wb's sp strategy concept november 16 2010

8/7/2019 WB's SP Strategy Concept November 16 2010

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BUILDING RESILIENCE &BUILDING RESILIENCE &

OPPORTUNITY:OPPORTUNITY:BETTER LIVELIHOODS FOR THE 21ST CENTURY

EMERGING IDEAS FROMTHE WORLD BANK’S PROPOSED 2012-2022

SOCIAL PROTECTION & LABOR STRATEGY

November 17, 2010



The importance of socialprotection: Two views “Although the current crisis has proved to be

[hard] to remedy, it has taught us that ...while the policy mix will vary according toeach country's particular circumstances,social protection needs to be at its centre.”

“The crisis lends new urgency to measuresadvocated in the original Growth Report,which argued that [for long-term growth]policy makers should endeavor to protect people, even as they resist calls to protect industries, firms, or jobs… The exact form of

these [social protection measures] must vary from country to country .”

Joseph Stiglitz

GrowthCommission



Overview

These representideas in theConcept Note forthe Bank’sproposed 2012-2022 SocialProtection andLabor strategy

SP in the “3P”framework

Why a new strategy?The changing world –and changing Bank

Social protection today Emerging areas of focus

for the Bank in SP: Building SP systems Promotion

Governance Multisectorality Knowledge



SP in the “3P” framework

The conceptualframework around SocialProtection in the Bankhas been the “Social RiskManagement” approach,which looks at how

individuals andhouseholds mitigate risk,cope with risk andreduce risk.

The “3P” framework isaimed at putting the

focus on operationalizing this approach


Why a new strategy?The changing world –

and changing Bank Social protectiontoday

Emerging areas of focus for the Bank in

SP: Building SP systems Promotion GovernanceMultisectorality Knowledge



The “3P” Framework: Prevention,Protection and Promotion

5

Derived from the Social Risk Management Framework (World Bank 2001), Bonilla Garcia and Druat (ILO 2003), Devereux and Sabates-

PREVENTI

ONagainst a fallinto poverty

PROMOTIONof opportunitiesand livelihoods

PROTECTIONagainst destitution, and catastrophic losses of

human capital



4 Key messages of the “3P”framework Social protection should encompass all

three functions – Prevention, Protection andPromotion – to achieve the objective of ensuring households’ resilience and ability toseize opportunities

These institutions can be private or public Private can be formal or informal, and can

include, e.g., rotating savings associations,religious charities, farmer cooperatives, firm-provided training

However, the State has a role in regulating,financing or providing social protection wherethere is a market failure (i.e., privateinstitutions “under-provide” the socially optimallevels of the 3Ps)

What matters in a social protection system isboth the statics and the dynamics How well the system ensures adequate

prevention, protection and promotion to all thosewho need it

How well the system can handle transitions fromone state to another

In each case, access matters, so that socialprotection institutions are available to all whoneed them.



Factors driving a refreshedapproach Global trends : Development challenges Development opportunities Evolving global debate on

policies

Trends in the

Bank’senvironment:

The changing developmentcommunity

Sharpened focus onknowledge

Demand for results and cost-

effectiveness Increased decentralization of

the Bank’s staff and decision-making








Two snapshots



The changing world

Development challenges

• Deepening demographictrends – aging, youth,population growth

• Volatility and integrationfrom globalization

• Persistent poverty andinequality

Development opportunities

• Knowledge withoutborders

•

Global supply chains andaccess to markets

• Technology to ‘leapfrog’service delivery andbolster accountability

Evolving global debate on

policies:• New policies and

The world is …

Much more

risky

Average no. of

natural disasters

(1994-1998 &

2000-2009)

223392

Just slightly

less poor,

except for

China

Number of poor

below $1.25/day

( 1999 & 2005)

Excluding China

1,695 m.

1,248 m.

1,400 m.

1,192 m.

Low and middle income countries are …

2000 2008

Aging Population share

aged 65+

5.4%5.9%

Quickly

urbanizing

Urban population

share

40.8%45.1%

With less

employed

youth

Employment to pop.

ratio (ages 15-24)55.2%52.3%

Much more

productive

GDP per person

employed

$6,633$10,071

Much more

integrated

Workers’ remittances

(inflows)

$81.2

bn.

$324.8

bn.

Vastly more

connected

Mobile cellular

subscriptions

215 m.2,856 m.



… in the context of thechanging Bank

Trends in the Bank’s environment:

The changing development community

• Growing number of actors andsources of financing

Sharpened focus on knowledge

• In depth country engagementleveraging global knowledge

Demand for results and cost-effectiveness

• Increased focus on impactevaluations, improving servicedelivery

Increased decentralization of the Bank’sstaff and decision-making

The World Bank today …

FY 2000Today

Has a smaller

share in

ODA

World Bank (IBRD+IDA)

(fiscal year)

Global ODA (calendar

year)

15.3 bn

49.2 bn

24.7 bn

(FY08)

128.6 bn

Is more

focused on

knowledge

Share of analytical and

advisory products in

Bank country budgets

25%35%

(FY06)

Is more

results-oriented

Require results

frameworks in allinvestment operations,

outcome indicators in

all operations

NoYes

Is more

decentralize

d

Number of

decentralized staff

4,2795,594

(FY11, Q1)



Social protection today

Socialprotectioncoverage andsophistication

varyBank’s

involvement inSP has risensharply








ragmen e oc a ro ec onSystems, often with Limited

Coverage12

Source: SP Atlas, WorldBank

(% of population living in households with 1 ormore SP program)



or an oc a ro ec onLending - Expanded support

during global crisis13



Emerging areas of focus

Theme 1: Helping countriesbuild social protectionsystems appropriate tocapacity and context.

