SOCIAL PROTECTION AND THE WELFARE OF CHILDREN AND YOUTH

at the WORLD BANK

Emmanuel JimenezDirector, Human Development

East Asia and Pacific RegionThe World Bank

ejimenez2@worldbank.orgMarch 10, 2008

Outline

What is the World Bank’s definition of Social Protection (SP) and what is its role in the Bank’s mission?What are the main SP instruments?What are the implications of SP for the welfare of children and youth?

THE WORLD BANK FIGHTS POVERTY…

The World Bank’s mission is to promote policies that reduce poverty.Poverty is multi-dimensional:

Income povertyHuman Development Outcomes (including MDGs that measure education and well-being of children)

Two Strategic Pillars:Improving investment climate and increasing growthInvesting in human development and social capital.

THE ROLE OF SOCIAL PROTECTION

Expanding Opportunities: Helping the creation of good jobs through better labor market regulations, active and passive labor market policies, and wage setting processes;

Providing Security: Assisting in better managing risks to reduce vulnerability, securing an asset-base and being able to engage in higher risk/higher return activities;

Enhancing Equity: Providing minimum levels of subsistence and helping to correct market-based distributive outcomes

THE SOCIAL PROTECTION SECTOR

SP is one of 19 sectors of WB—located in the Human Development Network which has 3 sectors, all of which touch on child protection, and some x-sector themes:

HD Sectors: Education; Health, Nutrition Population; SPCross sector HD themes: Children and Youth (ECD; Youth empowerment), HIV/AIDS (prevention thru promo.), Disability

Other sector groups also deal with child protection:

GenderPoverty reduction Social Development (community empowerment)

SOCIAL PROTECTION IS ABOUT UNDERSTANDING AND MANAGING RISKS

All individuals are vulnerable to multiple risks – the poor in particular.The poor have higher exposure to risks and fewer instruments to deal with it.Provision of appropriate risk management is crucial for lasting poverty reduction.

SOURCES AND FORMS OF RISKSources Micro –

IdiosyncraticMeso Macro – Co-

variantNatural   Rainfall

LandslideVolcanic Eruption

EarthquakeFloods/WindsDrought

Health IllnessInjuryDisability

Epidemic  

Life-cycle BirthOld-ageDeath

   

Social CrimeDomestic violence

TerrorismGangs

Civil strifeWar

Economic UnemploymentHarvest failureBusiness failure

Resettlement Output collapseFinancial crisisTechnology shock

Political Ethnic discrimination

Riots Political default on social programs

Environmental   PollutionDeforestationNuclear disaster

 

INADEQUATE RISK MANAGEMENT

Reduces the level of human capital (for both health and education)Renders individuals vulnerable and unable and unwilling to take risk and to engage in higher return/higher risk activityLimits ‘solidarity’ and thus, equity, through risk pooling (incl. of good and bad risks).

SP INSTRUMENTS: RISK MANAGEMENT STRATEGIES

Risk prevention – to reduce probability of bad events occurring (move from low-lying areas) Risk mitigation – to decrease impact of living with risk (insurance against flooding)Risk coping – to lessen adverse impact once the event has occurred (providing housing after flood event)

RISK MANAGEMENT ARRANGEMENTS

Informal: marriage, real assets, mutual community support.Market-based: cash, bank deposits, bonds and shares, insurance contracts.

Public programs: Social insurance (health, old age security, unemployment)Transfers in cash and kindPublic WorksSocial Welfare Programs

MANY AGENCIES DO SOCIAL PROTECTION

Ministry of Labor and Social Protection; also Social WelfareIndependent Agencies Like Pension BoardsCivil Society: Labor Unions, ChurchesLocal Communities (CDD)

SP and Children’s Well-being

Families that manage risk prudently will invest in children’s human development (HIV/AIDS and families)Targeted subsidies will allow them to afford the investment

UnconditionedConditioned

WB SUPPORT FOR CHILDREN’S WELL BEING

Supply side:Education Health and nutrition servicesEarly Child DevelopmentSocial services

Demand side:Health promotion, education informationCash transfers, both unconditional and conditionalIn-kind transfers (food programs, scholarships)

Example: OPORTUNIDADES is an Incentive-Based Welfare PROGRAM in Mexico to families

Cash is used as incentive to invest in Human capital

EducationHealthNutrition

Family does not get the cash unless it invests in children’s human capitalNext few slides attributable to Paul Gertler

Health Benefits Include…

Cash Transfer About 1/4 of mean “poor” incomeGiven to female head of householdExpected to be used to purchase food70% spent on more/better food (H&S, 2000)

To obtain cash, all family members have to get preventive health careEnsure clinics able to provide preventive care

OPORTUNIDADES is a Big Program

Rural Program 1997-20002.6 million families enrolled from 50,000 villages$1.2 Billion budget or 0.25% of GDP

Urban ExpansionAdded 750,000 semi-urban families in 2001Added another 1 million urban families in 2002

OPORTUNDADES Wanted a Strong Evaluation: Why?

Make sure program has intended impacts Fine tune benefit structureMake benefits get to right familiesCongressional requirementPolitics:

Big Budget is a targetBetter used elsewhere if program does not workHarder to reallocate if program really works

Using the Random Assignment We Find That OPORTUNIDADES

Improved child healthReduced hospital inpatient staysReduced morbidityTaller & Less Anemia

Improved adult healthReduced hospital inpatient staysReduced illness daysImproved stamina

Impact on Child Height & Anemia

After 15 months, Children on OPORTUNDADES were

1 cm taller, implying a 7.7% faster growth rate 25.5% lower prevalence of anemia

Compared to children in control households

OTHER PROGRAMS

Bangladesh Female Secondary Stipend ProgramECD Programs

Outline

What is the World Bank’s definition of Social Protection (SP) and what is its role in the Bank’s mission?What are the main SP instruments?What are the implications of SP for the welfare of children and youth?