1.5 Social protection, social security and social responsibility

Social Protection, Security, and Responsibility in Nepal

Introduction to Social Protection and Rescue

Social protection encompasses policies and programs by government, NGOs, or communities to safeguard vulnerable, at-risk, or impoverished groups from economic, social, and humanitarian crises. It aims to meet basic needs, reduce poverty, mitigate inequality, and ensure social stability. Rescue operations, in contrast, focus on immediate relief during crises like floods, earthquakes, or pandemics, providing essentials such as food, medicine, temporary shelter, or financial aid.

Main Objectives of Social Protection

• Risk Mitigation: Reducing risks from unemployment, illness, or natural disasters.
• Basic Needs Guarantee: Ensuring access to food, shelter, healthcare, and education.
• Social Inclusion: Integrating marginalized groups (e.g., elderly, disabled, children, women) into mainstream society.
• Economic Stability: Promoting self-reliance and breaking the poverty cycle.

Types of Social Protection

• Social Assistance: Cash transfers, food aid, child allowances.
• Social Insurance: Health insurance, unemployment benefits.
• Social Security Allowances: Elderly pensions, disability benefits.
• Labor Market Interventions: Job creation, training, minimum wage policies.
• Community Protection: Local-level support like community funds or mutual aid groups.

Social Protection in Nepal

Nepal implements programs like elderly allowances, single women’s allowances, child nutrition grants, disability benefits, and cash transfers, particularly aiding impoverished rural families. The government also runs relief and rehabilitation programs for natural disasters.

Background of Social Protection and Security

Human conditions vary across life stages (childhood, disability, illness, unemployment, old age), necessitating state intervention to protect human capital and ensure well-being. Social protection and security aim to rescue vulnerable groups from crises, poverty, or marginalization, fulfilling the state’s guardianship role. It is both a state duty and a citizen’s right, promoting a dignified and secure social life.

Social protection consists 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 manage economic and social risks, such as unemployment, exclusion, sickness, disability, and old age. — ILO

Conceptual Context of Protection

• State origin is tied to protection and security.
• A key dimension of national security.
• Traditional state function: border security; modern function: social security.
• Protection is narrower, while security is broader and rights-based.
• Social security is a means to achieve social justice and a component of human rights.
• Rooted in state commitments, ILO’s Philadelphia Declaration (1944), UDHR (1948), and ICESCR (1966).
• A humanitarian concern and democratic value.
• “Touching the HEART and winning the MIND.”

National Framework for Social Protection

Per Nepal’s National Steering Committee on Social Protection, social protection programs aim to enhance resilience against poverty, vulnerability, risks, unemployment, income loss, and fluctuations.

Why?

• Society’s diversity and class divisions (economic, social, cultural).
• State’s duty to protect vulnerable groups from risks and crises.
• Primary responsibility to act as a guardian for the marginalized.

Concept of Social Security

Social security addresses issues like poverty, disability, unemployment, and marginalization by providing support to face life’s risks. It empowers targeted groups, reduces poverty, and ensures basic needs for a dignified life. In Nepal, these efforts align with poverty alleviation.

According to ILO, “Social security is the protection which society provides for its members through a series of public measures, against the economic and social distress caused by sickness, maternity, injury, unemployment, old age, and death.”

Social Security Programs in Nepal

Cash Assistance

• Elderly allowance
• Single women’s allowance
• Widow’s allowance
• Disability allowance
• Dalit child nutrition allowance
• Endangered ethnic group allowance
• Elderly healthcare program
• Natural disaster relief
• Conflict-affected family support
• Martyr family subsistence allowance

In-Kind Assistance (Remote Districts)

• School meal programs
• Iodized salt distribution
• Subsidized food distribution in remote/backward areas

Specialized Services

• Karnali region scholarship for the poor
• Free primary healthcare
• Financial aid for kidney, heart, cancer, and spinal cord injury treatment

