73235 RESILIENCE, EQUITY, AND  OPPORTUNITY     The World Bank’s   Social Protection and Labor Strategy   2012–2022                                  April  2012        Contents    FOREWORD  ....................................................................................................................................................... iv  v  ACKNOWLEDGMENTS .........................................................................................................................................  EXECUTIVE SUMMARY ........................................................................................................................................ I  1.  ..........................  1  RESILIENCE, EQUITY, AND OPPORTUNITY: THE ROLE OF SOCIAL PROTECTION AND LABOR  1  WHAT IS SOCIAL PROTECTION AND LABOR? ........................................................................................................................   ROLES OF DIFFERENT ACTORS IN SOCIAL PROTECTION AND LABOR ...........................................................................................   4  A PORTFOLIO APPROACH TO SOCIAL PROTECTION AND LABOR ................................................................................................   5  2.  LESSONS FROM THE FIRST DECADE OF WORLD BANK ENGAGEMENT IN SOCIAL PROTECTION AND LABOR ..  6  6  THE FIRST SOCIAL PROTECTION AND LABOR STRATEGY ..........................................................................................................   A DECADE OF ENGAGEMENT IN SOCIAL PROTECTION AND LABOR ............................................................................................   7  LEARNING FROM THE PAST DECADE: WHAT IS NEW ABOUT THIS STRATEGY? .............................................................................  9  3.  10  SOCIAL PROTECTION AND LABOR IN TODAY’S WORLD ..............................................................................  10  A GLOBAL CHALLENGE, AN EMERGING CONSENSUS ............................................................................................................   THE GLOBAL STATE OF SOCIAL PROTECTION AND LABOR: PROGRESS, BUT FRAGMENTED APPROACHES .........................................  12  LEVERAGING SYSTEMS TO ADDRESS THE COVERAGE GAP: FROM EXCLUSION TO INCLUSION ........................................................  18  LEVERAGING SYSTEMS TO ADDRESS THE FLEXIBILITY GAP: FROM INFLEXIBILITY TO RESPONSIVENESS  ............................................. 20  LEVERAGING SYSTEMS TO ADDRESS THE OPPORTUNITY GAP: TOWARDS MORE PRODUCTIVE PROGRAMS .....................................  22  4.  24  STRATEGIC DIRECTION FOR SOCIAL PROTECTION AND LABOR AT THE WORLD BANK .................................  STRENGTHENING SYSTEMIC APPROACHES .........................................................................................................................   25  26  ENSURING INCLUSION ...................................................................................................................................................  32  RESPONDING TO CRISES .................................................................................................................................................  ENHANCING PRODUCTIVITY ............................................................................................................................................  33  5.  37  PRINCIPLES OF ENGAGEMENT FOR THE WORLD BANK ...............................................................................  38  FOCUS ON EVIDENCEâ€?BASED KNOWLEDGE .........................................................................................................................   TAILOR OPERATIONS TO COUNTRY CONTEXT AND EVIDENCE .................................................................................................   39  COLLABORATE ACROSS SECTORS AND ACTORS ....................................................................................................................  42  6.  47  MEASURING AND ACHIEVING SUCCESS: EXPECTED RESULTS AND BUSINESS PLAN IMPLICATIONS ..............  MEASURING RESULTS ................................................................................................................................................... 47  49  BUSINESS IMPLICATIONS ................................................................................................................................................    REFERENCES  53  ......................................................................................................................................................    