Social protection, as defined by the United Nations Research Institute for Social Development, is concerned with preventing, managing, and overcoming situations that adversely affect people's well-being.United Nations Research Institute for Social Development (UNRISD). 2010. Combating Poverty and Inequality: Structural Change, Social Policy and Politics. Social protection consists of policies and programs designed to reduce poverty and vulnerability by promoting efficient labour markets, diminishing people's exposure to risks,Social Protection Sector Strategy Paper: From Safety Net to Springboard. Washington DC, USA. and enhancing their capacity to manage economic and social risks, such as unemployment, exclusion, sickness, disability, and old age.World Bank. 2001 An emerging approach within social protection frameworks is Adaptive Social Protection, which integrates disaster risk management and climate change adaptation to strengthen resilience against shocks.It is one of the targets of the United Nations Sustainable Development Goal 10 aimed at promoting greater equality.
The most common types of social protection
Labor market interventions are policies and programs designed to promote employment, the efficient operation of labor markets, and the protection of workers. Social insurance mitigates risks associated with unemployment, ill-health, disability, work-related injury, and old age, such as health insurance or unemployment insurance. Social assistance is when resources, either cash or in-kind, are transferred to vulnerable individuals or households with no other means of adequate support, including single parents, the homeless, or the physically or mentally challenged.
History Traditionally, social protection has been used in the European welfare state and other parts of the developed world to maintain a certain living standard, and address transient poverty. One of the first examples of state-provided social protection can be traced to the Roman Emperor Trajan, who expanded a program for free grain to include more poor citizens of the empire. In addition, he instituted public funds to support poor children.Hammond, Mason. "Trajan". Encyclopædia Britannica. http://www.britannica.com/EBchecked/topic/602150/Trajan#tab=active~checked%2Citems~checked&title=Trajan%20--%20Britannica%20Online%20Encyclopedia. Organized welfare was not common until the late 19th and early 20th centuries. It was during this period that in both Germany and Great Britain, welfare systems were established to target the working classes (see National Insurance)."The Liberal reforms 1906-1914". BBC. The United States followed several years later, during the Great Depression, with emergency relief for those struck the hardest. However, modern social protection has grown to envelop a much broader range of issues and purposes; it is now being used as a policy approach in developing nations, to address issues of persistent poverty and target structural causes. Moreover, it is designed to lift recipients out of poverty, rather than exclusively providing passive protection against contingencies .United Nations Research Institute for Social Development (UNRISD). 2010. Combating Poverty and Inequality: Structural Change, Social Policy and Politics. social protection has rapidly been used in trying to reduce and ultimately eliminate poverty and suffering in developing countries (mostly in Africa), so to enhance and promote economic and social growth.
Types
Labor market interventions Labor market interventions, consisting of both active and passive policies, provide protection for the poor who are capable of gaining employment. Passive programs, such as unemployment insurance, income support and changes in labor legislation, alleviate the financial needs of the unemployed but are not designed to improve their employability.Governance and Social Development Resource Centre. [Date accessed October 31, 2010] (http://www.gsdrc.org/go/topic-guides/social-protection/types-of-social-protection) On the other hand, active programs focus on directly increasing the access of unemployed workers to the labour market.Asian Development Bank. Labor. [Date accessed October 31, 2010] (http://www.adb.org/SocialProtection/labor.asp)
Active labour market policies (ALMPs) have two basic objectives: (1) economic, by reducing the risk of unemployment, increasing the ability of the unemployed to find jobs and increasing their earning capacity, productivity and earnings; and (2) social, by improving social inclusion and participation in productive employment. These programs thus aim to increase employment opportunities and address the social problems that often accompany high unemployment.
Active policies are a way of reversing the negative effects of industrial restructuring in transition economies and to help integrate vulnerable people furthest from the labor markets.The World Bank. Social Protection. [Date accessed October 31, 2010] (http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALPROTECTION/ EXTLM/0,,contentMDK:20223809~menuPK:7109967~pagePK:148956~piPK:216618~theSitePK:390615,00.html) They are often targeted at the long-term unemployed, workers in poor families, and particular groups with labor market disadvantages.
A European Union-funded research as part of the DRIVERS project revealed a linear relationship between investments in national active labour market policies (specifically those directed towards integrating vulnerable groups into employment) and quality of work. It found that European countries with more active labour market policies seem to have healthier, less stressed workplaces.
