Social protection

Social protection, as defined by the

• 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

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.[7] On the other hand, active programs focus on directly increasing the access of unemployed workers to the labour market.^[8]

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.^[9] 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.^[10]

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.^[11]

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.^[12] 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.^[13] 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.^[14]

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.^[12] 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.^[15]

Social assistance

• 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.^{[17] [18][19]}
• Temporary subsidies such as life-line tariffs, housing subsidies, or support of lower prices of staple food in times of crisis.^[20]

Policy issues

Universalism vs. Targeting

There are two main schools of thought concerning scope of social protection. Universalism argues that each person, by merit of simply being a citizen should be entitled to benefits from social protection programs. Such a policy would avoid

Targeting income vs. capabilities

Net income is the simplest method of determining a needy population. Some states use a

In South Korea and Taiwan, the government provides extensive support for public programs, following the developmentalism model, in which social protection is seen as a tool to promote economic growth.^[28]

Dualism

In Argentina, Brazil, India, China and Indonesia there is a dualist structure of protected formal sector workers with social protection levels similar to that of European countries with strong welfare states and marginalized informal sector workers with basic welfare benefits mostly coming from social assistance.^[29][30][31]

Agrarian-informal

In nations such as Tanzania and Ethiopia, governments struggle to provide adequate social protection, and citizens must instead depend on non-state actors and informal provisioning.

Donor approaches

International donors and organizations have influenced social protection approaches in terms of both policy discourse and program design and implementation.^[32] Even though the World Bank and International Labour Organization (ILO) are the major donors and the lead organizations in the field, other organizations are also concerned with social protection.^[33]

• Risk reduction measures that focus on reducing risks in the labor market.
• Risk mitigation measures to deal with anticipated shock.
• Risk coping mechanisms to relieve the impact of risk after its occurred.[34]

The

• Poverty reduction
• Pro-poor growth
• People centered development
• Decent work^[35]

The International Labour Organization, which covers both issues of social security and labor protection, has been the United Nations agency responsible for setting norms and standards at work. Currently the ILO focuses, amongst others, on the following strategies:

• Extending social protection to all
• Promoting decent working conditions
• Providing programs for informal and migrant workers ^[36]

See also

• Social security
• Socialism
• Social programs in sub-Saharan Africa
• Welfare state
• Sustainable Development Goals
• Sustainable Development Goal 8

References