19 October 2012

THE 8th GMS DEVELOPMENT DIALOGUE 18 December 2012 Video-linked among ADB Resident Missions in the GMS Host Site: Phnom Penh, Cambodia SOCIAL SECURITY FOR MIGRANT LABOR IN THE GMS A CONCEPT NOTE I. THE GMS DEVELOPMENT DIALOGUE (GDD)

1. The GMS Development Dialogue (GDD) is one of the key activities conducted to complement the learning experience of the GMS countries under the Phnom Penh Plan for Development Management (PPP) --- a region-wide capacity development project under the framework of the GMS Economic Cooperation Program. The GDD series was initiated in 2006 to provide a platform for a cross-sectoral debate on development issues among government, academe, private sector, civil society organizations, and media. The dialogue process is envisaged to help decision makers broaden their perspectives, appreciate the wider implications of critical policy choices, and identify areas for possible collaboration among governments in the region. 2. Seven (7) GDDs have been held so far on the topics of energy security (September 2006), climate change (May 2008), food security (September 2008) labor migration (May 2009), corridor towns (November 2009), GMS and ASEAN complementarities (July 2010), and The Role of Border Economic Zones in Development of GMS Economic Corridors (December 2011). The dialogue is video-linked in GMS countries using the facilities of the ADB Resident Missions and the ADB Headquarters in Manila. Participants from government, academe, private business, civil society organizations and media sectors of the GMS countries took part in these events. Ideas that have resulted from the dialogue are discussed further and pursued within the framework of the GMS Program. II. . The 8th GMS Development Dialogue (GDD-8) The Topic: Social Protection for Migrant Labor in the GMS 3. The 8th GMS Development Dialogue (GDD-8) will be on the topic of Social Protection for Migrant Labor in the GMS. Increasing labor mobility in ASEAN as a result of economic integration has raised issues on the adequacy of social protection accorded to migrant labor. These issues revolve around access to social services in the host country, the preservation of the value of accumulated benefits acquired from foreign employment, and retirement income security, among others. In 2007, the 12th ASEAN Summit held in Cebu, Philippines issued the Declaration on the Promotion and Protection of the Rights of Migrant Workers which recognized the important contribution of migrant workers in the integration agenda, and underscored the need to promote their welfare and human dignity consistent with the goals and aspirations of the ASEAN Socio-Cultural Community. While the Declaration was a significant step in realizing these aspirations, a number of factors presently impede the provision of comprehensive social security protection for migrant workers in ASEAN. These factors include: (i) weak domestic policies on social protection and design of social security systems; (ii) asymmetrical intra-

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ASEAN labor movement that involve mostly unskilled labor, and (iii) the absence of social security agreements among individual ASEAN member countries. 4. Two patterns of intra-ASEAN labor migration have been observed in ASEAN (Pasadilla, 2011). One pattern is centered around the GMS, with Thailand as the major importer, and Cambodia, Lao PDR, Myanmar, and Viet Nam as major suppliers, of labor. The other pattern centers around Malaysia, Singapore and Brunei Darussalam, with Malaysia as the major destination country for workers from Indonesia and the Philippines. The motivation for migration varies --- mostly economic, but also political in some cases. Since a great number of labor migrants belong to the unskilled category, many of them are not allowed to participate in host country social security schemes where certain requirements need to be met, such as: nationality conditions, residency requirements, length of period of contributions, and applicability of work sectors, among others. Social protection or social security resides mostly in the domain of formal work in the private sector. 5. Several proposals have been put forward on how to move forward on the agenda of social protection for migrant labor. One proposal is for individual countries to enter into bilateral agreements. While international and regional conventions abound on the promotion of rights and social protection for migrant workers, there are no social security agreements within individual ASEAN countries at present that make clear reference to social protection (Hall, 2010). Some countries have signed labor agreements that provide non-discrimination and the right of equal access to social protection, but these provisions are statements of a general nature and do not contain specific provisions on social security protection. Proposals have been made to forge such social protection agreements in ASEAN, starting with bilateral agreements, possibly as a stepping stone to wider multilateral agreements over the long-term. ILO has offered model provisions for such agreements. Another proposal involves increasing the portability features of social security schemes; portability being defined as the ability to preserve the actuarial value of accrued pension rights when moving from one job (within the same country) to another. (Forteza, 2008; Avato et al. 2010 as cited in Pasadilla, 2011). Portability is important to minimize or guard against losses of social security benefits through migration and could be an important element in the design of a regional framework for regions such as ASEAN aiming at deeper economic integration. 6. GDD-8 seeks to provide a platform for discussing these issues in the specific context of the GMS but also within the larger view of ASEAN initiatives. More specifically, the objectives of the Dialogue will be to foster awareness of the issues, discuss implications in the design of national policies, and identify possible approaches that can be pursued within the framework of GMS cooperation. The GDD will thus be divided into four sessions: Session 1 will present an overview of social protection for migrant labor in ASEAN and the GMS --- the existing systems, legal and administrative barriers, and the challenges for promoting migrant access to social protection; Session 2 will look at the case of Thailand as the hub of labor migration in the GMS: recent efforts at promoting social protection for migrant labor across various types of skills and sectors (including for those liberalized under services trade), and the forward agenda; the case of PRC will also be presented focusing on similar issues. Session 3 will discuss salient features of international conventions and some models of regional social protection agreements (such as those of the EU and MERCOSUR): and Session 4 will provide an opportunity for GMS countries to revisit the features of their respective social protection systems, the reforms needed, and how the GMS Program can be used as a platform to help improve social protection systems for migrant labor. It is envisaged that the output of the Dialogue could eventually form part of the agenda of the GMS Working Group on Human Resources Development (WGHRD). Date and Venue 7. GDD-8 will be held on 18 December 2012, with the ADB Resident Mission in Phnom Penh as the host site.

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Dialogue Format 8. Sessions 1, 2 and 3 will feature presentations by resource persons/experts in the subject areas. Open discussion will follow after each presentation. During the working lunch, participants from each site will be requested to reflect and discuss their national social protection systems, and identify challenges for reforms, drawing from the presentations in the morning. Session 4 will take place when the plenary session resumes in the afternoon. During this session, a representative from each site will be requested to present the highlights of their respective working lunch discussions. Open discussion will follow, focusing on possible national and regional level approaches to address the challenges of promoting social protection for migrant labor. Reference Documents 9. A background paper on the topic will be commissioned to serve as a resource for the Dialogue. The background paper will set the GMS context for the topic and identify some of the issues to be discussed. Participants 10. Each GMS country nominates around 10 participants to the GDD composed of representatives from the government, academic institutions and think tanks, private sector, and civil society organizations. Representatives from public and private sector organizations involved in social security systems and pension schemes, labor rights, and labor migration would be able to contribute significantly to the debate. PPP alumni are also invited. These participants will be linked to the GDD, and interact with the speakers, via the video conference facilities of the ADB Resident Missions.

**************************** References: Pasadilla, Gloria O. 2011. Social Security and Labor Migration in ASEAN. Research Policy Brief 34. Tokyo: ADB Institute. Hall, Andy. Migrant Workers Rights to Social Protection in ASEAN: Case Studies of Indonesia, Philippines, Singapore and Thailand. Singapore: Friedrich Ebert Stiftung. 2011.