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Safety Nets


Introducing Safety Nets

·        SNs are arrangements that help to prevent disaster (if something goes wrong e.g. financial safety nets) and other socio-economic threats on vulnerable population and to prevent them from falling into poverty.

 

·        Programs like Food Stamps in the US can be cited as a measure for helping unemployed and vulnerable people in meeting their basic needs during hard times.

 

·        SNs are thus part of a broader poverty reduction strategy interacting with and working alongside of social insurance, health, education and financial services; the provision of utilities and roads; and other policies aimed at reducing poverty and managing risk.

 

·        Example-consider a poor family or a household that just purchased its first cow after months of savings. In case there is a famine, a SN program should help ensure family to be able to keep its cow, rather than having to slaughter or sell it.

 

·        Virtually all countries seek to establish SN programs but less than 80 % of the world’s population has currently access to any form of a SN program. A sustainable policy intervention needs to be developed to execute, expand, and continue social protection schemes.

 

·        From the angle of social protection perspective, a sizable population of the country is vulnerable. It is the state’s responsibility to provide minimum level of social protection and support individuals suffering from poverty, disease and insecurities. Sustainable peace would be difficult until such risks and vulnerabilities are reduced.

 

·        Social Safety Net (SSN) or “Socio-economic Safety Needs” are non contributory transfer payments seeking to prevent the poor or those vulnerable to shocks and poverty from falling below a certain poverty level.

 

·        Safety nets programs are provided by the public sector (the state and aid donors) or by the private sector (NGOs, private firms, charities and informal household transfers).

 

·        Safety net transfers include: cash transfers; food based programs e.g. feeding programs, food stamps, etc; in-kind transfers e.g. school supplies, uniforms ; conditional cash transfers ; price subsidies for food, electricity or public transport; public works; fee waivers and exemptions for health care; schooling etc.

 

·        It is to be noted that spending on safety nets accounts for 1-2 % of GDP across developing and transition countries though sometimes much less or much more.

 

·        However, even though an increasing number of safety net programs are extremely well thought out, correctly implemented and demonstrably effective, many others face and create serious challenges.

 

·        Events of the past decade have underscored the vital need for SSN programs in all countries, especially in times of crisis.

 

·        Over FY 2000-2010, the world bank supported SSN with $11.5 billion in lending and an active program of analytical and advisory services and knowledge sharing, much of it during the last two years of the decade, in response to the food, fuel and financial crisis.

 

·        Yet the crisis also pointed out the weaknesses as many MICs found that their poverty targeted SSNs were not flexible enough to increase coverage or benefits as needed or to reach new vulnerable households and low income country lacked  existing programs, poverty data, and systems to target and deliver benefits.

 

·        World Bank support evolved in positive directions over the decade. The bank began to move from a project focused approach that emphasized delivery of social assistance benefits towards an approach that focused on helping countries built SSN systems and institutions to respond better to poverty, risk and vulnerability.

 

·        Bank support has largely accomplished its short term objectives and helped countries achieve immediate impacts. But to achieve the longer term goal of developing country SSN, short term objective need to be better defined, effectively monitored, and anchored in a longer term results framework.

 

·        Weaknesses in poverty data, program designs, and monitoring indicators need to be addressed to ensure target groups are adequately reached.

Role          

SN programs play the following roles in development policy

a)     Redistribution of income to the poorest and most vulnerable with an immediate impact on poverty and inequality.

 

b)     Enabling households to make productive investments in their future that they may otherwise miss, e.g. health, income generating activities, education, etc.

 

c)     Helping households manage risks at least at most providing an insurance function which improves livelihood options.

 

d)    Allow governments to make choices that support efficiency and growth.

Coverage of SNs

The safety net provides coverage to three rather different groups,

·        The chronic poor

Even in good times these households are poor. They have limited access to income and even small reductions in income can have dire consequences for them.

 

·        The transient (temporary) poor

             This group lives near the poverty line and may fall into poverty when an individual household or the economy as a whole faces hard times.

 

·        Those with Special Circumstances

Sub groups of the population for whom general stability and prosperity alone will not be sufficient. Their vulnerability may stem from disability, discrimination due to ethnicities, displacement due to conflict, “social pathologies” of drug and alcohol abuse, domestic violence or crime.  These groups may need special programs to help them attain a sufficient standard of well being.

Lessons/ Recommendations

1)     Design SSNs to help a country to respond to shocks

 

2)     Support the development of SSN institutions and sustainable systems

 

3)     Increase SSN engagement in LICs

 

4)     Strengthen SR and LR result frameworks for SSN support

 

5)     Ensure strong cross - network condition on SSNs

 

          Three Year Plan 2013/14 – 2015/2016

·        State’s/Government’s responsibility is to provide minimum social security and support of individuals and communities suffering from poverty, disease and insecurities or from natural disaster or those suffering from homelessness or incapability due to ageing and so on, and helping them lead a life with human dignity.

 

·        Programs implemented under social protection

Senior citizen allowances, pension for retired employees, free basic education and health services.

      From the Prospective of social Protection 

·        A sizable population is vulnerable (homeless on account of risks and vulnerabilities brought about by poverty, unemployment and under employment, dissolution of traditional supports systems, social economic inequities, natural disasters, social conflict etc.

 

·        No sustainable peace under or until such risks and vulnerabilities are reduced.

 

The Need for an Effective Social Protection System (SPS)

·        Government for past few years after realizing the need for an effective social protection system initiated various programs targeting the poor children, senior citizens , laborers  and people with disability, endangered cast/ ethnic groups, widows and conflict affected and indebted people.

 

·        However, the coverage and quality of such programs are viewed inadequate and controversial. Regulatory and monitoring mechanisms are virtually absent.

·        Social protection programs are scattered and often implemented without proper assessment of financial and administrative feasibility, sustainability, distributive and operational efficiency. There has been a consensus among different stake holders including political parties on the expansion of social protection majors combined with continued commitment of the government and increasing interest of the development partners.

    Strategy

·        To consolidate existing and scattered social protection programs into an appropriate, effective and integrated social security system.

 

·        To expand social protection programs to the poor marginalized individuals, regions and communities to achieve the goal of “social protection for all”.

 

·        To encourage community initiatives and community based social care and security.

 

·        To link social protection programs with social economic and human development.

 

·        To improve the effective of implementation of social protection programs.

 People living in poverty and hunger are extremely vulnerable to crisis. Social safety nets have traditionally being used to help people through short term stress and calamities. They can also contribute to long range development. Targeted programs e.g.: food for work, school feeding, micro credit and insurance coverage can help alleviate long term food and financial insecurity, contributing to a more self- reliant, economically viable population.             


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