The State of Social Safety Nets 2015
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As of 2015 every country in the world has at least one non-contributory program to provide support to the poor and vulnerable. While traditional porgrams such as school feeding and in-kind transfers is stable, cash transfers are on the rise.
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The State of Social Safety Nets 2015 - The World Bank
The State of Social Safety Nets 2015
© 2015 International Bank for Reconstruction and Development / The World Bank
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DOI: 10.1596/978-1-4648-0543-1
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Foreword
The need for social safety nets is a critical concern for governments across the globe and for the billions of men, women, and children striving to improve their livelihoods. As interest in and the use of social safety nets keep growing, countries struggle to make social safety net interventions more effective and to integrate them better in their overall social protection and labor systems.
This report documents the state of the social safety net agenda in low- and middle-income countries. In recent years, a true policy revolution has been under way. The statistics in this report capture this revolution and reveal it in many dimensions at the country, regional, and international levels. This latest edition of a periodic series draws heavily on the survey and administrative data in the World Bank’s Atlas of Social Protection: Indicators of Resilience and Equity (ASPIRE), a comprehensive international database.
The effort to collect data through ASPIRE has resulted in capturing and bringing together a large body of data that was not previously available. Today, 131 countries out of 157 in the ASPIRE database have in-kind transfers, specifically in the form of school feeding. This fundamental transfer, ubiquitous in low-income countries, is quite important in middle-income countries as well. But while school feeding programs have been around for a long time, the emerging trend for many countries is to increasingly move toward cash-based assistance. Cash transfers are present in 130 countries, with the most rapid growth occurring in Africa. There, 40 countries now have unconditional cash transfer programs in place—almost double the number in 2010.
Why this growth? Why this commitment to make social safety nets part of the development policy architecture in low- and middle-income countries alike? Because social safety nets work. Their value has been demonstrated not from anecdotal evidence, but from extensive and robust evaluations often conducted with the same rigorous standards guiding, for example, medical research. Importantly, an increasing share of these evaluations is being undertaken in some of the most challenging and lowest-income contexts around the world.
How much do social safety nets cost? Costs range between 1.5 percent and 1.9 percent of gross domestic product in low- and upper-middle-income countries, respectively. Total spending on social safety nets in 120 developing countries is US$329 billion—approximately twice the amount needed to lift people out of extreme poverty. Different countries have made different choices in terms of financing their social safety nets for different social, economic, historical, and political reasons. Differences in budgetary choices tend to translate into differences in program performance across contexts; thus, for the same amount of resources, countries can achieve differing impacts. Therefore, one important question to explore is what countries are doing to improve the efficiency of social safety net programs as a system. This report provides an attempt to set realistic benchmarks for countries to assess the performance of their social safety nets in terms of coverage, spending, and impacts on reducing poverty.
Many countries have made strides in connecting poor and vulnerable people to different programs—with respect to not only social protection, but also jobs and other social interventions such as health and education. The agenda has become one of unlocking countries’ potential, with the building of systems playing a big role. However, overlaps among programs persist and coordination remains limited in most cases. Establishing effective management, information, and evaluation systems; introducing accurate registries of beneficiaries; devising a proper