Publication: Social Protection in Latin America : Achievements and Limitations
Loading...
Published
2010-05-01
ISSN
Date
2012-03-19
Editor(s)
Abstract
Social protection systems in Latin America have been transformed in the past two decades. Until the 1980s, those who were not covered by the social security arrangements available primarily in the urban formal sector received little public assistance beyond universal subsidies for some food or fuel purchases. Since the 1990s, the introduction of non-contributory social insurance programs (including "social pensions") and conditional cash transfers has substantially extended the coverage and improved the incidence of social assistance. However, the organic growth of subsidized social assistance in parallel to the older social insurance system, financed largely out of taxes on formal sector employment, has led to a dual system that is neither properly equitable nor efficient. The twin challenges that now face social protection in Latin America are to better integrate those two halves of the system, and to develop programs that promote sustainable self-reliance, by moving from "safety nets" to "opportunity ropes."
Link to Data Set
Citation
“Ferreira, Francisco H.G.; Robalino, David. 2010. Social Protection in Latin America : Achievements and Limitations. Policy Research Working Paper ; No. 5305. © World Bank. http://hdl.handle.net/10986/3792 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Publication The Economic Value of Weather Forecasts: A Quantitative Systematic Literature Review(Washington, DC: World Bank, 2025-09-10)This study systematically reviews the literature that quantifies the economic benefits of weather observations and forecasts in four weather-dependent economic sectors: agriculture, energy, transport, and disaster-risk management. The review covers 175 peer-reviewed journal articles and 15 policy reports. Findings show that the literature is concentrated in high-income countries and most studies use theoretical models, followed by observational and then experimental research designs. Forecast horizons studied, meteorological variables and services, and monetization techniques vary markedly by sector. Estimated benefits even within specific subsectors span several orders of magnitude and broad uncertainty ranges. An econometric meta-analysis suggests that theoretical studies and studies in richer countries tend to report significantly larger values. Barriers that hinder value realization are identified on both the provider and user sides, with inadequate relevance, weak dissemination, and limited ability to act recurring across sectors. Policy reports rely heavily on back-of-the-envelope or recursive benefit-transfer estimates, rather than on the methods and results of the peer-reviewed literature, revealing a science-to-policy gap. These findings suggest substantial socioeconomic potential of hydrometeorological services around the world, but also knowledge gaps that require more valuation studies focusing on low- and middle-income countries, addressing provider- and user-side barriers and employing rigorous empirical valuation methods to complement and validate theoretical models.Publication Direct and Indirect Impacts of Transport Mobility on Access to Jobs: Evidence from South Africa(Washington, DC: World Bank, 2025-11-12)Access to jobs is essential for economic growth. In Africa, unemployment rates are notably high. This paper reexamines the relationship between transport mobility and labor market outcomes, with a particular focus on the direct and indirect effects of transport connectivity. As predicted by theory, wages are influenced by the level of commuting deterrence. Generally, higher earnings are associated with longer commute times and/or higher commuting costs. Local accessibility is also important, especially for individuals with time constraints. Both direct and indirect impacts are found to be significant in South Africa, where job accessibility has been challenging since the end of apartheid. For the direct impact, the wage elasticity associated with commuting costs is significant. Returns on commute are particularly high for women. Local accessibility to socioeconomic facilities, such as shops and health services, is also found to have a significant impact, consistent with the concept of mobility of care. To enhance employment, therefore, it is crucial to connect people not only to job locations but also to various socioeconomic points of interest, such as markets and hospitals, in an integrated manner. This integration will enable individuals to spend more time working and commuting longer distances.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication From Policy to Practice: Lessons from the Implementation of the Refugee Work Rights Policy in Ethiopia(Washington, DC: World Bank, 2025-11-10)This paper examines the early implementation of Ethiopia’s refugee work rights policy, with a focus on the issuance of permits that enable refugees to engage in economic activities. Building on significant legal and institutional advances under the 2019 Refugee Proclamation and subsequent directives, the analysis explores how these reforms are being operationalized in practice. Using a mixed-methods approach, combining document review, administrative data analysis, and semi-structured interviews, the paper identifies both progress and remaining challenges. Permit issuance has increased since the adoption of detailed operational guidance in 2024, reflecting the Government of Ethiopia’s commitment to operationalizing its progressive legal framework and ensuring that refugees can exercise their right to work. However, take-up remains modest, with about 5.2 percent of the working-age population holding a permit. Preliminary evidence suggests that coordination gaps, limited subnational capacity, low awareness among refugees and employers, and disincentives to formalize in a largely informal labor market are contributing to the low take-up. The paper offers policy suggestions, grounded in the Ethiopian context and emerging evidence, to help translate legal commitments into improved labor market outcomes for refugees.Publication Monitoring Global Aid Flows: A Novel Approach Using Large Language Models(Washington, DC: World Bank, 2025-11-04)Effective monitoring of development aid is the foundation for assessing the alignment of flows with their intended development objectives. Existing reporting systems, such as the Organisation for Economic Co-operation and Development’s Creditor Reporting System, provide standardized classification of aid activities but have limitations when it comes to capturing new areas like climate change, digitalization, and other cross-cutting themes. This paper proposes a bottom-up, unsupervised machine learning framework that leverages textual descriptions of aid projects to generate highly granular activity clusters. Using the 2021 Creditor Reporting System data set of nearly 400,000 records, the model produces 841 clusters, which are then grouped into 80 subsectors. These clusters reveal 36 emerging aid areas not tracked in the current Creditor Reporting System taxonomy, allow unpacking of “multi-sectoral” and “sector not specified” classifications, and enable estimation of flows to new themes, including World Bank Global Challenge Programs, International Development Association–20 Special Themes, and Cross-Cutting Issues. Validation against both Creditor Reporting System benchmarks and International Development Association commitment data demonstrates robustness. This approach illustrates how machine learning and the new advances in large language models can enhance the monitoring of global aid flows and inform future improvements in aid classification and reporting. It offers a useful tool that can support more responsive and evidence-based decision-making, helping to better align resources with evolving development priorities.