Social Insurance

• Provident fund
• Gratuity
• Pension
• Health insurance
• Citizens’ investment fund
• Life insurance
• Accident insurance
• Treatment fund
• Property insurance
• Social security fund

Employment and Skill Development

• Prime Minister’s Employment Program
• Youth self-employment program
• Skill development for the poor and disabled
• Women’s handicraft promotion
• Concessional loans for business operations
• CTEVT training programs

Public Infrastructure

• Rural infrastructure development

Livelihood Programs

• Subsidies for agriculture, fertilizers, seeds, and tools
• Community livestock support
• Kamaiya and Haliya rehabilitation

Care Services

• Daycare centers for the elderly, children, and disabled

Farmer-Targeted Programs

• Crop insurance
• Livestock insurance
• Support price for agricultural produce
• Agricultural roads
• Pocket, zone, super-zone development
• One Village, One Product

Miscellaneous

• Scholarships and incentives for Dalits, indigenous groups, endangered communities, freed Kamaiya/Kamlari, Badi, conflict victims, martyrs’ children, and disabled
• Poor family identification card program
• Citizenship in mother’s name
• Identity for sexual minorities
• Birth registration rights
• Citizenship rights

Other Fundamental Rights

• Rights for women, children, Dalits, elderly
• Constitutional inclusion commissions

Social Security Areas

No social peace without justice, no social justice without social security.

• Food: Pensions, family allowances
• Shelter: Housing facilities, installment payments
• Clothing: Uniforms, warm clothing
• Healthcare: Medical treatment, care
• Education: Scholarships, school meal programs
• Employment: Leave, recreation, work dignity
• Security: Disability benefits, maternity benefits, child benefits, elderly benefits, accident insurance, information networks

Why Social Security?

• Mainstream, empower, and provide opportunities (MEO) to vulnerable groups for social justice.
• Protect economically, socially, and physically weak groups.
• Ensure access to education, health, and employment for a dignified life.
• Provide basic facilities.
• Promote economic and social welfare.
• Guarantee citizen security.
• Foster good state-citizen relations.
• Ensure minimum income for the poor.
• Establish social justice.
• Fulfill the state’s minimum duty.
• Provide opportunities and protection to the marginalized.
• Protect human rights through Voice, Choice, and Right (VCR).

Objectives of Social Security Programs

• Promote social justice.
• Fulfill state obligations to citizens.
• Ensure security for the disabled, poor, and retirees.
• Build harmonious state-citizen relations.
• Promote welfare for disadvantaged communities.
• Secure retirees’ future.
• Establish a welfare state.
• Enhance public trust in the state.
• Offer dignified support to citizens.

Methods of Social Security

• Social Assistance
• Social Insurance
• Employment Schemes
• Targeted Programs
• Labor Market Schemes
• Reservations
• Affirmative Discrimination
• Proportional Representation
• Special Protection

Tools of Social Security

• Social Assistance
• Social Security Card
• Social Insurance
• Employment Schemes
• Targeted Programs
• Labor Programs

Challenges in Social Security

• Lack of responsibility
• Low awareness levels
• Resource scarcity
• Lack of prioritization
• Inadequate stakeholder mobilization
• Lack of empathy

Historical Context

Global Context

• Magna Carta
• ILO Philadelphia Declaration, 1944
• Universal Declaration of Human Rights, 1948
• ICESCR, 1966
• Slavery Abolition Convention
• CEDAW, 1979
• Convention on the Rights of the Child

Nepal Context

• Abolition of Sati
• Abolition of Slavery
• Abolition of Kamaiya and Kamlari systems
• Declaration against untouchability

Difference Between Social Protection and Social Security

Social Protection	Social Security
Older concept	Modern, rights-based concept
General state policy	Rights-oriented policy
Step toward social security	Comprehensive security system
Limited and narrow	Broader and multidimensional
Part of social security	Encompasses entire social life
General principle	Fundamental right
Free and unconditional	Can be conditional
Targets vulnerable groups	Concerns all citizens
Short-term or emergency-focused	Long-term and general

Constitutional and Legal Provisions for Social Protection and Security

Constitution of Nepal

• Preamble: Commitment to equitable society through proportional inclusion, democratic values, sustainable peace, good governance, and prosperity.
• Right to citizenship without deprivation.
• Fundamental Rights: Right to dignity, women’s rights, Dalit rights, elderly rights, right against untouchability, employment rights, social justice, social security, consumer rights.

