Managing Risk, Promoting Growth

Abstract

A growing body of evidence demonstrates
 that individuals and households experience a range of
 positive outcomes from social protection. Social protection
 increases productivity and growth. Countries can realize
 significant benefits by creating an integrated social
 protection system. Social protection is affordable in
 low-income countries despite tight budgets. While overall
 spending on social protection in Africa remains low by
 international standards, experience suggests that social
 protection programs can achieve national coverage at the
 cost of only 1 to 2 percent of gross domestic product (GDP).
 While this is only a portion of the financing required to
 operate a social protection system, it draws attention to
 what countries can achieve in the short-term. Indeed, one
 way in which existing social protection spending can be made
 significantly more efficient would be by reallocating
 existing financing for inefficient subsidies and ad hoc
 emergency food aid to predictable safety nets. At the same
 time, pursuing reforms to social security systems will
 ensure their fiscal sustainability, while expanding
 coverage. Notably, the costs of not protecting poor families
 are very high, are borne disproportionately by women and
 children, and undermine the productivity of future
 generations. The Strategy will be implemented by leveraging
 partnerships, knowledge, and the World Bank's financing
 instruments. The World Bank will continue to invest in
 analytical work to fill knowledge gaps and promote an
 evidence-based dialogue for social protection systems in
 Africa and further innovation. It will work with governments
 to build country-owned national social protection systems
 with the aim of reducing fragmentation in the sector. The
 Bank also will pay particular attention to institutional
 development and capacity building by using its lending to
 increase the coverage of successful social protection
 interventions. Throughout this work, the Bank will work in
 coordination with governments, development partners, the
 private sector, academics, civil society, and beneficiaries.