Realizing The Full Potential Of Social Safety Nets In Africa

Poverty remains a pervasive and complex phenomenon in Sub-Saharan Africa. Part of the agenda in recent years to tackle poverty in Africa has been the launching of social safety nets programs. All countries have now deployed safety net interventions as part of their core development programs. The number of programs has skyrocketed since the mid-2000s though many programs remain limited in size. This shift in social policy reflects the progressive evolution in the understanding of the role that social safety nets can play in the fight against poverty and vulnerability, and more generally in the human capital and growth agenda. Evidence on their impacts on equity, resilience, and opportunity is growing, and makes a foundational case for investments in safety nets as a major component of national development plans. For this potential to be realized, however, safety net programs need to be significantly scaled-up. Such scaling up will involve a series of technical considerations to identify the parameters, tools, and processes that can deliver maximum benefits to the poor and vulnerable. However, in addition to technical considerations, and at least as importantly, this report argues that a series of decisive shifts need to occur in three other critical spheres: political, institutional, and fiscal. First, the political processes that shape the extent and nature of social policy need to be recognized, by stimulating political appetite for safety nets, choosing politically smart parameters, and harnessing the political impacts of safety nets to promote their sustainability. Second, the anchoring of safety net programs in institutional arrangements †“ related to the overarching policy framework for safety nets, the functions of policy and coordination, as well as program management and implementation †“ is particularly important as programs expand and are increasingly implemented through national channels. And third, in most countries, the level and predictability of resources devoted to the sector needs to increase for safety nets to reach the desired scale, through increased efficiency, increased volumes and new sources of financing, and greater ability to effectively respond to shocks. This report highlights the implications which political, institutional, and fiscal aspects have for the choice and design of programs. Fundamentally, it argues that these considerations are critical to ensure the successful scaling-up of social safety nets in Africa, and that ignoring them could lead to technically-sound, but practically impossible, choices and designs.

Over the last decade, a policy revolution has been underway in the developing and emerging world. Country after country is systematically providing non-contributory transfers to poor and vulnerable people, in order to protect them against economic shocks and to enable them to invest in themselves and their children. Social safety nets or social transfers, as these are called, have spread rapidly from their early prominence in the middle-income countries of Latin America and Europe increasingly to nations in Africa, Asia and the Middle East - and today, over 130 developing countries have made investments in social safety nets an important pillar of economic development policies. The statistics and analysis in The State of Social Safety Nets 2015 capture this revolution, and reveal it in many dimensions at the country, regional, and international levels. This latest edition of a periodic series brings together a large body of data that was not previously available, drawing on the World Bank's ASPIRE database and other sources. Why have so many countries made a firm commitment to incorporate social safety nets as part of their social and economic policy architecture? Because social safety nets work. This report also reports on the rigorous evidence that demonstrates their impact, and also points the way to making them even more efficient and effective at meeting their development goals. This latest edition of a periodic series brings together a large body of data that was not previously available, drawing on the World Bank's ASPIRE database and other sources to examine trends in coverage, spending, and safety nets program performance.

Improving household resilience is becoming one of the key focus and target of social protection programs in Africa. However, there is surprisingly little direct evidence of the impacts of social protection programs on household resilience measures. We use five rounds of panel data to examine rural households’ resilience outcomes associated with participation in Ethiopia’s Productive Safety Nets Program (PSNP). Following Cissé and Barrett (2018), we employ a probabilistic moment-based approach for measuring resilience and evaluate the role of PSNP transfers and duration of participation on households’ resilience. We document four important findings. First, although PSNP transfers are positively associated with resilience, PSNP transfers below the median are less likely to generate meaningful improvements in resilience. Second, continuous participation in the PSNP participation is associated with higher resilience. Third, combining safety nets with income generating or asset building initiatives may be particularly efficacious at building poor households’ resilience. Fourth, our evaluation of both short-term welfare outcomes and longer-term resilience suggests that these outcomes are likely to be driven by different factors, suggesting that optimizing intervention designs for improving short term welfare impacts may not necessarily improve households’ resilience, and vice versa. Together, our findings imply that effectively boosting household resilience may require significant transfers over multiple years. National safety nets programs that transfer small amounts to beneficiaries over limited time horizons may not be very effective.

The State of Social Safety Nets 2018 Report examines global trends in the social safety net/social assistance coverage, spending, and program performance based on the World Bank Atlas of Social Protection Indicators of Resilience and Equity (ASPIRE) updated database. The report documents the main social safety net programs that exist globally and their use to alleviate poverty and to build shared prosperity. The 2018 report expands on the 2015 edition, both in administrative and household survey data coverage. A distinct mark of this report is that, for the first time, it tells the story of what happens with SSN/SA programs spending and coverage over time, when the data allow us to do so. This 2018 edition also features two special themes †“ Social Assistance and Ageing, focusing on the role of old-age social pensions, and Adaptive Social Protection, focusing on what makes SSN systems/programs adaptive to various shocks.

This decade has been marked by multiple, often overlapping, crises. The COVID-19 pandemic, natural disasters, and the ongoing war in Ukraine have all threatened the fabric of our global food systems. But opportunities can be found amid crises, and the world’s food systems have demonstrated surprising resilience. With new evidence on what works, now is the time to rethink how we address food crises. Better prediction, preparation, and resilience building can make future crises less common and less devastating, and improved responses can contribute to greater food security, better nutrition, and sustainable livelihoods.

"The findings and recommendations of the report are solely the responsibility of the Centennial Group International"--Title page verso.

Quantifying the impact of the COVID-19 pandemic on poverty in Africa has been as difficult as predicting the path of the pandemic, mainly due to data limitations. The advent of new data sources, including national accounts and phone survey data, provides an opportunity for a thorough reassessment of the impact of the pandemic and the subsequent expansion of social protection systems on the evolution of poverty in Africa. In this paper, we combine per capita GDP growth from national accounts with data from High-Frequency Phone Surveys for several countries to estimate the net impact of the pandemic on poverty. We find that the pandemic has increased poverty in Africa by 1.5-1.7 percentage points in 2020, relatively smaller than early estimates and projections. We also find that countries affected by Fragility, Conflict, and Violence (FCV) experienced the greatest increases in poverty, about 2.1 percentage points in 2020. Furthermore, we assess and synthesize empirical evidence on the role that social protection systems played in mitigating the adverse impact of the COVID-19 crisis in Africa. We review social protection responses in various African countries, mainly focusing on the impact of these programs and effectiveness of targeting systems. Although the evidence base on the protective role of social protection programs during the pandemic remains scarce, we highlight important findings on the impacts of these programs while also uncovering some vulnerabilities in social protection programming in Africa. We finally draw important lessons related to the delivery, targeting and impact of various social protection programs launched in Africa in response to the pandemic.

Social protection programs—public or private initiatives that aid the poor and protect the vulnerable against livelihood risks—can effectively be used to assist those trapped, or at the risk of being trapped, in chronic poverty. These programs aim to address chronic poverty through redistribution and protect vulnerable households from falling below the poverty line. Although investments in social protection programs are often motivated by equity concerns, they can also contribute to economic growth by, for example, encouraging savings, creating community assets, and addressing market imperfections. Despite their potential and proliferation, not enough is known about social protection programs in Africa. The 2017–2018 Annual Trends and Outlook Report (ATOR) reduces this knowledge gap by focusing on the potential of such programs on the continent and the corresponding opportunities and challenges. The chapters of the Report highlight the benefits of these programs, not only to their direct recipients but also others in the community through spillover effects. They also underscore the importance of appropriate design and sustainability to fully realize the potential of social protection programs.