Sectoral Laws

• Children’s Act, 2075
• Domestic Violence (Offense and Punishment) Act, 2066
• National ID and Registration Act, 2076
• Caste-Based Discrimination and Untouchability Act, 2068
• Senior Citizens Act, 2063
• Truth and Reconciliation Commission Act, 2071
• Anti-Corruption Act, 2059
• Human Trafficking and Transportation Control Act, 2064
• National Human Rights Commission Act, 2068
• Environmental Protection Act, 2076
• Good Governance Act, 2064
• Right to Information Act, 2064
• Civil and Criminal Codes
• Ratified international treaties

Challenges in Social Security

• Fragmented implementation across agencies.
• Inadequate reach and effectiveness of programs.
• Lack of a cohesive policy framework.
• Programs implemented without financial/administrative feasibility studies.
• Coordination challenges among ministries, provinces, and local levels.
• Difficulty identifying diverse community needs.
• Strengthening traditional social security practices.
• Formulating and implementing a national framework.
• Unreliable baseline data.
• Lack of beneficiary choice.
• Perceived as state charity rather than a right.
• Limited public voice.

Social Responsibility

Social responsibility is an ethical framework where individuals or organizations contribute to societal welfare, balancing economic and ecological interests. It reflects the duty to give back to society in proportion to benefits received (Individual Social Responsibility - ISR; Corporate Social Responsibility - CSR).

Areas of Social Responsibility

• Development responsibilities
• Natural resource conservation
• Environmental protection
• Disaster management
• Social welfare
• Controlling social ills
• Social mobilization
• Civic duties
• Upholding values and norms

Social Development Indicators in Nepal

1. Human Development Index: 0.601 (146th, HDI Report 2024, Medium)
2. Education/Literacy: 76.2% (Male: 83.6%, Female: 69.4% - Gender disparity)
3. Health:
   • Life Expectancy: 71.3 years (Male: 68.2, Female: 73.8)
   • Child Mortality (per 1,000): 33
   • Maternal Mortality (per 100,000): 151
   • Fertility Rate: 1.94
4. Poverty and Inequality:
   • Absolute Poverty: 20.87%
   • Inequality-Adjusted HDI: 0.424
5. Gender Equality and Inclusion:
   • Proportional inclusion, affirmative action, reservations
   • Women’s Representation: House (33.1%), Provincial Assemblies (33.3%), Local Level (41.21%)
   • Civil Service: 28.5%
6. Employment and Labor Participation:
   • Unemployment Rate: 11.4%
   • Male vs. Female Employment Ratio: 1:1.7
   • Labor Force Participation: 38.5%
   • Formal Sector Employment: 36.5%
7. Social Security: Covers elderly, disabled, single women, widows, Dalit children, endangered ethnic groups
8. Sanitation and Water:
   • Households with Toilet Access: 95.5%
   • Households with Basic Water Access: 93.35%
9. Housing: Rural (33.33%), Urban (66.67%)

Question 1: Constitutional and Policy Provisions for Health Insurance in Nepal and Measures to Expand Access

Background

Health insurance is a social security program aimed at managing unplanned healthcare expenses, ensuring financial protection.

Existing Provisions

Constitutional Provisions

• Constitution guarantees free basic health services and social security rights.
• Article 35: Right to health.
• Article 51(ja): Policies to ensure health insurance and access to healthcare.
• Article 43: Social security for economically disadvantaged, disabled, single women, children, and endangered ethnic groups.

