Social Protection in Developing Countries - 990 Words

The global crisis has sharply underscored the need to strengthen social protection institutions in developing countries, and especially in low income countries. Before the onset of the crisis in November 2008, a growing body of research had accumulated proving a comprehensive knowledge base demonstrating that social protection programmes are effective instruments in reducing poverty and enhancing human development. In the decade prior to the onset of the crisis a large number among the new social protection programmes had emerged in the South with a specific focus on children. Children are the largest group within the global poor, and by investing in children’s development, social transfers contribute to providing a permanent exit from†¦show more content†¦The issue how to finance an extension of social protection in developing countries calls for hard headed, innovative responses. The paper is organised as follows: Section two examines three approaches to financing social protection for children, including the resource mobilisation approach, which highlights the potential role of national government revenue collection efforts, and that of international aid in low income countries. It also considers the insurance approach which puts the emphasis on the socialisation of the costs of poverty and vulnerability. Finally it discusses redistribution at the national level as a potential means to finance the extension of social protection for children. The paper finds that it is helpful to cast issues of financing in a broader context than the techniques and mechanics of revenue collection of the machinery of redistribution, important though these are. An optimal financing mix should do three jobs well: (i) generate the resources needed to establish and strengthen appropriate social protection systems; (ii) ensure that the incentives generated by the financing modalities reduce child poverty and child vulnerability; and (iii) secure legitimacy for social protection institutions and policies. Section three examines the main issues involved in financing social protection in low income countries, beginning with a discussion of trends in sub-Saharan Africa,Show MoreRelatedBenefits And Drawbacks Of Cash Transfer Programmes Essay913 Words   |  4 PagesThese days, the world is still facing the poverty. The programme calls social protection was established to address poverty. Social protection has many forms including cash transfers whi ch are now popular and attractive by their accomplishments around the world. Unsurprisingly, cash transfer has been held by many as the latest universal panacea to attack poverty. 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