The track record of developing countries in initiating appropriate social security policies to face aging of populations is some what mixed. Ageing of the population is related to demographic transition, whereby densely populated countries like India and Bangladesh are expected to have a replacement level population by 2050.

The decrease in mortality is reflected in the increasing life expectancy at birth which has been lower for females, in comparison to males, in the 1950s. By 2005, female life expectancy at birth almost equalled or exceeded that of males in all South Asian countries. By 2050, females are expected to outlive males in all the countries of South Asia, by as much as about 5 years in countries like Sri Lanka. The aging of the population in South Asia is thus expected to proceed faster than in other developing countries. Moreover, the transition from high to low fertility is expected to narrow the base of the age pyramid and broaden it at the top. In addition, improvements in life expectancy at all ages will result in the survival of more old persons, thus intensifying the aging process.

It is in this context that social security programmes, especially social assistance schemes, become important in this region. Given the large informal and unorganized sector in most of the region, formal social security mechanisms and pensions that emanate from an employee-employer relationship have very low coverage. Compliance to the social security agenda of ILO is also far from satisfactory in many countries. Universal publicly funded social security measures like food subsidy, and medical, health and education facilities are also far more inferior and inaccessible to large sections of the poor and marginalized in South Asian countries.

Social pensions also assume importance in the context of globalization and informalization of work. The evidence of increasing informal work within the ‘formal’ sector is also a challenge to the social security of millions of workers.

Until August 1995, there was no social assistance programme managed by the Government of India for its poor citizens. The announcement, on August 15, 1995, of a National Social Assistance Scheme (NSAS), was a significant step towards the fulfillment of the Directive Principles enshrined in Article 42 of the Indian Constitution, which envisages public assistance in old age. On March 19, 1999, the Government of India also announced another social assistance scheme called ‘Annapurna’ for its elderly destitutes.

The National Social Assistance Scheme had three components: National Old Age Pension Scheme (NOAPS), National Family Benefit Scheme (NFBS) and National Maternal Benefit Scheme (NMBS). Among the three schemes, NOAPS is meant for the elderly poor. This is a Centrally-sponsored programme with 100 per cent Central assistance to the States and Union Territories, to be provided in accordance with the norms, guidelines and conditions laid down by the Central Government. The Ministry of Rural Development, Government of India, manages the scheme.

The Old Age Allowance Programme was launched in fiscal year 1997-98. Under the scheme, ten very poor elderly persons from each ward of a union throughout the country, are allowed a monthly allowance of Taka 100 each. As of 2006, 1.6 million poor elderly persons from 40,311 wards of 4,479 unions were recipients of the Old Age Allowance (Mahmood, Begum and Islam, 2008). A total of Taka 500 million (1 US$ = 70 Taka ) is allocated out of the revenue budget of the government annually to the Department of Social Services, Ministry of Social Welfare, for the implementation of the Old Age Allowance Programme. An elaborate set of committees and sub-committees stretching from the national to the Thana/Upazilla, Union, and Ward levels have been entrusted with the responsibility of identifying eligible elderly persons under the Programme (Paul-Majumder and Begum, 2001; Government of Bangladesh, 1999).

Provision for Public Assistance was first introduced under the Poor Law Relief Ordinance of 1939 and has continued ever since. At present, this programme is handled by the Provincial Department of Social Services. Currently, payments under Public Assistance are made to households which have a monthly income of less than Rs. 300 (1US$ = 115 Sri Lanka Rupees) and are headed by persons who are disabled, old or widowed. The rate of payment is determined by the size of each household - a single-person household receives Rs. 100 per month and one with four or more members receives a maximum of Rs. 300 per month. However, it appears that some Provincial Councils have raised the ceiling in recent years. The total number of recipients of Public Assistance during 2006 was 4,25,477 and the amount disbursed was Rs. 605,350,380.

A universal flat pension of Rs. 100 (1 US$ = 79 Nepalese Rupees) to all persons of at least 75 years of age was first announced by Prime Minister Manmohan Adhikari on December 26, 1994. Five districts from the five development regions of Nepal were selected on a pilot basis and the first disbursement of the Old-age Allowance Programme (OAP) was made on July 2, 1995 for a six-month period from January to June. The implementation of the pilot plan was carried out by the Ministry of Education and Sports, and distributed at the grassroots level by Village Development Committees (VDCs). During the financial year 1995-96, OAP was extended to the entire country and was implemented by the Home Ministry. During 1995-96, an amount of Nepalese Rs. 2800 million was released for the implementation of the programme. Since 1996-97, the Ministry of Local Development has administered the OAP, and the allowances have been distributed by the ward offices in the urban areas and by the Village Development Committees in the rural areas. The coverage is to the tune of two thirds of eligible population. A similar widow pension scheme has coverage of one third of the population.