Policy and Legal Provisions

• 15th Plan (2076-2080):
  • Expand insurance to all societal levels, especially remote and low-income groups.
  • Increase insured population from 7% to 60%.
  • Reduce out-of-pocket health expenses from 53% to 40%.
  • Ensure universal, quality healthcare access.
• Health Insurance Act, 2074 and Rules, 2075:
  • Mandatory enrollment for civil servants and families of migrant workers.
  • Guardians’ duty to enroll newborns, children, elderly, and disabled.
  • Family as a single unit for insurance.
  • Institutional responsibility for enrolling dependents in care facilities.
• National Health Policy, 2076:
  • Nationwide insurance with subsidies for the poor.
  • Ensure quality healthcare as a fundamental right.
• National Health Insurance Policy, 2071: Improve access and utilization of quality healthcare.
• Nepal Health Sector Strategy, 2072-2077: Strengthen insurance for universal basic healthcare.
• Sustainable Development Goals (2015-2030): Ensure universal quality healthcare, affordable medicines, and vaccines by 2030.
• Guidelines for Migrant Workers’ Families, 2078: Mandatory health insurance enrollment.
• Budget 2080/81:
  • Implement insurance through government, community, and cooperative hospitals.
  • Avoid duplication with other social security programs.
  • Integrate social security programs into health insurance.
  • Restructure for sustainability.

Measures to Expand Health Insurance Access

• Extend to all local levels.
• Increase primary service points and referral hospitals.
• Implement online records and SMS systems.
• Amend legal provisions as needed.
• Establish pharmacies at every health facility.
• Enhance awareness through promotion.
• Conduct organizational surveys for local insurance board structures.
• Develop monitoring checklists.
• Identify and mobilize partner agencies for support.
• Integrate with existing health systems.
• Ensure timely claim payments to providers.
• Mandate enrollment for formal sector and migrant workers’ families.
• Develop EMR software for simplified, uniform claims.
• Include health insurance in school curricula.
• Revise benefit packages.
• Formulate and implement strategic plans.

Conclusion

Health insurance aims to provide accessible, quality healthcare to all Nepalis. Expanding reach, enhancing effectiveness, and ensuring sustainability are critical for success.

Question 2: Concept and Importance of Social Protection and Its Interrelation with Development

Concept of Social Protection

Social protection involves government and private efforts to protect the poor and vulnerable, reduce socio-economic crises, and ensure income and consumption for marginalized groups. It is recognized as a human right under the UDHR. Its scope depends on a country’s socio-economic and political context. In Asia, 60% of women lack adequate social protection, requiring 0.81% of GDP investment. Key components include:

• Income security for children and adults unable to earn.
• Security for the elderly.
• Access to nutrition, education, and essential services.
• Basic healthcare for all.
• Special provisions for children, women, and disabled persons.

Importance of Social Protection

Social protection is a broad concept implemented through insurance, occupational health, and specialized programs. Its functional objectives are:

• Protective: Relieving deprivation.
• Preventative: Averting deprivation.
• Promotive: Enhancing incomes and capabilities.
• Transformative: Promoting equity, inclusion, empowerment, and rights.

Its significance includes:

• Reducing poverty and social exclusion.
• Mitigating income inequality.
• Developing human capital.
• Reducing hunger and ensuring food security.
• Supporting educational development.
• Improving healthcare quality.
• Promoting decent employment and inclusive growth.
• Enhancing job creation.

Interrelation with Development

• Requires investment from state and private sectors, justifying expenditure for integrating low-productivity populations into development.
• Fosters national unity and ownership, aligning with inclusive and sustainable development goals.
• Central to democratic values and positive discrimination for equality.
• In poor countries, balancing social protection with productivity is challenging due to limited economic capacity.
• Balanced, sustainable policy implementation is crucial for effective social protection and development.