ANNEXES  ANNEX 1: REGIONAL AND ANCHOR APPLICATIONS OF THE SOCIAL PROTECTION AND LABOR STRATEGY .........................................  61  ANNEX 2: BACKGROUND PAPERS TO THE SOCIAL PROTECTION AND LABOR STRATEGY 2012–22  ................................................. 76  ANNEX 3:  WORLD BANK SOCIAL PROTECTION AND LABOR PORTFOLIO ..................................................................................   80  83  ANNEX 4. RESULTS OF THE SPL STRATEGY CONSULTATIONS .................................................................................................       |  Page ii    ANNEX 5: MULTISECTORAL APPROACHES: LINKAGES BETWEEN THE SPL STRATEGY 2012–22 AND OTHER WORLD BANK GROUP  87  STRATEGIES .................................................................................................................................................................  ANNEX 6. SOCIAL PROTECTION STRATEGIES OUTSIDE OF THE WORLD BANK ............................................................................  91  ANNEX 7:   RESULTS FRAMEWORK ...................................................................................................................................  97       BOXES  BOX 2.1:  IEG’S 2011 EVALUATION OF WORLD BANK SUPPORT FOR SOCIAL SAFETY NETS ..........................................................  8  BOX 2.2:   RESULTS OF THE STRATEGY CONSULTATIONS .........................................................................................................   9  BOX 3.1: THE SOCIAL PROTECTION FLOOR ........................................................................................................................   12  BOX 3.2:   VIETNAM: ADDRESSING FRAGMENTATION AND MODERNIZING SPL ........................................................................  14  BOX 3.3:  “SMARTâ€? SPL SYSTEMS ................................................................................................................................  16  BOX 3.4: EMBEDDING SOCIAL PROTECTION WITHIN NATIONAL PRIORITIES IN RWANDA  17  .............................................................  BOX 3.5: RULES, ROLES, CONTROLS—GOVERNANCE IN SOCIAL PROTECTION ..........................................................................  17  BOX 3.6: USING COMMUNITIES TO ENHANCE ACCOUNTABILITY: INDIA AND MALAWI ...............................................................  18  BOX 3.7:  CONDITIONAL CASH TRANSFERS:  PROTECTING THE POOR AND PROVIDING OPPORTUNITY ...........................................  22  BOX 4.1:  BRAZIL:  BOLSA FAMÃ?LIA AND THE IMPACT OF INTEGRATED SOCIAL ASSISTANCE .........................................................  26  BOX 4.2: SOCIAL PROTECTION IN FRAGILE CONTEXTS: THREE APPROACHES ............................................................................  27  BOX 4.3:  PROMOTING LIVELIHOODS AND FOOD SECURITY IN RURAL ECONOMIES ....................................................................  28  BOX 4.4: USING CELL PHONES TO PROTECT THE POOR IN KENYA ..........................................................................................   29  BOX 4.5:  DESIGNING GENDERâ€?SENSITIVE PUBLIC WORKS PROGRAMS: INDIA’S MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT  30  GUARANTEE PROGRAM .................................................................................................................................................  BOX 4.6:  THE WORLD BANK’S CONCEPTUAL FRAMEWORK FOR PENSIONS .............................................................................  32  BOX 4.7: MOBILIZING SOCIAL PROTECTION IN THE FACE OF CLIMATE CHANGE ........................................................................  32  BOX 4.8: WORLD DEVELOPMENT REPORT 2013 ON JOBS: PRELIMINARY MESSAGES AND POTENTIAL LINKS TO THE SPL STRATEGY ...  33  BOX 4.9: THE MILES FRAMEWORK ................................................................................................................................  35  BOX 4.10: ACTIVE LABOR MARKET PROGRAMS AND THE YOUTH EMPLOYMENT CHALLENGE ......................................................  36  BOX 5.1:  SOUTHâ€?SOUTH LEARNING IN SOCIAL PROTECTION AND LABOR ................................................................................   40  BOX 5.2: ARCHITECTURE AND ENGINEERING: THE WORLD BANK’S OPERATIONAL SERVICES TO COUNTRIES ON SPL SYSTEMS ..........  41  BOX 5.3: STEP: A MULTISECTORAL FRAMEWORK FOR BUILDING SKILLS AND ENHANCING PRODUCTIVITY .....................................  42  BOX 5.4  PREPARING FOR THE NEXT CRISIS: BUILDING SPL SYSTEMS WITH THE RAPID SOCIAL RESPONSE PROGRAM .......................  