World Bank identifies five priorities to help countries build effective social protection systems for all
WASHINGTON, Sept. 29, 2022 – Universal Social Protection is critical to effectively protect people against poverty, prevent risks to their livelihoods and well-being, and help them access economic opportunities. Achieving this goal will require social protection systems that are stronger, more resilient and better funded, according to a new World Bank report. While the pandemic, food and fuel price inflation, and longer-term challenges such as climate change make social protection critically important, they also threaten countries’ ability to raise spending and expand the social protection programs necessary for more resilient systems.
The new report, “Charting a Course Towards Universal Social Protection – Resilience, Equity, and Opportunity for All,” sets out a vision for achieving universal social protection. It underscores the need for countries to build integrated social protection systems that are underpinned by an increase in national spending to help expand social protection coverage, including to informal workers. To generate additional fiscal space, governments will need to reduce inefficient spending and mobilize more domestic revenues alongside continued international support.
“Social protection aims to promote investments in people and access to productive work, resilience to shocks and equality of opportunity,” said Mamta Murthi, World Bank Vice President for Human Development. “To reach universal social protection, governments will need to integrate services, such as social insurance, social assistance, and economic inclusion programs, ensuring all people are effectively protected throughout their lifecycle and across income levels.”
The report identifies five priorities for the World Bank to help developing countries further accelerate progress towards universal social protection. Climate change considerations and empowerment of women and girls are at the heart of these efforts. The five areas include:
- Building strong foundational social protection systems.
- Increasing coverage for social protection programs and promoting greater inclusion.
- Building more resilient, adaptive, and dynamic programming.
- Scaling up effective economic inclusion and labor systems.
- Creating more fiscal space for universal social protection.
“In response to the multiple crises facing low- and middle- income countries, the World Bank is providing unprecedented support to help governments expand and improve social protection systems,” said Michal Rutkowski, Global Director for Social Protection and Jobs at the World Bank. “This new report provides a vision towards the inclusive adoption of universal social protection to ensure that all people, including the poorest and most vulnerable populations, have the support they need and that no individuals or groups are left behind.”
Strengthening social protection systems is central to the World Bank’s mission to reduce poverty and promote shared prosperity. The COVID-19 pandemic proved to be a major catalyst for global efforts to scale up social protection systems. Between April 2020 and June 2022, the World Bank doubled its pre-COVID-19 social protection portfolio and provided more than $14 billion to 60 countries, including 16 countries affected by fragility and conflict, reaching more than one billion people worldwide. As of September 2022, the World Bank is providing $30 billion in financing to countries across regions and income levels. This includes $17 billion through IDA, the Bank’s fund for the world’s poorest countries.
To download the report, Charting a Course Towards Universal Social Protection – Resilience, Equity, and Opportunity for All, please visit here.
Follow us on: @WBG_SPLabor
