Columnists

Protecting workers good for us

MOST of Asia Pacific's 2.1 billion-strong workforce are denied access to decent jobs, healthcare and social protection.

But there are policies and tools governments can use to ensure the rights and aspirations of the workers and their families are upheld, and that they remain the engine of economic growth for the region.

A recent report, "The Social Outlook for Asia and the Pacific: The Workforce We Need", offers solutions to address alarming trends that preceded the new
coronavirus and exacerbated by the pandemic.

While 243 million more people were pushed into poverty during the pandemic, half of all people in the region had been surviving without cash, a third without medicine or treatment, and a quarter had gone without enough food.

These can lower productivity, which has fallen below global average, and affect tax revenues and future economic output.

With two-thirds of workers in the region being employed informally, often with low wages, in hazardous working conditions and without a contract, many are on the brink of poverty.

People in our region are also at higher risk of being pushed into poverty by health spending, causing inequalities to widen.

With more than half of all people being excluded from social protection, pandemics, disasters, economic downturns or even falling ill, becoming pregnant or getting old have detrimental impacts on households' wellbeing and life prospects.

Reality is harsh. Our workers are generally ill-equipped to unlock new opportunities, fullfil life aspirations for themselves and their families, but also to face challenges emanating from climate change, ageing societies and digitalisation.

Climate-induced natural disasters cause businesses to relocate and jobs to disappear, digital technologies are bringing disruptive change to the world of work, and the digital gap is intensifying inequalities in opportunities, income and wealth.

Population ageing means the number of old people will double by 2050, making policies to support active and healthy ageing more urgent.

But with the right policies, our workforce can become more productive, healthier and protected.

FIRST, active labour market policies, through lifelong learning and skill development, can support a green and just transition to decent employment and improve access to basic opportunities and adequate standards of living.

Active labour market policies and social protection can help workers upgrade their skills and transition to decent employment while smoothing consumption and avoiding negative coping strategies during unemployment or other shocks.

SECOND, extending social health protection can improve workers' health, income security and productivity. Covid-19 demonstrated the weakness of the status quo in which 60 per cent of workers finance their own healthcare and receive no sickness benefits.

A focus on primary healthcare and curative health protection is needed to support healthy and active ageing. Those chronically ill or live with a disability must be included in healthcare strategies.

Extending social health protection is the key policy instrument for achieving universal health coverage in our region.

THIRD, building on the Economic and Social Commission for Asia and the Pacific's social protection simulator, a basic package of universal child, old age and disability social protection schemes, set at global average benefit levels, would slash the region's poverty rate by half.

Social protection helps increase access to opportunities, particularly for furthest- behind groups. This would improve the workforce's resilience.

It means increasing public spending by between two and six per cent of gross domestic product.

The Action Plan to Strengthen Regional Cooperation on Social Protection in Asia and the Pacific can guide action to broaden social protection coverage.

Therefore, action is a long overdue. The policy recommendations set out in the Social Outlook are a priority for most countries in the region.

For most countries, these reforms are affordable but may require a reprioritisation of expenditures and tax, supported by tax reform.

Decent employment for all and an expansion of social protection and healthcare should form the foundations of a strong social contract between the state and its citizens.

One where mutual roles and responsibilities are clear and where workers are given the security to fulfil their potential and be the force for achieving the 2030 Agenda on Sustainable Development in Asia and the Pacific.


The writer is an Under-Secretary-General of the United Nations and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP)

Most Popular
Related Article
Says Stories