Publication:
Tailoring Adaptive Social Safety Nets to Latin America and the Caribbean

Loading...
Thumbnail Image
Files in English
English PDF (4.26 MB)
456 downloads
Date
2020-01
ISSN
Published
2020-01
Editor(s)
Abstract
Social safety nets (SSNs) are increasingly relevant to helping households prepare, cope, and adapt to shocks in a climate of increased frequency and severity of disasters. Disasters can impact the income, consumption, and human capital of households. While disasters caused by natural hazards can impact anyone, the poor often bear the brunt of shock impacts, while vulnerable and other disadvantaged populations fall into poverty. When poor people are affected, the share of their wealth lost is two to three times that of the non-poor, largely because of the nature and vulnerability of their assets and livelihoods. The poor also often employ negative coping strategies following disasters, with long-lasting effects on human capital accumulation and income. Where SSNs have good coverage, adequacy, and incidence, they help ensure that the households most likely to be severely impacted by these events are able to smooth their consumption, build human capital, improve their assets and diversify livelihoods - all of which are increasingly critical to better preparedness for shocks and improved ability to cope with, and recover from, their impacts. An increasing number of countries have used their SSNs, primarily cash transfers and in-kind transfers, to respond to household needs following different shocks including disasters caused by weather and geological events, economic crisis and most recently, the economic crisis due to the COVID-19 health pandemic. Latin America and the Caribbean (LAC) exhibits larger coverage and expenditures on SSNs compared to most regions, particularly for cash transfer programs. SSNs in LAC also demonstrate comparatively well-established SSN delivery systems. Given this, there is unlocked potential in LAC to effectively respond to disasters by systematically using SSNs when appropriate. This note presents key lessons and design considerations for LAC countries to better usetheir SSNs to help individuals and households prepare, cope and adapt to the shocks they face. While this note focuses on disasters caused by natural hazards, the framework and lessons presented here are applicable to other types of emergencies and shocks.
Link to Data Set
Citation
Williams, Asha; Martinez, Ursula. 2020. Tailoring Adaptive Social Safety Nets to Latin America and the Caribbean. © World Bank. http://hdl.handle.net/10986/34136 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Adaptive Social Protection in the Caribbean - Building Human Capital for Resilience
    (World Bank, Washington, DC, 2021-10-01) Beazley, Rodolfo; Williams, Asha
    The Caribbean region is highly exposed to different types of shocks, some with devastating effects, ranging from climate change and disasters to external economic stresses and epidemics like the ongoing COVID-19 pandemic. Most Caribbean economies are small and open, and reliant on tourism and foreign investments, combined with high levels of poverty, which makes countries in the region vulnerable to such shocks. Shocks disproportionally affect the poor because they are often not only more exposed to them (e.g. due to their geographical location), but they are also more vulnerable to their effects. The sources of resilience available to the poor are more limited, and therefore they are often less equipped to anticipate, absorb, and recover from shocks. The social protection (SP), health, and education sectors play key roles in helping people to build human capital for resilience. These sectors contribute to strengthening the capacities of households and individuals, and in particular the poor, to anticipate, absorb, and recover from shocks. In this regard, ensuring business continuity for these services during shock events is crucial, alongside developing the capacity to rapidly adapt and deploy adequate support to people affected by shocks. Adaptive Social Protection (ASP) is concerned with how SP programs, services and systems can contribute to addressing covariate shocks through preventive, preparedness, and response actions: that is, adapting and using the capacity of the SP sector, typically developed for addressing idiosyncratic shocks, to enhance the resilience of households – and of the poor in particular
  • Publication
    Social Safety Nets in Europe and Central Asia : Preparing for Crisis, Adapting to Demographic Change, and Promoting Employability
    (World Bank, Washington, DC, 2012-04) Williams, Penny; Larrison, Jennica; Strokova, Victoria; Lindert, Kathy
    Social safety nets in the Europe and Central Asia (ECA) region responded to protect people's incomes during the global recession, especially in countries where systems were developed before the crisis. As population's age and labor forces shrink, the elderly will increasingly rely on general revenues to supplement contributory pensions, competing with assistance for other vulnerable groups. Social safety nets that link to employment and other services can help people transition from reliance on social transfers to employability. Countries should not wait to confront these challenges. To further strengthen social safety nets, governments in ECA should consolidate and harmonize benefits, invest in systems improvements for greater efficiency, link social assistance and employment services, and actively communicate these reforms to their populations.
  • Publication
    Tailoring Social Protection to Small Island Developing States : Lessons Learned from the Caribbean
    (World Bank, Washington, DC, 2013-08) Williams, Asha; Cheston, Timothy; Coudouel, Aline; Subran, Ludovic
    This paper examines the role of social protection (SP) in Small Island Developing States (SIDS), given their particular structural, human resource and capacity constraints. While it focuses on SIDS in Latin America and the Caribbean, the lessons may be relevant to other SIDS with similar challenges. Caribbean SIDS have made significant commitment to address the needs of the vulnerable, as reflected by their level of SP spending, and the numerous safety net programs, labor market interventions, and insurance schemes. Nevertheless gaps remain, as many vulnerable groups are underserved and the systems show limited responsiveness to shocks. This is further hampered by duplication of efforts which limits the efficiency of interventions. The paper recommends a series of systemic efforts to: 1) harmonize SP systems and policies across the region to better respond to increased regional mobility; 2) consolidate SP programs within countries to improve efficiency; 3) foster key human capital improvements among the poor to break inter-generational transmission of poverty; 4) improve monitoring and evaluation systems and data collection capacity to facilitate more responsive SP programs; and 5) increase partnerships with civil society and private sector. At the thematic level, the paper recommends: a) improving the responsiveness to economic and environmental shocks; b) improving efficiency and effectiveness of social safety net programs, in particular cash transfer programs; c) tailoring labor market interventions to respond to constraints faced in the SIDS context; and d) reforming social insurance schemes, particularly pension schemes, to address current deficiencies and ensure readiness to respond to impending ageing.
  • Publication
    Adaptive Social Protection
    (Washington, DC: World Bank, 2020-05-20) Bowen, Thomas; del Ninno, Carlo; Andrews, Colin; Coll-Black, Sarah; Gentilini, Ugo; Johnson, Kelly; Kawasoe, Yasuhiro; Kryeziu, Adea; Maher, Barry; Williams, Asha
    Adaptive social protection (ASP) helps to build the resilience of poor and vulnerable households to the impacts of large, covariate shocks, such as natural disasters, economic crises, pandemics, conflict, and forced displacement. Through the provision of transfers and services directly to these households, ASP supports their capacity to prepare for, cope with, and adapt to the shocks they face—before, during, and after these shocks occur. Over the long term, by supporting these three capacities, ASP can provide a pathway to a more resilient state for households that may otherwise lack the resources to move out of chronically vulnerable situations. Adaptive Social Protection: Building Resilience to Shocks outlines an organizing framework for the design and implementation of ASP, providing insights into the ways in which social protection systems can be made more capable of building household resilience. By way of its four building blocks—programs, information, finance, and institutional arrangements and partnerships—the framework highlights both the elements of existing social protection systems that are the cornerstones for building household resilience, as well as the additional investments that are central to enhancing their ability to generate these outcomes. In this report, the ASP framework and its building blocks have been elaborated primarily in relation to natural disasters and associated climate change. Nevertheless, many of the priorities identified within each building block are also pertinent to the design and implementation of ASP across other types of shocks, providing a foundation for a structured approach to the advancement of this rapidly evolving and complex agenda.
  • Publication
    Achieving Effective Social Protection for All in Latin America and the Caribbean : From Right to Reality
    (World Bank, 2010) Ribe, Helena; Robalino, David A.; Walker, Ian
    Slow progress in improving the coverage of Latin America and the Caribbean's (LAC's) traditional social protection (SP) programs, combined with the deepening of democracy, have led to calls for a new social contract to provide effective social protection to all citizens. This book highlights the main findings of a regional study by the World Bank, from right to reality: how Latin America and the Caribbean can achieve universal social protection by improving redistribution and adapting programs to labor markets. The report analyzes LAC's social insurance (SI) systems and highlights growing concerns about the incentives they may create and the behaviors they may incite on the part of workers, employers and service providers. It offers an economic analysis of the roots of these problems and suggests a way forward to achieve universal coverage in an equitable manner. The report argues that a coherent overall vision for the SP system should be established if such problems are to be understood and resolved. The goal is to turn the theoretical right to social protection, which is enshrined in many of the region's constitutions and laws, into a reality for all of LAC's population. A central message of the report is that SP systems need to respond to the realities of LAC's labor markets, especially the prevalence of informality and frequent changes of employment.

