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Social safety nets and targeted social assistance : lessons from the European experience

Author

Listed:
  • de Neubourg, Chris
  • Castonguay, Julie
  • Roelen, Keetie

Abstract

The objective of this paper is to review and compare the performance of social assistance non-contributory income support programs for the poor within the context of the Social Protection (SP) systems in European and other advanced economies. The performance and design of targeted income support to the poor differ across the advanced countries analyzed. Yet in most European countries, social assistance can be seen as an instrument of last resort after all other components of the Social Protection system have contributed to lower inequality and reduced poverty levels. The European Social Protection systems are effective and efficient, but reforms are needed as a response to changing socio-economic conditions. Of special importance are the reforms with respect to the provision of incentives for beneficiaries to become more active on the labor market, for providers to operate to be more critical when handing our benefits by changing entitlement rights as well as the containing operational costs. After all, it is the design and adjustment to local circumstances that matter when the role of social assistance in a broader SP system has been well understood. The first section of the paper provides the background necessary for analyzing the differences in the construction of the Welfare States in the various countries. The discussion is focused on the role of various components of SP systems and illustrates the large international differences in their components and their role in alleviating poverty and reducing inequality. The second section provides details on the characteristics of the social assistance (targeted income support to the poor) programs in the nine European countries. The third section discusses the differences in the performance of the social assistance systems in terms of coverage and participation, effectiveness towards reducing poverty and inequality, efficiency in delivering the benefits, and implementation issues. The fourth section reviews the recent debate towards reforms in the systems. The concluding section draws lessons from the experiences of the European countries related to the design and implementation of Social Protection systems aimed at fighting poverty and reducing inequality.

Suggested Citation

  • de Neubourg, Chris & Castonguay, Julie & Roelen, Keetie, 2007. "Social safety nets and targeted social assistance : lessons from the European experience," Social Protection Discussion Papers and Notes 41529, The World Bank.
    • Handle: RePEc:wbk:hdnspu:41529
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    References listed on IDEAS

    as
    1. Veli-Matti Ritakallio, 2001. "Trends of Poverty and Income Inequality in Cross-National Comparison," LIS Working papers 272, LIS Cross-National Data Center in Luxembourg.
    2. Carlos Farinha Rodrigues, 2001. "Anti-poverty effectiveness and efficiency of the Guaranteed Minimum Income Programme in Portugal," Working Papers Department of Economics 2001/08, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
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    Cited by:

    1. International Monetary Fund, 2009. "Italy: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Italy," IMF Staff Country Reports 2009/045, International Monetary Fund.
    2. T.F. Romanova & O.V. Andreeva & A.A. Sukhoveeva & V.S. Kaptsova, 2019. "Targeting the Principle Implementation in the System of Social Support," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 52-62.
    3. Sarah Marchal & Mechelen, N. van, 2013. "GINI DP 87: Activation strategies within European minimum income schemes," GINI Discussion Papers 87, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Servaas van der Berg & Krige Siebrits & Bongisa Lekezwa, 2010. "Efficiency and equity effects of social grants in South Africa," Working Papers 15/2010, Stellenbosch University, Department of Economics.
    5. Mr. Martin Schindler, 2009. "The Italian Labor Market: Recent Trends, Institutions, and Reform Options," IMF Working Papers 2009/047, International Monetary Fund.
    6. Enrico Fabrizi & Maria Rosaria Ferrante & Silvia Pacei, 2014. "A Micro-Econometric Analysis of the Antipoverty Effect of Social Cash Transfers in Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(2), pages 323-348, June.
    7. Gentilini, Ugo & Omamo, Steven Were, 2011. "Social protection 2.0: Exploring issues, evidence and debates in a globalizing world," Food Policy, Elsevier, vol. 36(3), pages 329-340, June.
    8. Notten, Geranda & de Neubourg, Chris, 2007. "The policy relevance of absolute and relative poverty headcounts: What's in a number?," MPRA Paper 4668, University Library of Munich, Germany.
    9. Janine Berg, 2015. "Income support for the unemployed and the poor," Chapters, in: Janine Berg (ed.), Labour Markets, Institutions and Inequality, chapter 10, pages 263-286, Edward Elgar Publishing.
    10. Silvia Avram & Eva Militaru, 2016. "Interactions Between Policy Effects, Population Characteristics and the Tax-Benefit System: An Illustration Using Child Poverty and Child Related Policies in Romania and the Czech Republic," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(3), pages 1365-1385, September.
    11. Elena I. ANDREEVA, Dmitry BYCHKOV, Olesya FEOKTISTOVA, 2020. "An Improved Means-Testing Formula for Better Targeting [Оценка Нуждаемости При Адресной Социальной Поддержке]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 112-129, November.
    12. Argesanu, Nicolae Razvan, 2013. "Politici Din Sfera Protectiei Sociale Si Sustenabilitatea Lor In Contextul Constrangerilor Bugetare [Policy Of Social Protection Sphere And Their Sustenability In The Context Of Budgetary Constrain," MPRA Paper 47800, University Library of Munich, Germany.
    13. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications - Books, The World Bank Group, number 6582.

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