Publication: Tracking Global Social Protection Responses to Inflation: Living Paper, v.5
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Published
2023-06-30
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2022-05-16
Author(s)
Almenfi, Mohamed
Iyengar, Hrishikesh TMM
Okamura, Yuko
Urteaga, Emilio Raul
Valleriani, Giorgia
Aziz, Sheraz
Al Azim Bin Noruzi, Mohammad Farid
Chu, Margret
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Abstract
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%).
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“Almenfi, Mohamed; Gentilini, Ugo; Iyengar, Hrishikesh TMM; Okamura, Yuko; Urteaga, Emilio Raul; Valleriani, Giorgia; Aziz, Sheraz; Al Azim Bin Noruzi, Mohammad Farid; Chu, Margret. 2023. Tracking Global Social Protection Responses to Inflation: Living Paper, v.5. Social Protection & Jobs Discussion Paper Series. © World Bank. http://hdl.handle.net/10986/37441 License: CC BY-NC 3.0 IGO.”
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