The need for social safety net/social assistance (SSN/SA) is a critical concern for governments across the globe. Which SSN/SA programs to choose, how to best structure and deliver them, and how to make them fiscally sustainable over the long term are important questions because the answers to these questions affect the well-being of millions of poor and vulnerable people around the world. As the interest in and the use of SSN/SA programs continue to grow, countries are also exploring how to better integrate SSN/SA programs into their overall social protection and jobs agenda.
The global focus on social protection and jobs in general and on the role of SSN in particular has intensified. For the first time, social protection is part of a comprehensive agenda of the Sustainable Development Goals (SDGs). SDG 1 calls to end (extreme) poverty in all its manifestations by 2030, ensure social protection for the poor and vulnerable, increase access to basic services, and support people harmed by climate-related extreme events and other economic, social, and environmental shocks and disasters. Target 1.3 (Goal 1) seeks to implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable. Naturally, many questions arise in implementing this agenda; for example, what is deemed “nationally appropriate” in a given country or context? What is a mix of SSN/SA programs and interventions that makes sense in a specific context or a given set of policy objectives? How much of the SSN spending is too little versus too much?
A robust evidence base is needed to answer these questions. The main objective of this book is to benchmark where individual countries, regions, and the world stand in terms of SSN/SA spending and key performance indicators, such as program coverage, beneficiary incidence, benefit level, and impacts on reducing poverty and inequality. To evaluate and benchmark these indicators consistently across space (countries/programs) and time, a major data collection and processing effort is required. This has been the goal of a World Bank initiative called Atlas of Social Protection: Indicators of Resilience and Equity (ASPIRE), a compilation of comprehensive social protection indicators derived from administrative and household survey data (http://datatopics.worldbank.org/aspire/). The empirical analysis presented in this edition of the book uses administrative (program-level) data for 142 countries and household survey data for 96 countries.
The evidence presented unequivocally indicates that SSN/SA programs matter. The book shows that SSN investments in coverage and adequacy reduce the poverty gap/headcount and lower income inequality, and coverage of the poor tends to be larger in those places where coverage of the general population is also substantial. It is not surprising that coverage and adequacy of SSN/SA programs come at a fiscal cost; globally, developing and transition economies spend an average of 1.5 percent of gross domestic product (GDP) on these programs. Whereas many countries still do not spend enough on SSN/SA programs to affect poverty, others have dedicated spending that has helped millions escape extreme poverty and millions more to become less poor.
For the poor and vulnerable around the world, much more needs to be done, and much more can be done regarding SSN/SA programs. Significant gaps in coverage and benefit levels remain. Even more disconcerting is that the gaps are more pronounced in low-income countries. The data suggest that in low-income countries, SSN/SA programs cover only 18 percent of the poorest quintile, and the average transfer accounts for only 13 percent of the lowest quintile’s consumption. The international development community needs to stand ready to work further with countries in addressing the gaps.
Beyond presenting the key numbers on spending and performance around the world, this book also dives deeper into two thematic areas pertinent to managing risk and vulnerability. The first is social assistance and aging, which looks specifically into the role of old-age social pensions. The second is adaptive social protection, which discusses shocks and how SSN/SA programs can be adapted to better respond to them. It is clear that the risk of old age is more predictable, but the risk of natural disasters is much less so; hence, different approaches and instruments are needed to help people manage those risks.
We are excited to offer you the full range of data and analysis that inform this book, and we hope that you will keep coming back to this book as a reference guide and a compass to chart your thinking on the issues presented here. In the meantime, we look forward to producing, sharing, and disseminating the latest global, regional, and country-level data and developments in this crucial field of social safety nets, through this 2018 edition and the ones to come. The reader is encouraged to further explore the rich dataset that the ASPIRE online platform offers.
I hope you enjoy reading this book.
Michal Rutkowski
Senior Director
Social Protection and Jobs Global Practice
World Bank Group