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Framework for the Development of Social Protection Systems(World Bank, Washington, DC, 2015-07-07)Many countries have used social protection to achieve broader development goals, particularly on poverty reduction and inclusive growth. A wide range of social protection programs allows countries to tackle specific development constraints at national, community, and household levels; provide support to particular population groups; and enhance growth-promoting opportunities.For instance, public works programs and cash transfers are important and flexible social assistance programs that can be tailored to achieve specific objectives and adjusted to various levels of institutional capacity. They can also be implemented as national and centralized programs or delivered in a more decentralized fashion through community-driven development platforms.Publication Togo : Towards a National Social Protection Policy and Strategy(Washington, DC, 2012-06-29)Over the last several years, the Government of Togo has made important advances in the area of social protection. Although Togo has had limited social insurance and social assistance programs, the economic shock and natural disasters starting in 2008 brought the need for better mechanisms of social protection to the fore. The Government response has focused on measures to address the needs of the affected populations, while building the analytical base for developing a national social protection policy and strategy. For example, several important social protection programs were launched in the last few years, including the National Institute for Health Insurance, a labor intensive public works program for rural areas, a school lunch program, and a pilot for cash transfer program targeting vulnerable children. The Government has also promoted access to basic services by the poor by eliminating school fees and fees for cesarean sections. As part of developing the analytical base for a national social protection policy and strategy, a series of studies and analyses were carried out over the last two years. International development partners have supported this effort and have worked closely with the Government in developing this basis. This report forms part of the overall packet of analytical work prepared to support the formation of a national social protection policy and strategy. The objectives of this report are to: a) synthesize the situational analysis on poverty and vulnerability and the current state of social protection policies and programs from the set of background documents; and b) assist the government through providing general orientations and strategic choices in developing a national social protection policy and strategy that would integrate the various ongoing efforts and components of social protection with a view to achieving the Government's longer-term goal of social protection for all. This report is organized in the following sections: section two provides a brief overview of the objectives, components and importance of social protection as part a country's economic growth and poverty reduction objectives. Section three summarizes the basic situation of poverty and vulnerability in Togo and identifies vulnerable groups and main risks and shocks. Section four analyses the current policy and institutional framework and reviews the main areas of social protection, in terms of approach, coverage, targeting and expenditures. Section five proposes basic elements for the Government to take into consideration in developing a national social protection policy and strategy. Section six identifies next steps in finalizing the preparation of a national social protection policy and strategy.Publication Togo : Towards a National Social Protection Policy and Strategy(World Bank, Washington, DC, 2012-06)Although Togo has had limited social protection programs, the economic shock and natural disasters starting in 2008 brought the need for better mechanisms of social protection to the fore. The Government response has focused on measures to address the immediate needs of the affected populations, while building the analytical base for developing a national social protection policy. This report forms part of the overall analytical work prepared to support the formation of a national social protection policy. It finds that the most common safety net programs are in-kind transfers with limited coverage. It proposes basic elements for the Government to take into consideration in developing a national social protection policy and strategy and identifies next steps in finalizing the preparation of such a policy and strategy.Publication Vietnam : Strengthening the Social Safety Net to Address New Poverty and Vulnerability Challenges(Washington, DC, 2010-11)As it transitions to Middle-Income Country (MIC) status, Vietnam is considering whether its social protection system is adequate to meet rapidly changing needs associated with strong economic growth, integration of its economy in regional and global markets, industrialization, urbanization and other economic and societal shifts. Vietnam's social safety net - programs with the following objectives: 1) alleviation of chronic poverty; 2) help to the poor in coping with the worst forms of shocks and transient poverty; and 3) promotion of human development for long-term poverty alleviation. This note aims to assess the system of social safety net programs currently in place in Vietnam and to gauge how well it covers the poor and vulnerable populations. This note highlights two messages: first, it identifies gaps in the current poverty reduction and social protection system - programs that help address urban vulnerability and poverty and that help the poor and vulnerable manage shocks - which could be closed through strengthened and more effective household-targeted social safety net programs. Second, in examining the existing core social safety net programs the note finds that, while targeting is respectable, their primary weakness lies in limited coverage. Based on these findings, this note strengthens household-targeted social safety net interventions in Vietnam as a complement to geographically-targeted poverty reduction programs and social insurance.Publication World Bank Support for Social Safety Nets 2007-2013 : A Review of Financing, Knowledge Services, and Results(World Bank Group, Washington, DC, 2014-06)This review examines World Bank support to social safety nets between FY2007-13, including both financing and knowledge services. During this time period World Bank financing for safety nets totaled just over United States (U.S.) 12 billion dollars, 273 financing activities in 93 countries, the World Bank spent approximately U.S. 118 million dollars on 281 safety net studies and supported approximately 129 credible safety net impact evaluations covering in 24 countries. Among the 93 countries represented in the portfolio, 42 received little or no safety net support from the World Bank prior to FY2007. The growth in Bank support is especially notable during the period of the food, fuel, and financial crises. The analysis delves into these trends by region, type of intervention, and instruments involved. Finally, it delineates implications and outlook for the future based on lessons learned, results measured, and evaluative evidence.
