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R E S I L I E N C E
,
E Q U I T
Y ,
O P P O R T U
N I T Y
The World Banks2012-2022Social Protection
& Labor Strategy
May 7 11, 2012Washington, D.C.
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Main messages
1. Social protection and labor programs andpolicies are necessary in a risky, changingworld
2. Social protection and labor programs andpolicies work, if well-designed as part ofsystemic approaches
But there are major remaining agendas in termsof coverage (including to LICs and fragilecontexts), responsiveness and productivity
3. To succeed, the Banks work in this area willhave to be country-tailored, knowledge-driven and collaborative.
2
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Whats new in this new strategy? Stronger focus on solutions and SPL systems
that together help people deal with multiplerisks.
Emphasis on the need for increased engagementin lower-income and fragile contexts. Stress on the central role of jobs and enhanced
productivity as the pathway to opportunity. Reconfirmation of the central importance of
appropriate evidence and knowledge in the SPLpractice, especially South-South.
3
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SPL contributes to growth by. Building and protecting human capital Providing the security to invest in higher-riskhigher-return
activities Promoting greater labor market mobility Stabilizing aggregate demand, notably during recessions Enhancing productive assets and infrastructure (for example,
through public works) Reducing inequality in society Making growth-enhancing reforms more politically feasible
SPL is also increasingly recognized as a vehicle for implementingsocial contracts, securing peoples rights, and fulfilling societysobligations
source: Alderman and Yemtsov (2012) 5
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Message 2: SPL programs work, especiallyif remaining challenges are addressed
6
75 70 65
4632
22
12 17
9
21
22 43
13 1323
2746
33
SSAfrica
MENA SAR LAC EAP ECA
No transfer
Only social insurance
Only social assistance
Labor market programs
P e r c e n t
Source: SP Atlas
% of households receiving transfers
Low coverage
Socialwelfare
or related, 35%
Socialsecurity/labor ,
9%Health,4%
Education, 2%Social
Fund,1%
Other,4%
OutsideGovern-ment,45%
Origin of cash transfers in Sub-SaharanAfrica
Source: Garcia and Moore ( 2012 )
Fragmentation
$36.9
$66.2
$78.3
$4.6 $6.7$9.5
Low-skill jobs
Medium-skill jobs
High-skill jobs
RichercountriesPoorercountries
Low productivity
Source: Acemoglu and Zilibotti (2000)
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.so the primary focus of the WorldBanks SPL Strategy is
To help developing countries move from fragmented approaches to more harmonized
systems for social protection and labor
8
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Program
Program
Program Program
Levels of a SPL System
9
Administration level:
Aim: Building basic subsystemsto support one or moreprograms for security, equity oropportunity
Admin. sub-
systems
Program level: Aim: Improving design ofexisting programs andharmonizing across portfolio ofprograms
Policy Level:
Aim : Ensuring overall policycoherence across programs andlevels of government
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Message 3: To succeed, the Banks workwill have to be
Partnerships that arebroad and synergistic
across sectors and
actors 10
Country-Tailored
CollaborativeKnowledge-Driven
Knowledge that isfocused on results andlearning from South-South sharing of
practice
Tailoring operations tocountry context, and toevidence of whatworks
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From strategy to results: Measuringsuccess
11
Quality of World Bank activities tosupport partner countries
Changes in SPL outcomes andoutputs in countries attributableto World Bank support
Country progress on keydevelopment outcomes
Percentage of satisfactoryprojects (IEG Ratings)
Percentage of projects withsatisfactory M&E (ICRs)
Number of downloads ofSP&L knowledge products
Number of countries involvedin World Bank sponsoredSouth-South learning events
Percentage of SPL staff timespent on cross-support to
countries in other regions Percentage of lending
operations in IDA countrieshaving co-financing partners
Percentage of World Bank SPLlending operations supportingSPL systems
Number of countries withWorld Bank SPL engagement
Number of beneficiaries ofWorld Bank supported SSNprograms*
Number of beneficiaries ofWorld Bank supported labormarket programs*
Poverty gap at $1.25 per day(PPP)
Percentage of population inthe poorest quintile coveredby SPL programs
Share of working agepopulation accruing pensionsrights
Pension beneficiaries toelderly (>65) population ratio(old age, survivor, disability
and social pensions) Percentage of children (7-14)
employed Labor productivity: GDP per
person employed Youth/adult unemployment
rate
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ANNEXES
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Building the strategy on strengths: Astrong counter-cyclical portfolio
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2.17%
1.55% 1.77%
3.16%
4.37%
9.09%9.65%
7.30%
10.37%
5.53%
4.83%
11.61%
5.72%
7.71%
5.47%
3.27%
2.32%
10.62%
6.55%
13.22%
0.93%
2.76%2.30% 2.33%
5.87%
2.70%
3.76%
6.24%5.64%
7.71%
2.41%
7.17%
3.99%4.25%
4.61%
5.47%
2.56%
3.96%
7.01%
5.15%
FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY
IBRD IDA
AsianCrisis
LACCrisis
FFFCrisis
Social Protection andLabors Share in NewLending Commitments
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and excellent portfolioperformance
17
FY11 Average
FY98-FY11 Disbursement Ratio 42 44 Bank average 21 21
Commitment at Risk (%) 9 13 Bank average 14 16 % Proactivity 71 80 Bank average 61 78
Unsatisfactory Projects (%) 8 11 Bank average 12 12 Disbursement Lag (%) -7.2 15 Bank average 19 32
( indicates better than Bank average)