Question 3: Principles of Contribution-Based Social Security, ILO Conventions, and Social Security Fund

Background

Contribution-based social security involves workers contributing a percentage of their wages to a fund, matched by employers or the government, to provide benefits proportional to contributions.

Principles of Contribution-Based Social Security

• Non-contributors are excluded.
• Operated by a tripartite committee including worker representatives.
• Guaranteed payments to contributors.
• Covers formal, informal, and self-employed workers.
• Benefits based on contributions from workers, employers, and government.

ILO Conventions on Social Security

• Medical care
• Sickness benefits
• Unemployment benefits
• Old-age benefits
• Occupational injury benefits
• Family benefits
• Maternity protection
• Dependent family benefits

Introduction to Social Security Fund

Established on March 21, 2011, under the Social Security (Management and Operation) Rules, 2067, and governed by the Contribution-Based Social Security Act, 2074, the fund ensures workers’ rights to social security. It aims to:

• Enroll all workers in security schemes.
• Reduce economic and social risks.
• Implement universal social security.
• Ensure constitutional social security rights.

The fund lists employers and workers, collects contributions, manages funds, disburses benefits, expands healthcare networks, and extends coverage to informal and migrant workers.

Challenges of the Social Security Fund

• Increasing enrollment of all workers and self-employed.
• Accurate data collection for all sectors.
• Attracting all target groups.
• Integrating with other socio-economic policies.
• Ensuring continuous employment for sustained contributions.
• Maintaining financial sustainability amid economic fluctuations.
• Engaging the private sector.
• Enhancing capital market dynamics and governance.
• Strengthening the system’s sustainability.
• Expanding the formal sector.
• Ensuring equitable contribution rates.
• Implementing clear, time-bound action plans.
• Managing pre-existing retirement funds.

Conclusion

Social security is a state duty and fundamental right, requiring robust resource management for sustainable implementation.

Question 4: Concept and Need for Social Security

Concept

Social security provides special arrangements for marginalized groups (women, Dalits, disabled, elderly, single women, orphans, economically/socially backward) to ensure access to state resources. It is a component of social justice and a fundamental right under Nepal’s Constitution.

Need for Social Security

• Protect rights and advocate for marginalized groups.
• Increase access to state resources for all.
• Ensure economic and social justice.
• Empower deprived communities.
• Build an equitable society.
• Protect and promote human rights.
• Contribute to poverty alleviation.
• Promote gender equality and empowerment.
• Build a just and ethical society.
• Promote a welfare state.

Question 5: Contribution-Based Pension System

Definition

The contribution-based pension system involves employees contributing a fixed portion of their salary to a fund, matched 100% by the government, to manage post-retirement obligations. It reduces the state’s financial burden as retiree numbers grow.

Need and Justification

• Reduce financial burden due to increasing life expectancy and retiree numbers.
• Ensure sustainable social security for civil servants and families.
• Mitigate risks from unfunded liabilities.
• Mobilize savings for economic growth.
• Promote transparency, accountability, and autonomy.
• Align with global practices (e.g., India).

Investment Areas (Pension Fund Act, 2075)

• Government bonds
• Commercial bank fixed deposits
• Financial institution fixed deposits with bank guarantees
• Loans to industries/organizations with government guarantees
• Up to 25% in bank/financial institution shares
• Joint financing with banks/financial institutions
• Up to 25% in company/organization debentures
• Employee housing projects, land purchase, and building construction
• Government-approved investments with adequate collateral
• Employee welfare projects with government approval
• Productive industries with Ministry of Finance approval
• Government projects
• International bonds/foreign currency with Nepal Rastra Bank approval
• Treasury bills
• Necessary fund operations

Conclusion

The contribution-based pension system, operational in Nepal, secures employees’ futures through strategic investments, ensuring sustainable and reliable social security.