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.