45     FIGURES  FIGURE 1.1:  GOALS OF SOCIAL PROTECTION AND LABOR ......................................................................................................   2  FIGURE 1.2: SPL CONTRIBUTES TO PRODUCTIVITY, GROWTH, AND POVERTY REDUCTION ............................................................  3  FIGURE 1.3:  SPL PROGRAMS WORK DYNAMICALLY OVER THE LIFE CYCLE TO PROVIDE RESILIENCE, EQUITY, AND OPPORTUNITY ........  5  FIGURE 2.1:  SHARE OF SPL LENDING: IBRD, IDA AND GRANTS (FY98â€?11) .............................................................................  6  FIGURE 2.2: NEW WORLD BANK COMMITMENTS TO SPL, 1998â€?2011 ($ MILLION) ..................................................................  8  FIGURE 3.1: CASH TRANSFERS IN AFRICA ARE FRAGMENTED ACROSS MINISTRIES AND BETWEEN GOVERNMENT AND NONâ€? 13  GOVERNMENT ACTORS ..................................................................................................................................................  FIGURE 3.2: THREE LEVELS OF ENGAGEMENT FOR SPL SYSTEMS ...........................................................................................   15  FIGURE 3.3: MOST OF THE POPULATION IN AFRICA, MENA, AND SOUTH ASIA RECEIVE LITTLE IN THE WAY OF SPL TRANSFERS .......  19  FIGURE 4.1: BUILDING SPL SYSTEMS APPROPRIATE FOR DIFFERENT INSTITUTIONAL CONTEXTS ...................................................  25    TABLES  11  TABLE 3.1: A CHANGING WORLD ...................................................................................................................................  TABLE 6.1: SPL STRATEGY RESULTS AT A GLANCE ..............................................................................................................   47      |  Page iii    Foreword    Effective  social  protection  and  labor  (SPL)  policies  occupy  center  stage,  as  never  before.    As  our  globalized  world  continues  to  be  gripped  by  an  economic  downturn,  few  countries  are  spared  from  having to wrestle with the consequences for their people of unanticipated economic shocks and unmet  expectations for good jobs.  The decade ahead is fraught with risk.  Yet it is also filled with promise for those who can manage these  risks and access opportunities.  To assist countries in delivering on this promise for all their citizens, the  World Bank has developed a new SPL strategy.  The strategy is built on a platform that helps overcome  four  elemental  gaps  in  SPL  today:  in  integration  across  programs  and  functions,  in  access  to  SPL  instruments,  in  promotion  to  ensure  access  to  jobs  and  opportunities,  and  in  global  knowledge  of  effective SPL approaches.  After  extensive  consultation  and  dialogue  with  clients,  stakeholders  and  practitioners  about  needs  in  this  fastâ€?changing  world,  we  have  designed  the  strategy  with  a  core  focus:  to  move  SPL  from  isolated  interventions to a coherent, connected portfolio of programs.  This systemic approach helps countries to  address  the  fragmentation  and  duplication  across  programs,  and  to  create  financing,  governance  and  solutions tailored to their own contexts.  A  focus  on  systems  is  not  an  end  in  itself.    It is  a  gateway  to  deliver  outcomes.    Effective  SPL  systems  build resilience by ensuring that individuals and families are wellâ€?protected against the sudden shocks  that are likely to overwhelm them.  They improve equity at both national and global levels by reducing  poverty  and  destitution  –  with  strong  support  to  people  in  low  income  countries,  and  those  in  the  informal sector.  And they promote opportunity to improve people’s productivity and incomes, through  preserving  and  building  their  human  capital,  and  through  access  to  better  jobs  and  income  which  can  propel them out of poverty.  To that end, the strategy takes into account the importance of having wellâ€?functioning social safety nets,  proven to reduce poverty and inequality, promote access to health and education among poor children,  and empower women; and sustainable social insurance programs that help cushion the impact of crises  on  households.    And  the  strategy  promotes  effective  policies  for  productive  employment  which  help  people  gain  access  to  labor  markets  and  accumulate  skills, both during  recovery  from  economic  crisis  and in normal times.  The strategy is designed to help harness knowledge management in key ways: by generating evidence  and lessons to inform effective policies; promoting Southâ€?South knowledge sharing and open access to  data and information; and providing global leadership in research, analysis and data management.  