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.
Summary: | 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. |
---|