Social Protection and Labor Social Protection and Labor Social - - PDF document

012‐2022

TEGY

TRATEGY 20

R STRAT LABOR ST NK’S D LABOR

TION AND L

LD BAN ION AND ‐2022

L PROTECT

E WORL ROTECT 2012‐

K’S SOCIAL

TH

OCIAL PR

ORLD BANK

SO

THE WO

012‐2022

Core Messages Core Messages

Social Protection and Labor Social Protection and Labor

TRATEGY 20

Social Protection and Labor Social Protection and Labor policies and programs… policies and programs…

LABOR ST

• 1. Are necessary
• 2. Are effective when

TION AND L

• 2. Are effective when
• Systemic
• Inclusive

L PROTECT

Inclusive

• Responsive
• Productive

K’S SOCIAL

• 3. Need to be
• Tailored to countries and

ORLD BANK

Tailored to countries and evidence

• Knowledge‐driven

THE WO

2

g

• Developed and applied

collaboratively

012‐2022

Background: Background: The World Bank’s The World Bank’s Social Protection and Labor practice Social Protection and Labor practice

TRATEGY 20

Social Protection and Labor practice Social Protection and Labor practice

• Operates in all regions of the world, in both middle‐income

LABOR ST

and lower‐income countries, and fragile contexts

• Provides :

Loans and grants

TION AND L

– Loans and grants – Knowledge and analysis – Policy advice

L PROTECT

Policy advice – Technical assistance – Capacity‐building

K’S SOCIAL

• Works on 4 main domains:

– Social assistance (safety nets)

ORLD BANK

– Pensions and social insurance – Labor market reforms (including youth employment) Di bilit d d l t

THE WO

3

– Disability and development

012‐2022

Background: The World Bank’s lending in Social Protection and Labor has been counter cyclical

TRATEGY 20

Protection and Labor has been counter­cyclical

13% IBRD Social Protection and Middle‐income

LABOR ST

10% 12% 11% IDA FFF Crisis Labor’s Share in World Bank New Lending Commitments Lower‐income

TION AND L

9% 10% 10% 8% Asian Crisis

L PROTECT

7% 8% 7% 7% 5%

K’S SOCIAL

3% 4% 3% 4% 5% LAC/

ORLD BANK

2% 2% 1% 3% LAC/ ECA Crisis

THE WO

4 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

012‐2022

Main messages: Main messages: Social Protection and Labor Social Protection and Labor

TRATEGY 20

Social Protection and Labor Social Protection and Labor policies and programs… policies and programs…

LABOR ST

• 1. Are necessary
• 2. Are effective when

TION AND L

• 2. Are effective when
• Systemic
• Inclusive

L PROTECT

Inclusive

• Responsive
• Productive

K’S SOCIAL

• 3. Need to be
• Tailored to countries and

ORLD BANK

Tailored to countries and evidence

• Knowledge‐driven

THE WO

5

g

• Developed collaboratively

012‐2022

Main messages: Main messages: Social Protection and Labor Social Protection and Labor

TRATEGY 20

Social Protection and Labor Social Protection and Labor policies and programs… policies and programs…

LABOR ST

• 1. Are necessary

2 Are effective when

TION AND L

• 2. Are effective when
• Systemic

I l i

L PROTECT

• Inclusive
• Responsive

P d ti

K’S SOCIAL

• Productive
• 3. Need to be

ORLD BANK

• Tailored to countries
• Knowledge‐driven

THE WO

6

g

• Developed collaboratively

012‐2022

912 m.

P l i

674

TRATEGY 20

People in

poverty

below $2/day (2010) Average number of

disasters

LABOR ST

Social protection

(2010) 2006‐10

TION AND L

p and labor programs are

L PROTECT

programs are necessary in a risky changing 75 m. 2 x

K’S SOCIAL

risky, changing world 75 m.

