Safety Net Programs and Poverty Reduction


Book Description

The need for social safety nets has become a key component of poverty reduction strategies. Over the past three decades several developing countries have launched a variety of programs, including cash transfers, subsidies in-kind, public works, and income-generation programs. However, there is little guidance on appropriate program design, and few studies have synthesized the lessons from widely differing country experiences. This report fills that gap. It reviews the conceptual issues in the choice of programs, synthesizes cross-country experience, and analyzes how country- and region-specific constraints can explain why different approaches are successful in different countries.




For Protection and Promotion


Book Description

Safety nets are noncontributory transfer programs targeted to the poor or vulnerable. They play important roles in social policy. Safety nets redistribute income, thereby immediately reducing poverty and inequality; they enable households to invest in the human capital of their children and in the livelihoods of their earners; they help households manage risk, both ex ante and ex post; and they allow governments to implement macroeconomic or sectoral reforms that support efficiency and growth. To be effective, safety nets must not only be well intended, but also well designed and well implemented. A good safety net system and its programs are tailored to country circumstances, adequate in their coverage and generosity, equitable, cost-effective, incentive compatible, and sustainable. Good safety nets are also dynamic and change over time as the economy changes or as management problems are solved and new standards are set. Drawing on a wealth of research, policy, and operational documents from both academia and the World Bank s work in over 100 countries, For Protection and Promotion provides pragmatic and informed guidance on how to design and implement safety nets, including useful information on how to define eligibility and select beneficiaries, set and pay benefits, and monitor and evaluate programs and systems. The book synthesizes the literature to date and enriches it with new examples on various program options cash transfers (conditional and unconditional), in-kind transfers, price subsidies, fee waivers, and public works. It concludes with a comprehensive diagnostic for fitting safety net systems and programs to specific circumstances.




Seasonal Hunger and Public Policies


Book Description

The book provides an exhaustive inquiry of Bangladesh s seasonal hunger with special focus on the northwest region where it is more pronounced than in other areas. It also presents an evaluation of several policy interventions launched recently in mitigating seasonality.




Public Works as a Safety Net


Book Description

A review of the conceptual underpinnings and operational elements of public works programs around the world., drawing from a rich evidence base and analyzing previously unassimilated data, to fill a gap in knowledge related to public works programs, now so popular.




Shock Waves


Book Description

Ending poverty and stabilizing climate change will be two unprecedented global achievements and two major steps toward sustainable development. But the two objectives cannot be considered in isolation: they need to be jointly tackled through an integrated strategy. This report brings together those two objectives and explores how they can more easily be achieved if considered together. It examines the potential impact of climate change and climate policies on poverty reduction. It also provides guidance on how to create a “win-win†? situation so that climate change policies contribute to poverty reduction and poverty-reduction policies contribute to climate change mitigation and resilience building. The key finding of the report is that climate change represents a significant obstacle to the sustained eradication of poverty, but future impacts on poverty are determined by policy choices: rapid, inclusive, and climate-informed development can prevent most short-term impacts whereas immediate pro-poor, emissions-reduction policies can drastically limit long-term ones.




Realizing the Full Potential of Social Safety Nets in Africa


Book Description

Poverty remains a pervasive and complex phenomenon in Sub-Saharan Africa. Part of the agenda in recent years to tackle poverty in Africa has been the launching of social safety nets programs. All countries have now deployed safety net interventions as part of their core development programs. The number of programs has skyrocketed since the mid-2000s though many programs remain limited in size. This shift in social policy reflects the progressive evolution in the understanding of the role that social safety nets can play in the fight against poverty and vulnerability, and more generally in the human capital and growth agenda. Evidence on their impacts on equity, resilience, and opportunity is growing, and makes a foundational case for investments in safety nets as a major component of national development plans. For this potential to be realized, however, safety net programs need to be significantly scaled-up. Such scaling up will involve a series of technical considerations to identify the parameters, tools, and processes that can deliver maximum benefits to the poor and vulnerable. However, in addition to technical considerations, and at least as importantly, this report argues that a series of decisive shifts need to occur in three other critical spheres: political, institutional, and fiscal. First, the political processes that shape the extent and nature of social policy need to be recognized, by stimulating political appetite for safety nets, choosing politically smart parameters, and harnessing the political impacts of safety nets to promote their sustainability. Second, the anchoring of safety net programs in institutional arrangements †“ related to the overarching policy framework for safety nets, the functions of policy and coordination, as well as program management and implementation †“ is particularly important as programs expand and are increasingly implemented through national channels. And third, in most countries, the level and predictability of resources devoted to the sector needs to increase for safety nets to reach the desired scale, through increased efficiency, increased volumes and new sources of financing, and greater ability to effectively respond to shocks. This report highlights the implications which political, institutional, and fiscal aspects have for the choice and design of programs. Fundamentally, it argues that these considerations are critical to ensure the successful scaling-up of social safety nets in Africa, and that ignoring them could lead to technically-sound, but practically impossible, choices and designs.




