Introduction

1. This paper provides an overview of ASEAN policies and mandates for addressing the social impact of the financial and economic crisis. Secondly, it provides an overview of the possible areas of collaboration with ASEAN Dialogue Partners and international agencies in the area of social recovery, taking into account pending ASEAN projects and programmes. Finally, it suggests some approaches for collaboration.

Sixth ASEAN Summit: Hanoi Plan of Action

2. At the 6^th ASEAN Summit, held in December 1998, the ASEAN Leaders recognised that the financial crisis has a social dimension and that the poor and vulnerable were the most affected. The leaders expressed their commitment to safeguard the interests of the poor and emphasised that the eradication of poverty shall be the ultimate goal of their strategies for recovery and growth. They "urged the international community to step up their technical and financial assistance in this area as well as ensure that the reforms in the international financial architecture include a social dimension to protect the poor".

3. The concern for the poor was also given prominence in the six-year "Hanoi Plan of Action" (HPA) adopted at the 6th ASEAN Summit. Apart from initiatives to hasten economic recovery, the HPA includes the section: "Promote social development and address the social impact of the financial and economic crisis" which comprises the following actions:

1. Strive to mitigate the social impact of the regional financial and economic crisis;
   

2. Implement the ASEAN Plan of Action on Rural Development and Poverty Eradication and, in view of the financial and economic crisis, implement the ASEAN Action Plan on Social Safety Nets to ensure that measures are taken to protect the most vulnerable sectors of our societies; and
   

3. Support activities and social development programmes aimed at addressing issues of unequal economic development, poverty and socio-economic disparities.

ASEAN Ministers on Rural Development and Poverty Eradication (AMRDPE)

4. In view of the deepening impact of the economic crisis on the social well-being of the region, the Second Senior Officials Meeting on Rural Development and Poverty Eradication (SOMRDPE) convened in October 1998 agreed to establish an ASEAN Task Force on Social Safety Nets with the following terms of reference, among others:

1. to serve as a clearinghouse for the matching and provision of technical expertise to assist Member Countries in the design and development of social safety net programmes for the vulnerable and the disadvantaged; and
   

2. to serve as a forum for mobilising resources and technical assistance from international aid agencies, ASEAN's Dialogue Partners, the ASEAN Foundation and the private sector to implement the Task Force's programmes and activities.

5. To guide the work of the Task Force, the SOMRDPE adopted an ASEAN Action Plan on Social Safety Nets (see Appendix 1)with four priority areas as follows:

1. assessing and monitoring the social and economic impact of the crisis and identifying the target groups affected and their needs;
   

2. developing and implementing social safety net programmes for the disadvantaged and vulnerable;
   

3. monitoring and improving the effectiveness of economic and social services delivery; and
   

4. promote public awareness of the impact of the crisis on the poor.

6. The ASEAN Action Plan on Social Safety Nets was subsequently adopted by the Informal Meeting of ASEAN Ministers on Rural Development and Poverty Eradication held in December 1998 in Jakarta.

7. Three projects on rural development under the ASEAN Plan of Action on Rural Development and Poverty Eradication (see Appendix 2) adopted by the Inaugural Meeting of ASEAN Ministers on Rural Development and Poverty Eradication held in October 1997 are also relevant in addressing poverty alleviation:

1. build capacity for generating data on poverty incidence and establish a poverty monitoring and information network;
   

2. implement a regional training programme for facilitators to work in anti-poverty programmes in the rural areas with skills on economic management, communication, agricultural extension microcredit services; and
   

3. develop a campaign for enhancing national and regional public awareness.

ASEAN Labour Ministers

8. The ASEAN Labour Ministers Meeting held in Yangon from 14 to 15 May 1999 endorsed the following elements for a regional work programme addressing the labour and employment impact of the crisis in ASEAN and proposing strategies for recovery, under the programme Support to Monitor and Facilitate ASEAN Economic Recovery prepared by the ASEAN Secretariat, with assistance from the UNDP:

1. sharing and exchange of experience and best practices in developing social protection and social security systems;
   

2. promoting tripartite cooperation through increased consultations among the social partners, in relation to economic restructuring, including strengthening of tripartite institutions and mediation/conciliation mechanisms; and
   

3. enhancing capacity for designing programmes or policies on employment generation, focussing on active labour market policies and re-training.

9. This section groups ASEAN's priority concerns and projects regarding the social impact of the financial crisis into the following four categories and provides a summary of priority projects adopted by various ASEAN bodies:

1. Monitoring of the social impact;
   

2. Design, implementation, delivery and evaluation of social safety net services;
   

3. Impact on labour and employment; and
   

4. Promoting public awareness on the social impact of the crisis.

A. Monitoring the Poverty Impact

10. Regarding the monitoring of the poverty impact, the ASEAN Task Force on Social Safety Nets identified three priority projects as follows:

1. Developing and increasing the capacity for social impact assessments to aid the design of social safety net programmes;
   

2. Conducting training on assessing the micro impact of macroeconomic and structural adjustment policies; and
   

3. Enhancement of national capacities for generating comparative poverty data among ASEAN Countries.

(Descriptions of these projects are attached as Appendix 3).

