PREVENTION, PROTECTION, PROMOTION:

BETTER LIVELIHOODS FOR THE 21ST CENTURY

DIALOGUE ON THE WORLD BANK’S 2012-2022 SOCIAL PROTECTION STRATEGY

DUSHANBE CONSULTATION SEPTEMBER 21, 2010

July - December, 2010

2

Outline

A. Social Protection Strategy 2022B. Why Social Protection?C. Social Protection TodayD. Looking forward – Drivers of ChangeE. Towards a Strategy and an Operational

Framework: ThemesF. Discussion

Objectives of the Strategy Process: Take stock Debate, build internal and external

consensus/ownership on directions and challenges Set priorities in a coherent sector framework Business plans for the next 10 years

Identify analytical, operational needs Anticipate staffing, resource needs Establish results framework and assess progress

Preparation involves 2 tracks: Drafting, Consultation

Social Protection Strategy 2012-2022

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Timeline for SP Strategy

Preparation – Development of Concept Note and Informal Dialogue (now - Dec. 2010) • Consult on general directions

Phase I – Formal Consultations using Concept Note; Draft Strategy (Jan. – May 2011)

Phase II – Final Strategy; Customized Consultations (June – Dec. 2011); Board presentation

Phase III – Implementation and Dissemination (Jan. 2012 – 2022)• Widely disseminate strategy, with eye on coordination,

operationalization

Why Social Protection?B

Social protection aims to alleviate poverty, manage individual risks and promote equitable and sustainable growth through: Prevention: Providing security to the vulnerable Protection: Ensuring adequate support for the poor Promotion: Expanding opportunities for higher productivity and incomes

7

Social Protection Policies in the Economy

Security and Risk

Management

Includes education and skills,

investment climate,

infrastructure as well as labor market

functioning and social protection

Includes land distribution,

property rights, enforcement of contracts, basic

education, private charity as well as social protection

Includes weather and crop

insurance, irrigation,

community-level

insurance as well as

social protection

Derived from the Social Risk Management Framework

Social Protectio

n

PREVENTION

PROMOTION

PROTECTION

Social Protection TodayC

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Social Protection Today: Coverage(SP transfers received by households as % of their consumption)

Kenya

Mauri

tius

Paki

stan

Vie

tNam

Bangla

desh

Koso

voKyr

gyz

stan

Kaza

khst

an

Bosn

iaM

ace

donia

Georg

iaA

rmenia

Lith

uania

Serb

iaU

krain

ePola

nd

Bulg

ari

aH

ungary

Bela

rus

Latv

iaD

om

inic

an R

ep

Venezu

ela

Boliv

iaSuri

nam

ePara

guay

Colo

mbia

Arg

entina

Mexi

coEl S

alv

ador

Guate

mala

Ecu

ador

Peru

Bra

zil

Cost

a R

ica

Hondura

sU

ruguay

Nic

ara

gua

Panam

aC

hile

Moro

cco

West

Bank

and G

aza

Yem

en

Jord

an

Egyp

t0

10

20

30

40

50

60

70

80

90

100

Source: SP Atlas, World Bank

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Social Protection Today: Generosity (% of population living in households with 1 or more SP program)

Mauri

tius

Kenya

Vie

tNam

Bangla

desh

Paki

stan

Koso

voG

eorg

iaLa

tvia

Kaza

khst

an

Bulg

ari

aA

rmenia

Bosn

iaM

ace

donia

Kyr

gyz

stan

Bela

rus

Ukr

ain

eLi

thuania

Serb

iaH

ungary

Pola

nd

El S

alv

ador

Hondura

sG

uate

mala

El S

alv

ador

Suri

nam

eC

hile

Dom

inic

an R

ep

Ecu

ador

Nic

ara

gua

Panam

aPeru

Boliv

iaM

exi

coU

ruguay

Cost

a R

ica

Para

guay

Colo

mbia

Arg

entina

Bra

zil

West

Bank

and G

aza

Jord

an

Yem

en

Moro

cco

Egyp

t0

10

20

30

40

50

60

70

80

Source: SP Atlas, World Bank

World Bank Social Protection Lending - Expanded support during global crisis

FY 02-08 (annual avg) FY 09-10 (annual avg.)0

500

1000

1500

2000

2500

3000

3500

4000

OtherLabor MarketsSafety Nets

$ m

illio

ns

11

12

World Bank Safety Net Lending and Analytical Work

Looking Forward – Drivers of ChangeD

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Global Trends

Volatility – increase in magnitude and frequency of crises – economic, climatic

Globalization – higher labor mobility, dynamic capital flows, economic interdependence

Demographics – Urbanization, aging in middle income countries, youth bulge in lower income countries, more people in the developing world

