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Overview The relevance and expansion of social protection in emerging economies Social protection, poverty reduction and equitable growth Why invest in.

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Presentation on theme: "Overview The relevance and expansion of social protection in emerging economies Social protection, poverty reduction and equitable growth Why invest in."— Presentation transcript:

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2 Overview The relevance and expansion of social protection in emerging economies Social protection, poverty reduction and equitable growth Why invest in Child-Sensitive Social Protection Social Protection Systems: A highly effective approach The Road Ahead

3 UNICEF defines social protection as: Definition and concepts “a set of public and private policies and programmes aimed at preventing, reducing and eliminating economic and social vulnerabilities to poverty and deprivation”

4 Definition and concepts Four Main Approaches to Social Protection Social insurance programs and social security Safety nets to cushion the poor against production and consumption shocks; Broader - including education and health subsidies, job creation, micro-credit More ‘transformative’ including non-economic areas - equity, empowerment, political rights In practice, most agencies and governments use a combination

5 UNICEF Social Protection Work an overview Show and Tell on Social Protection Bonn, 2011 The Relevance and Expansion of Social Protection in Emerging Economies

6 Persistent inequality and exclusion –Inequality across regions and within countries, uneven progress in MDGs, even where growth is strong Increasing economic and political volatility –Crises and instability disproportionately affect those already vulnerable, e.g. women, youth and children Sustainable development goals and climate change –Poor & marginalized communities and children, particularly vulnerable to climate change Population trends and demographic changes – Youth bulge, strains in employment, migration and urbanization patterns, changing family and support structures Relevance & Expansion of Social Protection

7 Political Commitment at International and Regional Level: Central role of social protection in SDG’s and post-2015 agenda – likely to be target under Goal 1 Adoption of the SPF Recommendation (No. 202) at the International Labour Conference 2012 One-UN Social Protection Floor G20 support for nationally defined social protection floors AU, ASEAN Declaration, commitments to Universal Health Coverage, etc.

8 Relevance & Expansion of Social Protection Big expansion of social protection, especially in poorer countries o 53+ countries in the developing world have focused social protection strategies Largest cash transfer programs are in South Asia and Latin America, but exist worldwide o Pakistan’s BISP reaches more than 5 million households o South Africa’s Child Support Grant reaches over 15% of the population o Ethiopia’s Productive Safety Nets reach 20% of population o Brazil’s Bolsa Familia reaches 11 million households o Colombia’s Familias en Acción reaches 20% of households o Jamaica ‘s PATH program reaches 12% of population

9 UNICEF Social Protection Work an overview Show and Tell on Social Protection Bonn, 2011 Social Protection: Helping to reduce poverty & underpinning equitable growth

10 Social Protection, Poverty Reduction & Equitable Growth In both high income and developing countries, social protection has large impacts on poverty and inequality – measured by income and human development measures In higher income countries, reductions of income poverty by 50% At scale, social protection can help reduce poverty headcount and gap in developing countries – OPORTUNIDADES reduced poverty headcount ratio by 10%, poverty gap by 30%, poverty severity index by 45% – BPC and Bolsa Familia in Brazil contributed 28 per cent of the fall in the Gini, 1995-2004 – South African transfers reduced poverty gap by 48%

11 Impacts on Poverty in the EU Source: Caminada & Goudswaard, 2009, EUROSTAT data

12 Reducing Income and Consumption Poverty Source: Fiszbein, Kanbur and Yemtsov (2013): “Social Protection, Poverty and the Post-2015 Agenda,” The World Bank 12 Almost 150 million people worldwide are prevented from falling into extreme ($1.25/day) poverty because of social protection

13 Evidence shows SP contributes to equitable growth through: Investments in children and human development now, with long-term benefits Direct contribution to increasing labor participation and productive investments of households Stimulating local economies, often with spillover benefits for other poor households Social Protection, Poverty Reduction & Equitable Growth

14 Social Protection, Poverty Reduction & Equitable Growth Source: Yablonski & O’Donnell, 2009

15 Economic Effects: labor, investment and local economies There is emerging evidence that beneficiaries of social protection programs in their youth have better labor market outcomes as adults – Mexico’s oportunidades program’s indigenous beneficiaries (especially women) had a 25% greater chance of better jobs – In Guatemala, beneficiaries of social protection program’s nutritional supplements had wages 46% greater than non- beneficiaries – In South Africa, labour participation 13-17% higher in households receiving cash transfer, with strongest effects for women; similar in Brazil’s Bolsa Familia 15

16 UNICEF Social Protection Work an overview Show and Tell on Social Protection Bonn, 2011 Why Invest in Child-Sensitive Social Protection?

