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Helping the poor manage risk better : the role of social funds

Author

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  • Jorgensen, Steen Lau
  • Van Domelen, Julie

Abstract

Recent trends in trade, technology, and politics have created new opportunities for global welfare improvement, but have also increased risks. This challenge requires rethinking social protection, and its instruments, particularly social funds. This paper reviews social funds, and suggests future directions by using a"social risk management"framework, to examine how social funds can help the poor manage risk better. Risk management covers risk reduction, risk mitigation, and risk coping. Analyzing social funds within the social risk management framework, suggests that: they should be assessed as one of many components in countries'social risk management strategies; they should move from coping and mitigation, to risk reduction; they should focus more on the medium term impact of projects; their targeting should focus on vulnerability, and vulnerable groups; their"investment menus"should be expanded to include more risk reduction projects; and, more emphasis should be given to participation, and capacity building.

Suggested Citation

  • Jorgensen, Steen Lau & Van Domelen, Julie, 1999. "Helping the poor manage risk better : the role of social funds," Social Protection Discussion Papers and Notes 21333, The World Bank.
    • Handle: RePEc:wbk:hdnspu:21333
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    Citations

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    Cited by:

    1. Joya, N.E.A., 2007. "Dreams that do not come true: Re-addressing social security to expand old-age social protection," ISS Working Papers - General Series 18755, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. Iyanatul Islam, 2001. "Beyond Labour Market Flexibility: Issues and Options for Post-Crisis Indonesia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 6(3), pages 305-334.
    3. Faguet, Jean-Paul & Wietzke, Frank-Borge, 2006. "Social funds and decentralisation: optimal institutional design," LSE Research Online Documents on Economics 2395, London School of Economics and Political Science, LSE Library.
    4. Arjan de Haan & Jeremy Holland & Nazneen Kanji, 2002. "Social funds: an effective instrument to support local action for poverty reduction?," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 643-652.
    5. Hala Abou-Ali & Hesham El-Azony & Heba El-Laithy & Jonathan Haughton & Shahid Khandker, 2010. "Evaluating the impact of Egyptian Social Fund for Development programmes," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 2(4), pages 521-555.
    6. Howard White, 2002. "Social funds: a review of the issues," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 605-610.
    7. Julie van Domelen, 2002. "Social funds: evidence on targeting, impacts and sustainability," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 627-642.
    8. Djimeu, Eric W., 2014. "The impact of social action funds on child health in a conflict affected country: Evidence from Angola," Social Science & Medicine, Elsevier, vol. 106(C), pages 35-42.

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