COVID-19 and food security in Ethiopia: Do social protection programs protect?


Book Description

We assess the impact of Ethiopia’s flagship social protection program, the Productive Safety Net Program (PSNP) on the adverse impacts of the COVID-19 pandemic on food and nutrition security of households, mothers, and children. We use both pre-pandemic in-person household survey data and a post-pandemic phone survey. Two thirds of our respondents reported that their incomes had fallen after the pandemic began and almost half reported that their ability to satisfy their food needs had worsened. Employing a household fixed effects difference-in-difference approach, we find that the household food insecurity increased by 11.7 percentage points and the size of the food gap by 0.47 months in the aftermath of the onset of the pandemic. Participation in the PSNP offsets virtually all of this adverse change; the likelihood of becoming food insecure increased by only 2.4 percentage points for PSNP households and the duration of the food gap increased by only 0.13 months. The protective role of PSNP is greater for poorer households and those living in remote areas. Results are robust to definitions of PSNP participation, different estimators and how we account for the non-randomness of mobile phone ownership. PSNP households were less likely to reduce expenditures on health and education by 7.7 percentage points and were less likely to reduce expenditures on agricultural inputs by 13 percentage points. By contrast, mothers’ and children’s diets changed little, despite some changes in the composition of diets with consumption of animal source foods declining significantly.




Weaving Social Safety Nets


Book Description

The recent economic slowdown, the preceding period episode of high food and oil prices, and the ever-present risk of natural disasters have highlighted that Pacific island countries and their people are very vulnerable to economic and natural forces beyond their control. Informal support provided by extended families and communities to those in need have been coming under increasing strain and no longer offer sufficient protection to those facing temporary hardship. This policy brief provides an overview of the role of social safety nets in protecting vulnerable groups during times of stress, and outlines key factors that should be considered in the design of such programs. The key response should be to plan ahead and have appropriate policies and programs in place to protect the vulnerable before a crisis hits.




Distributional Outcomes of a Decentralized Welfare Program


Book Description

Community-level targeting of antipoverty programs is now common. Do local community organizations target the poor better than the central government? In one program in Bangladesh, the answer tends to be yes, but performance varies from village to village. The authors try to explain why.




Reducing Poverty, Protecting Livelihoods, and Building Assets in a Changing Climate


Book Description

Climate change is the defining development challenge of our time. More than a global environmental issue, climate change and variability threaten to reverse recent progress in poverty reduction and economic growth. Both now and over the long run, climate change and variability threatens human and social development by restricting the fulfillment of human potential and by disempowering people and communities in reducing their livelihoods options. Communities across Latin America and the Caribbean are already experiencing adverse consequences from climate change and variability. Precipitation has increased in the southeastern part of South America, and now often comes in the form of sudden deluges, leading to flooding and soil erosion that endanger people s lives and livelihoods. Southwestern parts of South America and western Central America are seeing a decrease in precipitation and an increase in droughts. Increasing heat and drought in Northeast Brazil threaten the livelihoods of already-marginal smallholders, and may turn parts of the eastern Amazon rainforest into savannah. The Andean inter-tropical glaciers are shrinking and expected to disappear altogether within the next 20-40 years, with significant consequences for water availability. These environmental changes will impact local livelihoods in unprecedented ways. Poverty, inequality, water access, health, and migration are and will be measurably affected by climate change. Using an innovative research methodology, this study finds quantitative evidence of large variations in impacts across regions. Many already poor regions are becoming poorer; traditional livelihoods are being challenged in unprecedented ways; water scarcity is increasing, particularly in poor arid areas; human health is deteriorating; and climate-induced migration is already taking place and may increase. Successfully reducing social vulnerability to climate change and variability requires action and commitment at multiple levels. This volume offers key operational recommendations at the government, community, and household levels with particular emphasis placed on enhancing good governance and technical capacity in the public sector, building social capital in local communities, and protecting the asset base of poor households.