Unem‐ ployed

Number of

elderly

(over 60)

ORLD BANK

p y youth

(2011) (over 60) in 2050 compared to 2010

THE WO

7

012‐2022

Well Well­functioning social protection and labor functioning social protection and labor policies let countries help their people achieve policies let countries help their people achieve

TRATEGY 20

policies let countries help their people achieve: policies let countries help their people achieve:

LABOR ST

Resilience

f th

Opportunity

for all

TION AND L

for the vulnerable

for all

Insuring against Promoting human capital and access to productive work

L PROTECT

Insuring against impacts of different shocks work

K’S SOCIAL

Equity

ORLD BANK

Equity

for the poor

THE WO

8

Protecting against dire poverty a nd loss of human capital

012‐2022

Evidence shows social protection and labor Evidence shows social protection and labor policies contribute to policies contribute to gender equality gender equality

TRATEGY 20

policies contribute to policies contribute to gender equality, gender equality,

• pportunities and better access to services
• pportunities and better access to services

LABOR ST

Gender equality Nutrition Access to education/

TION AND L

q y / health

Transfers and school L PROTECT Transfers/public work for poor women empowers them and improves capabilities Increased resources for poor families reduce hunger and malnutrition feeding helps meet implicit and opportunity costs of education, boosting enrollment and K’S SOCIAL Programs provide Improved nutrition in first attendance ORLD BANK improved access to education for girls/maternal care for women Improved nutrition in first 1000 days of life have huge impact on future incomes/productivity Transfers during shocks preserve human capital

THE WO

9

012‐2022

Evidence shows that social protection and labor Evidence shows that social protection and labor li i ib li i ib i bl i l i i bl i l i

TRATEGY 20

policies contribute to policies contribute to sustainable, inclusive sustainable, inclusive growth growth

LABOR ST National level National level

‐ Promotes social cohesion, enables reform

TION AND L

‐ Stimulates aggregate demand

Community level Community level

L PROTECT

Community level Community level

‐ Creates productive assets ‐ Improves functioning of labor markets

K’S SOCIAL

‐ Creates local spillovers from increased demand

Household level Household level

Fosters accumulation of assets

ORLD BANK

‐ Fosters accumulation of assets ‐ Increases entrepreneurial activity ‐ Increases/preserves human capital

THE WO

10

Source: Alderman and Yemtsov (2012)

012‐2022

Main messages: Main messages: Social Protection and Labor Social Protection and Labor

TRATEGY 20

Social Protection and Labor Social Protection and Labor policies and programs… policies and programs…

LABOR ST

• 1. Are necessary

2 Are effective when

TION AND L

• 2. Are effective when
• Systemic

I l i

L PROTECT

• Inclusive
• Responsive

P d ti

K’S SOCIAL

• Productive
• 3. Need to be

ORLD BANK

• Tailored to countries
• Knowledge‐driven

THE WO

11

g

• Developed collaboratively

012‐2022

Main messages: Main messages: Social Protection and Labor Social Protection and Labor

TRATEGY 20

Social Protection and Labor Social Protection and Labor policies and programs… policies and programs…

LABOR ST

• 1. Are necessary

2 Are effective when

TION AND L

• 2. Are effective when
• Systemic

I l i

L PROTECT

• Inclusive
• Responsive

P d ti

K’S SOCIAL

• Productive
• 3. Need to be

ORLD BANK

• Tailored to countries
• Knowledge‐driven

THE WO

12

g

• Developed collaboratively

012‐2022 TRATEGY 20

Core idea: Social protection

LABOR ST

and Labor Systems

TION AND L

Systems are portfolios of coherent

L PROTECT

Systems are portfolios of coherent programs that can ... h h h

K’S SOCIAL

• communicate with each other,
• often share administrative sub­systems,

ORLD BANK

• fte s a e ad

st at ve sub syste s,

• work together to deliver resilience,

it d t it

THE WO

13

equity and opportunity

012‐2022

Example: Social protection and labor programs across the life cycle

TRATEGY 20

programs across the life cycle

Pregnancy/ early Child‐ Youth Work ‐ing Old

LABOR ST

Employm‐ ent Youth Nutrition/

early childhood hood Youth ing age age

TION AND L

ent services, entrepre‐ neurship, skills employ‐ ment programs, skills CCTs for (girls’) education ECD, CCTs for pre‐ school, health

Opportunity Opportunity

L PROTECT

Social skills Cash & in‐ kind t f Public Child allowances OVC programs,

Equity Equity

K’S SOCIAL

pensions transfers, public works works school feeding p g , child allowances

Equity Equity

ORLD BANK

Old‐age pensions, disability Unemploy‐ ment, disability

Resilience Resilience THE WO

14

insurance insurance

012‐2022

Social protection and labor

TRATEGY 20

systems operate at different levels

LABOR ST

Administration level:

Aim: Building basic subsystems to support one or more programs for

TION AND L

Program

security, equity or opportunity

Program level:

L PROTECT

Program

Program

Admin. sub‐ systems

Aim: Improving design of existing programs and harmonizing across portfolio of programs

K’S SOCIAL

Program

Policy Level:

Aim: Ensuring overall policy coherence

ORLD BANK

across programs and levels of government

THE WO

15

Source: Robalino, Rawlings and Walker (2012)

012‐2022

From fragmented approaches t h i d t

TRATEGY 20

to harmonized systems

Fragmentation: LABOR ST Cash transfers in Sub-Saharan Africa are fragmented across ministries and donors Fragmentation:

 Different

ministries/donors

TION AND L

Social welfare Outside

implement similar programs Some beneficiaries have

L PROTECT

35% Outside govern- ment 45%  Some beneficiaries have

access to multiple programs, others excluded

K’S SOCIAL

Other

p g ,

Few Integrated Systems imply:

Incentive incompatibility

ORLD BANK

Social security/ labor , 9% Other 11%  Incentive incompatibility  Financing inadequate and

non‐transparent

THE WO

16

Source: Garcia and Moore (2012)

p

 Unclear institutional roles

012‐2022

Fragmentation: The challenge in social protection and labor programs

TRATEGY 20

protection and labor programs

SOEs

Security

LABOR ST

Civil Servants

SOEs

Security Forces

Pensions

GENEROSITY

TION AND L

Private Sector

Social Pensions Social Pensions

L PROTECT

Social Pensions Social Pensions LOW INCOME HIGH INCOME

Y

K’S SOCIAL

Fuel subsidies Food subsidies

Social Assistance

GENEROSITY

ORLD BANK

Cash transfers Public works Cash

THE WO

17 Universal child benefits transfers LOW INCOME HIGH INCOME

012‐2022

From exclusion From exclusion

TRATEGY 20

to to inclusion inclusion

No transfer Only social insurance

Low­coverage concentrated LABOR ST

13 13 23

Only social assistance Labor market programs

Low coverage concentrated among:

 low‐income countries and

fragile contexts

TION AND L

12 17 9 23 27 46 33

t

fragile contexts

 poor populations and

vulnerable groups, including women

L PROTECT

75 70 65 21 22 43

Percent

g

 informal sector

Meeting the challenge

K’S SOCIAL

70 65 46 32 22

Meeting the challenge

 Fiscally sustainable

inclusion I i i hi h

ORLD BANK

SS Africa MENA SAR LAC EAP ECA % of households receiving transfers  Innovation in reaching the

excluded

 Institutional capacity

b ildi f THE WO

18

Source: World Bank ASPIRE database

building, performance management

012‐2022

From less productive From less productive to to more productive more productive

TRATEGY 20

The world of work is not a world of wage earners

to to more productive more productive

Low­productivity concentrated

LABOR ST

self‐ self‐

East Asia and the Pacific Middle East and North Africa

Low productivity concentrated



Low­income countries and fragile contexts



Poor populations and vulnerable

TION AND L

wage 43% employe d 23% wage 47% employe d 27%

p p groups



Informal, rural sectors

L PROTECT

farmers 34% farmers 26%

South Asia Sub‐Saharan Africa

Meeting the challenge



Investment in human capital, especially among children

I t b i i i

K’S SOCIAL

self- employe d 21% wage 19% self- employe d

South Asia Sub‐Saharan Africa

• Improve access to basic services in

education, health and nutrition



Improving productivity and access to jobs

ORLD BANK

wage 50% farmers 29% 21% farmers 48% 33%

access to jobs

• Improve labor market functioning

to enable access to higher productivity work

THE WO

19

Source: WDR 2013 Calculations

• Foster activation programs, skills,

capacity building

012‐2022

From inflexibility to responsiveness

TRATEGY 20

to responsiveness

The need for effective risk management

674

LABOR ST

management



Against both individual shocks and systemic crises



Crises are increasingly frequent

674

Average number of

di

TION AND L



Crises are increasingly frequent, widespread, severe and concentrated in poor regions among poor people

446

Average number of

disasters

2006‐10

L PROTECT

Meeting the challenge



Ensure that appropriate programs are in place before shocks hit

disasters

1991‐95

K’S SOCIAL



Enhance existing programs to capture the newly vulnerable



Add programs to the social protection and labor portfolio that can be scaled

ORLD BANK

and labor portfolio that can be scaled up during crises



Strengthen programs to help the most vulnerable in times of crisis

THE WO

20

012‐2022

Main messages: Main messages: Social Protection and Labor Social Protection and Labor

