Social Safety Nets Primer

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This series is intended to provide a practical resource for those engaged in the design and implementation of safety net programs around the world. Readers will find information on good practices for a variety of types of interventions, country contexts, themes and target groups, as well as current thinking on the role of social safety nets in the broader development agenda.

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    Natural Disasters : What is the Role for Social Safety Nets?
    (World Bank, Washington, DC, 2011-06) Clay, Edward
    The frequency of dramatic natural shocks around the world is a reminder that governments and the international community need to do more to prevent and mitigate the human misery and economic costs that result from such calamities. Natural disaster risk management is a multi-sectoral endeavor to mitigate disasters. Social risk management moves the focus away from the disaster to explore how the society manages hazards. In this, safety nets can play a part. Safety nets here refer to income support programs targeted to the neediest (either as a result of ongoing poverty or the effect of the disaster itself) as a preventive measure, and in the recovery and rebuilding phase; not to emergency relief which is a vital first response and a different area of expertise. Such programs can operate through different modalities - cash, kind, public workfare; be targeted more or less broadly, and be implemented by a range of actors.
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    How to Make Public Works Work : A Review of the Experiences
    (World Bank, Washington, DC, 2009-09) del Ninno, Carlo ; Subbarao, Kalanidhi ; Milazzo, Annamaria
    Public work programs (PWPs) have been an important safety nets instrument used in diverse country circumstances at different points in time in both middle income and low income countries. Well-designed and implemented PWPs can help mitigating income shocks; the programs can also be used to reduce poverty. This paper reviews the experience with PWPs in several countries over the past 20 years to delineate use patterns and to determine the factors contributing to its use as a successful safety net program. This is done by reviewing cross-country variations in the design, implementation procedures and delivery models followed by an assessment of methods for monitoring and evaluation specific to public works.
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    Levels and Patterns of Safety Net Spending in Developing and Transition Countries
    (World Bank, Washington, DC, 2009-01) Andrews, Colin
    This paper offers a new set of data compiled from individual World Bank country reports and covering 87 developing and transition countries during 1996-2006. The findings show that mean spending on safety nets is 1.9 percent of gross domestic product (GDP) and median spending is 1.4 percent of GDP across developing and transition countries. For about half of these countries, spending falls between 1 and 2 percent of GDP. Some variation is apparent. Bosnia and Herzegovina, Pakistan, and Tajikistan, for example, spend considerably less than 1 percent of GDP, while spending on social safety nets in Ethiopia and Malawi is nearly 4.5 percent of GDP because international aid is counted, but would be more like 0.5 percent if only domestically financed spending were counted. Other high-spending countries, Mauritius, South Africa, and the Slovak Republic, finance their safety nets domestically. Spending on safety nets is less variable than spending on social protection or the social sectors.
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    Social Safety Nets in World Bank Lending and Analytical Work : FY2002–2007
    (World Bank, Washington, DC, 2009-01) Andrews, Colin
    During FY 2002-2007 the World Bank engaged with 118 countries on social safety net (SSN) issues, providing lending in 68, analytic products in 86, training in 87, and a combined package of all three services in 42. A review of these safety net activities shows a strong diversity with respect to the regions, types of intervention, sectors and financing instruments. This reflects evolving thought within the Bank with respect to the role of safety nets in broad development strategies, not just immediate or temporary programs. The findings of the portfolio review take into account all project and analytic documents where a thematic code of 'social safety nets' was assigned. The analysis shows a noticeable variability over time, particularly as the portfolio expanded when large or multiple countries faced economic crises. The regional distribution of safety net activities reflects the dominance of Latin America, with emerging activities in the African and South Asian context.
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    Social Safety Nets in OECD Countries
    (World Bank, Washington, DC, 2006-01) Tesliuc, Emil
    The focus of the note is on non-contributory social programs for low-income households, or other vulnerable groups in OECD countries. These programs, typically referred to as social safety net (SSN) programs in developing countries, are labeled welfare programs in the US and social assistance programs in the European Union. This note covers 28 countries belonging to the OECD, and refers to an in depth review of SSN programs in the US and nine European Union countries prepared for a course on "Social Safety Nets in OECD Countries." The accompanying course materials have been developed by a team from the Urban Institute (for the US) and the University of Maastricht (for nine European Union countries). The material on US welfare policies also draws on Lindert (2005), and the review of reforms in OECD countries from Abt (2003).
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    The Political Economy of Targeted Safety Nets
    (World Bank, Washington, DC, 2005-01) Ouerghi, Azedine
    To be successful, Social Safety Net (SSN) programs require three elements of policy design: technical correctness, administrative feasibility and political viability; yet the politically supportable aspect is often neglected. In this note, several features of political economy applicable to the choice, design, and implementation of safety net programs are discussed: modeling the electoral politics of targeting; the roles of attitudes and perceptions; centralized versus localized control; internal and organizational politics, and finally, politics and the different social objectives of safety ropes and safety nets. The note discusses the political viability of any SSN program, profoundly influenced by corruption and the perceptions of horizontal equity, process and administrative fairness, and effectiveness. Corruption subverts all three perceptions, and so is especially damaging to political support. Moreover, changes in the average poverty rate mask enormous "churning" as households move in and out of poverty. This volatility creates the demand not just for transfer programs to those whose incomes are chronically low (safety nets), but also for insurance-like programs that would pay off not only when income was absolutely low, but also when households experienced negative shocks (safety ropes). While safety "nets" seek to minimize income or expenditure poverty, the objective of safety "ropes" is to mitigate risk. If the targeting of social programs is judged exclusively on poverty or benefit incidence based on a cross sectional snapshot, then risk mitigation programs benefiting households who have suffered large shocks, but who are not "poor" may appear to have large "leakage" when in fact they are simply serving an alternative social objective. While a "safety net" program might be more popular, the more effectively it transfers from richer to poorer households, a "safety rope" program might cause little net redistribution, but be popular because it serves an important insurance function.
