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“Key Issues in Social Protection Policy Design” John Rook

Ministry of Labour & Social Services National Social Protection Conference Meikles Hotel, Harare / 4 th November 2009. “Key Issues in Social Protection Policy Design” John Rook Regional Hunger & Vulnerability Programme. Outline. What is Social Protection?. Selection & Targeting.

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“Key Issues in Social Protection Policy Design” John Rook

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  1. Ministry of Labour & Social ServicesNational Social Protection ConferenceMeikles Hotel, Harare / 4th November 2009 “Key Issues in Social Protection Policy Design” John Rook Regional Hunger & Vulnerability Programme

  2. Outline What is Social Protection? Selection & Targeting Dependency Why the need for SP? Part 2: Key Policy Design Issues Part1: Social Protection & Chronic Poverty Exit & Graduation National Social Protection Consultative Forum Cost & Affordability Which SP instruments? Stakeholders’ Roles How SP fights poverty?

  3. Outline What is Social Protection? Selection & Targeting Dependency Why the need for SP? Exit & Graduation Addressing Chronic Poverty through Social Protection PART 1: Basics PART 2: Issues How SP fights poverty? Cost & Affordability Which SP instruments? Stakeholders’ Roles

  4. Beneficiary selection • A prolonged and ongoing debate: • The stumbling block for many social protection initiatives • A sometimes divisive issues – Malawi / Zambia • Search for perfection? • Some important principles: • Understood and supported criteria • Transparent process • Cost v benefit • Start and improve

  5. Social Legislation Social Services All citizens Vulnerable groups Social Insurance Employed Safety Nets Social Transfers Elderly, very young, disabled, chronically ill, orphaned SOCIAL PROTECTION Productive Safety Nets Able bodied poor Primary Health Care All citizens Primary Education Social protection: types of beneficiaries All citizens

  6. Targeting Options • Poverty based (eg, “poorest 10%): • Eurocentric • Administratively difficult • Least transparent – open to abuse • Difficult to justify where poverty is pervasive – “leapfrogging” • Often circumvented • Suitability – where poverty is not pervasive / data rich environments • Categorical (eg, Old Age Pension): • Popular - widely understood and accepted • Administratively simple • Flexible • But, who to prioritise? • Suitability – Social Welfare Grants • Universal (eg, BIG): • Politically appealing • Expensive • Elements of self-targeting & cost recovery • Suitability - economic growth rather than social protection? • Self targeting (eg Public Works): • Addresses concerns about dependency & perverse incentives • Wage rate issues • Conditionality concerns • Suitability – support to the able- bodied poor

  7. Outline What is Social Protection? Selection & Targeting Dependency Why the need for SP? Exit & Graduation Addressing Chronic Poverty through Social Protection PART 1: Basics PART 2: Issues How SP fights poverty? Cost & Affordability Which SP instruments? Stakeholders’ Roles

  8. Dependency – the sceptics view • The poor are poor because they are lazy • Social protection is “welfarist” and thus generates dependency • Social protection can become an addiction

  9. Dependency – the other side • Always be some level of abuse but much evidence is only anecdotal • For some there is no alternative • Difference between dependency & perverse incentives • Acquired dependency can be an issue • Especially when addressing the needs of the “missing middle” (able bodied poor ) • If social protection is used in isolation when dealing with widespread poverty • Social protection will only foster self-reliance, IF: • It is combined with other elements of poverty reduction • Opportunities for sustainable livelihood improvement exist • Dependency will fill the breach if opportunity doesn’t plug it first

  10. Outline What is Social Protection? Selection & Targeting Dependency Why the need for SP? Exit & Graduation Addressing Chronic Poverty through Social Protection PART 1: Basics PART 2: Issues How SP fights poverty? Cost & Affordability Which SP instruments? Stakeholders’ Roles

  11. Graduation & exit strategies • Definitions • graduation concerns individual beneficiaries • Exit strategies concerns programmes/expenditure • Graduation • Not everyone graduates • Only really an issue with the “missing middle” category of beneficiaries • For effective graduation, there must be something to graduate to • Exit strategies • In general, social protection is a continuing need (like health and education expenditure • But scale and nature of support will change over time

  12. Outline What is Social Protection? Selection & Targeting Dependency Why the need for SP? Exit & Graduation Addressing Chronic Poverty through Social Protection PART 1: Basics PART 2: Issues How SP fights poverty? Cost & Affordability Which SP instruments? Stakeholders’ Roles

  13. Affordability – the sceptics view • Social protection is too costly • It’s only for rich countries • Social protection expenditure is like an open cheque book • Poorer countries should spend their scarce budgets on more productive sectors

  14. Affordability – the other side • Do we know how the current spend is on directly combating poverty? • Is it being used effectively? • Social protection expenditure is based on resource availability not need – even in rich countries • What is the cost of doing nothing? • Think big, start small and expand • Investing in social protection today reduces needs tomorrow

  15. A model of social protection’s economic & social impact in South Africa Source: EPRI

  16. Outline What is Social Protection? Selection & Targeting Dependency Why the need for SP? Exit & Graduation Addressing Chronic Poverty through Social Protection PART 1: Basics PART 2: Issues How SP fights poverty? Cost & Affordability Which SP instruments? Stakeholders’ Roles

  17. The key lesson for scaling up . . . Political willand commitment are pre-requisite for comprehensive and durable social protection Social protection initiatives which are home grownandnationallydriven are much more likely to be adopted and sustained

  18. Roles & responsibilities

  19. Some words on “piloting” • Justifications • Learn before implementation • Testing options • Implies a commitment to wider implementation • Cautions • Small scale so don’t tell us much about scaling-up • Piloting or experimenting? • Is there a plan to roll out? • What happens to beneficiaries at the end of the pilot? • Way Forward • Plethora of experience & evidence from past pilots • More prudent / considered approach to piloting: • Provide stronger justification • Define exit strategy – what happens to beneficiaries if programme isn’t extended • Learn though implementation rather than through experimentation

  20. SOCIAL PROTECTION Conclusion Social Transfers Social Insurance Social Welfare Productive Safety Nets

  21. Thank youJohn RookRegional Hunger & Vulnerability Programmejohn@rhvp.orgvisit www.wahenga.net

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