Which of the Following Involves a Cash Subsidy to Poor Working Families?

Social protection includes:

• Social assistance – non-contributory transfers in cash, vouchers, or in-kind (including school feeding) to individuals or households in need (White, 2016: one); public works programmes; fee waivers (for basic health and education services); and subsidies (due east.g. for nutrient, fuel).
• Social insurance – 'contributory schemes providing compensatory support in the event of contingencies such equally illness, injury, inability, death of a spouse or parent, maternity/paternity, unemployment, old age, and shocks affecting livestock/crops' (ibid.).
• Social care services 'for those facing social risks such as violence, corruption, exploitation, discrimination and social exclusion' (ibid.).
• Labour market place programmes – 'agile (promoting labour market place participation) or passive (ensuring minimum employment standards)' (ibid.).

Social assistance and social insurance together constitute 'social security', a term often used past ILO and other Un bodies interchangeably with social protection (Sepúlveda & Nyst, 2012: 20–21; ILO, 2017). This department explores these categories, and too looks at traditional or informal social protection. Figure 1 shows a taxonomy of social protection instruments adapted from O'Brien et al. (2018: half dozen).

Figure 1. Taxonomy of social protection instruments

Notes: (ane) 'Non-contributory' schemes are defined by the International Labour System (ILO) every bit that, 'unremarkably require no straight (fiscal) contribution from beneficiaries or their employers as a condition of entitlement to receive benefits' (ILO, 2017). Public works programmes are usually counted as 'not-contributory' even though the recipient contributes labour. (two) Social transfers may be conditional or unconditional. A conditional transfer requires the recipient to meet certain behaviours (such as ensuring school attendance) to receive the benefit.
Source: Adapted from O'Brien et al. (2018: 6).

Social assistance

Social assistance is defined as non-contributory interventions (i.e. the full amount is paid past the provider) designed to help individuals and households cope with poverty, destitution, and vulnerability. These programmes target the poor and vulnerable. Some are targeted based on categories of vulnerability, and some are targeted to low-income households. They are usually provided past the state and financed by national taxes (Barrientos, 2010). Back up from donors is likewise of import in lower-income contexts. This is the primary form of social protection available in almost developing countries (ibid.). Examples include unconditional and provisional cash transfers, not-contributory social pensions, nutrient and other in-kind transfers, schoolhouse feeding programmes, public works programmes, and fee waivers (World Bank, 2018b: five).

Another term, 'social safety nets' (sometimes known as 'safety nets'), is used by the World Bank interchangeably with social help (World Banking company, 2018b). However, for other development actors, safe nets denote a more than short-term and/or emergency-focused form of social protection, especially to help people meet immediate basic needs in times of crunch. For consistency, when including findings from Earth Banking concern resource on 'social rubber nets', the term 'social aid' is used throughout this report.

Greenbacks transfers are direct, regular and predictable transfers, increasingly paid through secure electronic systems, such as straight into bank accounts, mobile phone accounts, or on smart cards. They have the twin-track objective of providing firsthand relief and reducing poverty, likewise as contributing to increased resilience of poor households past enabling them to save, invest and cope amend with risks and shocks.  Cash transfers may take different forms: simple transfers, transfers conditional upon certain requirements, and transfers combined with the provision of or linkages to other services:

• Unconditional cash transfers (UCTs) do not take any requirements in terms of how they are spent or whatsoever weather for when they are received. They are implemented both at national level by governments and at smaller scale by NGOs (HLPE, 2012).
• Conditional greenbacks transfers (CCTs) are given with the requirement that the beneficiary meets certain conditions – often related to human capital development, such as visiting a wellness clinic or ensuring children go to school. In this manner, CCTs aim to reduce both brusk-term nutrient insecurity and the long-term intergenerational transmission of poverty and vulnerability (HLPE, 2012: 14; World Banking company, 2018b: 7).
• Greenbacks plus programmes combine cash transfers with one or more types of complementary support, based on the understanding that 'cash alone cannot convalesce non-financial and structural barriers to improving living standards and well-being' (Roelen et al., 2017). These are a fairly new wave of interventions that have expanded in the by few years. They tend to focus either on improving human evolution and human being capital outcomes (due east.chiliad. improving diet, reproductive health, reducing violence confronting women and girls) or on productive inclusion (more sustainable livelihoods). The 'plus' element is provided either equally integral elements of the cash transfer intervention or through offering linkages to services provided past other sectors.

In-kind assistance includes school feeding, which is a free nutritious meal at schoolhouse – ordinarily lunch – and sometimes take-home rations for children most in need. School feeding programmes aim both to reduce hunger and meliorate nutrient security, as well as increase school omnipresence and learner operation (HLPE, 2012).

Social (non-contributory) pensions are straight, regular and predictable payments made to people above a certain historic period, and ofttimes constitute country pensions.