Users also downloaded
Showing related downloaded files
Publication Design Thinking for Social Innovation(2010-07)Designers have traditionally focused on enchancing the look and functionality of products.Publication Government Matters III : Governance Indicators for 1996-2002(World Bank, Washington, DC, 2003-08)The authors present estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. The authors assign these individual measures of governance to categories capturing key dimensions of governance and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. They present the point estimates of the dimensions of governance as well as the margins of errors for each country for the four periods. The governance indicators reported here are an update and expansion of previous research work on indicators initiated in 1998 (Kaufmann, Kraay, and Zoido-Lobat 1999a,b and 2002). The authors also address various methodological issues, including the interpretation and use of the data given the estimated margins of errors.Publication Breaking the Conflict Trap : Civil War and Development Policy(Washington, DC: World Bank and Oxford University Press, 2003)Most wars are now civil wars. Even though international wars attract enormous global attention, they have become infrequent and brief. Civil wars usually attract less attention, but they have become increasingly common and typically go on for years. This report argues that civil war is now an important issue for development. War retards development, but conversely, development retards war. This double causation gives rise to virtuous and vicious circles. Where development succeeds, countries become progressively safer from violent conflict, making subsequent development easier. Where development fails, countries are at high risk of becoming caught in a conflict trap in which war wrecks the economy and increases the risk of further war. The global incidence of civil war is high because the international community has done little to avert it. Inertia is rooted in two beliefs: that we can safely 'let them fight it out among themselves' and that 'nothing can be done' because civil war is driven by ancestral ethnic and religious hatreds. The purpose of this report is to challenge these beliefs.Publication Governance Matters VIII : Aggregate and Individual Governance Indicators 1996–2008(2009-06-01)This paper reports on the 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These aggregate indicators are based on hundreds of specific and disaggregated individual variables measuring various dimensions of governance, taken from 35 data sources provided by 33 different organizations. The data reflect the views on governance of public sector, private sector and NGO experts, as well as thousands of citizen and firm survey respondents worldwide. The authors also explicitly report the margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. They find that even after taking margins of error into account, the WGI permit meaningful cross-country comparisons as well as monitoring progress over time. The aggregate indicators, together with the disaggregated underlying indicators, are available at www.govindicators.org.Publication Governance Matters IV : Governance Indicators for 1996-2004(World Bank, Washington, DC, 2005-06)The authors present the latest update of their aggregate governance indicators, together with new analysis of several issues related to the use of these measures. The governance indicators measure the following six dimensions of governance: (1) voice and accountability; (2) political instability and violence; (3) government effectiveness; (4) regulatory quality; (5) rule of law, and (6) control of corruption. They cover 209 countries and territories for 1996, 1998, 2000, 2002, and 2004. They are based on several hundred individual variables measuring perceptions of governance, drawn from 37 separate data sources constructed by 31 organizations. The authors present estimates of the six dimensions of governance for each period, as well as margins of error capturing the range of likely values for each country. These margins of error are not unique to perceptions-based measures of governance, but are an important feature of all efforts to measure governance, including objective indicators. In fact, the authors give examples of how individual objective measures provide an incomplete picture of even the quite particular dimensions of governance that they are intended to measure. The authors also analyze in detail changes over time in their estimates of governance; provide a framework for assessing the statistical significance of changes in governance; and suggest a simple rule of thumb for identifying statistically significant changes in country governance over time. The ability to identify significant changes in governance over time is much higher for aggregate indicators than for any individual indicator. While the authors find that the quality of governance in a number of countries has changed significantly (in both directions), they also provide evidence suggesting that there are no trends, for better or worse, in global averages of governance. Finally, they interpret the strong observed correlation between income and governance, and argue against recent efforts to apply a discount to governance performance in low-income countries.