Today,  SPL  at  the  World  Bank  is  a  young,  strong  sector,  accounting  for  a  significant  share  of  Bank  lending  and  knowledge  –  and  serving  as  a  global  leader  in  its  work  on  evidenceâ€?based  policyâ€?making.   The strategy builds on the foundation of this work.  This publication sets out a snapshot of the strategy’s goals, direction, and commitments.  We believe that  the strategy provides a fundamental underpinning to the work of the Bank and its development partners  and  hope  that  it  responds  to  the  needs  of  countries  engaged  in  the  move  toward  effective  SPL  –  and  ultimately more effective and inclusive growth and development.  Tamar Manuelyan Atinc  Vice President, Human Development Network  World Bank      |  Page iv    Acknowledgments    The World Bank Social Protection and Labor Strategy 2012–22 was prepared by a team led by Arup  Banerji (Director, Social Protection and Labor [SPL]) and Laura Rawlings (Task Team Leader) and  composed of members of the World Bank’s Social Protection and Labor Sector Board, including (in  alphabetical order), Harold Alderman, Anush Bezhanyan, Aline Coudouel, Gustavo Demarco, Yasser  Elâ€?Gammal  ,  Emanuela  Galasso,  Marito  Garcia,  Roberta  Gatti,  John  Giles,  Pablo  Gottret,  Margaret  Grosh,  Jesko  Hentschel,  Emmanuel  Jimenez,  Marju  Kymalainen,  Kathy  Lindert,  Jennie  Litvak,  Cem  Mete,  Raj  Nallari,  Riikka  Noppa,  Bassam  Ramadan,  Mansoora  Rashid,  Jaime  Saavedra,  Lynne  Sherburneâ€?Benz, Emmanuel Skoufias,  Adam Wagstaff,  and Xiaoqing Yu.   The core team preparing the strategy included Colin Andrews, Cecilia Costella, Raiden Dillard, Mark  Dorfman,  John  Elder,  Richard  Hinz,  Maddalena  Honorati,  Federica  Marzo,  Hideki  Mori,  Azedine  Ouerghi,  Francine  Pagsibigan,  Robert  Palacios,  Aleksandra  Posarac,  Shams  ur  Rehman,  David  Robalino, Dung Thi Ngoc Tran, and Ruslan Yemstov.   The team is grateful for the full support and deep intellectual and strategic guidance on the issues  provided by Mahmoud Mohieldin (Managing Director) and Tamar Manuelyan Atinc (Vice President,  Human  Development  Network  [HDN]).  The  strategy  team  also  benefited  from  the  comments  and  suggestions of the Executive Directors of the World Bank, especially those who are members of the  Committee on Development Effectiveness (CODE), and from World Bank senior management across  regions and sectors.  Special thanks are extended to Anna Brandt, Chair of CODE.    We  would  like  to  thank  other  members  of  the  Human  Development  Council  for  their  guidance,  including  Cristian  Baeza,  Ariel  Fiszbein,  Keith  E.  Hansen,  Elizabeth  King,  Steen  Jorgensen,  Bruno  Laporte, Mamta Murthi, Ritva S. Reinikka, Ana Revenga, Michal Rutkowski, and David Wilson.  We  are  also  grateful  for  the  guidance  and  direction  from  a  distinguished  Advisory  Committee  for  the  Strategy,  whose  members  have  been  generous  with  their  time,  insights,  and  guidance.  The  Advisory  Committee  comprised  of  Fatima  Alâ€?Balooshi  (Ministry  of  Social  Development,  Bahrain),  Cai Fang (Institute of Population and Labor Economics at the Chinese Academy of Social Sciences,  China),  Victoria  Garchitorena  (Ayala  Foundation,  Philippines),  Evgeny  Gontmakher  (Institute  of  Contemporary Development and Center for Social Policy Studies at the Institute of Economics of the  Russian  Academy  of  Sciences,  Russia),  James  Dorbor  Jallah  (Ministry  of  Planning  and  Economic  Affairs, Liberia), Samura Kamara (Ministry of Finance, Development and Economic Planning, Sierra  Leone), Ravi Kanbur (Cornell University, United States), Romulo Paes De Sousa (Ministry of Social  Development  and  Fight  against  Hunger,  Brazil),  and  Jose  Manuel  Salazarâ€?Xirinachs  (International  Labour Organization).   A  set  of  nine  background  papers  and  two  background  notes  served  as  critical  inputs  to  the  preparation of the strategy and provide additional guidance in core areas.  The papers are listed in  Annex 2. The authors include Harold Alderman, Rita Almeida, Colin Andrews, Juliana Arbelaez, Lucy  Bassett,  Yoonyoung  Cho,  Rachel  Cipryk,  Sabine  Cornelius,  Cecilia  Costella,  Maitreyi  Das,  Mark  Dorfman,  John  Elder,  Emanuela  Galasso,  Sara  Giannozzi,  Rasmus  Heltberg,  Maddalena  Honorati,  Arvo  Kuddo,  Anne  T.  