(US$ millions)
Beneficiaries
(000s)
2009
Male Female
0.20
0.60
2009
Male Female
25.75
77.25
0.01
1.46
0.30
4.02
1.50
50.29
0.78
1.68
0.09
1.64
0.30
2.68
13.50
56.71
0.78
1.12
13
IV.
SOCIAL PROTECTION INDEX AND ITS DISAGGREGATION
55.
The revised Social Protection Index (SPI) is a unitary indicator that can be
disaggregated for analytical purposes.
56.
The revised SPI is calculated by Total Social Protection Expenditures per Total
Potential Beneficiaries by 25% of the GDP per capita (representing average poverty line
expenditures). In other words, the total social-protection expenditures spread across all
potential beneficiaries are compared to poverty-line expenditures in each country.
57.
The revised SPI can be disaggregated into two components, one for the ‘depth’ of
coverage and the other for the ‘breadth’ of coverage of social protection programs. The first
indicator is the Total Social Protection Expenditures divided by the Total Actual
Beneficiaries (i.e., the average size of benefits actually received or ‘depth’). The second
indicator is the Total Actual Beneficiaries divided by the Total Potential Beneficiaries (i.e.,
the proportion of potential beneficiaries actually reached or ‘breadth’).
58.
The revised SPI can also be disaggregated by the major categories of social protection
programs: social insurance, social assistance and labor market programs. When the total
expenditures per total potential beneficiaries for each major program are weighted in population
terms, the program SPIs add up to the total SPI.
59.
Furthermore, the revised SPI can also be disaggregated by expenditures per potential
poor and non-poor beneficiaries. Finally, gender-wise data allows the disaggregation of
expenditure by gender.
60.
The derivation of the SPI for poor and non-poor and the SPI women and men used
poverty and gender targeting rates. The rates are based on the results of household surveys;
administrative reports of social protection implementing agencies; and in some instances, on the
professional judgment of the consultants.
A.
Basic Statistics
Table 6: Cambodia Basic Statistics for 2009
Statistic
GDP (current
prices)
GDP per capita
(current prices)
GNI (current
prices)
Total Population
Unit
Millions
(US$)
2009
Value
6,917
US$
731
Billion
(Riel)
42,683
Millions
14
Source of Data
Strategic National
Development Plan
(SNDP) Updated 20092013
Strategic National
Development Plan
(SNDP) Updated 20092013
http://www.adb.org/doc
uments/books/key_indi
cators/2011/pdf/CAM.p
df
Cambodia SocioEconomic Survey 2009
Notes
calendar year
calendar year
Calculated to GNI
Per Capita
14
Statistic
Number of
unemployed/
under-employed
Population aged
60 years and
over
Employed
Population
Population living
below national
poverty line
Unit
Millions
2009
Value
1.8
Millions
0.5
Millions
7
Millions
3.8
Disabled
population
Children aged 0
to 14 years
Millions
0.3
Millions
4.9
Disaster affected
population
Millions
0.036
Per capita
poverty line
income (annual)
Average
household size
Exchange rate
US$
468
Cambodia SocioEconomic Survey 2009
persons
4.7
National Census 2008
US$1=
4,148
Strategic National
Development Plan
(SNDP) Updated 20092013
Source of Data
National Accounts
Notes
2008
National Census 2008
Mid-year
population
estimate
National Accounts
Strategic National
Development Plan
(SNDP) Updated 20092013
Ministry of Social
Welfare (MSW)
Strategic National
Development Plan
(SNDP) Updated 20092013
Beneficiaries sheet
estimate from
MSW
Mid-year
population
estimate
Year Average
GDP = gross domestic product, GNI = gross national income
Source: Country Sources, 2011
B.
Social Protection Expenditure and Beneficiaries
61.
The total expenditure on social protection activities in Cambodia for 2009 is about $68
million or roughly 1% of GDP. Social assistance programs accounted for almost 58% of
government expenditure compared to 26% government spent on social insurance programs.
Expenditure on the remaining components of social protection (i.e., labor market, social
assistance and child protection programs) amounted to more than 16% of the total.
Table 7: Social Protection expenditure by Category
Pensions
Health Insurance
2009 Annual
Expenditure
(million USD)
16.4
1.0
Percent
(%)
24
1
15
ALL Social Insurance
Health Assistance
Child Protection
Disaster Assistance and Relief
Other Social Assistance
ALL Social Assistance
Labor Market Programs
Total SP Expenditure
GDP (million USD)
SP Expenditure Indicator
17.4
11.2
10.7
0.4
17.2
39.4
11.3
68
26
16
16
1
25
58
17
100
6,917
1.0%
Source: Country Sources, 2011
62.
