Publication:
Reducing Poverty and Investing in People : The New Role of Safety Nets in Africa

Loading...
Thumbnail Image
Files in English
English PDF (3.51 MB)
29,367 downloads
English PDF (5.11 MB)
1,393 downloads
English Text (82.72 KB)
79 downloads
Other Files
French PDF (3 MB)
5,652 downloads
Published
2014
ISSN
Date
2013-11-14
Editor(s)
Abstract
For two decades, Africa’s strong economic growth has paved the way for poverty reduction. Nevertheless, high chronic poverty levels persist, and the gap between income groups in terms of human capital and access to basic services is growing. Also, poor households are vulnerable to frequent shocks. By providing regular, reliable support to poor households and helping them invest in productive activities, targeted interventions such as safety nets help reduce persistent poverty, reverse the trend of increasing inequality, and build household resilience. Until recently, safety nets were implemented only on an ad hoc basis in Africa. However, in the wake of the global economic crisis, policy makers are increasingly viewing safety nets as core instruments for reducing poverty and managing risk. Also a momentum toward rationalizing public spending to provide more adequate and targeted support to the poorest is emerging in response to growing evidence that safety nets can successfully reduce poverty and vulnerability and promote inclusive growth. This book assesses the status and analyzes the objectives, features, systems, performance, and financing of safety nets in 22 African countries. It then identifies how governments and donors can strengthen safety net systems and protect and promote poor and vulnerable people. Overall, the book finds that safety nets are on the rise in Africa and are beginning to evolve from fragmented stand-alone programs into integrated systems. Social protection programming has started to change from largely emergency food aid programs to regular, predictable safety nets including targeted cash transfers and cash-for-work programs. Some countries, including Ghana, Kenya, Rwanda, and Tanzania, are working toward consolidating their programs into a national system. Impact evaluations of safety nets in Africa are also increasingly being undertaken and, with recent research into the productive aspects of cash transfer programs, have yielded encouraging evidence that safety nets reduce poverty and vulnerability. The timely analysis of safety nets in Africa provides a solid foundation for evidence-based policy dialogue and programming. As a result of the growing body of evidence that safety nets contribute to inclusive growth, African decision makers are now putting safety nets high on their development agendas.
Link to Data Set
Citation
Monchuk, Victoria. 2014. Reducing Poverty and Investing in People : The New Role of Safety Nets in Africa. Directions in Development--Human Development;. © World Bank. http://hdl.handle.net/10986/16256 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    Democratic Republic of Congo Urbanization Review
    (Washington, DC: World Bank, 2018) World Bank; Ranarifidy, Dina
    The Democratic Republic of Congo has the third largest urban population in sub-Saharan Africa (estimated at 43% in 2016) after South Africa and Nigeria. It is expected to grow at a rate of 4.1% per year, which corresponds to an additional 1 million residents moving to cities every year. If this trend continues, the urban population could double in just 15 years. Thus, with a population of 12 million and a growth rate of 5.1% per year, Kinshasa is poised to become the most populous city in Africa by 2030. Such strong urban growth comes with two main challenges – the need to make cities livable and inclusive by meeting the high demand for social services, infrastructure, education, health, and other basic services; and the need to make cities more productive by addressing the lack of concentrated economic activity. The Urbanization Review of the Democratic Republic of Congo argues that the country is urbanizing at different rates and identifies five regions (East, South, Central, West and Congo Basin) that present specific challenges and opportunities. The Urbanization Review proposes policy options based on three sets of instruments, known as the three 'I's – Institutions, Infrastructures and Interventions – to help each region respond to its specific needs while reaping the benefits of economic agglomeration The Democratic Republic of the Congo is at a crossroads. The recent decline in commodity prices could constitute an opportunity for the country to diversify its economy and invest in the manufacturing sector. Now is an opportune time for Congolese decision-makers to invest in cities that can lead the country's structural transformation and facilitate greater integration with African and global markets. Such action would position the country well on the path to emergence.
