Building Social Protection and Labor Systems : Concepts and Operational Implications

This paper presents a framework for designing and implementing social protection and labor (SP&L) systems in middle and low income countries. Although the term 'system' is used to describe a country's set of social protection programs, these tend to operate independently with little or no coordination even when they have the same policy objective and target similar population groups. The paper argues that enhancing coordination across SP&L policies, programs, and administrative tools has the potential to enhance both individual program performance as well as the overall provision of social protection across programs. The first part of the paper discusses the characteristics of well?designed social protection systems. It also points to the gains and some of the risks - of moving toward systems, including: (i) more effective risk management in crisis and non?crisis periods; (ii) improved financial sustainability; (iii) more equitable redistribution; (iv) economies of scale in administration; and (v) better incentives. The second part discusses issues related to design and implementation based on country studies for Brazil, Chile, India, Niger, Romania, and Vietnam. It suggests three levels of engagement to support the design of SP&L systems: (a) at the policy level, defining how different instruments (e.g., savings, risk pooling, redistribution) interact, and coordinating financing mechanisms and institutional arrangements; (b) at the program level, improving the design of individual programs and creating synergies with other programs within and across social protection functions; and (c) at the administrative level, setting up basic 'nuts and bolts' tools that can work across programs, such as beneficiary identification and registry, payment mechanisms, and management information systems. The last part of the paper outlines some of the implications of a systems vision for the World Bank's social protection and labor practice.

Bibliographic Details

Main Authors:	Walker, Ian, Robalino, David A., Rawlings, Laura
Language:	English en_US
Published:	World Bank, Washington, DC 2012-03
Subjects:	ACCOUNTABILITY, ACCOUNTING, ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET PROGRAMS, BENEFICIARIES, CONSUMPTION SMOOTHING, CONTRIBUTION RATE, CONTRIBUTORY PROGRAMS, COVERAGE, CRISES, DECISIONMAKING, DEMOCRACY, DISMISSAL, DISPLACED WORKER, EARLY RETIREMENT, ECONOMICS, EMPLOYABILITY, EMPLOYMENT GUARANTEE, EMPLOYMENT GUARANTEE SCHEME, EMPLOYMENT PATTERNS, EMPLOYMENT PROGRAM, EMPLOYMENT SERVICE, EMPLOYMENT SERVICES, EMPLOYMENT STATUS, EXPANSION OF COVERAGE, FORMAL SECTOR WORKERS, FRAUD, GDP, GUARANTEED MINIMUM INCOME, HEALTH INSURANCE, HOUSEHOLD ENTERPRISES, HUMAN CAPITAL, HUMAN RESOURCES, IMPACT EVALUATION, INCOME, INCOME GROUPS, INFORMAL SECTOR, INFORMAL SECTOR WORKERS, INNOVATION, INNOVATIONS, INSURANCE COMPANIES, INSURANCE COVERAGE, INSURANCE SYSTEMS, INSURERS, INTERVENTIONS, JOB SEARCH, JOB SEARCH TRAINING, JOBS, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKET OUTCOMES, LABOR MARKETS, LABOR MINISTRIES, LABOR MOBILITY, LABOR REGULATIONS, LABOR SYSTEM, LAWS, LEGAL FRAMEWORK, LEVEL PLAYING FIELD, LONG TERM SAVINGS, MANDATORY SAVINGS, MARKET ECONOMY, MINIMUM WAGE, MORAL HAZARD, PASSIVE LABOR, PASSIVE LABOR MARKET PROGRAMS, PAYROLL TAX, PAYROLL TAXES, PENSION REFORM, PENSIONS, PERFORMANCE INDICATORS, POLITICAL ECONOMY, POVERTY RATES, POVERTY REDUCTION, PREVIOUS SECTION, PRIVATE INSURANCE, PRIVATE INSURANCE COMPANIES, PRIVATE PROVIDERS, PRIVATE SECTOR, PRIVATE SECTOR WORKERS, PRODUCTIVITY, PROGRAM COSTS, PROGRAM DESIGN, PUBLIC POLICIES, PUBLIC WORKS, PUBLIC WORKS PROGRAMS, PUBLIC WORKS PROJECTS, RATES, REGRESSIVE TRANSFERS, RISK MANAGEMENT, RISK MANAGEMENT POLICIES, RISK MITIGATION, RISK PROFILES, RISK REDUCTION, RURAL EMPLOYMENT, SAFETY, SAFETY NET, SAFETY NETS, SERVANTS, SERVICE PROVIDERS, SEVERANCE PAY, SMALL BUSINESSES, SOCIAL ASSISTANCE, SOCIAL ASSISTANCE PROGRAMS, SOCIAL CONTRACTS, SOCIAL PROGRAMS, SOCIAL SECURITY, SUSTAINABILITY, TARGETED PROMOTION, TARGETING, TEMPORARY EMPLOYMENT, TRADE UNIONS, TRAINING CENTERS, TRAINING PROGRAMS, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT BENEFIT, UNEMPLOYMENT BENEFIT PROGRAMS, UNEMPLOYMENT BENEFIT SYSTEM, UNEMPLOYMENT BENEFIT SYSTEMS, UNEMPLOYMENT BENEFITS, UNEMPLOYMENT INSURANCE, UNEMPLOYMENT INSURANCE SYSTEM, UNEMPLOYMENT SPELL, UNEMPLOYMENT SPELLS, UNFUNDED LIABILITIES, UNINTENDED CONSEQUENCES, VOCATIONAL TRAINING, VOCATIONAL TRAINING PROGRAMS, WAGE EMPLOYMENT, WAGE SUBSIDIES, WAGES, WORKER, WORKERS, YOUNG WORKERS, YOUNGER WORKERS, YOUTH TRAINING, YOUTH TRAINING PROGRAMS, welfare administration, public sector reform, developing countries,
Online Access:	http://documents.worldbank.org/curated/en/2012/03/15961928/building-social-protection-labor-systems-concepts-operational-implications https://hdl.handle.net/10986/13554
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