11. The Second Meeting of the ASEAN Heads of Statistical Offices held in January 1999 in Bali agreed to launch a regional project to undertake a survey on the socio-economic impact of the financial crisis on ASEAN. The survey would include the impact of the financial crisis on households and industries, among others.

B. Design, Implementation, Delivery and Evaluation of Social Safety Net Services

12. The following are priority project concepts adopted by the ASEAN Task Force on Social Safety Nets (SSN) which are currently being developed for funding consideration:

1. Strengthening capacity of ASEAN Member Countries to design emergency social safety nets;
   

2. Increasing the capacity to design social protection/social security programmes based on a comparative understanding of best practices from ASEAN countries and elsewhere;
   

3. Improving the competency of facilitators to strengthen the ability of community organisations to develop technical and institutional capacity in microcredit management, the use of participatory approach to development and strategies on marketing of rural products;
   

4. Increasing awareness and understanding of GOs on strategies to forge partnerships with NGOs and the private/business sector in addressing the social impact of the crisis and in alleviating poverty in the ASEAN region;
   

5. Improving capacity building for civil society/people's organisations to develop strategies to ensure appropriate delivery of social services to designated target groups;
   

6. Development of alternative strategies for financing social safety net activities; and
   

7. Sharing and exchange of experiences and best practices on enhancing accountability, transparency and effectiveness in the implementation of social safety net programmes.

(Project descriptions are attached as Appendix 3).

C. Impact on Labour and Employment

13. To assist the ASEAN Labour Ministers respond to the labour and employment impact of the crisis, the ASEAN Secretariat, prepared a proposal for developing a work programme to respond to the labour and employment impact, with the following pilot activities:

1. sharing and exchange of experience and best practices in developing social protection and social security systems;
   

2. promoting tripartite cooperation through increased consultations among the social partners, in relation to economic restructuring, including strengthening of tripartite institutions and mediation/conciliation mechanisms; and
   

3. enhancing capacity for designing programmes or policies on employment generation, focussing on active labour market policies and re-training.

(Descriptions of these proposed activities are attached as Appendix 3).

14. Pending programmes/projects under functional cooperation which are relevant in addressing the impact of the crisis on labour and employment include the following:

1. ASEAN Project on Human Resource Development (HRD) Planning (ASEAN Sub-Committee on Labour Affairs);
   

2. ASEAN Work Programme on Informal Sector Development (Labour Affairs);
   

3. ASEAN Work Programme on Skills-Training for Out-of-School Youth (ASEAN Sub-Committee on Youth); and
   

4. ASEAN Network for Women in Skills-Training (ASEAN Sub-Committee on Women).

(Descriptions of these programmes are attached as Appendix 3)

Promoting Public Awareness

15. A proposal on promoting of public awareness on the social impact of the crisis has also been prepared for funding consideration. The proposal calls for an ASEAN information campaign to support the work of the Task Force on Social Safety Nets by publishing the ASEAN Poverty Watch and the use of broadcast media and the Internet in providing accurate and timely information on ASEAN's efforts to address the social impact.

16. A complete listing of the proposed activities covering all four priority areas enumerated in this section is attached as Appendix 3. Given the comprehensiveness of the list, it is unlikely that any one single donor would be able to adequately marshal the resources required to implement all the activities included in the work programme. Accordingly, interested Dialogue Partners and international agencies are requested to focus on areas in which they have on-going related activities, expertise or comparative advantage.

17. As can be seen in the preceding section's review of ASEAN's priorities, a considerable amount of groundwork has already been undertaken by several ASEAN bodies to respond to the social impact of the financial crisis. A framework of cooperation comprising the plans of action on social safety nets and poverty eradication and the establishment of a Task Force on Social Safety Nets, is already in place. Accordingly, interested Dialogue Partners and international agencies are requested to utilise the various plans of action as a basis for developing collaborative activities and projects.

18. In an effort to mobilise support for the implementation of the Hanoi Plan of Action (HPA), the ASEAN Secretariat convened the ASEAN Development Cooperation Forum (ADCF) from 6 to 7 May 1999 in Jakarta to bring together ASEAN's Dialogue Partners, international agencies, foundations and other interested parties to consider support for the implementation of priority projects under the HPA. In response to project concepts on social safety nets presented by the ASEAN Secretariat during the Forum, the Australian Agency for International Development (AusAID) informed the ASEAN Secretariat in August 1999 that it would provide A$500,000 to support the following activities under the Asia Recovery Fund:

1. Developing capacity for social impact assessments in aiding the design of social safety net programmes; and
   

2. Increasing the capacity to design social protection/social safety nets programmes based on a comparative understanding of best practices from ASEAN Member Countries and elsewhere.