Kuriakose,  Tanja  Lohmann,  David  Margolis,  Federica  Marzo,  Karla  McEvoy,  Hideki Mori, David Newhouse, Mirey Ovadiya, Karen Peffley, Lucian Pop, Aleksandra Posarac, Laura  Rawlings, Dena Ringold, David Robalino, Maria Laura Sanchez Puerta,  Ian Walker, Sophie Warlop,  Michael  Weber,  Briana  Wilson,  William  Wiseman,  Ruslan  Yemtsov,  Hassan  Zaman,  and  Giuseppe  |  Page v  Zampaglione.    The  background  papers  were  richer  for  the  advice  and  comments  from  an  even  broader range of World Bank staff working on social protection and labor.  The  team  would  also  like  to  thank  the  many  others  who  contributed  to  the  strategy  formulation,  with papers, sections, comments, advice, and coordination, including Paloma Acevedo, Ihsan Ajwad,  Omar Arias, Giedre Balcytyte, Chris Bene, John D. Blomquist, Hana Brixi, Mukesh Chawla, Ravindra  Cherukupalli, Sarah Collâ€?Black, Tim Conway, Amit Dar, Mark Davies, Carlo del Ninno, Benedicte de  la  Briere,  Gustavo  Demarco,  Jeanâ€?Jacques  Dethier,  Louise  Fox,  Uwe  Gehlen,  John  Giles,  Margaret  Ellen Grosh, Rebekka Grun, Yvonne W. Hensley, Anne Hyde, Theresa Jones, Will Kemp, Dugâ€?ho Kim,  Adea  Kryseu,  Jessica  Lee,  Alessandro  Legrottaglie,  Andrew  Mason,  Gisu  Mohadjer,  Nadeem  Mohammad,  Ida  Mori,  Philip  O'Keefe,  Truman  Packard,  Idah  Pswarayiâ€?Riddihough,  Setareh  Razmara,  Helena  Ribe,  Rafael  Rofman,  Manuel  Salazar,  Anita  Schwarz,  Ozan  Sevimli,  Iffath  Sharif,  Kamal  Siblini,  Oleksiy  Sluchynsky,  Concha  Steta,  Christopher  Thomas,  Tony  Thompson,  Maria  Cristina Uehara, Dominique van de Walle, Julie van Domelen, Milan Vodopivec, and Penny Williams.  Throughout  the  development  of  the  strategy,  the  team  benefited  from  generous  contributions  by  many more staff.  We are particularly grateful to the communications teams in HDN composed of  Clare Fleming, Phillip Hay, Patrick Ibay, Melanie Mayhew, Carolyn Reynolds, and Julia Ross.  We are  also very grateful for the extraordinary support extended by numerous World Bank field offices and  SPL staff who led, organized, and participated in the consultations.  The strategy team is grateful to the government officials of partner countries, global development  partners,  representatives  of  civil  society  organizations,  trade  unions,  and  think  tanks  who  made  valuable recommendations—both formal and informal—throughout the strategy development and  drafting process.  The entire group is too large to list, but we would like to especially thank those  who were kind enough to host multicountry and multistakeholder consultation events.  Finally, we thank  our partners—including the Asian Development Bank, the African Development  Bank,  the  Food  and  Agriculture  Organization,  the  International  Trade  Union  Confederation,  the  Interâ€?American  Development  Bank,  the  International  Food  Policy  Research  Institute,  the  International  Labour  Organization,  HelpAge  International,  Oxfam,  Save  the  Children,  the  United  Nations  Children’s  Fund,  the  United  Nations  Development  Programme,  the  World  Food  Program,  and the aid agencies of the governments of Australia, Canada, Denmark, the European Commission,  Germany,  Italy,  Japan,  the  Netherlands,  Norway,  Russian  Federation,  Spain,  Sweden,  Switzerland,  United  Kingdom,  and  the  United  States—for  giving  us  their  advice  and  comments,  and  for  the  opportunity to consult with their staff.                |  Page vi    Abbreviations and Acronyms    AAA  Analytical and Advisory Activity  ADB  Asian Development Bank  AfDB  African Development Bank  ALMP  Active Labor Market Program  AU  African Union  3P  Prevention, Protection, Promotion [framework]   BLT  Bantuan Langsung Tunai (Direct Cash Assistance Program, Indonesia)  CCT  Conditional Cash Transfer  CODE  Committee on Development Effectiveness   CPIA   Country Policy and Institutional Assessment  CRED  Center for Research in the Epidemiology of Crisis  CSO  Civil Society Organization  DDR  Disarmament, Demobilization, and Reintegration  DEC  Development Economics Vice Presidency  DFID  Department for International Development (United Kingdom)  EAP  East Asia and the Pacific  ECA  Europe and Central Asia  ESW  Economic and Sector Work  EU  European Union  FAO  Food and Agriculture Organization of the United Nations  FBS  Feeâ€?Based Service  FPD  Financial and Private Sector Development   HDN  Human Development Network  IBRD  International Bank for Reconstruction and Development  ICR  Implementation Completion Report  ICT  Information and Communication Technology  IDA  International Development Association  IDB  Interâ€?American Development Bank  IEG  Independent Evaluation Group  IFPRI  International Food Policy Research Institute  ILO  