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Productive role of safety nets : background paper for the World Bank 2012-2022 social protection and labor strategy

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  • Alderman, Harold
  • Yemtsov, Ruslan

Abstract

The paper contains a framework for linking social protection with growth and productivity, an updated review of the literature, new original work filling in gaps in the available evidence, and a discussion of operational implications. The paper demonstrates that there was a shift in the economists'view on social protection, and now they are seen as a force that can make a positive contribution towards economic growth and reduce poverty. The paper looks at pathways in which social protection programs (social insurance and social assistance programs, as well as labor programs) can support better growth outcomes: (i) individual level (building and protecting human capital, and other productive assets, empowering poor individuals to invest or to adopt higher return strategies), (ii) local economy effects (enhancing community assets and infrastructure, positive spillovers from beneficiaries to non-beneficiaries), (iii) overall economy level (acting as stabilizers of aggregate demand, improving social cohesion and making growth?enhancing reforms more politically feasible). Most social protection programs affect growth through all of these pathways. But the evidence is very uneven; and there are knowledge gaps. The paper discusses operational implications for the design and implementation of Social Protection (SP) programs and proposes a work program for addressing knowledge gaps.

Suggested Citation

  • Alderman, Harold & Yemtsov, Ruslan, 2012. "Productive role of safety nets : background paper for the World Bank 2012-2022 social protection and labor strategy," Social Protection and Labor Policy and Technical Notes 67609, The World Bank.
  • Handle: RePEc:wbk:hdnspu:67609
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Porter, Catherine & Goyal, Radhika, 2016. "Social protection for all ages? Impacts of Ethiopia’s Productive Safety Net Program on child nutrition," Social Science & Medicine, Elsevier, vol. 159(C), pages 92-99.
    2. Favara, Marta & Porter, Catherine & Woldehanna, Tassew, 2017. "Smarter through Social Protection? Evaluating the Impact of Ethiopia's Safety-Net on Child Cognitive Abilities," IZA Discussion Papers 10972, Institute for the Study of Labor (IZA).
    3. World Bank, 2012. "Resilience, Equity, and Opportunity
      [Capacidad de recuperación, equidad y oportunidades]
      ," World Bank Other Operational Studies 12648, The World Bank.
    4. Harold Alderman & Ruslan Yemtsov, 2014. "How Can Safety Nets Contribute to Economic Growth?," World Bank Economic Review, World Bank Group, vol. 28(1), pages 1-20.
    5. Dietrich, Stephan & Malerba, Daniele & Barrientos, Armando & Gassmann, Franziska & Mohnen, Pierre & Tirivayi, Nyasha & Kavuma, Susan & Matovu, Fred, 2017. "Social protection investments, human capital, and income growth: Simulating the returns to social cash transfers in Uganda," MERIT Working Papers 029, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Andrews, Colin & Kryeziu, Adea & Seo, Dahye, 2014. "World Bank support for social safety nets 2007-2013 : a review of financing, knowledge services, and results," Social Protection and Labor Policy and Technical Notes 90187, The World Bank.

    More about this item

    Keywords

    Safety Nets and Transfers; Achieving Shared Growth; Debt Markets; Labor Policies; Rural Poverty Reduction;

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