IF Asian countries fail to adopt innovative employment and social protection measures, many citizens won’t be able to afford retirement, according to the Asian Development Bank (ADB).

In an Asian Development Blog released on Tuesday, ADB Principal Social Development Specialist Sri Wening Handayani said social protection can improve the future of Asian workers.

Handayani said this is particularly the case in today’s gig economy, where workers have short-term contracts or are working as freelancers without any benefits such as retirement packages.

“Developing Asia has and will be hit hard by rapid socio-demographic changes. A clear example is the rapidly growing population of older people, which is expected to triple in the next three decades,” Handayani said.

“The good or bad news, depending on one’s perspective, is that most of the Asia’s elderly remain in the labor market because they can’t afford to retire,” she added.

Currently, Handayani said the coverage of social protection programs in Asia is already very low compared to European countries.

Based on the ADB’s Social Protection Indicator, less than half of Asia’s population was fully covered by at least one social protection scheme in 2015.

Handayani said the range varies from Japan with more than 90 percent to Nepal with less than 30- percent coverage.

“The gap in social protection provision, coupled with the growing informality of the labor market and the region’s demographic transition, means that the implicit social contract under either the Bismarck or the Beveridge model is coming under increasing strain,” Handayani said.

She explained the model of 19th- century German Chancellor Otto von Bismarck is to assure standard of living, while the model used by UK progressive economist Lord William Beveridge focuses on securing a subsistence level.

Handayani said these models are being challenged by the nature of work that is being shaped by global trends, such as digitalization, socio-demographic changes and globalization.

These global trends affect the social contract between employer, employee  and state, and the growing diversification of work arrangements.

While there is no one-size-fits- all solution to implementing social protection programs for workers across Asia, Handayani offered four critical points.

Asian countries must close the gap on population coverage and adequacy of benefits and create innovative policy and regulatory frameworks to ensure compliance.

“Policy innovations to enhance the coverage of social protection schemes for NSE [nonstandard employment] workers are key to prepare social protection systems for future work, as will be regulatory frameworks that can adapt to cover NSE workers when they expand social insurance coverage and benefits, Handayani said.

“Expanding social insurance schemes will reduce the state’s financial burden in providing noncontributory social protection or social assistance schemes,” she added.

Handayani also recommended that Asian countries must design sustainable financing mechanisms for social protection programs.

This includes adopting tax-reform programs, such as the country’s Tax Reform for Acceleration and Inclusion (TRAIN) law that allows governments to expand and increase social protection programs.

Under the TRAIN law, the majority of taxpayers receive tax cuts. However, the tax-reform program also included higher consumption taxes on fuel and vehicle purchases.

In response, the government extended unconditional transfers to the poorest 10 million households to augment their incomes which may be affected by higher consumption taxes.

“Some options to expand fiscal space are increasing tax revenue, boosting social insurance contributions, and reallocating public expenditures, among others. Fiscal and tax reforms are currently ongoing in Indonesia and the Philippines,” Handayani said.

The last critical point is harnessing new technology to improve delivery of social protection, such as digital platforms and mobile services. These will be especially useful given the increasing number of NSE workers.

Handayani said Indonesia, the PRC and Thailand have adopted adaptive universal health coverage with cross-subsidies for the poor and vulnerable.

Bangladesh, Myanmar, Mongolia and the Philippines have also expanded the coverage for child benefits through cash transfers, and Nepal, Sri Lanka, Thailand and Vietnam are boosting old-age social pensions.

“The role of the private sector is critical in developing and expanding registration, collection and delivery of social protection programs. There is plenty of space for public-private partnerships in harnessing new technology to expand social protection programs in Asia,” she said.

Increasing social protection coverage is one of the targets under Goal 1 of the Sustainable Development Goals (SDGs). By 2030, countries should have provided substantial social protection coverage of the poor and the vulnerable.

This includes unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims, and the poor and other vulnerable sectors.

The 17 Sustainable Development Goals  were adopted by 193 United Nation-member countries, including the Philippines in 2015. The SDGs have 169 targets and 233 indicators.

The Global Goals aim to end poverty and hunger, promote universal health, education for all and lifelong learning, achieve gender equality, sustainable water management, ensure sustainable energy for all, decent work for all, resilient infrastructure and reduce income inequality between and among countries.

The goals also include create sustainable cities, ensure sustainable consumption and production, take action against climate change, conserve and sustainably use oceans and marine resources, reduce biodiversity loss, achieve peaceful and inclusive societies, and revitalize global partnership for development.