What does social protection in the Pacific and Timor-Leste look like?

Finally, let’s look at how governments across the Pacific and Timor- Leste invest in social protection, and how these systems have developed

Did you know?

Some people think that formal social protection systems are quite new in the Pacific. So let’s see if that is true, or just a myth....

Reflection

Does social protection exist in your country?

Do you think your country has any of the following in place?

  • Child Benefit
  • Disability Benefit
  • Unemployment Benefit
  • Old Age Benefit
  • Provident Fund
  • Maternity Protection
  • Sickness Benefits
  • Benefits for poor families

Around the Pacific, countries are increasingly investing in social protection.

  • Although it is different in each country, most countries are already spending money on social protection.
  • Simple life cycle schemes, such as social pensions supporting the elderly are common.
  • Poverty-targeted schemes are less common.

To learn more about social protection in the Pacific, click on the play button.

Countries have usually started by setting up contributory schemes such as provident funds, but in the last 20 years many countries have introduced tax-financed social protection programs.

Click the play button to find out how countries have transitioned from contributory schemes to tax-financed social protection programs over the last 20 years.

Check out the updated Database of social protection expenditure in Pacific Island Countries and Timor-Leste.9

Learn more

9. Partnerships for Social Protection. (2023, February 28). Database of social protection expenditure om Pacific Island Countries and Timor-Leste. Partnerships for Social Protection.

MANY PACIFIC COUNTRIES HAVE USED SOCIAL PROTECTION TO RESPOND TO DISASTERS
  • The provident funds and various social assistance schemes (social pensions and disability benefits) have been used to cushion the impact of tropical cyclones (including in Fiji and Tonga).
  • During the COVID-19 pandemic, countries used social protection to cushion the impacts of the pandemic.
  • The pandemic showed the importance of strong ongoing social protection systems: countries with existing social protection systems could use them to respond quickly.
THE PACIFIC MODEL SHOWS HOW TO GRADUALLY STRENGTHEN SOCIAL PROTECTION SYSTEMS OVER TIME BY:
  • Increasing how many people are eligible, for example lowering the age when people can receive old age benefits.
  • Increasing benefit levels, which is important to keep up with the cost of living and helps people better take care of themselves.
  • Setting different benefit levels within a scheme – for example, in some countries the severity of a person’s disability impacts how much they receive.
  • Introducing new schemes.

Click the button below to learn more about how countries in the Pacific and Timor-Leste are financing social protection.10

Learn more

10. Knox-Vydmanov, C, Soni, N, Satriana, S & Attenborough, J. (2023, February). From historical trends to investment pathways: Social protection expenditure in Pacific Island Countries and Timor-Leste. Partnerships for Social Protection

The Cook Islands social protection system is a good example of how these strategies can be used. Over time, new schemes have been added and existing schemes have been expanded to include more people.

Benefit levels have also increased. The real value of the old age benefit for people 70 years and over grew 120% between 2000 and 2021. There is also a lower benefit level for people 60-69 years, compared to those 70 years and over.