Social Protection (SP) Helps Absorb Shocks
The overlapping crises of Russia’s invasion of Ukraine, the COVID-19 pandemic and the surge in food and fuel prices are a reminder that individuals’ own actions and investments are not always enough to protect against joblessness, illness, and poverty.
Governments and their citizens must be prepared to manage massive, unexpected shocks that unravel quickly and lead to periods of dependency on others.
The pandemic revealed fundamental shortcomings in the design and implementation of today’s social protection (SP) programs. Many governments in the Europe and Central Asia region did not have the information, tools, legal frameworks, or administrative capacity to quickly scale up their programs to financially support those families most in need.
Social Protection Can Protect Countries’ Investments in People and Help Economies Grow Greener
In this fast and radically changing world, people also need support and opportunities for lifelong learning and in accessing new jobs, especially those related to a green and just transition. Designed the right way, cash transfers and other SP programs can provide this support and opportunity.
SP protects people and families against risks and supports individual citizens’ risk-taking, such as to start a business or pursue re-training for a better job.
Well-designed, active labor market policies, such as re-training, are a good example of a SP measure that benefits people, firms, and ultimately government, by stopping the unemployed and those with obsolete skills from falling into dependency and ultimately poverty.
Here is How
The pandemic has provided important lessons for how to modernize and reform SP systems. The use of technology for getting support to families quickly, simple but fair assessments of families’ means and needs, and investments in skills and childcare are among the solutions with which the World Bank stands ready to help countries prepare for the future.
Featured Country Examples
Protecting North Macedonia’s Poorest from COVID’s Economic Impacts
Supporting Syrian and Turkish Entrepreneurs for a Better Future
A «Hand of Help» for Ukraine’s Internally Displaced Persons
Click here to learn more:
Europe and Central Asia Economic Update, Fall 2022 : Social Protection for Recovery