Activation for Poverty Reduction

Since the peak of the economic crisis, poverty reduction in Armenia has made limited progress, with poverty rates moving from 34.1 percent in 2009 to 32 percent in 2013. This slow pace has been mirrored by the limited progress of the labor market (LM), particularly in terms of job-creation. In 2013, about 36 percent of people worked in the agricultural sector, and about half of all workers earned wages through informal jobs. These conditions highlight the need to have a robust social protection (SP) system that not only offers adequate protection to people living in poverty but can also serve as a tool to increase the quality of human capital, which in turn can help improve their economic opportunities. The government of Armenia (GoA) has shown a clear interest in building its infrastructure to deliver SP services through integrated social service centers as a means to better harness its investment in SP. Its vision is to ultimately implement an integrated social policy that personalizes interventions and tries to address multiple constraints that people face when trying to escape poverty— not only through the provision of cash benefits. The objective of this policy note is twofold. First, it provides a diagnostic of the SP system in order to identify the key issues that could be addressed to enhance its effectiveness and efficiency to achieve greater poverty reduction. Second, the note outlines a set of options—policies and reforms—for the GoA to consider as it continues to strengthen its poverty-reduction strategy. It is important to note that the focus of the report is on social assistance (SA) and LM policies for vulnerable groups. Other key aspects of SP—such as pensions, labor regulations, or the functioning of the LM as a whole—are not addressed in this report, and they have been the subject of extensive analysis elsewhere.

Bibliographic Details

Main Authors:	Morgandi, Matteo, Posadas, Josefina, Damerau, Tomas
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2014-09
Subjects:	WELFARE STATES, HOUSEHOLD INCOMES, FORMAL INCOME, LIVING STANDARDS, CHILD HEALTH, HOUSEHOLD SIZE, RISKS, MARGINAL TAX RATES, PROTECTION SYSTEM, POVERTY LINE, ECONOMIC GROWTH, OLD AGE, POVERTY LEVELS, MINIMUM WAGE, DISABILITY PENSIONS, MUNICIPAL WORKS, INCOME, SOCIAL RISK, TRANSIENT SHOCKS, SCHOOL ENROLLMENT, ASSISTANCE PROGRAMS, HOME CARE, SOCIAL SAFETY NET, PUBLIC SERVICES, POLITICAL ECONOMY, FOOD POLICY, CONDITIONAL TRANSFER, HOUSEHOLD POVERTY, FOOD STAMPS, WELFARE, SUBSIDY, MEANS TESTS, INCOME SUPPORT, SOCIAL BENEFITS, CASH TRANSFER, EMERGENCY ASSISTANCE, SINGLE PARENT, SOCIAL PROGRAMS, SOCIAL ASSISTANCE, BENEFICIARIES, MEASURES, PENSION, SOCIAL REHABILITATION, SAFETY NETS, POVERTY REDUCTION, PROGRAM DESIGNS, VULNERABLE GROUP, SAVINGS, TECHNICAL ASSISTANCE, SOCIAL SERVICE, BENEFICIARY, ANTI-POVERTY PROGRAM, PUBLIC SUPPORT, PROGRAM COVERAGE, VULNERABLE HOUSEHOLDS, SOCIAL INSURANCE, TRANSFERS, VULNERABLE POPULATIONS, HOUSEHOLD COMPOSITION, HOUSEHOLD INCOME, ELIGIBILITY CRITERIA, SOCIAL SECURITY, SOCIAL PROTECTION, FAMILY ALLOWANCES, VULNERABLE INDIVIDUALS, CASH BENEFITS, CASH TRANSFERS, SUBSIDIES, WORK INCENTIVES, SOCIAL WORKER, NEW DEAL, UNEMPLOYMENT, SINGLE-PARENT HOUSEHOLDS, TRANSFER PROGRAM, HOUSEHOLD LEVEL, CHILD ALLOWANCES, SUPPORT PROGRAM, POVERTY LINES, SOCIAL SAFETY NETS, BIRTH GRANT, DISABILITY ALLOWANCE, SSN, HOURLY EARNINGS, MEANS TEST, INFORMAL WORKERS, LOSS OF EMPLOYMENT, LABOR MARKET PROGRAMS, TEMPORARY SHOCKS, SOCIAL SERVICES, WAGE WORKER, SCHOOL ATTENDANCE, FINANCIAL CRISIS, LABOR DEMAND, INCOME SHOCKS, PENSIONS, VULNERABLE GROUPS, SOCIAL POLICY, SAFETY NET, TRANSITION COUNTRIES, SOCIAL PENSION, PRODUCTIVE ASSETS, ELIGIBILITY REQUIREMENTS, HEALTH CLINICS, MALNUTRITION, MEANS TESTING, PUBLIC WORKS, BENEFIT SYSTEM, TRANSFER PROGRAMS, MINIMUM INCOME, SOCIAL WELFARE, SOCIAL POLICIES, CASH BENEFIT, INSURANCE, TAXATION, TARGETING, PUBLIC RESOURCES, UNEMPLOYMENT BENEFIT, TAX CREDITS, FAMILY BENEFIT, EMPLOYMENT BENEFITS, HUMAN RESOURCES, PROGRAM ELIGIBILITY, DISABILITY BENEFITS, PREVENTIVE HEALTH, ACCESS TO SERVICES, ECONOMIC CRISIS, NUMBER OF CHILDREN, POVERTY, FORMAL EMPLOYMENT, INTERNATIONAL FOOD POLICY, SINGLE PARENTS, CONDITIONAL CASH, UNSKILLED JOBS, UNIVERSAL HEALTH, LABOR SUPPLY, MARGINAL TAX RATE, FINANCIAL SUPPORT, HOUSEHOLD NEEDS, LIVING CONDITIONS, CASH TRANSFER PROGRAMS, POOR, UNEMPLOYMENT BENEFITS, PUBLIC SPENDING, PARTICIPATION RATE, WAGE SUBSIDY, SOCIAL WORKERS, HEALTH SERVICES, WELFARE PROGRAMS, FAMILY BENEFITS, MEDICAL EXPENSES, RISK MITIGATION,
Online Access:	http://documents.worldbank.org/curated/en/2015/07/24833379/activation-poverty-reduction-realizing-potential-armenia’s-social-safety-nets https://hdl.handle.net/10986/22406
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