As Bangladesh is graduating from being a least developed country (LDC), it is time to develop a social insurance (SI) system along with the conventional safety net concept, said the Centre for Policy Dialogue (CPD) on Thursday.
The think tank also said that the country needed to advance with immediate measures, especially when developed or developing countries advanced themselves in the social insurance system.
Social Insurance (SI) is a government-backed initiative that offers financial aid and protection to individuals or groups facing social risks like illness, disability, unemployment, old age, and maternity.Its purpose is to alleviate the economic impact of such events on individuals and families.
At the same time, transparency and good governance are essential to increasing confidence in this sector.
CPD was speaking at an event titled “Inception of Social Insurance Forum in Bangladesh.”
CPD also believes that if such a program is introduced, the cost of the government's social safety net (SSN) program will be reduced, and the social rights of the public will be ensured.
However, a suitable design for the National Social Insurance Scheme (NSIS) is yet to be developed.
A forum has been established to facilitate the implementation of social insurance schemes in Bangladesh.
Although the ministries are consistently organizing regular meetings and workshops on the National Social Security Strategy (NSSS), there is still a notable absence of widespread discussions specifically focused on the NSIS, the CPD further commented.
Additionally, the visible progress on the implementation of NSIS seems to be limited or not readily apparent.
A pension scheme has been introduced, but the level of participation is currently insignificant.
There are several gaps in the implementation of NSIS, including conceptual gaps, legal and planning gaps, institutional gaps, operational gaps, among others.
To address these issues, the Social Insurance Forum (SIF) was established.
The SIF was established by CPD, in partnership with GIZ Bangladesh, under the initiative titled "Establishing Social Insurance Forum (SIF): A Platform for Discussion on Implementing NSIS."
CPD informed the main objective of the SIF will be to facilitate the implementation of the action plan with regard to the NSIS.
In her introductory speech, Silvia Popp, project manager, Employment Injury Protection Scheme for Workers in the Textile and Leather Industries (EIPS), GIZ GmbH, said: “Anyone can become disabled at any time. We should think about the safety of everyone, regardless of government or private sector. That's why social insurance is very effective.”
Syed Saad Hossain Gilani, chief technical adviser, ILO Country Office, Dhaka said: "Social Insurance Program is running in many countries that are lagging behind in economic conditions other than Bangladesh. Hence, Bangladesh can start this method immediately."
Employees will also get benefits, he added.
30 million workforce with no protection
In his keynote presentation, Khondaker Golam Moazzem, research director, CPD, said: "The number of working people engaged in various sectors in the country is more than 30 million. However, two-thirds of these people have no one to protect them in case of an accident in their working life."
The SIF aims to bridge knowledge gaps, facilitate framework development, establish networks with stakeholders, and track progress in thematic areas, he stated.
To facilitate framework development, the CPD research director suggested that a platform should be provided for collaborative discussions and idea exchange to enhance the creation of robust frameworks.
Guidance and resources should be offered to streamline the process of developing effective frameworks aligned with NSSS objectives. Encouraging dialogue among participants will help ensure that diverse perspectives contribute to the formation of a comprehensive and adaptable framework, Moazzem commented.
Regarding networking with stakeholders in NSSS implementation, he suggested establishing effective communication channels and collaboration among key participants.
This includes hosting events to foster relationships, share best practices, and collectively address challenges, aiming to create a cohesive community with a synchronized approach to social insurance initiatives.