1. Building Social Protection Systems:
The World Bank’s Evolving Ideas Towards Operational Approaches
Arup Banerji
The World Bank
Committee on the Recurrent Discussion of Social Protection, ILC: Geneva, June

2. Context: The World Bank and Social Protection
The World Bank works with governments in the developing and emerging world on policies and programs to reduce poverty and improve prospects for sustainable and inclusive growth.
Social Protection is key to this agenda, with Bank working through:.
major research and knowledge products,
operational innovations and technical support to country programs,
helping countries develop their social protection strategies/approaches,
helping to finance key interventions.
World Bank currently working on Social Protection and Labor strategy for the next 10 years.
Safety Nets
Over last three years (crisis), more than US$12 billion in loans and grants from Bank on social protection (4 times amount in the 3 years prior)
Examples: Mexico Oportunidades program
Pakistan nationwide social safety net system
West Bank and Gaza cash transfers program
Ghana on LEAP program
Philippines 4P conditional cash transfer program
Ethiopia 3rd Productive Safety Nets project.

3. Emerging Feedback from Clients: During 2011 consultations on strategy

4. Prevention Promotion Protection The “3P” framework:
A multi-dimensional approach
Prevention
Insuring against the Impacts of Risk:
Examples of programs:
Old age and disability pensions
Unemployment and disability insurance
Promotion
Promoting Opportunities
Examples of programs:
Skills training
Conditional cash transfers
Labor market intermediation and regulation reforms
Protection
Alleviating Poverty Destitution:
Examples of programs:
Cash transfers
Food transfers
Public works programs

5. The Challenge of Scattered Coverage
Low coverage, particularly in low-income countries
Large variance across and within regions
Social assistance + other
Only social assistance
Only social insurance
No transfer
(% of households that receive)
Source: SP Atlas, World Bank (forthcoming)
(excludes remittances and subsidies)

6. The Challenge of Fragmented Programs
Example: (Ministries) where cash transfer programs in Sub-Saharan Africa are based
Source: World Bank, forthcoming 2011
Contrast with the Bolsa Familia and Ethiopia numbers

7. The challenge of fragmentation in SP programs
Security Forces
SOEs
Pensions
(in Prevention)
Civil Servants
GENEROSITY
Private Sector
Social Pensions
LOW INCOME
HIGH INCOME
Fuel subsidies
Social Assistance
(in Protection)
GENEROSITY
Food subsidies
Public works
Cash transfers
Cash transfers
Universal child benefits

8. The Challenge of Policy Coordination Across Multiple Sectors (Example: Skills Building and the STEP framework) (source: STEPping up skills for more jobs and higher productivity, World Bank 2010)
ALMPs, labor regulations & social insurance
Risk mitigation
Active labor market programs (ALMPs)
CCTs and education
CCTs and nutrition
Source: World Bank

9. Moving to systems yields multiple benefits
Equity
Broader coverage of population and services
Diversification and adaptation
Smarter financing arrangements
Economies of scale
Incentive compatibility
Equity. All individuals have the same rights and obligations.
Diversification. Most individuals face all risks and market failures that SP schemes address simultaneously and therefore integrated instruments are likely to perform better – and adapt better to macro shocks.
Financing arrangements can be better designed if they apply to a system as opposed to independent schemes.
Economies of scale can be generated by integrating administrative and IT systems given common business processes.
Incentives. Better integrated programs and schemes can generate better incentives and have fewer unintended consequence on behaviors.
Coverage. It is more efficient to have an integrated strategy to expand the coverage of different programs, than uncoordinated initiatives.

10. Systems: Better social protection for the future
Goal: Policy coordination to ensure efficiency, equity and incentive compatibility
Better capacity contexts
Well-functioning programs with aligned incentives and clear institutional roles
Goal: Improving efficiency and efficacy of each program, improving coordination
Emerging capacity contexts
Existing systems often fragmented, with limited capacity to coordinate
Goal: Building the “nuts and bolts” sub-systems to provide one or more 3P functions
Low capacity contexts
Few or no functional formal 3P programs

11. Each program has different sub-systems around it
Institutional and governance arrangements (roles, rules and controls)
Eligibility and Targeting mechanisms
Databases and registries
Financing arrangements
Cash transfer mechanisms
HIGH INCOME
GENEROSITY
Fuel subsidies
Social Assistance
Food subsidies
Cash transfers
Public works
Cash transfers
Universal child benefits

12. Building systems for Social Protection and Labor
Institutional and governance arrangements (roles, rules and controls)
Eligibility and Targeting mechanisms
Databases and registries
Financing arrangements
Cash transfer mechanisms
Building sub-systems (“nuts and bolts”)
LOW INCOME
HIGH INCOME
Improving the efficacy and coverage of different systems
GENEROSITY
Fuel subsidies
Food subsidies
Coordinating sub-systems across similar programs
Cash transfers
Public works
Stretch goal: Policy coordination across different 3P functions
Cash transfers
Universal child benefits

13. Building systems for Social Protection and Labor
Institutional and governance arrangements (roles, rules and controls)
Eligibility and Targeting mechanisms
Databases and registries
Financing arrangements
Cash transfer mechanisms
Building sub-systems (“nuts and bolts”)
LOW INCOME
HIGH INCOME
Improving the efficacy and coverage of different systems
GENEROSITY
Fuel subsidies
Food subsidies
Coordinating sub-systems across similar programs
Cash transfers
Public works
Stretch goal: Policy coordination across different 3P functions
Cash transfers
Universal child benefits

14. Building Systems for Social Protection and Labor
Institutional and governance arrangements (roles, rules and controls)
Eligibility and Targeting mechanisms
Databases and registries
Financing arrangements
Cash transfer mechanisms
Building sub-systems (“nuts and bolts”)
LOW INCOME
HIGH INCOME
Improving the efficacy and coverage of different systems
GENEROSITY
Fuel subsidies
Food subsidies
Coordinating sub-systems across similar programs
Cash transfers
Public works
Stretch goal: Policy coordination across different 3P functions
Cash transfers
Universal child benefits

15. Prevention Promotion Protection
Building systems for Social Protection and Labor
Prevention
Insuring against the Impacts of Risk:
Examples of programs:
Old age and disability pensions
Unemployment and disability insurance
Promotion
Building sub-systems (“nuts and bolts”)
Promoting Opportunities
Examples of programs:
Skills training
Conditional cash transfers
Labor market intermediation and regulation reforms
Protection
Improving the efficacy and coverage of different systems
Coordinating sub-systems across similar programs
Alleviating Poverty Destitution:
Examples of programs:
Cash transfers
Food transfers
Public works programs
Stretch goal: Policy coordination across different 3P functions

16. Towards an agenda for donors and partners on building systems
Help finance and build “nuts and bolts” of systems in poorer countries
Coordinate explicitly with others so that different donors don’t support different country sub-systems
Consolidate any new programs with the best sub-systems being used for other programs
Seek sustainable systems rather than pilots that have little follow-up plans by governments