Role of Government – Evolving views regarding protecting the poor – e.g., Brazil, India, China, Turkey …

Accountability – Greater demand for government transparency, results and support for rights

Innovation – technology, processes, information

Towards a Strategy and an Operational Framework: Themes

E

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Theme 1: The centrality of Promotion in Social Protection

Social Protection has a role in Prevention, Protection and Promotion Social Protection contributes to economic growth, human

capital development Social insurance programs

Lower risk, volatility especially from the adverse impacts of health shocks, unemployment, old age

Safety nets programs for the poor and vulnerable Reduce inequality Stimulate investment activities by the beneficiaries Help protect and build the poor’s human capital

Labor market programs Provide access to jobs, opportunities Build skills, enhance productivity

Social protection is critically linked with education, health, nutrition, early childhood development; and contributes to cohesion, social stability

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Theme 2: Building SP Systems

Building the basic programs to provide one or more PPP functions

Improving the efficiency and efficacy of each program

Harmoni-zation and integration of all programs providing PPP functions

Social protection “systems” have to connect prevention, protection, and promotion (PPP) functions , and allow individuals and households to move easily among programs depending on need.

The operational needs for SP systems will depend on the state of the existing institutional context A lot of potential South-

South and North- South learning

The goal is to move away from fragmented and isolated programs, increasing coverage to all who need it

More integrated systems also need to be flexible – to quickly and appropriately respond to crises and shocks

Fragile and lowest-income

contexts, with poor formal PPP institutions

Functioning social

protection programs providing

PPP

Well-functioning

social protection programs

that are not fully

harmonized

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The ABC’s – Basics of Integrated SP Systems

Appropriate to Country Circumstances

– Range and balance of programs customized to country circumstances.

– Appropriate integration between and across assistance (safety nets) and insurance/contributory (pensions, health, unemployment) programs

– Compatible with political economy – Sustainable politically, fiscally, administratively

Basic Coverage– System as a whole covers the various groups

in need of assistance.– Individual programs provide full coverage and

meaningful benefits to population they are meant to serve.

Cost-effective– System and programs use resources

effectively to achieve results

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The ABCDEE’s – Basics and Drivers of Integrated SP Systems

Appropriate to Country Circumstances

– Range and balance of programs customized to country circumstances.

– Appropriate integration between and across assistance (safety nets) and insurance/contributory (pensions, health, unemployment) programs

– Compatible with political economy – Sustainable politically, fiscally, administratively

Basic Coverage– System as a whole covers the various groups

in need of assistance.– Individual programs provide full coverage and

meaningful benefits to population they are meant to serve.

Cost-effective– System and programs use resources

effectively to achieve results

Dynamic and Incentive Compatible Systems

– Evolve over time, responsive to crises– Include promotion of human capital,

productive employment– Clarity on the productive nature of social

protection– Use technology to ‘leap frog’ to solutions – Incentive compatible, minimizing

unintended behavioral changes

Equitable– Horizontal equity: equal treatment for

people of equal conditions– Vertical equity: less generous benefits to

those less poor– Governance - Need proper institutional

arrangements to ensure service delivery

Evidence Based– Use monitoring and evaluation to inform

management, accountability, learning

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Theme 3: Governance and Results

Improving outcomes depends on good governance within social protection programs and systems to support service delivery and accountability

This is matched with a focus on results, not just for accountability but also for supporting effective implementation and learning what works

Goals include: Strengthening accountability between policy-makers, service providers and

citizens Building efficient and accountable social protection institutions Improving monitoring and evaluation systems for accountability and results

Challenges in Social Protection include: Social Protection clients often lack “voice” and “client power” Social Protection has diverse providers Social Protection institutions deliver services and cash which requires a focus on

information systems, payment mechanisms, monitoring

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Theme 4: Implementation

The Social Risk Management framework as a basis

Focus on operational feasibility and innovations Integrate prevention, protection and

promotion Focus on service delivery Tailor approaches to country needs,

institutional settings Innovation, learning and results Scalability, coordination

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Summing Up: Emerging “Newer” Elements of Strategy

Ensuring that the “promotion” agenda is central Moving towards dynamic and integrated social

protection systems Differentiated approaches to different country

groupings Middle-income, lower-income and fragile contexts

A renewed emphasis on governance and results Operational approaches and innovation

Focus on innovation for delivering services, building systems

DiscussionF

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Discussion – Open Questions Do these initial ideas resonate with you? Is there any critical element missing here? Are there elements that should be de-

emphasized? Is the new emphasis on promotion (in addition

to protection and prevention) appropriate? Is the new emphasis on systems appropriate? Can you share particular examples of good

practice or innovation that should inform the strategy?

spstrategy@worldbank.org

For more information:http://www.worldbank.org/sp

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