What is social assistance and how should such programmes be designed? This chapter defines social assistance as government and non-governmental action to transfer resources to people whose vulnerability warrants some form of entitlement. Social assistance should be seen as a means to reduce poverty and to develop the capabilities of the most vulnerable, increasing social and economic participation and equality of opportunity. Programme design needs to balance the goals of: a) preventing shocks which will have a negative impact on the poor; b) reducing the impact of shocks; and c) helping vulnerable groups to cope with shocks.
Social assistance is customarily defined as a benefit in cash or in-kind, financed by the state (national or local) and usually provided on the basis of a means or income test. It may involve universal benefit schemes – financed by tax but without a means test – or subsidies (for housing, energy, food, education and health). State social assistance programmes have generally been poorly developed: vulnerable groups have had to rely heavily on informal and family networks and transfers from religious and charity organisations.
Many government programmes do not adequately address inequality, assuming that economic growth alone is enough to close income gaps. A brief review of social assistance schemes in the Asia-Pacific region shows that:
- While the transition economies inherited many programmes for vulnerable groups, they have been finding it difficult to implement these
- Traditional support systems and safety nets have been important coping mechanisms for the poorest and most vulnerable groups in difficult periods, such as the 1997 financial crisis
- Public support systems and social assistance schemes have not expanded sufficiently to compensate for the decline of traditional systems
- There are new and increasing demands on families to provide support in the midst of regional and national trends such as greater mobility for employment, increased participation of women in the work force, and mounting inflation.
Social assistance programmes have usually been designed to help people cope with their difficulties and sudden crises. However, long-term cost-effectiveness would be increased by a focus on preventing and reducing shocks and increasing the capabilities of the most vulnerable to avoid or manage future adverse effects unaided. Social assistance should thus be designed as an investment in poverty reduction and the creation of growth through the economic participation of vulnerable groups. It is important that social assistance is seen not only as dealing with residual problems of human welfare, but also as a means of achieving equality of opportunity. Programme duration and the type of support provided should reflect the needs of each vulnerable group. Other key issues for policymakers include:
- Equity versus efficiency: Programmes that target the most vulnerable may not provide the most efficient use of resources, while other interventions may deliver value for money while continuing to exclude important populations
- Government versus non-governmental service provision: There may be some programmes or services that NGOs are better able to provide, while government may deliver other programmes more effectively
- In-kind versus cash benefits: Social assistance programmes usually contain a mixture of both in-kind and cash benefits, but it is important that they are appropriately targeted
- Decentralisation: States face the difficult task of designing nationally coherent social assistance policy instruments in a context of political decentralisation.