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    Disability and Social Safety Nets in Developing Countries
    (World Bank, Washington, DC, 2005-01) Mitra, Sophie
    The two-way relationship between poverty and disability fosters: disability increases the risk of poverty and the conditions of poverty increase the risk of disability, yet little attention has been given as to whether social safety nets reach persons with disabilities. Social safety nets have a role to play with regard to disability in terms of poverty alleviation, poverty reduction, and development and prevention. The note addresses the way to reach persons with disabilities - to target safety nets based on disability. This approach would benefit persons with such severe disabilities that they cannot participate in the opportunities generated by growth, inclusive employment and/or education policies. These programs might take a number of forms such as: social insurance schemes, publicly funded transfers (sometimes provided as part of a family allowance), in-kind targeting (assistance devices for example) or livelihood programs. However, a more feasible solution may be to ensure that mainstream social safety nets are "disability inclusive". How can mainstream social safety nets be designed, implemented, and evaluated so that persons with disabilities are not excluded? The note describes this process: identification of the physical, social, and communication barriers that prevent the inclusion of persons with disabilities is critical. For instance, do the attitudes of social safety net staff prevent or discourage access to benefits for persons with disabilities?
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    Toolkit for Programming Assistance to Orphans and Vulnerable Children (OVC) in Sub-Saharan Africa
    (World Bank, Washington, DC, 2005-01) Tovo, Maurizia ; Prywes, Menahem ; Kielland, Anne ; Gibbons, Catherine ; Saito, Junko
    Orphans and other vulnerable children (OVC) are among the most vulnerable population groups in Africa. Without support and protection, they are exposed to the risk of abusive labor, lack of education, malnutrition, disease, and death. Estimates indicate that 20 percent of children in Sub-Saharan Africa are OVC. They constitute such a large group that, to achieve the Millennium Development Goals (MDGs), OVC concerns need to be mainstreamed into relevant World Bank projects and programs. This brief note refers to the toolkit designed as a web-based product to make it a widely accessible, live document. It draws on a large array of experiences and material from international agencies and nongovernmental organizations (NGOs), hence helping to disseminate lessons - good and bad - learnt in a variety of settings. The Toolkit is organized in four parts and twenty-four sections.
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    Aging and Poverty in Africa and the Role of Social Pensions
    (World Bank, Washington, DC, 2005-01) Subbarao, Kalanidhi
    In many low income African countries, three factors are placing an undue burden on the elderly: 1) the burden on the elderly has enormously increased with the increase in mortality of prime age adults due to the HIV-AIDS pandemic and regional conflicts; 2) the traditional safety net of the extended family has become ineffective and unreliable for the elderly; and, 3) in a few countries, the elderly are called upon to shoulder the responsibility of the family as they became the principal breadwinners, and caregivers for young children. While a number of studies have examined the welfare consequences of these developments on children, few studies have systematically analyzed the poverty situation among the elderly (relative to other groups) in low income countries in Africa, and the role of social pensions. This study aims to fill this gap. The findings show much heterogeneity across countries with respect to the proportion of the elderly population, the living arrangements, and the composition of households, and household headship. The analysis shows that the poverty situation, and especially the poverty gap ratio, for the household types the "elderly only", the "elderly with children" and the "elderly-headed households" is much higher than the average in several countries, and the differences are statistically significant. The analysis further shows that the fiscal cost of providing a universal non-contributory social pension to all of the elderly will be quite high - 2 percent to 3 percent of GDP, a level comparable to, or even higher, than the levels of total public spending on health care in some countries. While categorical targeting of a pension for the above groups yields the maximum poverty reduction impacts, and is also fiscally sustainable even in low income countries, its operational feasibility is considered to be weak. The study concludes that the case for a universal approach is weak. The best option appears to be to target the pension only to the poor among the elderly, keeping the benefit level low. The study underscores the need for more country-specific work to explore the feasibility of the recommended option in diverse country settings.
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    Price and Tax Subsidies : Effectiveness and Challenges
    (World Bank, Washington, DC, 2003-01) Mackintosh, Fiona ; del Ninno, Carlo
    Many governments use price and tax subsidization to meet social protection objectives. They endeavor to reduce the cost of living for their population-or for a subset of the population-by subsidizing the price of goods or services in lieu of, or in addition to, direct income transfers. While these subsidies may distort production incentives, subsidize the non-poor more than the poor, and limit consumer choice, there are reasons why a government may choose to use some forms of pricing policy rather than make income transfers to help the poor.