Active labor market programs include a wide range of activities to stimulate employment and productivity such as: Employment services. These services include counseling, placement assistance, job matching, labor exchanges, and other related services to improve the functioning of the labor market. Job Training. This includes training/retraining for the unemployed, workers in mass layoffs and youth to increase the quantity of work supply. Direct employment generation The promotion of small and medium enterprises (e.g., public works projects, subsidies) to increase labor demand.Betcherman, G., Olivas, K. and Dar, A., 2004, 'Impacts of Active Labor Market Programs: New Evidence from Evaluations with Particular Attention to Developing and Transition Countries', Social Protection Discussion Paper Series no. 0402, World Bank, Washington A common issue in implementing successful labor market interventions is how to incorporate the informal economy, which comprises a significant portion of the workforce in developing countries.Governance and Social Development Resource Centre. [Date accessed October 31, 2010] (http://www.gsdrc.org/go/topic-guides/social protection/types-of-social-protection) Informal employment comprises between half and three quarters of non-agricultural employment in the majority of these countries. The proportion of informal employment increases when agriculture is taken into account.International Labour Organization. [Date accessed October 31, 2010] (http://www.ilo.org/public/english/protection/secsoc/areas/policy/informal.htm) Most informal workers are not covered by social security schemes, occupational safety and health measures, working conditions regulations and have limited access to health services and work-related measures of social protection. Labor market interventions work to integrate the different strategies to prevent and compensate occupational and social risks in the informal economy. The strategies that include measures to prevent and mitigate the impact of risks are the most effective.Lund, F., 2009, 'Social Protection and the Informal Economy: Linkages and Good Practices for Poverty Reduction and Empowerment', in Organisation for Economic Cooperation and Development (OECD), 'Promoting Pro-Poor Growth: Social Protection', OECD, Paris, pp.69-88
In general, public expenditure on labor market policy (LMP) interventions falls within three main categories: Labor Market Services (1) Total LMP Measures (2-7) training (2), job rotation & job sharing (3), employment incentives (4), supported employment & rehabilitation (5), direct job creation (6), start-up incentives (7),
Total LMP supports (8-9) out-of-work income maintenance and support (8), early retirement (9)
Social insurance
Social insurance schemes are contributory programs that protect beneficiaries from catastrophic expenses in exchange for regular payments of premiums. Health costs can be very high, so health insurance schemes are a popular way reducing risk in the event of shock. However, an individual with low income may not be able to afford insurance. Some argue that insurance schemes should be complemented with social assistance. Community-based health insurance allows pooling in settings where institutional capacity is too weak to organize nationwide risk-pooling, especially in low-income countries, making insurance more affordable. In risk-sharing schemes, the insurance premium is unrelated to the likelihood that the beneficiary will fall ill and benefits are provided on the basis of need.Ranson, M., 2002, 'Reduction of Catastrophic Health Care Expenditures by a Community-Based Health Insurance Scheme in Gujarat, India: Current Experiences and Challenges', Bulletin of the World Health Organization, vol. 80, no. 8
Social assistance Social assistance schemes comprise programs designed to help the most vulnerable individuals ( i.e., those with no other means of support such as single parent households, victims of natural disasters or civil conflict, handicapped people, or the destitute poor), households and communities to meet a social floor and improve living standards. These programs consist of all forms of public action, government and non-government, that are designed to transfer resources, either cash or in-kind (e.g. food transfers), to eligible vulnerable and deprived persons.Howell, F., 2001, 'Social Assistance - Theoretical Background', in 'Social Protection in the Asia and Pacific', ed. I. Ortiz, Asian Development Bank, Manila, ch. 7 t. In the context of increasing climate-related shocks, Adaptive Social Protection has emerged as a strategy to help vulnerable populations adapt and build resilience to these events."Social assistance interventions may include: Welfare and social services to highly vulnerable groups such as the physically or mentally disabled, orphans, or substance abusers. Cash or in-kind transfers such as food stamps and family allowances. Unconditional cash transfers, for example, appear to be an effective intervention for reducing extreme poverty, while at the same time improving health and education outcomes. Temporary subsidies such as life-line tariffs, housing subsidies, or support of lower prices of staple food in times of crisis.Asian Development Bank. Social Protection. [Date accessed October 31, 2010] (http://www.adb.org/SocialProtection/default.asp)
Policy issues
Universalism vs. Targeting