This report examines the World Bank’s social protection and labour (SP&L) strategy, its implementation and achievements. It finds that the strategy has led to social protection being mainstreamed at the World Bank. Further, the social risk management (SRM) concept it incorporates highlights the importance of: (1) multiple strategies for dealing with risks (prevention, mitigation, and coping); and (2) multiple arrangements – traditional and informal systems, market-based systems, and public sector policies and programmes. Other lessons include the importance of a clear conceptual framework to guide policy work, implementation according to country contexts, and partnership and harmonisation among international agencies.
The SP&L strategy’s emphasis on risk and risk management complements social protection’s traditional focus on equity and basic needs, and responds to a rapidly changing global economy. The SRM framework adds vulnerability as a forward-looking concept to poverty analysis. The SRM approach is broadly consistent with human rights-based approaches and social policy demands for minimum provisions. Its refinement and application is ongoing, but progress has been achieved. It is moving toward a results-oriented framework to strengthen the effectiveness of social protection interventions. Initiatives include the collection of better data on input, output and outcome; an enhanced framework for learning products; and monitoring and impact evaluation of interventions.
Based on the SRM framework, the SP&L strategy is driven by three policy objectives: (1) to improve earning opportunities and the quality of jobs; (2) to improve security through better management of risks; and (3) to improve equity and reduce extreme poverty through better assistance for vulnerable groups. It informs work in the areas of: the labour market, social security (in particular pensions), social safety nets, social funds, disability and development, and risk and vulnerability analysis. Key instruments are: (a) the Country Assistance Strategy, (b) analytical and advisory activities and training, and (c) lending.
Labour market
- As labour is often the only asset of the poor, a growth process that is not associated with sustained job creation is unlikely to help the poor to escape from poverty.
- The WB’s 164 labour-related investment projects since 2000 have included support for microenterprise development (26 percent) and training or retraining (20 percent).
- Although worldwide labour market policy has improved, joblessness remains high, 218 million children are still working, and employment of people with disabilities remains problematic.
Risk management
- The WB facilitates the development of equitable, affordable, and sustainable savings and income-support programmes, countercyclical safety nets, and informal and market-based risk management programmes.
- The Bank’s pension policy framework diversifies risk through systems that use a combination of public and private institutions.
- Social funds have been experimenting with innovative community-based approaches in delivering safety net services in low-income countries.
Enhancing equity
- Impact evaluations of social safety net programmes (cash transfers and workfare) have demonstrated the contribution of SP&L interventions to reducing poverty and malnutrition and improving access to health and education services. Safety nets have increased in range and sophistication, and conditional cash transfer (CCT) programmes have developed.
- Early conditional cash transfer programmes show good targeting, effects on poverty and inequality commensurate with the (varied) transfer size, a largely positive influence on school enrolment and use of health services, and more muted but often positive effects on educational and health status.
- Cash transfers are increasingly used in low-income countries, and more than a dozen African nations are now either piloting or considering (mostly conditional) cash transfer programmes.
- Almost all safety net projects supported by the Bank include elements to improve targeting and administrative systems.
