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The World Bank's social protection and labour strategy: Resilience, equity and opportunity

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On the 11th September 2012, SIANI, FAO Norden, Sida and Svenska kyrkan held a seminar called "Cash Transfers, resilience and agriculture development". The role of cash transfers in the context of social protection in stimulating local production and increasing resilience’s of rural communities was discussed as well as a great many other related issues.The seminar was held in Stockholm and also broadcast over the internet.

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The World Bank's social protection and labour strategy: Resilience, equity and opportunity

  1. 1. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-2022THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-2022
  2. 2. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-20222Core MessagesSocial Protection and Laborpolicies and programs…1. Are necessary2. Are effective when• Systemic• Inclusive• Responsive• Productive3. Need to be• Tailored to countries andevidence• Knowledge-driven• Developed and appliedcollaboratively
  3. 3. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-20223Background: The World Bank’sSocial Protection and Labor practice• Operates in all regions of the world, in both middle-incomeand lower-income countries, and fragile contexts• Provides :– Loans and grants– Knowledge and analysis– Policy advice– Technical assistance– Capacity-building• Works on 4 main domains:– Social assistance (safety nets)– Pensions and social insurance– Labor market reforms (including youth employment)– Disability and development
  4. 4. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-20224Background: The World Bank’s lending in SocialProtection and Labor has been counter-cyclical2%9%10%10%12%2%11%7%13%1%3%4%8%7%3%4%7%5%FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11IBRDIDAAsianCrisisLAC/ECACrisisFFFCrisisSocial Protection andLabor’s Share in WorldBank New LendingCommitmentsMiddle-incomeLower-income
  5. 5. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-20225Main messages:Social Protection and Laborpolicies and programs…1. Are necessary2. Are effective when• Systemic• Inclusive• Responsive• Productive3. Need to be• Tailored to countries andevidence• Knowledge-driven• Developed collaboratively
  6. 6. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-20226Main messages:Social Protection and Laborpolicies and programs…1. Are necessary2. Are effective when• Systemic• Inclusive• Responsive• Productive3. Need to be• Tailored to countries• Knowledge-driven• Developed collaboratively
  7. 7. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-20227Social protectionand laborprograms arenecessary in arisky, changingworld912 m.People inpovertybelow $2/day(2010)674Averagenumber ofdisasters2006-1075 m.Unem-ployedyouth(2011)2 xNumber ofelderly(over 60)in 2050compared to2010
  8. 8. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-20228Well-functioning social protection and laborpolicies let countries help their people achieve:Resiliencefor thevulnerableEquityfor the poorOpportunityfor allInsuring againstimpacts of differentshocksProtecting against direpoverty a nd loss ofhuman capitalPromoting human capitaland access to productivework
  9. 9. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-20229Evidence shows that social protection and laborpolicies contribute to sustainable, inclusivegrowthNational level- Promotes social cohesion, enables reform- Stimulates aggregate demandCommunity level- Creates productive assets- Improves functioning of labor markets- Creates local spillovers from increased demandHousehold level- Fosters accumulation of assets- Increases entrepreneurial activity- Increases/preserves human capitalSource: Alderman and Yemtsov (2012)
  10. 10. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202210Main messages:Social Protection and Laborpolicies and programs…1. Are necessary2. Are effective when• Systemic• Inclusive• Responsive• Productive3. Need to be• Tailored to countries• Knowledge-driven• Developed collaboratively
  11. 11. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202211Main messages:Social Protection and Laborpolicies and programs…1. Are necessary2. Are effective when• Systemic• Inclusive• Responsive• Productive3. Need to be• Tailored to countries• Knowledge-driven• Developed collaboratively
  12. 12. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202212Core idea: Social protectionand Labor SystemsSystems are portfolios of coherentprograms that can ...• communicate with each other,• often share administrative sub-systems,• work together to deliver resilience,equity and opportunity
  13. 13. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202213Example: Social protection and laborprograms across the life cycleSocialpensionsOld-agepensions,disabilityinsuranceEmploym-entservices,entrepre-neurship,skillsCash & in-kindtransfers,publicworksUnemploy-ment,disabilityinsuranceYouthemploy-mentprograms,skillsPublicworksCCTs for(girls’)educationChildallowancesschoolfeedingNutrition/ECD, CCTsfor pre-school,healthOVCprograms,childallowancesOpportunityEquityResiliencePregnancy/earlychildhoodChild-hoodYouthWork-ingageOldage
  14. 14. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202214ProgramProgramProgramProgramSocial protection and laborsystems operate at different levelsAdministration level:Aim: Building basic subsystems tosupport one or more programs forsecurity, equity or opportunityAdmin.sub-systemsProgram level:Aim: Improving design of existingprograms and harmonizing acrossportfolio of programsPolicy Level:Aim: Ensuring overall policy coherenceacross programs and levels ofgovernmentSource: Robalino, Rawlings and Walker (2012)
