Social protection systems help individuals and families, especially the poor and vulnerable, cope with crises and shocks, find jobs, improve productivity, invest in the health and education of their children, and protect the aging population. Social protection programs are at the heart of boosting human capital for the world’s most vulnerable. They empower people to be healthy, pursue their education, and seek opportunity to lift themselves and their families out of poverty.
Social protection systems that are well-designed and implemented can powerfully shape countries, enhance human capital and productivity, reduce inequalities, build resilience and end inter-generational cycle of poverty. Such systems and tools are transformative as they not only help the poor and most vulnerable mitigate economic and fiscal shocks, but also help ensure equality of opportunity by giving them a chance to climb out of poverty, and become productive members of society. When poor and vulnerable people have the opportunity to improve their lives and that of their families, and are less likely to move in search of a better life. Well-designed social protection programs are cost-effective, costing countries on average about 1.5 percent of GDP.
Social protection has been key to this effort and many countries have embraced social protection instruments such as safety net programs as a means of harnessing human capital. Apart from providing struggling families with supplemental income, social safety nets also increase access to information and services, improve productivity, protect the elderly, and support people while they look for work.
The rapidly changing nature of work in countries at all income levels requires a dramatically new approach to social protection and labor policy, according to the report “Protecting All: Risk-Sharing for a Diverse and Diversifying World of Work”. It proposes an approach to worker protection and social security that is better adapted to an increasingly diverse and fluid world of work.
Social protection helps people become productive and realize their human capital. The jobs agenda is at the forefront of the Human Capital Project. Every month, two million new young people join the work force—a challenge compounded by the fact that 200 million people are unemployed and looking for work. Of those working, 65 percent are stuck in low productivity jobs.
Preparing for the jobs of tomorrow, while making critical human capital investments today is a priority for achieving economic transformation in the poorest countries. As part of the HCP, the Bank is supporting governments to equip the next generation of workers with the skills needed to tackle the types of jobs which the changing world of work will require. This also requires enabling workers to move from lower to higher productivity activities—led by a vibrant private sector and supported by public policy actions.
The World Bank Group supports universal access to social protection, and is central to its goals of ending poverty and boosting shared prosperity.
Universal social protection coverage includes: providing social assistance through cash transfers to those who need them, especially children; benefits and support for people of working age in case of maternity, disability, work injury or for those without jobs; and pension coverage for the elderly. Assistance is provided through social insurance, tax-funded social benefits, social assistance services, public works programs and other schemes guaranteeing basic income security.
Social protection systems, figure prominently in the UN Sustainable Development Goals (SDGs). Goal 1.3 calls for the implementation of “nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and vulnerable”.
The World Bank Group’s Social Protection and Jobs portfolio reached $18.63 billion as of September 2019, with $11.68 billion in lending to IDA countries, targeting the world’s poorest.
These resources support safety net programs, including cash transfers, public works, and school feeding programs.
Today, our social protection systems not only deliver social assistance and insurance to the poor and vulnerable, but are also used to link them to jobs, improve productivity, invest in the health and education of their children, and protect the aging population. While achievements in designing and promoting the adoption of social assistance programs and delivery systems have been made, investing heavily in initiatives to improve jobs and earnings opportunities, and the expansion of social insurance programs are equally important.
Last Updated: Oct 08, 2019