Module 11: Calculating the cost of benefits using the RAP model

Objectives

This module aims to give policy-makers, practitioners, and stakeholders working on social security in a country a basic understanding of costing social protection policy options. When all stakeholders have a broad understanding of the costing process, it can facilitate policy discussions on designing and implementing various programmes and schemes. The module explains the Rapid Assessment Protocol (RAP) model used in the ABND exercise with practical examples and includes a group activity where participants can use the RAP. The module also introduces the data required to use the RAP, possible sources of data, and the limitations of the RAP model.

Key questions

What are the different cost projection tools used by the ILO?
What is the role of the RAP model?
What is the structure of the RAP model?
What are the different steps in using the RAP model?
What are the possible sources of data?
What are the advantages and limitations of the RAP model?

Takeaway message

Estimating the cost of social protection provisions is an important component of the decision-making process. This module helps participants gain an understanding of how to generate basic cost estimates. Participants have the chance to use the RAP model for the fictitious country of Coresia and thereby gain a practical understanding of the RAP model. Obtaining current and projected data and agreeing on assumptions with stakeholders is crucial. While the RAP model cannot be used for designing or piloting a scheme as its results are too simplistic, the results can help initiate a national dialogue process by providing a tangible basis for policy discussions.

Master module 11: Calculating the cost of benefits using the RAP model

Modules prepared in other countries >>

Presentations

Asia: Costing policy options using the Rapid Assessment Protocol

Myanmar - Calculating the cost of benefits using the Rapid Assessment Protocol

Philippines: Cost of a national SPF using the "RAP model"

First, ILO collected data on demographics, labour force, economic indicators and government operations (from present until 2020) from national and international sources, while making projections under reasonable assumptions, where data was not readily available - Read in detail about collecting and projecting data for all the different parameters

Second, bilateral meetings were done with government agencies to discuss the data sources and projections - minutes

Third, a RAP training workshop for the DOLE Technical Working Group and DOLE staff members is to be held.

Didactical Material:

Instruction sheet – Calculating the cost of benefits using RAP

Instruction sheet - Presenting the RAP results to other groups

Blank RAP model

Case studies

Self-learning tutorial: Estimating the cost of scenarios

Myanmar - Exercise sheet: Costing of scenarios and formulating packages

Myanmar - RAP Assumptions

Sample Solutions

Videos

Part 1. ntroduction to RAP and costing policy options in Cambodia

Part 2. Using the Rapid Assessment Protocol

Part 3. Questions and opinions

Group activity – Calculating the cost of benefits using RAP

Group activity – Presenting the RAP results to other groups

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In Myanmar, little data was available and building the RAP model took a long time and a lot of efforts of different members of the UNCT and the government counterparts. In countries with more data, advanced versions of the model can be used.

08.01.2015 - Lou Tessier

Philippines: Data from national sources is preferred to international sources, as far as possible. When this is not possible, simple projections or extrapolations based on national historical data can be done. Projections from international sources can be used when they are based on historical data from national sources.

12.02.2015 - Loveleen De

Mongolia: One recommendation is to work very closely with the ILO actuary experts on the RAP. Projections cannot be made with a simple extrapolation of the trends, definition of some indicators is not always what we think we know. The RAP does not allow for solid projections, therefore it is recommended to work with projections prepared by national entities, which unfortunately may limit the cost projections to only few years (5 in the case of Mongolia). It takes time for the ILO actuary team to review the RAP and proper planning of the need for support should be made.

25.05.2015 - Céline Peyron Bista

General: Remains the issue of costing a full social protection floor (benefits and services). We only provide the cost of benefits (financial transfers). UNICEF and WHO have raised this limitation. The stakeholders would like to see the full cost of a social protection floor, including needed investments to improve quality of health care and education.