  15. 15. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202215From fragmented approachesto harmonized systemsSocialwelfare35%Socialsecurity/labor , 9%Other11%Outsidegovern-ment45%Cash transfers in Sub-Saharan Africaare fragmented across ministries anddonorsSource: Garcia and Moore (2012)Fragmentation: Differentministries/donorsimplement similarprograms Some beneficiaries haveaccess to multipleprograms, others excludedFew Integrated Systems imply: Incentive incompatibility Financing inadequate andnon-transparent Unclear institutional roles
  16. 16. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202216Fragmentation: The challenge in socialprotection and labor programsCivilServantsSOEsPrivate SectorSecurityForcesSocial PensionsFuel subsidiesFood subsidiesCashtransfersPensionsSocialAssistanceLOW INCOME HIGH INCOMEGENEROSITYGENEROSITYPublicworksUniversal child benefitsCashtransfersLOW INCOME HIGH INCOME
  17. 17. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202217From exclusionto inclusion757065463222121792122 4313 1323274633SS Africa MENA SAR LAC EAP ECANo transfer Only social insuranceOnly social assistance Labor market programsPercentSource: World Bank ASPIREdatabase% of households receiving transfersLow-coverage concentratedamong: low-income countries andfragile contexts poor populations andvulnerable groups,including women informal sectorMeeting the challenge Fiscally sustainableinclusion Innovation in reaching theexcluded Institutional capacitybuilding, performancemanagement
  18. 18. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202218The world of work is not a world of wage earnersSource: WDR 2013 Calculationswage43%farmers34%self-employed23%wage47%farmers26%self-employed27%wage50%farmers29%self-employed21%wage19%farmers48%self-employed33%East Asia and the PacificMiddle East and North AfricaSouth Asia Sub-Saharan AfricaFrom less productiveto more productiveLow-productivity concentrated Low-income countries andfragile contexts Poor populations and vulnerablegroups Informal, rural sectorsMeeting the challenge Investment in human capital,especially among children• Improve access to basic services ineducation, health and nutrition Improving productivity andaccess to jobs• Improve labor market functioningto enable access to higherproductivity work• Foster activation programs, skills,capacity building
  19. 19. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202219From inflexibilityto responsivenessThe need for effective riskmanagement Against both individual shocks andsystemic crises Crises are increasingly frequent,widespread, severe and concentrated inpoor regions among poor peopleMeeting the challenge Ensure that appropriate programsare in place before shocks hit Enhance existing programs to capturethe newly vulnerable Add programs to the social protectionand labor portfolio that can be scaledup during crises Strengthen programs to help themost vulnerable in times of crisis446Averagenumber ofdisasters1991-95674Averagenumber ofdisasters2006-10
  20. 20. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202220Main messages:Social Protection and Laborpolicies and programs…1. Are necessary2. Are effective when• Systemic• Inclusive• Responsive• Productive3. Need to be• Tailored to countries andevidence• Knowledge-driven• Developed collaboratively
  21. 21. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202221Main messages:Social Protection and Laborpolicies and programs…1. Are necessary2. Are effective when• Systemic• Inclusive• Responsive• Productive3. Need to be• Tailored to countries• Knowledge-driven• Developed collaboratively
  22. 22. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202222To succeed, work on social protectionand labor issues need to be …Broad, synergisticpartnerships acrosssectors and actorsTailoredCollabo-rativeKnow-ledge-DrivenKnowledgefocused on resultsand learning fromSouth-South sharing ofpracticeTailoring operations tocountry context, and toevidence of “what works”;No one size fits all
  23. 23. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202223For more informationwww.worldbank.org/spstrategy• Strategy and Executive Summary• Background papers and Policy notes• Video• Consultations reports• Translations into Arabic, Chinese, French,Portuguese, Russian, and Spanish
  24. 24. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202224ANNEXES
  25. 25. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202225From strategy to results: MeasuringsuccessQuality of World Bank activities tosupport partner countriesChanges in SPL outcomes andoutputs in countries attributableto World Bank supportCountry progress on keydevelopment outcomes Percentage of satisfactoryprojects (IEG Ratings) Percentage of projects withsatisfactory M&E (ICRs) Number of downloads ofSP&L knowledge products Number of countries involvedin World Bank sponsoredSouth-South learning events Percentage of SPL staff timespent on cross-support tocountries in other regions Percentage of lendingoperations in IDA countrieshaving co-financing partners Percentage of World Bank SPLlending operations supportingSPL systems Number of countries withWorld Bank SPL engagement Number of beneficiaries ofWorld Bank supported SSNprograms* Number of beneficiaries ofWorld Bank supported labormarket programs* Poverty gap at $1.25 per day(PPP) Percentage of population inthe poorest quintile coveredby SPL programs Share of working agepopulation accruing pensionsrights Pension beneficiaries toelderly (>65) population ratio(old age, survivor, disabilityand social pensions) Percentage of children (7-14)employed Labor productivity: GDP perperson employed Youth/adult unemploymentrate
  26. 26. THEWORLDBANK’SSOCIALPROTECTIONANDLABORSTRATEGY2012-202226Towards an agenda for developmentpartners on building social protection andlabor systems• Help finance and build “nuts and bolts” ofsystems in poorer countries• One good example is the RapidSocial Response program• Has very successfullycatalyzed development ofanalytical and operationalbuilding blocks of socialprotection programs in low-income countries

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