Financing the Social Sector: Regional Challenges and Opportunities

To achieve the ambitious soon-to-be adopted Sustainable Development Goals (SDGs), countries in Asia and the Pacific need to align financing for development strategies with the principles of shared prosperity, social equity and environmental sustainability. One important measure that policymakers and other stakeholders can take to achieve this objective is to ensure that investments in the social sector are commensurate with investments in other priority areas, including infrastructure, and science and technology. The Asia-Pacific region has experienced impressive economic growth and noticeable poverty reduction in recent years. However, the financing arrangements and mechanisms that have dominated the development agenda since the 1980s have not closed the gap between rich and poor, nor mitigated unequal social opportunities, which disproportionately affect women and the most vulnerable members of society, including the poor, youth, persons with disabilities, older persons and migrants. These inequalities are undercutting inclusive and equitable growth, undermining social cohesion and integration, and generating unsustainable production and consumption patterns. Just as the scope of sustainable development cannot be reduced to market-led growth, financing for development must effectively encompass social, economic and environmental domains. The financing of energy, telecommunications and transportation, for example, is no more important than ensuring health care, education and income security for all. Striking such a balance will ensure that people are at the centre of development and that no one is left behind. This paper is divided into two parts. The first part addresses the need for a financing framework that is consistent with the aspirations of the prospective post-2015 development Agenda. The second part of the paper focuses on the importance of financing the social sector. Conceptualized, for the purposes of this paper, as social protection, this section of the paper elucidates relevant regional trends that demonstrate the positive contributions social protection has on individuals, households and society, alongside coverage gaps. Finally, the paper explores some promising country experiences and policy options vis-à-vis enhancing social sector investments.