Public works programmes (PWPs) are activities which entail the payment of a wage (in cash or food), often but not always by the state, in return for the provision of labour. The aim is to heighten employment and produce a physical or social nugget, with the overall objective of promoting social protection. They are sometimes classified every bit labour market interventions depending on whether their function is primarily poverty consolation or job creation. Sometimes referred to as public employment programmes (PEP) defined equally 'programmes creating state sponsored employment which is not market based (known as Public Works Programmes, Workfare, Welfare to Piece of work, Cash for Work, Employment of Last Resort, Employment Guarantee programmes, etc.)' (McCord, 2018: ten).

Graduation programmes provide a sequenced package of support – including cash transfers, asset transfers, admission to savings and credit, and grooming and coaching – for a limited menses of fourth dimension with the aim of strengthening livelihoods and promoting a sustainable move out of poverty. These programmes are primarily productivity focused and target households with labour capacity. Graduation programmes have expanded rapidly in the final decade and are currently in place in more than 43 countries (Arévalo et al., 2018). Given their intensity of support and high cost, most programmes are currently implemented past NGOs (ibid.).

Fee waivers normally subsidise services for the poor while subsidies are used to keep prices low for certain goods and services (World Banking company, 2018b: 38). Examples include: health insurance exemptions, reduced medical fees; education fee waivers; food subsidies; housing subsidies and allowances; utility and electricity subsidies and allowances; agricultural inputs subsidies; and transportation benefits (ibid.: 7). While common, they tend to accept limited coverage of the poorest quintile – thirteen%, on average, in the sample of 82 countries in the World Depository financial institution ASPIRE database that have information on fee waivers and subsidies (ibid.: 38).  The World Bank study cautions this is likely to exist a considerable underestimate as it is difficult to capture this data through household surveys. Nonetheless, subsidies are oft regressive: 'The rich ofttimes capture more benefits from country-funded price subsidies, as they swallow more than fuel and related products' (Canonge, 2015: ii).

Social insurance

Social insurance programmes are contributory schemes where participants make regular payments to a scheme that will cover costs related to life-class events (Barrientos, 2010). Sometimes costs are matched or subsidised by the insurance scheme provider. They include old-historic period, survivor and disability pensions; unemployment, sickness/injury, and wellness insurance; and maternity/paternity benefits (UNDP, 2016: 35; World Bank, 2018b: 5). The benefits can be paid through a bank or employer, or informally through a community-based pooled fund.

There are various forms of social health insurance. 'National or social health insurance (SHI) is based on individuals' mandatory enrolment' (Spaan et al., 2012: 685). Voluntary mechanisms include private health insurance (PHI), which is implemented on a big calibration in Brazil, Chile, Namibia and South Africa, and customs-based health insurance (CBHI) in the Congo-kinshasa, Ghana, Rwanda and Senegal (ibid.).

There are ongoing efforts to increase the coverage of social insurance beyond the formal labour market to embrace informal workers (the bulk of the working-age population in most low- and middle-income countries (Holmes and Scott, 2016: iv)) and other marginalised and vulnerable groups who have tended to be excluded from formal schemes. These efforts include:

1. Non-contributory universal programmes – for case social pensions, universal health insurance and unemployment assistance, which are financed out of general taxation.
2. Parallel schemes – for example, Tunisia has different pension programmes for public and private sector workers, while United mexican states has separate contributory and non-contributory health insurance schemes with eligibility dependent on an individual's labour marketplace status.
3. Nationally integrated pensions with explicit subsidies – for example, Republic of chile's alimony arrangement (Winkler et al., 2017: viii).

Winkler et al. (2017: xx) conclude that integrated social insurance systems combining 'an actuarially fair contributory system with explicit subsidies for the poor and informal seem to exist more than financially sustainable than universal non-contributory systems, and less distortionary than fragmented parallel schemes'.

Some countries combine funding from contributions and revenue enhancement to accomplish universal coverage.  For example, in Mongolia cocky-employed and informal herders can elect to join the social insurance scheme to receive motherhood cash benefits, on peak of which the Social Welfare Scheme provides a maternity payment to all pregnant women and mothers of infants regardless of social insurance contributions, employment status, or nationality (ILO, 2017: 39).

Social care

Social care and support is highly complementary to social protection, and is sometimes classified equally social protection. Economically and socially vulnerable people accept circuitous challenges. Providing the appropriate back up requires straight outreach to assess challenges faced and required responses, which 'may range from psycho-social support to connections to needed services' (UNICEF, 2019a: 57). UNICEF considers 'outreach, example direction and referral services integral to effective child sensitive social protection' (ibid.: 37). Such services 'allow the range of needs of families to be understood and families connected to relevant services, including those such as violence prevention that may fall out of the social protection sphere' (ibid.).