17 Children are disproportionally affected by poverty Proportion aged 18 or less % % World population Extreme poverty 33 % Data Source: World Bank 2013 Why Invest in Child-Sensitive SP?

18 Childhood is a critical window of opportunity Children face multiple sources of vulnerability:  Agre related risks such as vulnerability to exploitation or to malnutrition  shared at household or community level – e.g. ethnic discrimination or fragile livelihoods  Frequently overlap and compound each other Gaps in physical development and learning last a lifetime  M alnutrition in pre-school children leads to a loss of lifetime earnings of approximately 12%.  Aggregate consequences: wage losses in India due to malnutrition $2.3 billion, or 0.4% of GDP annually The positive impacts of SP on children’s nutrition, health, education & protection can lead to a healthy and productive adulthood  Estimates from South African Child Support Grant – children will earn average of 5-7% higher earnings as adults  Mexico’s Oportunidades – 8% higher earnings due to additional years of schooling Why Invest in Child-Sensitive SP?

19 UNICEF Social Protection Work an overview Show and Tell on Social Protection Bonn, 2011 Social Protection Systems: A Highly Effective Approach

20 Poverty and vulnerability are multi-dimensional  Vulnerablities overlap and compound each other  Poor and vulnerable families and children face difficult choices  Yet, as governments and development experts we tend to address as isolated issues A “network of interventions” is required to address people’s evolving needs over the life-cycle Enhancing impact calls for a “systems approach”

21 Highly effective for addressing multiple and compounding vulnerabilities faced by children and families Address both social and economic vulnerabilities Provide a comprehensive set of interventions Go beyond risk management interventions and safety nets: address structural as well as shock-related vulnerabilities Facilitate a multi-sector approach and coordination In order to be effective and sustainable, SP systems also need to: Coordinate with appropriate supply-side investments Frame social protection strategies within a broader set of social and economic policies that promote human development and growth Integrated social protection systems

22 Integrated social protection systems increase effectiveness and efficiency Addresses fragmentation and improves coordination across actors and programmes to maximize effectiveness and impact Sharing of human, financial and administrative resources Economies of scale, MIS systems Avoids duplication and contradictory results E.g. programmes targeted separately may reach the same population twice while leaving out others Different mechanisms interact with and support one another in reducing vulnerability across the life-cycle

23 Integrated SP systems maximize sector outcomes Children survive, develop and thrive Social Inclusion Equitable access to services Equitable access to goods/resources Behavior patterns/change Supply of services Social Protection Direct impact: Contributes to removing barriers to access Indirect impact: Fosters improvements in supply and quality of services; enables people to make different choices Intersectoral approach and coordination maximizes linkages between SP and sectors to achieve sector outcomes, and increase equity

24 GHANA: Bringing LEAP and health insurance together in the benefit of the poorest populations Launching and progressive expansion of the Livelihood Empowerment Against Poverty (LEAP), as the flagship social protection programme (2008). The National Health Insurance Scheme (NHIS) adopts LEAP’s targeting methodology with the intention of providing additional benefits to the poorest households (2009). Signature of an MoU between the LEAP and NHIS to ensure aligned mechanisms on registration and enrolment of beneficiaries (2010). Looking at the future: LEAP Coordination is also leading new arrangements towards strengthening its system, such as the adoption of a unified registry system of all social protection programmes. Examples of social protection systems

25 CHILE: A comprehensive approach to support the poorest families and bringing them closer to various social services Launching of Programa Puente (“Bridge Program”) to assist the poorest households accessing basic public social programmes (2002). Introduction of “family counsellors”. Implementation of Chile Solidario (“Solidarity Chile”), which offers a comprehensive set of benefits: (i) psycho-social support (implemented by the Bridge Program); (ii) social protection allowances; and (iii) preferential access to training initiatives (2004). Additional cash subsidies for families belonging to Chile Solidario, such like a water and sanitation allowance, basic pension, etc. Incorporation of the ECD initiative “Chile Grows With You”, promoting free access to nurseries for the poorest 60% of children and preferential access to social services and programmes (2006). Examples of social protection systems

26 The Road Ahead Although many lessons from other contexts, there is no ‘one size fits all’ blueprint for social protection policies  the most effective and appropriate mix of policies, programmes, implementation arrangements and financing strategies must be identified in each context Tanzania has already made important progress in expanding social protection in policy and programming. This conference will help reflect on questions for the road ahead: Finalisation of the national social protection framework and operational plans Strengthening the expansion of TASAF III and achieving better development outcomes for all Integration of social protection within national, sectoral and sub- national planning and budgeting processes And above all, making Tanzania's growth more equitable and sustainable.

27 27 Asante Thank You! ayuster@unicef.org


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