  • Publication
    Strengthening Competitiveness In Bangladesh—Thematic Assessment
    (Washington, DC: World Bank, 2016-07-15) Kathuria, Sanjay; Malouche, Mariem Mezghenni; Kathuria, Sanjay; Malouche, Mariem Mezghenni
    This is volume 2 of a three-volume publication on Bangladesh’s trade prospects. Bangladesh’s ambition is to build on its very solid growth and poverty reduction achievements, and accelerate growth to become a middle income country by 2021, and share prosperity more widely amongst its citizens. This includes one of its greatest development challenges: to provide gainful employment to the over 2 million people that will join the labor force each year over the next decade. Moreover, only 54.1 million of its 94 million working age people are employed. Bangladesh needs to use its labor endowment even more intensively to increase growth and, in turn, to absorb the incoming labor. The Diagnostic Trade Integration Study identifies the following actions centered around four pillars to sustain and accelerate export growth: (1) breaking into new markets through a) better trade logistics to reduce delivery lags ; as world markets become more competitive and newer products demand shorter lead times, to generate new sources of competitiveness and thereby enable market diversification; and b) better exploitation of regional trading opportunities in nearby growing and dynamic markets, especially East and South Asia; (2) breaking into new products through a) more neutral and rational trade policy and taxation and bonded warehouse schemes; b) concerted efforts to spur domestic investment and attract foreign direct investment, to contribute to export promotion and diversification, including by easing the energy and land constraints; and c) strategic development and promotion of services trade; (3) improving worker and consumer welfare by a) improving skills and literacy; b) implementing labor and work safety guidelines; and c) making safety nets more effective in dealing with trade shocks; and (4) building a supportive environment, including a) sustaining sound macroeconomic fundamentals; and b) strengthening the institutional capacity for strategic policy making aimed at the objective of international competitiveness to help bring focus and coherence to the government’s reform efforts. This second volume provides in-depth analysis across seven cross-cutting themes that underpin most of the findings of pillars 1 and 2 above.
  • Publication
    An Investment Framework for Nutrition
    (Washington, DC: World Bank, 2017-04-12) Shekar, Meera; Kakietek, Jakub; Dayton Eberwein, Julia; Walters, Dylan
    The report estimates the costs, impacts and financing scenarios to achieve the World Health Assembly global nutrition targets for stunting, anemia in women, exclusive breastfeeding and the scaling up of the treatment of severe wasting among young children. To reach these four targets, the world needs $70 billion over 10 years to invest in high-impact nutrition-specific interventions. This investment would have enormous benefits: 65 million cases of stunting and 265 million cases of anemia in women would be prevented in 2025 as compared with the 2015 baseline. In addition, at least 91 million more children would be treated for severe wasting and 105 million additional babies would be exclusively breastfed during the first six months of life over 10 years. Altogether, achieving these targets would avert at least 3.7 million child deaths. Every dollar invested in this package of interventions would yield between $4 and $35 in economic returns, making investing in early nutrition one of the best value-for-money development actions. Although some of the targets—especially those for reducing stunting in children and anemia in women—are ambitious and will require concerted efforts in financing, scale-up, and sustained commitment, recent experience from several countries suggests that meeting these targets is feasible. These investments in the critical 1000 day window of early childhood are inalienable and portable and will pay lifelong dividends – not only for children directly affected but also for us all in the form of more robust societies – that will drive future economies.
  • Publication
    At a Crossroads
    (World Bank, Washington, DC, 2017-05-02) Ferreyra, Maria Marta; Avitabile, Ciro; Botero Álvarez, Javier; Haimovich Paz, Francisco; Urzúa, Sergio
    Higher education (HE) has expanded dramatically in Latin America and the Caribbean (LAC) since 2000. While access became more equitable, quality concerns remain. This volume studies the expansion, as well as HE quality, variety and equity in LAC. It investigates the expansion’s demand and supply drivers, and outlines policy implications.