Labour marketplace policies and interventions

Labour market policies and interventions provide protection for poor people who are able to piece of work and aim to ensure basic standards and rights (Barrientos, 2010). These government-led policies and interventions can be contributory or not-contributory, active (helping people acquire skills and connect them to labour markets), or passive (helping protect people confronting loss of income from unemployment, underemployment, diminishing real wages, and precarious and informal employment) (World Banking company, 2018b: 5, 6; ILO, 2017: 24).

Active labour market policies and interventions aim to help the unemployed and the most vulnerable detect jobs. Traditionally, this includes interventions such as '(i) matching jobseekers with current vacancies; (ii) upgrading and adapting jobseekers' skills; (iii) providing employment subsidies; and (iv) creating jobs either through public sector employment or the provision of subsidies for private sector work' (ILO, 2017: forty). In high-income countries, such policies generally extend to formal workers. In developing countries – with labour markets characterised by college informality and lower unemployment than in higher-income countries – active labour market policies often include anti-poverty measures and blend interventions (Malo, 2018: 3). For example, preparation programmes may be accompanied by public works and some type of income support, or employment subsidies may be aimed at hiring participants targeted past greenbacks transfer programmes who are at adventure of poor labour market outcomes such equally underemployment and/or informality (ibid.). There is sometimes an overlap in classifying active labour market activities with public works and graduation programmes.

Passive labour market policies include legislation to underpin maternity benefits as well as wider rules regarding parental leave (catamenia, who can take it, etc.), injury bounty, early on retirement incentives, and sickness benefits for those already in work, financed past the employer. Passive interventions also include changes to legislation, for example establishing a minimum wage or condom working conditions. These interventions are primarily aimed at those working in the formal sector. Many poor people piece of work within the informal sector, particularly in developing countries, and some people with disabilities, the chronically ill, and the former may not be able to work at all, and so labour market interventions cannot always reach them. There is an overlap in classifying passive labour market activities with social insurance mechanisms (due east.g. unemployment insurance is an example of a passive labour market policy).

Traditional or breezy social protection

'Informal social protection draws on traditional coping strategies, social upper-case letter and customs-based actions' (Twigg, 2015: 187). Community-based forms of social protection are usually defined as 'an breezy grouping of activities that protect community members from risk through "locally arranged social protection measures that are predicated on people'due south cultural behavior, norms and value" ' (UNDP, 2016: 48, citing Mupedziswa & Ntseane 2013). They can include customs-based 'funeral insurance services, village grain banks, rotating services and credit groups, [and] community-based health insurance' (UNDP, 2016: 36). They are ofttimes cocky-funded. They can be effective at local level, providing an important source of security, but they may have limited outreach, as different groups volition have access to different social and political networks and sources of support (Twigg, 2015: 197).

Community approaches to social protection can also exist supported past the state and donors, such as with village savings and loan associations (encounter, for example, Ksoll et al., 2016; Flora et al., 2015) and community-based wellness insurance services (see, for example, Yilma et al., 2015). With external support, the schemes tin can evolve from 'pure' forms of voluntary membership and customs management to mandatory enrolment and other external influences (Chemouni, 2018). Sometimes state and donor-supported social protection schemes endeavor to support or encourage localised customs-based approaches. For instance, the Yemen Social Fund for Development – ready in 1997 by the authorities and supported past donors – works directly with local communities, establishing community contributions and participation (Al-Iryani et al., 2015).

Key texts

(Run across summaries in Coverage, spend and systems – Fundamental texts.)

World Bank. (2018b).The state of social safety nets 2018. Washington, DC: World Bank.

ILO. (2017). Globe social protection report 2017–nineteen: Universal social protection to attain the Sustainable Development Goals.  Geneva: ILO.

UNDP. (2016). Leaving no ane behind. A social protection primer for practitioners. New York: United Nations Development Plan. (Run across pages 35–36 for a taxonomy of social protection instruments.)

Barrientos, A. (2010). Social protection and poverty (Social Policy and Development Programme Paper 42). Geneva: United nations Enquiry Institute for Social Development.
What is the potential for social protection programmes to address poverty and vulnerability in developing countries? This comprehensive report provides an overview of social protection and an cess of its impact in Latin America, South and Eastern asia, and sub-Saharan Africa. Countries with stronger social protection show lower levels of poverty and vulnerability and are more resilient in the face of social and economic change or shock. However, financial sustainability and capacity limitations are challenges that must be addressed. It is helpful to view social protection financing every bit a 'remix' of public expenditure rather than a new expense.

See too:

Twigg, J. (2015). Livelihoods and DRR. In Twigg, J., Disaster risk reduction. Good Practice Review 9 (pp. 169–188). London: ODI.

Other resources

Video: 'Social protection. With examples of passive labour marketplace policies'. (2018). European Parliament. (5m:36)

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Source: https://gsdrc.org/topic-guides/social-protection/types-of-social-protection/

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