International Labour Organization/ International Labor Office  IPCC  Interâ€?Governmental Panel on Climate Change  ISSA  International Social Security Association  IZA  Institut zur der Zukunft der Arbeit/ Institute for the Study of Labor  LAC  Latin America and the Caribbean  LIC  Lowâ€?income Country  MDG  Millennium Development Goal  |  Page vii  MDTF  Multiâ€?Donor Trust Fund  MIC  Middleâ€?income Country  MILES  Macroeconomic  Stability,  Investment  Climate  and  Infrastructure,  Labor  Regulations, Education and Skills, Social Protection [framework]  MIS  Management Information System  MENA  Middle East and North Africa  M&E  Monitoring and Evaluation  NGO  Nongovernmental Organization   OECS   Organization of Eastern Caribbean States  OPCS  Operations Policy and Country Services  PMT  Proxy Means Targeting  PREM  Poverty Reduction and Economic Management  PSNP  Productive Safety Nets Program (Ethiopia)  RSBY  Rashtriya Swasthya Bima Yojna (National Health Insurance Program, India)  RSR  Rapid Social Response  SAR  South Asia Region  SDN  Social Development Network  SIF  Social Investment Fund  SIEF  Spanish Strategic Impact Evaluation Fund  SMART  Synchronized,  Measurable,  Affordable,  Responsive,  Transparent  and  Accountable  [framework]  SPFâ€?I  Oneâ€?UN Social Protection Floor Initiative  SPL  Social Protection and Labor   SRM  Social Risk Management  SSIU  Social Protection Sector Strategy Implementation Update  SSN  Social Safety Net  STEP  Skills Towards Employability and Productivity [framework]  TA  Technical Assistance  TF  Trust Fund  UBsim  Unemployment Benefits Simulation Tool  UCT  Unconditional Cash Transfer  UN  United Nations  UNDP  United Nations Development Programme  UNICEF  United Nations Children’s Fund  US  United States   VUP  Vision 2020 Umurenge Program (Rwanda)  WDI  World Development Indicator  WFP  United Nations World Food Programme  WHO  World Health Organization  |  Page viii  Executive Summary    Risk and the quest for opportunity feature heavily in economic life in the 21st century.  Sustained  growth in many developing countries has pulled billions out of poverty and into the middle class;  but  this  economic  upturn  has  yet  to  reach  billions  more,  who  face  unemployment,  disability,  or  illness,  and  struggle  to  protect  themselves  and  their  families  against  shocks.    The  poor  are  particularly vulnerable, being typically more exposed to risk and less able to access opportunities.    In a world filled with risk and potential, social protection and labor systems are being built, refined  or  reformed  in  almost  every  country  to  help  people  and  families  find  jobs,  improve  their  productivity, cope with shocks, and invest in the health, education, and wellâ€?being of their children.   Social  protection  and  labor  systems,  programs  and  policies  buffer  individuals  from  shocks  and  equip  them  to  improve  their  livelihoods  and  create  opportunities  to  build  a  better  life  for  themselves  and  their  families.    Consider  this:  A  baby  in  a  poor  family  does  not  starve  during  the  2011 drought in the Horn of Africa, because Ethiopia’s national public works program provides his  parents  with  a  minimum  income.    An  old  man  in  Ukraine  is  able  to  deal  with  his  unexpected  disability  by  going  to  the  “oneâ€?stop  shopâ€?  in  his  local  welfare  office,  where  the  staff  can  quickly  direct  him  to  the  right  program  he  needs.    And  a  young  unemployed  woman  in  the  Dominican  Republic is able to find a job that pays her a good wage—because she could access a jobâ€?training  program focused on her needs.1   While social protection and labor policies and programs are designed for individuals and families,  they can also be broadly transformative—by providing a foundation for inclusive growth and social  stability.    These  policies  and  programs  help  create  opportunities  essential  to  save  lives,  reduce  poverty, and promote inclusive growth.    Social protection and labor programs directly improve  resilience by helping people insure against  drops in well being from different types of shocks and  equity  by reducing poverty and destitution  and  promoting  equality  of  opportunity.    But  these  policies  also  promote  The World Bank’s  opportunity by building human capital, assets, and access to jobs and by freeing  social protection and  families  to  make  productive  investments  because  of  their  greater  sense  of  labor practice will  security.  At a macroeconomic level, wellâ€?functioning social protection programs  help countries move  are  central  to  growthâ€?promoting  reforms.    