19. A project design study was completed in April 2000 to prepare a project design document (PDD). The draft PDD was reviewed and discussed during the ASEAN-AusAID Workshop on Social Safety Nets, held back to back with the 2nd Meeting of the ASEAN Task Force on Social Safety Nets (ATFSSN) at the ASEAN Secretariat in Jakarta from 22 to 24 August 2000. The Workshop/Meeting agreed that four workshops proposed in the draft PDD under the framework of the ASEAN-AusAID Social Safety Nets Project be convened on the following policy and skill development areas, within the one-year implementation time-frame beginning in March 2001:

1. targeting and rapid impact assessment methodologies;
   

2. implementation of core social protection programs: the role of national and local agencies;
   

3. partnerships in social policy; and
   

4. social service delivery and related operational issues.

20. In July 1999, the UNDP and the ASEAN Secretariat signed a programme document "Support to Monitor and Facilitate ASEAN Economic Recovery" which includes the following outputs relevant to social recovery:

1. Harmonisation of the social impact assessment mechanisms in Member Countries through comparative analysis of existing mechanisms and practices (Output 2.1.1);
   

2. Recommended alternative strategies for ASEAN Member Countries in designing and implementing effective social safety net programmes (Output 2.1.2);
   

3. A work programme/Plan of action to respond to the labour and employment impact of the crisis in ASEAN (Output 2.1.3); and
   

4. Recommended set of strategies to address the lack of access by women to opportunities for employment and skills enhancement (Output 2.1.5).

21. In connection with outputs 2.1.1 (a) and 2.1.2 (b) of the ASEAN UNDP ASP-6 project, the 2nd ATFSSN Meeting agreed to the following:

1. The ASEAN Secretariat and Malaysia will jointly develop the Terms of Reference for Output 2.1.1 of the ASEAN UNDP ASP-6 project, “Harmonization of the social impact of assessment mechanism in Member Countries through comparative analysis of existing mechanisms and practices,” taking into account relevant elements of Malaysia’s project proposal on Building and/or Enhancing Capacities for Research, Assessment and Monitoring of Poverty in ASEAN Countries, for circulation to Member Countries for comment and endorsement.
   

2. The ASEAN Secretariat and Indonesia will jointly develop the Terms of Reference for Output 2.1.2 of the ASEAN UNDP ASP-6 project, “Alternative Strategies for designing and implementing social safety nets programs,” taking into account relevant elements of Indonesia’s project proposal on Training of Facilitators on Rural Development and Poverty Eradication, for circulation to Member Countries for comment and endorsement.

22. New Zealand has expressed interest to support the following activities, but further development through the preparation of proposals has yet to be undertaken:

1. Increasing awareness and understanding of Government Organisations on strategies to forge partnerships with NGOs and private/business sector in addressing the social impact of the crisis and in alleviating poverty in the ASEAN Region; and
   

2. Improve capacity building for civil society/people's organisations to develop strategies to ensure appropriate delivery of social services to designated target groups.

23. The ASEAN Secretariat continues working with Dialogue Partners and international agencies to develop activities to implement the ASEAN Action Plan on Social Safety Nets.

24. In view of the interest expressed and support provided for ASEAN projects on social safety nets, other interested ASEAN Dialogue Partners and international donor agencies may wish to consider the following:

1. identify from the attached list (Appendix 3) projects and activities in which the Dialogue Partner/international agency are interested in co-developing and implementing with ASEAN, particularly those which are not taken up by AusAID, the UNDP and New Zealand;
   

2. supplementing the initial assistance provided by AusAID, and UNDP in implementing the selected ASEAN projects;
   

3. if a Dialogue Partner/international agency is implementing a project in which some ASEAN Member Countries are already participating, the agency may wish to consider inviting all other Member Countries to participate; and
   

4. if a Dialogue Partner/international agency is implementing a series of bilateral projects in a number of Member Countries, a regional ASEAN component could be built into the projects, focusing on the dissemination of findings, standardization of methodologies, or on ensuring comparability of assessments and surveys; and
   

5. consider participating in the 3rd ATFSSN Meeting which will be held in conjunction with the Fourth Senior Officials Meeting on Rural Development and Poverty Eradication (SOMRDPE) scheduled to be held in the Philippines in the first quarter of 2001.

For further information, please contact:

Mr. Cho Kah Sin
Assistant Director, Social Development Unit
ASEAN Secretariat
Tel: 62 21 726 2991 ext 341; Fax: 62 21 724 3504/739 8234
Email: [email protected]

Ms. Moe Thuzar
Senior Officer, Social Development Unit
ASEAN Secretariat
Tel: 62 21 726 2991 ext. 393; Fax: 62 21 724 3504/ 739 8234
Email: [email protected]

Mr. Abdurrahman Syebubakar
Technical Officer, Social Development Unit
ASEAN Secretariat
Tel: 62 21 726 2991 ext. 283 Fax: 62 21 724 3504
Email: [email protected]

Draft dated September 2000.