Publication: Where is the Money Coming From? Ten Stylized Facts on Financing Social Protection Responses to COVID-19
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2020-11
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2020-11
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The unprecedented and ongoing scale-up of social protection responses to the COVID-19 pandemic dwarf the response to the Great Recession. But how are countries financing such scale-up efforts? This note lays out ten stylized findings from a rapid review of social protection financing sources in thirty-one countries, including in terms of composition between external and domestic resources, and specific modalities within each.
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“Almenfi, Mohamed; Breton, Melvin; Dale, Pamela; Gentilini, Ugo; Pick, Alexendar; Richardson, Dominic. 2020. Where is the Money Coming From? Ten Stylized Facts on Financing Social Protection Responses to COVID-19. Social Protection and Jobs Policy and Technical Note;No. 23. © World Bank. http://hdl.handle.net/10986/34802 License: CC BY 3.0 IGO.”
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Publication Social Protection and Jobs Responses to COVID-19(World Bank, Washington, DC, 2020-04-17)Some key finds from this "living paper" include : As of April 23, 2020, a total of 151 countries (18 more since last week) have planned, introduced or adapted 684 social protection measures in response to COVID-19 (Coronavirus). This is a ten-fold increase in measures since the first edition of this living paper (March 20). New countries include Angola, Anguilla, Antigua and Barbuda, Aruba, Azerbaijan, Bahamas, Belarus, Bermuda, Brunei, Chad, Grenada, Libya, Montserrat, Nigeria, Saint Vincent and the Grenadines, Seychelles, St Maarten, and UAE. Social assistance transfers are the most widely used class of interventions (60 percent of global responses, or 412 measures). These are complemented by significant action in social insurance and labor market-related measures (supply-side measures). Among safety nets, cash transfer programs remain the most widely used safety net intervention by governments (table 1 and figure 2). Overall, cash transfers include 222 COVID-related measures representing one-third (32.4 percent) of total COVID-related social protection programs. Cash transfers include a mix of both new and pre-existing programs of various duration and generosity. About half (47 percent) of cash transfers are new programs in 78 countries (reaching 512.6 million people), while one-fifth (22 percent) of measures are one-off payments. The average duration of transfers is 2.9 months. The size of transfers is relatively generous, or one-fifth (22 percent) of monthly GDP per capita in respective countries. On average, this is an increase of 86.6 percent compared to average pre-COVID transfer levels (where data is available for a subset of countries).Publication Social Protection and Jobs Responses to COVID-19(Washington, DC: World Bank, 2022-02-07)As of January 2022, a total of 3,856 social protection and labor measures were planned or implemented by 223 economies. This constitutes a net increase of 523 measures, or 15.6 percent since the last update in May 2021. While noteworthy, such increase is the lowest among net additions observed over previous semesters. In fact, the global pace of measures’ introduction over January 2020-January 2022 has been slowing down. This report focuses on the real-time review of country measures in terms of social protection and job responses to Coronavirus (COVID-19).Publication Early Lessons from Social Protection and Jobs Response to COVID-19 in Middle East and North Africa Countries(World Bank, Washington, DC, 2021-12)Countries in the Middle East and North Africa region quickly introduced measures to limit the spread of COVID-19 following the first confirmed cases. These measures included curfews, lockdowns, and social distancing. As a result of COVID-19 induced impacts, countries in the region adopted social protection measures to mitigate the human and economic impacts of the pandemic. But most of the countries in MENA were already experiencing poor macroeconomics brought on by the decline in oil prices and by fragility, conflict, and violence. Illness and loss of income due to the pandemic (largely from informal sources) exacerbated the extreme vulnerability faced by the poor and vulnerable groups. Social protection programs, and particularly social safety nets (SSNs), can help households absorb short-term consumption risk during periods of crisis and build resilience to manage future shocks. In MENA, 21 countries and territories formally announced social protection measures to cope with the impacts of COVID-19. According to a Word Bank real-time review of social protection and jobs responses to COVID-19 (updated May 2021), measures in MENA have spanned social assistance, social insurance, and labor markets programs. Social assistance measures accounted for 59 percent of overall response, whereas social insurance and labor markets made up 23 and 18 percent, respectively. Since the World Bank launched its COVID-19 response, Social Protection and Jobs (SPJ) support to MENA countries has been fast, flexible, and adaptive. 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This paper provides a documentation of the context for SPJ COVID19 response in MENA countries’, a framework for continued response and some of the early lessons learned.Publication Tracking Global Social Protection Responses to Inflation(World Bank, Washington, DC, 2023-06-30)Between December 2022 and May 2023, the number of social protection and other related measures announced or implemented in response to inflation rose by about 31%. The latest tally includes 1,333 responses across 178 economies. Overall, subsidies claim 33% of such measures and take four main forms (fuel, food, fertilizers, and various fee subsidies). Social assistance accounts for 31% of responses, 77% of which is provided in the form of cash transfers. Tax measures represent 19% of the global responses, and trade, active labor market policies and social insurance claim a share of 6% each. Based on planned coverage data from 116 economies, social protection programs intend to cover 1.94 billion people or about 25% of the world’s population. But so far, actual coverage shows that 303.5 million individuals, or about 4% of the global population, were reached (based on data from 36 economies). Next, based on expenditure data from 561 programs across 143 economies, a total of $1.01 trillion is being invested in social protection responses. This involves an average country spending of 1.06% of GDP. The average size of both social assistance and subsidy transfers represents slightly over a quarter (i.e., 27%) of the daily median income, while their average initial duration is 7.3 months. Almost one-fifth of the responses to inflation have been extended, and the average duration of such extensions is 8.5 months. Over half of social assistance transfers are new (56%) and are provided on a one-off basis (47%).Publication Social Protection Response to the COVID-19 Crisis in the Dominican Republic(World Bank, Washington, DC, 2021-01)The Government of the Dominican Republic (DR) adopted a series of economic and social measures to protect households and businesses and prevent employment losses as a response to the Coronavirus disease SARS-CoV-2 (COVID-19) health and economic crisis. Social protection policies and programs have been used globally as effective mechanisms to respond to the economic crisis due to the COVID-19 pandemic. This policy note aims to document and analyze the design and implementation of the three main cash-transfer programs that the government used to protect households and workers affected by the COVID-19 crisis. The programs that are part of the scope of the note are: (1) stay at home (quédate en casa, QEC), (2) the employee solidarity assistance fund (fondo de asistencia solidaria del empleado, FASE), and (3) the independent worker assistance program (programa de asistencia al trabajador independiente, PA’ TI). The analysis of these programs is based on a desk review of administrative and legal documents, media information, program reports, and operational rules. The policy note is organized as follows: first, it provides an overview of the impact of COVID-19 on the economy and identifies the potentially affected population. Second, it provides a description of the design and implementation of the three social protection programs and their expenditures. Finally, it discusses lessons learned, including challenges and opportunities to improve social protection policies, based on an adaptative social protection framework.
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