The largest social protection program coverage are the social assistance programs with
more than 3 million beneficiaries, almost 15 times the number of the next largest category – the
social insurance programs with 398,000 beneficiaries. Labor market programs have 229,362
beneficiaries.
Table 8: Expenditures and Beneficiaries of Social Protection Programs
Implementing
Agency
Detailed
Category
2009
Expenditure
(Million
USD)
Civil Service Pensions
MSW
PEN
16.4
120
Health insurance for garment
factory employees
EGF
HI
1
278
Medical allowance for AIDS
patients
MoH
HA
1.2
70
MoH and
MSW
OSA
2.9
38
MoH
OSA
4.2
75
MSW
DA
0.4
36
Short-term training course to
poor households
MoVLT
LMP
0.8
103
Providing training skills for
orphans, widows, and poor
female head of households
MoWA
LMP
0.1
15
Social Assistance Program
Food assistance to
Tuberculosis-TB patients
Food assistance to people
living with HIV/ AIDS
Food to vulnerable groups
affected by natural disasters
and food insecurity
2009 Beneficiaries
(000s)
16
Implementing
Agency
Detailed
Category
2009
Expenditure
(Million
USD)
MoVLT
OSA
1.66
16
MEF
OSA
6.5
342
NCDM
OSA
0.7
84
MoH
HA
3.4
64
MoEYS
CP
0.22
3.4
Cambodia Education Sector
Support Project-CESSP
(grades 7-9)
MSW
CP
0.82
18
Food for work
MoRD
LMP
3.1
107
Food for work (emergency
food assistance project)
MEF
LMP
0.6
1.562
Cash for work (emergency
food assistance project)
MEF
LMP
6.7
2.8
Health Equity Fund-HEFs in
50 Ods
MoH
HA
6.6
2154
School - Feeding Program
MoEYS
CP
8.1
532
Enhancing Education Quality
Project-EEQP (grades 10-12)
MoEYS
CP
1.22
0.5
Emergency food assistance
project (grades 5-6 & 8-9)
MEF
CP
0.3
12.64
Emergency food assistance
project
MEF
OSA
1.2
60.5
Social Assistance Program
Child Labor Programs
Emergency food assistance
project (free distribution of
rice)
General food distribution
(Ketsana)
Maternal and child health and
nutrition program
Fast Track Initiative-FTI
(grade 4-6)
Total
29
2009 Beneficiaries
(000s)
2,889.0
17
Note: PEN-Pensions, HI-Health Insurance, UB-Unemployment Benefits, HA- Health Assistance, CP- Child protection
programs, DA- Disaster relief and assistance, OSA- Other social assistance, LMP- Labour Market programs
Source: Country Sources, 2011
63.
Coverage rates for these target groups are obtained by aggregating beneficiaries from
all programs of this target group. Beneficiaries from some programs can fall into more than one
target group (e.g., recipients of civil service pensions can also be poor; and the school feeding
program is both a social assistance and a child protection program). There can also be overlaps
with children benefiting from school feeding programs also benefiting from educational
assistance programs. Furthermore, some programs can be assigned to more than one target
group; although overlaps need to be excluded. However, this is not a significant issue in
Cambodia since coverage rates are generally low and there are few overlaps.
V.
ANALYSIS OF THE COUNTRY RESULTS
64.
This chapter presents the results of the SPI calculations and its disaggregation into the
three categories – social insurance, social assistance, and labor market programs. Further
disaggregation by depth and breadth of coverage, by poor or non-poor, and by women or men
is also discussed.
A.
Disaggregation by Social Protection Category
65.
The SPI represents the average expenditure per beneficiary as compared to the poverty
line expenditures (set at 25% GDP per capita). For Cambodia, the overall SPI is 0.020, which
implies that on the average the government expenditures on social protection are about 2.0%
of the poverty line expenditures. As shown in Table 9, among the three categories, social
assistance has the highest SPI at 0.012, while social insurance and labor market programs
have 0.005 and 0.003, respectively. These indices for social insurance, social assistance and
labor market programs indicate that the per capita government expenditures are about 0.5%
1.2% and 0.3%, respectively of the poverty line expenditures.
Table 9: Disaggregation by Category
Total SP Expenditure (Million
USD)
Beneficiaries (000s)
Reference Population (000s)
25% of GDP per capita
SPI
Social
Insurance
Social
Assistance
Labor Market
Programs
All SP
Programs
17
398
7,536
183
0.005
39
3,506
9,061
183
0.012
11
229
1,750
183
0.003
68
4,133
18,347
183
0.020
Source: Consultant estimates, 2011
B.
