WASHINGTON, March 25, 2021 — The World Bank approved a $30 million credit for the Government of Seychelles as it endeavors to strengthen the efficiency and effectiveness of its social protection systems.
“This support will help bring the Social Protection System in-line with the country’s challenges, including demographic changes and the post-COVID- 19 recovery, while focusing on the multi-dimensional causes of poverty and exclusion,” noted Erik von Uexkull, World Bank Country Representative for Seychelles.
Seychelles has a generous, comprehensive, but fragmented social protection system, with as many as 30 programs ranging from universal pensions and social welfare for the poor, to programs targeting orphans and people with disability. In this context, the Government of Seychelles requested support from the World Bank to improve the efficiency and quality of its social protection system.
“The World Bank assistance will support the government’s efforts to improve the efficiency and effectiveness of the existing programs, based on international best practices, so that a higher percentage of social protection spending is allocated toward those in need, ” noted Edmundo Murrugarra, Senior World Bank Social Protection Economist and the project’s lead. “There’s a need to improve the social protection system to ensure that it distributes greater resources to those living at the bottom 40 percent of the income distribution and to make it more efficient.”
The country spent almost 7 percent of GDP on social protection in 2020, a level higher than the averages observed across Sub Saharan Africa, small-state islands, and upper-middle income countries, even considering the effects of COVID-19.
“While the current design of the social protection system is credited for its impact on poverty reduction, it needs to be adapted to the new demographic context,” added Anita M. Schwarz, World Bank Lead Economist and the project’s co- lead. “The current social protection spending is significantly biased toward the old-age population.” Elderly account for nine percent of the population, yet they represent 22 percent of all the beneficiaries of non-contributory programs and receive as much as 42 percent of total benefits.
