Ethiopia’s Rural Safety Net in Action

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00:00 Over the past decade,

00:02 Ethiopia has faced unrelenting shocks,

00:04 drought,

00:05 conflict,

00:06 and rising inflation that have touched nearly every household.

00:11 Between 2016 and 2021,

00:13 poverty rose sharply,

00:15 reversing earlier gains.

00:18 The poverty rate climbed by 8% points.

00:22 Rural areas have been hit hardest with poverty rising to nearly 40%.

00:28 Today,

00:28 nearly 9 in 10 poor Ethiopians live in

00:31 rural agricultural communities where families face low productivity,

00:35 limited education,

00:37 and poor access to essential services.

00:40 In response,

00:41 Ethiopia's Productive Safety Net Program,

00:44 or PSP,

00:45 has become a cornerstone of resilience.

00:49 As the government of Ethiopia's flagship safety net program,

00:52 it's designed with a productivity lens.

00:56 Since its launch in 2005,

00:58 PSNP has grown into one of Africa's largest and most influential social

01:02 protection programs and a global model for building productive safety nets.

01:07 Operating in 492 food insecure districts and reaching 8 million beneficiaries,

01:13 PSNP provides sustainable livelihoods and

01:15 helps households build valuable assets.

01:19 It also offers cash support to extremely poor households,

01:23 especially those unable to work.

01:26 But goes far beyond cash and food assistance

01:29 through community projects and short-term employment opportunities.

01:33 Through public works,

01:35 watersheds are restored,

01:37 schools and health posts are constructed,

01:39 and resilience to climate change is strengthened.

01:41 Families are linked to education,

01:43 health and nutrition services,

01:45 and more than 1 million households have open bank accounts,

01:48 improving financial inclusion.

01:51 Leveraging technology,

01:53 including a management information system,

01:55 e-payments,

01:56 and a grievance hotline helps the

01:58 program deliver support efficiently and accountably.

02:02 Livelihood support helps families diversify income

02:06 and build assets,

02:07 with women making up 50% of the beneficiaries.

02:11 Over time,

02:12 these investments enable households to exit the program,

02:16 having become self-sufficient as a result of the support received from the.

02:23 PSP is saving lives,

02:25 protecting the most vulnerable,

02:26 and laying the foundation for long-term resilience.

02:31 The program contributes to two major World Bank initiatives,

02:35 SP 500 and jobs for the poor.

02:38 The World Bank's SB 500 initiative seeks to extend social protection

02:43 to 500 million additional poor and vulnerable people by 2030.

02:47 This effort recognizes that nearly 2 billion

02:50 people worldwide still lack adequate social protection,

02:53 and most have none at all.

02:55 Complementing this,

02:56 the World Bank's Jobs for the Poor initiative

02:58 focuses on expanding access to quality employment opportunities,

03:02 recognizing that sustainable livelihoods are essential

03:05 to move people out of poverty.

03:08 The World Bank is scaling up investment partnerships and delivery systems to

03:12 not only protect people against shocks but also connect them to jobs,

03:16 skills,

03:16 and economic opportunities.

03:19 In Ethiopia,

03:20 PSNP embodies this vision,

03:22 providing safety nets that keep people alive today

03:25 while building the ladder of opportunity for tomorrow.

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Over the past decade, Ethiopia has faced unrelenting shocks, drought, conflict, and rising inflation that have touched nearly every household. Between 2016 and 2021, poverty rose sharply, reversing earlier gains. The poverty rate climbed by 8% points. Rural areas have been hit hardest with poverty rising to nearly 40%. Today, nearly 9 in 10 poor Ethiopians live in rural agricultural communities where families face low productivity, limited education, and poor access to essential services. In response, Ethiopia's Productive Safety Net Program, or PSP, has become a cornerstone of resilience. As the government of Ethiopia's flagship safety net program, it's designed with a productivity lens. Since its launch in 2005, PSNP has grown into one of Africa's largest and most influential social protection programs and a global model for building productive safety nets. Operating in 492 food insecure districts and reaching 8 million beneficiaries, PSNP provides sustainable livelihoods and helps households build valuable assets. It also offers cash support to extremely poor households, especially those unable to work. But goes far beyond cash and food assistance through community projects and short-term employment opportunities. Through public works, watersheds are restored, schools and health posts are constructed, and resilience to climate change is strengthened. Families are linked to education, health and nutrition services, and more than 1 million households have open bank accounts, improving financial inclusion. Leveraging technology, including a management information system, e-payments, and a grievance hotline helps the program deliver support efficiently and accountably. Livelihood support helps families diversify income and build assets, with women making up 50% of the beneficiaries. Over time, these investments enable households to exit the program, having become self-sufficient as a result of the support received from the. PSP is saving lives, protecting the most vulnerable, and laying the foundation for long-term resilience. The program contributes to two major World Bank initiatives, SP 500 and jobs for the poor. The World Bank's SB 500 initiative seeks to extend social protection to 500 million additional poor and vulnerable people by 2030. This effort recognizes that nearly 2 billion people worldwide still lack adequate social protection, and most have none at all. Complementing this, the World Bank's Jobs for the Poor initiative focuses on expanding access to quality employment opportunities, recognizing that sustainable livelihoods are essential to move people out of poverty. The World Bank is scaling up investment partnerships and delivery systems to not only protect people against shocks but also connect them to jobs, skills, and economic opportunities. In Ethiopia, PSNP embodies this vision, providing safety nets that keep people alive today while building the ladder of opportunity for tomorrow.

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