Disaggregation by Depth and Breadth
66.
The depth refers to the average size of benefits received by beneficiaries of social
protection while the breadth indicates the proportion of potential beneficiaries reached by social
protection programs in Cambodia. The 2009 depth index is 0.090 while the breath is 0.225.
These numbers imply that the average amount receive by beneficiaries is about 9.0% of the
poverty line expenditures and these benefits reached about 22.5% of the targeted beneficiaries
18
in 2009.
This suggests that there is wider coverage but the size of benefit received per
beneficiary is relatively small.
Table 10: Disaggregation by Depth and Breadth
Depth
Breadth
SPI
Social
Insurance
Social
Assistance
0.542
0.022
0.012
0.027
0.191
0.005
Labor
Market
Programs
0.270
0.013
0.003
All SP
Programs
0.090
0.225
0.020
Source: Consultant estimates, 2011
C.
Disaggregation by Poverty
65.
The calculation of this indicator involves a series of assumptions on the poverty targeting
rates (PTRs) for different social protection programs and an assessment of the extent of
overlaps (i.e., people who benefit from more than one program).
67.
In the absence of a comprehensive statistic showing the incidence of poor beneficiaries
of the different social protection programs identified in this report, it is necessary to adopt an ad
hoc estimation methodology. This involves the assignment of poverty targeting rates (PTRs) or
the proportion of beneficiaries who are poor, to each social protection program. Information
used to generate these PTRs are from survey data, interviews conducted with program officials,
reviews of evaluation studies, and the consultants’ professional knowledge of these programs.
67.
The disaggregated data shows that SPI for the poor is slightly lower (0.008), which
means that the social protection expenditure on the poor is lesser compared to the expenditure
on non-poor, whose index is 0.012. The higher index for non-poor can be related to the social
protection expenditures of social insurance, whose beneficiaries are employed and are not
considered poor.
Table 11: Disaggregation by Poverty Status
SP Expenditure (Million USD)
Reference Population (000s)
25% of GDP per capita
SPI
Poor
28
18,347
183
0.008
Non-Poor
40
18,347
183
0.012
Source: Consultant estimates, 2011
A.
Disaggregation by Gender
68.
The gender wise data allows the disaggregation of expenditure by gender. This does not
show much variation for men and women for the Kingdom of Cambodia. The SPI for men
(0.011) is slightly higher than for women (0.009). However, it should be noted that in the
absence of gender disaggregated data, most of the gender targeting data of the programs are at
best approximations.
19
Table 12: Disaggregation by Gender
SP Expenditure (Million USD)
Reference Pop (000s)
25% of GDP per capita
SPI
Women
31
18,347
183
0.009
Men
37
18,347
183
0.011
Source: Consultant estimates, 2011
VI.
CONCLUSION AND RECOMMENDATIONS
69.
Cambodia has a low SPI value of 0.020, which indicates that the average per capita
social protection expenditures is about 2.0% of the poverty line expenditures. While social
assistance programs covers the most number of beneficiaries, with breadth of 22.5%, there is
little provision for the elderly, poor, unemployed and the disabled as indicated by the depth
index of 0.090. This value implies that the average benefits of social protection is about 9.0% of
the poverty line expenditures. Furthermore, in most cases, the benefits provided have minimal
impact on recipient incomes.
70.
Cambodia’s social protection indicators are low and it is a relatively poor country with
limited financial resources. Thus, the scope for major improvements in social protection reflects
immediate priorities such as the need to respond to the food crisis, financial crisis, or natural
disasters; rather than a shared long-term social protection intervention. Priorities for
strengthening the social protection system are therefore essential, and account for the current
national development priorities such as improving health care, education and basic
infrastructure in rural areas.
71.
With over 90% of the poor living in rural areas, initial efforts to improve the level of social
protection should be mostly concentrated in these areas. This overall policy focus would give
greater importance in (i) developing food for work programs; (ii) increasing the coverage of labor
market program; (iii) giving greater emphasis on pro-poor targeting; (iv) strengthening and
increasing the coverage of educational assistance schemes; and (v) investigating the need for
targeted health assistance programs. The data on social protection programs provided for other
countries, especially those with similar levels of human development, wealth and social
protection provision, could provide an indication of the types of programs that can be developed.
72.
