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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 Discussion Papers and Notes 67609, The World Bank.
    • Handle: RePEc:wbk:hdnspu:67609
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    References listed on IDEAS

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    Cited by:

    1. Marta Favara & Catherine Porter & Tassew Woldehanna, 2019. "Smarter through social protection? Evaluating the impact of Ethiopia’s safety-net on child cognitive abilities," Oxford Development Studies, Taylor & Francis Journals, vol. 47(1), pages 79-96, January.
    2. Harold Alderman & Ruslan Yemtsov, 2014. "How Can Safety Nets Contribute to Economic Growth?," The World Bank Economic Review, World Bank, vol. 28(1), pages 1-20.
    3. Rodríguez Torres, Omar, 2022. "The productive role of social policy," MERIT Working Papers 2022-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. 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 Discussion Papers and Notes 90187, The World Bank.
    5. 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.
    6. World Bank, 2012. "Resilience, Equity, and Opportunity [Capacidad de recuperación, equidad y oportunidades]," World Bank Publications - Reports 12648, The World Bank Group.
    7. Franziska Gassmann & Cecile Cherrier & Andrés Mideros Mora & Pierre Mohnen, 2013. "Making the Investment Case for Social Protection: Methodological challenges with lessons learnt from a recent study in Cambodia," Papers inwopa694, Innocenti Working Papers.
    8. 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 2017-029, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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