TRATEGY 20

Social Protection and Labor Social Protection and Labor policies and programs… policies and programs…

LABOR ST

• 1. Are necessary
• 2. Are effective when

TION AND L

• 2. Are effective when
• Systemic
• Inclusive

L PROTECT

Inclusive

• Responsive
• Productive

K’S SOCIAL

• 3. Need to be
• Tailored to countries and

ORLD BANK

Tailored to countries and evidence

• Knowledge‐driven

THE WO

21

g

• Developed collaboratively

012‐2022

Main messages: Main messages: Social Protection and Labor Social Protection and Labor

TRATEGY 20

Social Protection and Labor Social Protection and Labor policies and programs… policies and programs…

LABOR ST

• 1. Are necessary

2 Are effective when

TION AND L

• 2. Are effective when
• Systemic

I l i

L PROTECT

• Inclusive
• Responsive

P d ti

K’S SOCIAL

• Productive
• 3. Need to be

ORLD BANK

• Tailored to countries
• Knowledge‐driven

THE WO

22

g

• Developed collaboratively

012‐2022

To succeed, work on social protection To succeed, work on social protection d l b i d t b d l b i d t b

TRATEGY 20

and labor issues need to be … and labor issues need to be …

Tailoring operations to

LABOR ST

Tailoring operations to country context, and to evidence of “what works”;

No one size fits all

TION AND L

Tailored

Knowledge focused on results No one size fits all

L PROTECT

f

and learning from South‐South sharing of practice

K’S SOCIAL

Collabo‐ Know‐ ledge

ORLD BANK

Broad, synergistic partnerships across

rative ledge‐ Driven

THE WO

23

sectors and actors

012‐2022

For more information For more information

TRATEGY 20

f

LABOR ST

ldb k / ldb k /

TION AND L

www.worldbank.org/spstrategy www.worldbank.org/spstrategy

L PROTECT

• Strategy and Executive Summary
• Background papers and Policy notes

K’S SOCIAL

Background papers and Policy notes

• Video
• Consultations reports

ORLD BANK

• Consultations reports
• Translations into Arabic, Chinese, French,

Portuguese Russian and Spanish

THE WO

24

Portuguese, Russian, and Spanish

012‐2022 TRATEGY 20

LABOR ST

TION AND L L PROTECT K’S SOCIAL

ANNEXES

ORLD BANK

THE WO

25

012‐2022

From strategy to results: Measuring success

TRATEGY 20

success

Quality of World Bank activities to Changes in SPL outcomes and Country progress on key

LABOR ST

Quality of World Bank activities to support partner countries Changes in SPL outcomes and

• utputs in countries attributable

to World Bank support Country progress on key development outcomes  Percentage of satisfactory  Percentage of World Bank SPL  Poverty gap at $1.25 per day

TION AND L

projects (IEG Ratings)  Percentage of projects with satisfactory M&E (ICRs)  Number of downloads of lending operations supporting SPL systems  Number of countries with World Bank SPL engagement (PPP)  Percentage of population in the poorest quintile covered by SPL programs

L PROTECT

SP&L knowledge products  Number of countries involved in World Bank sponsored South‐South learning events  Number of beneficiaries of World Bank supported SSN programs in IDA countries*  Number of beneficiaries of  Share of working age population accruing pensions rights  Pension beneficiaries to

K’S SOCIAL

 Percentage of SPL staff time spent on cross‐support to countries in other regions  Percentage of lending World Bank supported labor market programs* elderly (>65) population ratio (old age, survivor, disability and social pensions)  Percentage of children (7‐14)

ORLD BANK

• perations in IDA countries

having co‐financing partners employed  Labor productivity: GDP per person employed  Youth/adult unemployment

THE WO

26 rate

012‐2022

Towards an agenda for development partners on building social protection and

TRATEGY 20

partners on building social protection and labor systems

l f d b ld “ d b l ” f

LABOR ST

• Help finance and build “nuts and bolts” of

systems in poorer countries

TION AND L

• One good example is the Rapid

Social Response program

L PROTECT

Social Response program

• Has very successfully

catalyzed development of

K’S SOCIAL

catalyzed development of analytical and operational building blocks of social

ORLD BANK

g protection programs in low‐ income countries

THE WO

27