Users also downloaded

Showing related downloaded files

  • Publication
    World Bank Annual Report 2024
    (Washington, DC: World Bank, 2024-10-25) World Bank
    This annual report, which covers the period from July 1, 2023, to June 30, 2024, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—collectively known as the World Bank—in accordance with the respective bylaws of the two institutions. Ajay Banga, President of the World Bank Group and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors.
  • Publication
    Global Economic Prospects, June 2025
    (Washington, DC: World Bank, 2025-06-10) World Bank
    The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.
  • Publication
    Business Ready 2024
    (Washington, DC: World Bank, 2024-10-03) World Bank
    Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.
  • Publication
    Women, Business and the Law 2024
    (Washington, DC: World Bank, 2024-03-04) World Bank
    Women, Business and the Law 2024 is the 10th in a series of annual studies measuring the enabling conditions that affect women’s economic opportunity in 190 economies. To present a more complete picture of the global environment that enables women’s socioeconomic participation, this year Women, Business and the Law introduces two new indicators—Safety and Childcare—and presents findings on the implementation gap between laws (de jure) and how they function in practice (de facto). This study presents three indexes: (1) legal frameworks, (2) supportive frameworks (policies, institutions, services, data, budget, and access to justice), and (3) expert opinions on women’s rights in practice in the areas measured. The study’s 10 indicators—Safety, Mobility, Workplace, Pay, Marriage, Parenthood, Childcare, Entrepreneurship, Assets, and Pension—are structured around the different stages of a woman’s working life. Findings from this new research can inform policy discussions to ensure women’s full and equal participation in the economy. The indicators build evidence of the critical relationship between legal gender equality and women’s employment and entrepreneurship. Data in Women, Business and the Law 2024 are current as of October 1, 2023.
  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.