Theme 2: Emphasizing“promotion” as a goal of social protection whendesigning programs andsystems.

Theme 3: An emphasis ongovernance in socialprotection projects.

Theme 4: Harnessing themulti-sectoral aspects of

social protection programs. Theme 5: A continued

investment in knowledge,including sharing relevantgood practice and results.

SP in the “3P” framework Why a new strategy? The

changing world – andchanging Bank

Social protection today Emerging areas of focus for

the Bank in SP: Building SP systems Promotion Governance Multisectorality Knowledge



Theme 1: Building social protectionsystems …

15

Fragile andlowest-income

contexts,with poorformal 3P

institutions

Functioningsocial

protectionprograms

providing 3P

Well-functioning

socialprotection

programsthat are not

fullyharmonized

Operational Needs

The operational needs for SP systems will depend on the state of the existinginstitutional contextA lot of potential South-South and North-South learning



… can result in significantgains

Equity and Coverage: All individuals – including the poorest – have the same rights andobligations.

An integrated system makes it easier (than uncoordinatedinitiatives) to expand the coverage of different programs.

Efficiency and System Performance: Economies of scale can be generated by integrating

administrative and IT systems, given common businessprocesses.

Incentives. Better integrated programs and schemes cangenerate better incentives and have fewer unintendedconsequence on behaviors.

Financing: Financing arrangements can be better designed if they apply

to a system as opposed to independent schemes.



Prevention:Security and

Risk Management

Protection:Poverty Reduction

and Equity

Promotion:Opportunity,Productivity,

Employment

OBJECTIVES, CORE COMPONENTS OF SOCIALPROTECTION SYSTEMS

InstrumentsFinancing

MechanismsInstitutions

Risk poolingSavingsRedistributionLaborpoliciesMicrocredit

Payroll taxesGeneral revenuesWorkerscontributionsDonors

Governance

Central/localPublic/privateAdministration(M&E)Payment systems

Firms’Behaviors

Individuals’Behaviors

Providers’Behaviors

PublicFinances

Formal/informalLFparticipationob-search

Formal/informalJob creationJobdestruction

ServicesqualityServicescosts

FiscalsustainabilityAllocativeefficiency

Communities’

Behaviors

Formal/informal

ServiceprovidersDerived from Ribe, Robalino,

Walker, 2010



Theme 2: An increased focuson promotion… The literature shows that Social Protection contributes to

economic growth, human capital development Social insurance programs

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

Safety nets programs for the poor and vulnerable Reduce inequality Stimulate productive 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

Design of social protection operations can enhancethese promotive features

… and has clear advantages in terms of the politicaleconomy of social protection



… presents opportunities19

CTs are explicitly focusing on mainconstraints to human capital investments

and their impact are evaluated carefully

roductive safety nets (PW+, ) areincreasingly focusing on enhancing human

capital (more is needed to build theevidence)

ocial pensions (OVC)- esp. in Africa areshowing robust indirect effects

Th 3 A i d f



Accountability relationships hold - but: SP clients are the least likely to have “voice”

and “client power”;

SP has more diverse providers who:

Screen beneficiaries;

Make payments; Deliver social or employment services;

May be public or private (NGOs)

In addition to service delivery, SPdelivers cash, which requires a focuson:

Information systems;

Management of funds (i.e., socialinsurance)

Payment mechanisms;

Monitoring.

Theme 3: An increased focus ongovernance recognizing the specialaspects of SP…



… needs much more work

• Consolidation of work in SP Governance•More systematic application acrossLICs/MICs/Regions;•Build evidence base on effectiveness and

efficiency.• Demand-side

•Grievance redress and social accountabilitymeasures.

•

Innovative use of technology for accountability •MIS systems; GPS; mobile phones.• Measurement of service delivery

•Defining indicators and monitoringmechanisms for measuring performance.

• Political economy analysis



Theme 4: An increased focuson multi-sectorality… Social protection, more than most other areas, is

multi-sectoral

Safety nets interact with nutrition, early childdevelopment, agriculture, communitydevelopment, education, healthcare, HIV/AIDS …

Social insurance interact with the financialsector, taxation regimes, labor markets …

Labor markets depend on investment climate,microfinance, education, macro stability …

hence the focus on outcome



… hence the focus on outcomedeterminants, not inputs – example of skills



Theme 5: A continued investmentin knowledge and results …

24

… but acontinuin

g need for further knowledge of what



[email protected]

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

Please send anycomments to

mailto:[email protected]

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wb's sp strategy concept november 16 2010

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