Nicaragua Social Protection Public Expenditure Review

Abstract

This review of public expenditures on
 Social Protection (SP) in Nicaragua is based on the
 analytical framework of Social Risk Management (SRM)
 developed by the World Bank. The concept of managing social
 risk comes from the notion that certain groups in society
 are vulnerable to unexpected shocks which threaten their
 livelihood and/or survival. Social protection focuses on the
 poor since they are more vulnerable to the risks and
 normally do not have the instruments to handle these risks.
 This prevents the poor from taking more risky activities
 that usually yield higher returns and that could help them
 overcome gradually their poverty situation. Social risk
 management involves policies and programs aimed at reducing
 key risks, breaking inter-generational cycle of poverty and
 vulnerability. Risk management consists in the choice of
 appropriate risk prevention, mitigation and coping
 strategies to minimize the adverse impact of social risks.
 Social protection under SRM is defined as public
 interventions to assist individuals, households and
 communities to better manage risk and provide support to the
 critically poor. Thus Social protection should provide: a
 safety net, particularly for the poor that are likely to
 fall in the cracks of established programs; and a
 springboard for the poor to bounce out of poverty.