Publication: Social Protection Responses to the Global Economic Crisis in ECA
Date
2009-03
ISSN
Published
2009-03
Author(s)
Lindert, Kathy
Schwarz, Anita
Abstract
Besides affecting the private sector,
the current global economic downturn will likely have a
far-reaching impact on government revenues around the world.
As country budgets are squeezed tight, social programs which
directly help poor and vulnerable people will become
pressure points for reducing government spending. In many
countries in Eastern Europe and Central Asia (ECA), two
years of rising food prices, high energy costs and the
global economic downturn have combined with other shocks
like natural disasters and political instability. The
impacts of these crises could reduce government revenues and
affect social spending and pension systems, even as the need
for unemployment and benefits increases. In the short run,
ECA countries may call on the World Bank to provide
financial or technical support to help with the immediate
impacts of the crises. Rapid support could include: (a)
helping countries finance temporary scaling-up of
well-targeted safety nets, either in beneficiary coverage or
with a topping-up of benefits values; and (b) supporting
actions to protect the budgets of well-targeted programs and
other crucial spending on education and health. Governments
and the Bank need to be prepared to respond more adeptly in
the future; safety nets are important not only in times of
crises but, in the long-run, they help to protect the poor
and allow governments to avoid other, more costly or
inefficient policies.
Citation
“Lindert, Kathy; Schwarz, Anita. 2009. Social Protection Responses to the Global Economic Crisis in ECA. Europe and Central Asia Knowledge Brief; Volume No. 1. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/fe15d7a5-a185-5f9c-b4bf-64cb713865ea License: CC BY 3.0 IGO.”