It is expected to have further increases in social protection activities in Cambodia as the
Government strives to achieve its MDGs. Improving the effectiveness of existing programs, and
evaluating the impact of new, social protection programs require a sound monitoring
mechanism. The SPI and its disaggregation provide a monitoring tool at the national level while
the program specific data provides more detailed information on problems and improvements
that can be made to these social protection programs. However, the SPI can only be truly useful
if it is periodically updated. The information and database collection could also be improved if
the modules covering the major social protection programs are included in future household
surveys.
20
REFERENCES
ADB. 2007. ADB Scaling Up of the Social Protection Index for Committed Poverty Reduction:
Final Report 2007. Manila: Asian Development Bank.
ADB. 2011. Handbook for the Revised Social Protection Index. Manila.
ADB. 2011. Key Indicators for Asia and the Pacific 2011.
http://www.adb.org/documents/books/key_indicators/2011/pdf/CAM.pdf
CARD. 2009. Concept Note and Inventory (June 2010): Safety Nets in Cambodia. Phnom Penh:
Council for Rural Agricultural and Rural Development.
CARD. 2010. National Social Protection Strategy for the Poor and Vulnerable. Phnom Penh:
Council for Rural Agricultural and Rural Development.
CDRI. 2005. Cambodia Annual Development Review: Annual Report 2009-2010. Phnom Penh:
Cambodia Development Resource Institute.
CDRI. 2010. Cambodia Development Review: Annual Report 2010. Phnom Penh: Cambodia
Development Resource Institute.
CDRI. 2011. Cambodia Development Review: Annual Report 2011. Phnom Penh: Cambodia
Development Resource Institute.
ILO. 2008. ILO IPEC’S Time Bound Project Supports the Royal Government of Cambodia’s
National Plan Action on the Elimination of the Worst Forms of Child Labour. Geneva:
International Labour Organization,
National Institute of Statistics. 2008. Cambodia Census Survey 2008. Phnom Penh: Ministry of
Planning.
National Social Security Fund. 2009. Achievements in 2009 and Action Plan in 2010. Phnom
Penh: Ministry of Planning.
National Institute of Statistics. 2009. Cambodia Socio-Economic Survey 2009. Phnom Penh.
I. Ortiz, ed. 2001. Social Protection in Asia and the Pacific. Manila: ADB.
Royal Government of Cambodia. 2008. National Nutrition Strategy 2009-2015. Phnom Penh:
Ministry of Health.
Royal Government of Cambodia. 2008. Statistical Yearbook 2008, (National Institute of
Statistics, Ministry of Planning). Phnom Penh: Ministry of Planning.
Royal Government of Cambodia. 2009. Health Financing Report. Phnom Penh.
Royal Government of Cambodia. 2010. National Strategic Development Plan Updated 20092013. Phnom Penh.
Royal Government of Cambodia. 2010. Achieving Cambodian Millennium Development Goals.
Phnom Penh.
Royal Government of Cambodia. 2010. Comprehensive Post-Disaster Needs Assessment,
Ketsana Recovery and Reconstruction in Cambodia. Phnom Penh.
World Bank. 2011. Word Development Indicators. http://data.worldbank.org/country/cambodia
Winrock International. 2010. Children’s Empowerment through Education Service (CHES)
Project Supports the Royal Government of Cambodia’s National Plan Action on the
Elimination of the Worst Forms of Child Labour. Arkansas.
21
Appendix 1
FORMULATION OF THE SOCIAL PROTECTION INDEX
AND ITS MAJOR DISAGGREGATION
A.
Structure of the SPI
1.
Based from the 2011 SPI Handbook by Baulch’ and McKinley, the SPI is described as a
simple and unitary indicator rather than a composite index. It is not an abstract index and
should provide a “normative” reference such as the magnitude of the impact on people.
2.
The formulation of the revised SPI, under the present study, refers to the total SP
expenditures divided by the total potential beneficiaries, and relative to a quarter of GDP per
capita. This is mathematically expressed in the following equation:
where
E represents the sum of all SP expenditures;
PB represents the sum of all potential beneficiaries; and
Z represents poverty-line expenditures which is 25% of GDP per capita.
3.
The term “Total Expenditures per Total Potential Beneficiaries” has two parts:
(i)
(ii)
Total expenditures per total actual beneficiaries – this represents the Depth of
the SPI;
Total actual beneficiaries per total potential beneficiaries – this represents the
Breadth.
4.
It is noted that 25% of GDP per capita is roughly the average national poverty line
across ADB’s sample of countries.
B.
SPI’s Major Disaggregation
1.
Disaggregation by Depth and Breadth
5.
The SPI can be disaggregated into measuring the depth of coverage and also, the
breadth of coverage. Depth represents the average expenditures that the government spends
for every actual beneficiary as a percentage of poverty-line expenditures.
a.