  • Publication
    Leveraging the Potential of Argentine Cities
    (Washington, DC: World Bank, 2016-10-18) Muzzini, Elisa; Eraso Puig, Beatriz; Anapolsky, Sebastian; Lonnberg, Tara; Mora, Viviana
    Argentina’s path to economic prosperity is through efficient, sustainable and economically thriving cities. Not only are cities a spatial concentration of people, but also they generate agglomeration economies by concentrating ideas, talent, and knowledge. Argentina is one of the most urbanized countries in Latin America, with 90 percent of Argentine people currently living in cities. Argentina’s cities are geographically and economically diverse, and its largest urban area – Metropolitan Buenos Aires – is one of Latin America’s urban giants. Argentine cities need to address three main challenges to leverage their economic potential. Argentina’s current patterns of urban development are characterized by (a) high primacy and unbalanced regional development, (b) limited global economic footprint of urban economies, with employment concentrated in nontradable and resource intensive sectors, and (c) unplanned low-density urban expansion. Argentine cities thus face the challenges of moving toward a more balanced regional development, transitioning from local to global cities, and from urban sprawl to articulated densities to take full advantage of the benefits of agglomeration economies. To address these challenges, Argentina needs the leadership of the federal government; the coordinating power of provinces; and the capacity of empowered, financially sound municipalities. Argentine cities also need system-wide policy reforms in areas such as territorial planning, municipal finance, housing, urban transport, and local economic development. Leveraging the Potential of Argentine Cities: A Framework for Policy Action aims to deepen our empirical understanding of the interplay between urbanization and agglomeration economies in Argentina by asking the following: (a) What are the main trends and spatial patterns of Argentina’s urbanization that underlie agglomeration economies?, (b) Are urban policies leveraging or undermining the benefits of agglomeration economies?, and (c) Are Argentine cities fully reaping the benefits of agglomeration economies to deliver improvements in prosperity and livability? By addressing such questions and exploring their implications for action, this study provides a conceptual framework, empirical data, and strategic directions for leveraging the potential of Argentine cities.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Investing in People to Fight Poverty in Haiti : Reflections for Evidence-based Policy Making
    (World Bank, Washington, DC, 2014) World Bank; Observatoire National de la Pauvreté et de l’Exclusion Sociale
    Despite a decline in both monetary and multidimensional poverty rates since 2000, Haiti remains among the poorest and most unequal countries in Latin America. Two years after the 2010 earthquake, poverty was still high, particularly in rural areas. This report establishes that in 2012 more than one in two Haitians was poor, living on less than $ 2.41 a day, and one person in four was living below the national extreme poverty line of $1.23 a day. Extreme poverty declined from 31 to 24 percent between 2000 and 2012, and there have been some gains in access to education and sanitation, although access to basic services is generally low and is characterized by important inequalities. Urban areas have fared relatively better than rural areas, reflecting more nonagricultural employment opportunities, larger private transfers, more access to critical goods, and services and narrowing inequality compared to rural areas. Continued advances in reducing both extreme and moderate poverty will require greater, more broad-based growth, but also a concerted focus on increasing the capacity of the poor and vulnerable to accumulate assets, generate income, and better protect their livelihoods from shocks. Special attention should be given to vulnerable groups such as women and children and to rural areas, which are home to over half of the population and where extreme poverty persists, and income inequality is increasing.
  • Publication
    Cameroon Econoic Update, January 2013, No. 5 : Mitigating Poverty, Vulnerability, and Risk--A Special Focus on Social Safety Nets
    (Washington, DC, 2013-01) World Bank
    The economic updates aim to share knowledge and stimulate debate among those interested in improving the economic management of Cameroon and unleashing its enormous potential. The notes thereby offer another voice on economic issues in Cameroon, and an additional platform for engagement, learning and change. Cameroon's overall poverty rate has not declined and has even increased in the poorest regions. Food security is also problematic in those regions. Yet, Cameroon has a number of small-scale and ad hoc safety net programs which are not appropriately designed to address either chronic or transient poverty. Too few resources are put into these programs for the moment to make a real difference with most of these limited resources allocated to emergency initiatives. Social safety nets build households' productive assets and expand their income-earning opportunities by building their skills and enabling them to engage in higher risk and higher return activities. Going forward, in addition to continued efforts to foster faster economic growth, an efficient, equitable, and financially-sustainable social safety net strategy should be developed that combines different forms of interventions to deal with the specific needs of the poor and the vulnerable, and includes an effective monitoring system to improve the quality programs.
  • Publication
    Burkina Faso - Social safety nets
    (World Bank, 2011-01-31) World Bank
    Burkina Faso is a poor landlocked country with a narrow natural resource base and a rapidly expanding population of 15.8 million. This report, with the technical support of United Nations Children's Fund (UNICEF), provides a detailed, updated inventory of the existing social safety net programs and suggests policy measures that could improve their coverage, efficiency, relevance, and financial sustainability. This report shows that the scope and coverage of the existing social safety net system is too limited and that most interventions are fairly small in scale and designed as temporary programs. On average, excluding fuel subsidies, spending on social safety net programs was about 0.6 percent of Gross Domestic Product (GDP) from 2005 to 2009 - from 0.3 percent in 2005 to 0.9 percent in 2009, while about 20 percent of the population is food insecure and lives permanently in chronic poverty. Universal fuel subsidies are very expensive (0.7 percent of GDP in 2007) and have a very limited impact on the poorest docile (84 percent of the benefits go to the non poor). Among the remaining programs, food transfers are the main form of social safety net programs in Burkina Faso, accounting for 69 percent of total Social Safety Net (SSN) spending and over 80 percent of all estimated SSN beneficiaries in 2009 (excluding fuel subsidies). However, most of the financing for social safety net programs comes from external resources.
