SSS disputes lender’s report on social protection

STATE-RUN Social Security System (SSS) on Monday disputed a study that showed the Philippines ranking 22nd among 31 Asia-Pacific countries in terms of social protection. In the report dubbed as “Scaling Up the Social Protection Index for Committed Poverty Reduction,” the Asian Development Bank (ADB) said the Philippines registered an over-all social protection index (SPI) value of 0.18, lower than the 0.36 All-Asia average.

The social protection report was defined by the ADB as the set of policies and programs designed to reduce poverty and vulnerability, and comprise five major components, including labor markets, social insurance, social assistance and welfare, micro and area-based programs, and child protection.

According to the report, the country’s total expenditure on social protection in 2004 to 2005 was around P116.6 billion, equivalent to about 2.2 percent of the Philippines’ gross domestic product (GDP).

GDP measures the amount of final goods and services produced in the country.

The ADB report also noted that 80 percent of the Philippine expenditrues was on social insurance, which includes pensions and health coverage.

Horacio Templo, SSS chief actuary and executive vice-president, however said that the ABD figure was actually “understated,” noting that the expenditures of the social insurance companies and other government agencies was more than three times that quoted in the report.

“Based on our assessment, social insurance alone, which includes SSS, PhilHealth and [Government Service Insurance System] expenditures were already more than the P116.6 billion reported by the ADB. Overall, social protection spending by the government could be more than triple the amount said in the report,” Templo said.

The official also said that the ADB report has no one-on-one correspondence with the social protection operational framework being used by the Philippines.

“With the way the ranking is done, naturally our ratio is much lower than the set standards. We have to question the way it was computed,” the SSS official said.

Templo said the ADB excluded government subsidies, as well as the conditional cash transfer and school-feeding programs, which could raise total expenditures for social protection. “They just based our ranking on our [GDP] and human development index [HDI],” he said.

Based on the report, the difference in ranking implies that the social protection in the Philippines is lower than one might expect from its levels of human development and wealth.

The country is ranked 9th and 13th in HDI and GDP, respectively.

Templo admitted that the social protection in the country was beset by problems of insufficient and inadequate targeting, and lack of coordination among government agencies.

“We should be more conscious in the components of social protection programs of the government.

Clarify the social policy of this administration and give more focus on the main contributors,” he said. –JAMES KONSTANTIN GALVEZ, Manila Times