6.
Depth
The index is measured as
(Total Expenditures divided by Total Actual Beneficiaries);
Divide by Z or the poverty-line expenditure.
7.
The index is represented by the following equation:
22
Appendix 1
where
D represents Depth
E represents the sum of all SP Expenditures, and
Z represents the poverty-line expenditures.
b.
Breadth
8.
The breadth of coverage index is simply the proportion of the total actual beneficiaries
receiving government benefits over the total potential beneficiaries. This is computed as
Total Actual Beneficiaries divided by Total Potential Beneficiaries.
9.
The index is represented by the equation
where
B denotes Breadth,
AB represents the sum of all actual SP beneficiaries
PB represents the sum of all potential SP beneficiaries.
2.
Disaggregation by Component
10.
The second major disaggregation involves the three-way distinction between
components.
11.
Each of the three components for Expenditures per Potential Beneficiaries of SI,
Potential Beneficiaries of SA, Potential Beneficiaries of LMP is multiplied by its weight. The
mathematical relationship between the three components is based on weighted average.
(i)
SPI for Social Insurance (includes pensions, health insurance, and
unemployment benefit)
(ii)
SPI for Social Assistance (includes assistance for the elderly, health assistance,
poverty programs and child protection)
(iii)
SPI for Labor Market Programs (include training and public works scheme)
12.
The formula for the SPI of each of the three categories can be illustrated by the formula
for SPIsi. Deriving the SPI for Social Insurance proceeds as
(SI Expenditures divided by SI Actual Beneficiaries) multiplied by
Appendix 1
23
(SI Actual Beneficiaries divided by SI Potential Beneficiaries) multiplied by
(SI Potential Beneficiaries divided by All SPI Potential Beneficiaries) multiplied by
1/Poverty-Line Expenditures.
13.
The SPI for SI is expressed in the equation
14.
The last expression in the numerator represents the proportion of SI, which is the
potential SI Beneficiaries divided by the Total SPI Potential Beneficiaries.
Z represents the poverty-line expenditures.
15.
After each of the three components’ expenditures per potential beneficiaries (SI, SA,
LMP) has been multiplied by its weight, all three are added together. The resulting total is the
country’s SPI. This is shown as
SPI = SPI (SI) + SPI (SA) + SPI (LMP)
3.
16.
Disaggregation of Expenditures on Poor and Non-Poor Beneficiaries
The SPI can be disaggregated by expenditures on poor and non-poor beneficiaries.
a.
17.
SPI (Poor)
The index is derived at as follows:
SPIp represents the total expenditures per poor actual beneficiaries as a ratio to all
potential beneficiaries both poor and non-poor. The index is computed as:
(Total Expenditures on the Poor divided by the Total Poor Actual Beneficiaries)
multiplied by (Total Poor Actual Beneficiaries divided by Total Potential Beneficiaries).
18.
The index is represented by the following equation:
b.
SPI (Non-Poor)
19.
SPInp represents the total expenditures per non-poor actual beneficiaries as a ratio to all
potential beneficiaries, both poor and non-poor.
20.
The index is derived as
24
Appendix 1
(Total Expenditures on the Non-poor divided by Total Non-poor Actual Beneficiaries)
multiplied by (Total Non-poor Actual Beneficiaries divided by Total Potential
beneficiaries).
21.
The index is represented by the following equation:
22.
When SPI (Poor) is multiplied to SPI (Non-Poor), the product represents the SPI of the
country.
25
Appendix 3
CHECKLIST FOR INFORMATION ON SOCIAL PROTECTION
Asian Development Bank: Social Protection Index
Social Protection Program - Information Checklist
Interviewer and date (including any follow-ups):
Name of Program:
Responsible Agency:
Years program first
implemented
Details of person interviewed
Name:
Position:
Department/Division:
Organization:
Contact Details
Tel:
Email:
Govt.
Internat’l
Funding
Sources
..%
..%
(approx. %)
Program Description (including objectives, target group(s), activities,
contributory/non-contributory, level of government (national, state, local)):
Main eligibility criteria and characteristics of beneficiaries:
Description of Benefits Provided (in cash and in kind, regular or periodic, for
individual or household, unconditional or conditional):
Expenditure and Beneficiaries
Year
2008
2009
2010
No. of persons participating (for insurance
schemes)
No. of beneficiaries (i.e. actually receiving
benefits)
Annual cost / expenditure (in local currency,
excluding administrative/operating costs)
Any other relevant information (e.g. Other sources of information)
NB. You will probably need to use 2 pages for the larger programs as well as appending any detailed statistical
information.