  • Publication
    Republic of Senegal : Safety Net Assessment
    (Washington, DC, 2013-12-10) World Bank
    In 2010, the World Bank initiated a technical assistance program in social protection with the Government of Senegal, with a focus on safety nets. The World Bank and the government identified a number of technical notes and training sessions tailored to the immediate needs of the government. This Senegal safety net assessment integrates and summarizes the content of these technical notes. Poverty is a serious concern in the country, with the economy displaying significant vulnerabilities. While the government has been quick to respond to past crises, some of the measures taken by the government have had certain drawbacks. Also, factors such as poorly targeted support and rising prices have detracted from the efforts taken by the government. A well designed and implemented national safety net system is thus of utmost importance. This document examines the various factors involved in the creation and implementation of a well-designed safety net system for Senegal.
  • Publication
    Realizing the Full Potential of Social Safety Nets in Africa
    (Washington, DC: World Bank, 2018-07-17) Coudouel, Aline; Beegle, Kathleen; Monsalve, Emma; Beegle, Kathleen; Coudouel, Aline; Monsalve, Emma
    Poverty has been declining in Sub-Saharan Africa, but millions are still poor or vulnerable. To address this ongoing and complex problem, all countries in the region have now deployed social safety net programs as part of their core development plans. The number of programs has skyrocketed since the mid-2000s, although many interventions are still modest in size. This notable shift in social policy reflects an embrace of the role that social safety nets can play in the fight against poverty and vulnerability, and more generally in building human capital and spurring economic growth. Realizing the Full Potential of Social Safety Nets in Africa provides evidence that positive impacts on equity, resilience, and opportunity are growing, and it is clear that these programs can be good investments. For the potential of social safety nets to be realized, however, they need to expand with smart technical and design choices. Beyond technical considerations, and at least as important, this book argues that a series of decisive shifts needs to occur in three critical spheres: political, institutional, and financial: First, to recognize the role of politics in offering opportunities for expansion and in guiding design and program choice; Second, to anchor safety net programs in strong institutional arrangements that facilitate their expansion and sustainability; And third, to build sustainable financing through greater efficiency, more varied and predictable resources, and shock-responsive resources. Ignoring these spheres may lead to technically sound, but practically impossible, choices and designs. A deliberate focus on these areas is essential if social safety nets are to be brought to scale and sustained at scale. Only then will their full potential and their contribution to the fight against poverty and vulnerability be realized.

Users also downloaded

Showing related downloaded files

  • Publication
    World Development Report 1987
    (New York: Oxford University Press, 1987) World Bank
    This report, consisting of two parts, is the tenth in the annual series assessing development issues. Part I reviews recent trends in the world economy and their implications for the future prospects of developing countries. It stresses that better economic performance is possible in both industrial and developing countries, provided the commitment to economic policy reforms is maintained and reinforced. In regard to the external debt issues, the report argues for strengthened cooperation among industrial countries in the sphere of macroeconomic policy to promote smooth adjustment to the imbalances caused by external payments (in developing countries). Part II reviews and evaluates the varied experience with government policies in support of industrialization. Emphasis is placed on policies which affect both the efficiency and sustainability of industrial transformation, especially in the sphere of foreign trade. The report finds that developing countries which followed policies that promoted the integration of their industrial sector into the international economy through trade have fared better than those which insulated themselves from international competition.
  • Publication
    Trade and Production Fragmentation : Central European Economies in European Union Networks of Production and Marketing
    (World Bank, Washington, DC, 2001-06) Kaminski, Bartlomiej; Ng, Francis
    Developments driven by trade liberalization and tehcnological progress mean that old development strategies, based on state intervention and trade protection, no longer work. Global competition has brought a growing emphasis on product standards, rapid innovation, adaptability, and speedy response. Technology has made possible the fragmentation of production. Firms that become part of global production and distribution networks do not have to be foreign-owned, as many multinationals contract out the delivery of services and products. Foreign involvement facilitates the transfer of managerial and technological know-how, so firms benefit from becoming part of a network. Small producers, rather than servicing small local markets, can supply large firms abroad. Foreign participation--through outsourcing or direct investments--may offer direct access to a parent company's global networks. Becoming part of a multinational's production and distribution network is a cheap way to market products. But the unprecedented globalization of the production process has brought the integration of trade and the disintegration of production, with deep implications for the international division of labor. Have Central European economies been able to take advantage of the global fragmentation and disintegration of production and the division of labor? Ten countries--Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia--have made large strides toward readjusting their production structures to international markets, mainly in the European Union. And trade in industrial products has lost its pre-transition idiosyncratic character. All 10 economies apear to be on the same track as the European Union in changing patterns of trade with the networks the authors discuss. Progress is advanced in furniture (most of the 10 economies) and automobiles (the Czech Republic, Hungary, Poland, Slovakia, and Slovenia) and is gaining momentum in "information revolution" networks (Estonia and Hungary). Progress in industrial integration with the European Union has been uneven. The first-tier economies (the Czech Republic, Estonia, Hungary, Poland, Slovakia, and Slovenia) are much less so and, despite relatively low wages, have no comparative advantage in assembly in EU markets. Among first-tier economies, three stand out: Estonia and Hungary (in integration into "information revolution" markets) and Slovakia (in restructuring its automotive sector).
  • Publication
    Climate and Development : An Agenda for Action - Emerging Insights from World Bank Group 2021-22 Country Climate and Development Reports
    (Washington, DC: World Bank, 2022-11-03) World Bank Group
    Climate change poses a major threat to long-term development objectives, especially poverty reduction, and accelerated emission reductions are needed, particularly in high-income and other high-emitting countries. Reducing emissions can be done without comprising development: taken together, CCDR low-carbon development strategies reduce emissions by 70%, without significant impact on growth, provided that policies are well designed and financing is available. Financing needs average 1.4 percent of GDP, a manageable amount with appropriate private sector involvement. But in lower-income countries, financing needs can exceed 5 percent, which will require more support from high-income countries, including increased concessional resources.
  • Publication
    Democratic Republic of Congo Urbanization Review
    (Washington, DC: World Bank, 2018) World Bank; Ranarifidy, Dina
    The Democratic Republic of Congo has the third largest urban population in sub-Saharan Africa (estimated at 43% in 2016) after South Africa and Nigeria. It is expected to grow at a rate of 4.1% per year, which corresponds to an additional 1 million residents moving to cities every year. If this trend continues, the urban population could double in just 15 years. Thus, with a population of 12 million and a growth rate of 5.1% per year, Kinshasa is poised to become the most populous city in Africa by 2030. Such strong urban growth comes with two main challenges – the need to make cities livable and inclusive by meeting the high demand for social services, infrastructure, education, health, and other basic services; and the need to make cities more productive by addressing the lack of concentrated economic activity. The Urbanization Review of the Democratic Republic of Congo argues that the country is urbanizing at different rates and identifies five regions (East, South, Central, West and Congo Basin) that present specific challenges and opportunities. The Urbanization Review proposes policy options based on three sets of instruments, known as the three 'I's – Institutions, Infrastructures and Interventions – to help each region respond to its specific needs while reaping the benefits of economic agglomeration The Democratic Republic of the Congo is at a crossroads. The recent decline in commodity prices could constitute an opportunity for the country to diversify its economy and invest in the manufacturing sector. Now is an opportune time for Congolese decision-makers to invest in cities that can lead the country's structural transformation and facilitate greater integration with African and global markets. Such action would position the country well on the path to emergence.
  • Publication
    Vietnam
    (World Bank, Hanoi, 2020-05-01) World Bank
    Following from Vietnam’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in late 2018 and its effectiveness from January 2019, and the European Parliament’s recent approval of the European Union-Vietnam Free Trade Agreement (EVFTA) and its subsequent planned ratification by the National Assembly in May 2020, Vietnam has further demonstrated its determination to be a modern, competitive, open economy. As the COVID-19 (Coronavirus) crisis has clearly shown, diversified markets and supply chains will be key in the future global context to managing the risk of disruptions in trade and in supply chains due to changing trade relationships, climate change, natural disasters, and disease outbreaks. In those regards, Vietnam is in a stronger position than most countries in the region. The benefits of globalization are increasingly being debated and questioned. However, in the case of Vietnam, the benefits have been clear in terms of high and consistent economic growth and a large reduction in poverty levels. As Vietnam moves to ratify and implement a new generation of free trade agreements (FTAs), such as the CPTPP and EVFTA, it is important to clearly demonstrate, in a transparent manner, the economic gains and distributional impacts (such as sectoral and poverty) from joining these FTAs. In the meantime, it is crucial to highlight the legal gaps that must be addressed to ensure that national laws and regulations are in compliance with Vietnam’s obligations under these FTAs. Readiness to implement this new generation of FTAs at both the national and subnational level is important to ensure that the country maximizes the full economic benefits in terms of trade and investment. This report explores the issues of globalization and the integration of Vietnam into the global economy, particularly through implementation of the EVFTA.