Indeed,  according  to  the  Growth  Commission:  “…if  governments  cannot  provide  much  social  protection,  they  may  from fragmented  have to tread more carefully with their [growth­promoting] economic reforms.â€?2  approaches toward  The  World  Bank  supports  social  protection  and  labor  in  client  countries  as  a  more coherent  central  part  of  its  mission  to  reduce  poverty  through  sustainable,  inclusive  systems for social  growth.  The World Bank’s new social protection and labor strategy (2012â€?22)  protection and labor,  lays  out  ways  to  deepen  World  Bank  involvement,  capacity,  knowledge,  and  impact in social protection and labor.3   and help to make  these more responsive,  Three overarching goals, a clear strategic direction, and engagement principles  guide this new strategy:  productive and  inclusive.  ï‚· The  overarching  goals  of  the  strategy  are  to  help  improve  resilience,  equity, and opportunity for people in both lowâ€? and middleâ€?income countries.  |  Page I  ï‚· The strategic direction is to help developing countries move from fragmented approaches  to more harmonized systems for social protection and labor.  This new strategy addresses  gaps in the current practice by helping make social protection and labor more responsive,  more productive, and more inclusive of excluded regions and groups—notably lowâ€?income  countries and the very poor, the disabled, those in the informal sector and, in many cases,  women.  ï‚· The  engagement  principles  for  working  with  clients  are  to  be  countryâ€?tailored  and  evidenceâ€?based  in  operations  and  knowledge  work,  and  collaborative  across  a  range  of  sectors and actors.  The strategy is not a “one size fits allâ€? approach.  Instead, it calls for improving evidence, building  capacity,  and  sharing  knowledge  across  countries  to  facilitate  informed,  countryâ€?specific,  fiscally  sustainable  social protection and labor programs and systems.  The World Bank will support this  agenda  not  only  through  lending,  but  critically  by  improving  evidence,  building  capacity,  and  supporting knowledge sharing and collaboration across countries.   This social protection and labor strategy builds on the achievements—as well as the lessons—from  practice over the last decade and more.  Moreover, it builds on the basic analytical foundation of the  first World Bank social protection and labor strategy.   But  the  strategy  also  stakes  out  new  ground  to  meet  new  challenges.    First,  it  brings  a  stronger  focus  on  solutions,  underscoring  the  need  to  build  a  coherent  portfolio  of  social  protection  and  labor  programs—or  a  social  protection  and  labor  system—that  together  help  people  deal  with  multiple  risks.    This  recognizes  that  the  focus  until  the  midâ€?2000s  had  been  more  on  improving  programs than on building systems.    Second, the strategy strongly commits  to  extending  social  protection  and  labor  programs  to  the  poorest countries and the poorest people, who are the least integrated, yet have the largest needs.  This  includes  those  in  the  informal  sector.    It  does  not  imply  lessening  engagement  in  middleâ€? income countries.  Third, the strategy stresses the central role of jobs and opportunity.  It lays out an agenda for both  operations  and  partnership—a  multisectoral  approach  to  both  improve  human  capital—with  a  strong focus on children and workers’ skills and productivity and to improving people’s ability to  access those jobs and opportunities.  Fourth, the strategy highlights the importance of  appropriate  knowledge in social protection and  labor practice, building on past experience.  It especially stresses the importance of evidence and of  global Southâ€?South flows of knowledge about what works in social protection and labor.  This is an ambitious agenda.  To realize this, the World Bank will need to collaborate across sectors  and development partners.  It will especially address the limited global knowledge and experience  in  some  central  areas  (such  as  effective  solutions  in  weaker  institutional  capacity  settings)  and  promote  approaches  that  are  both  costâ€?effective  and  fiscally  sustainable.    It  will  help  to  generate  access to productive jobs for those who can work.  And it will engage in policy dialogue that help  countries  tackle  complex  tradeâ€?offs  across  programs  and  objectives,  while  keeping  a  focus  on  affordability and future fiscal sustainability.      |  Page II  Box 1: Motivating the New Strategy: The Decade Ahead The next decade presents fast-moving social and economic changes. The World Bank developed the new social protection and labor strategy to help countries cope with the rapidly shifting socioeconomic landscape ahead. The world is increasingly becoming interconnected and risky, with economic shocks and epidemics flowing across national borders. While young people seek jobs in record numbers in some places, aging is shrinking the productive population and ushering in new fiscal challenges in others. Poverty, inequality, and exclusion still persist in every country, and the lack of “equality of opportunityâ€? to access quality education, health, and nutrition makes economic mobility unattainable for many poor people. Moreover, the future for productive jobs looks uncertain for a large swath of the world’s workers, who face unemployment or underemployment. Yet, people across the world are facing a future offering extraordinary potential. Over the last decade, billions in the developing world have emerged out of poverty. Steady economic growth will pull up many more. By one measure, 1.2 billion people have joined the “middle classâ€? in developing countries since 1990 and are able to invest in themselves, their children, and the economy. Dramatic improvements in education and health mean that parents in developing and emerging countries can look forward to a much longer, more productive life for their children. Against this backdrop, a growing body of evidence is emerging on the importance of effective social protection and labor programs and policies. Extensive analysis shows that well-designed, well-targeted social protection and labor programs can affordably help households manage risk in the face of shocks. Moreover, these programs can improve nutrition, health, and education outcomes for children, create access to better jobs, empower girls and women, and promote greater equity. The One-UN Social Protection Floor initiative currently led by the International Labour Organization and the World Health Organization has been endorsed by the United Nations, the G-20, and numerous governments and non-governmental organizations. It promotes the importance of effective social protection and labor programs and policies. In addition, multilateral banks, United Nations agencies, the European Commission, and bilateral partners are increasingly helping countries to improve their social protection and labor efforts. Most important, both middle- and low-income countries are building successful social protection and labor programs and experimenting with reforms, including: ï‚· Asignación Universal por Hijo para Protección Social in Argentina ï‚· Bolsa Familia (and the new Brasil Sem Miséria) program in Brazil ï‚· Productive Safety Nets program in Ethiopia ï‚· Mahatma Gandhi National Rural Employment Guarantee program in India ï‚· Di bao reforms in China ï‚· Progresa and Oportunidades programs in Mexico.   Goals of Social Protection and Labor: Resilience, Equity, and Opportunity Social  protection  and  labor  systems,  policies,  and  programs  help  individuals  and  societies  manage  risk  and  volatility  and  protect  them  from  poverty  and  destitution—through  instruments that improve resilience, equity, and opportunity.4     Resilience  through  insuring  against  drops  in  well  being  from  a  range  of  shocks.  Key sources of  resilience are social insurance programs that minimize the negative impact of economic shocks on  individuals  and  families—such  as  unemployment  and  disability  insurance,  oldâ€?age  pensions,  and  scalable  public  works  programs.    Complementary  programs  in  In a world filled with risks and  other sectors are also extremely important for resilience—such as  potential, people use social  crop  and  weather  insurance  and  health  insurance.    Private  and  protection and labor programs  informal  arrangements  (such  as  savings,  assets,  and  familyâ€?  or  communityâ€?based support) are vital, too.    to manage risk and volatility,  protect them from destitution,  Equity  through  protecting  against  destitution  and  promoting  equality  of  opportunity.5  Social assistance programs (also known  and connect to opportunities.    as  safety  net  programs—including  cash  transfers  and  inâ€?kind  |  Page III  transfers, such as school feeding and targeted food assistance) address chronic poverty.  They also  protect  poor  individuals  and  families  from  irreversible  and  catastrophic  losses  of  human  capital  (nutrition, health, and education), thereby contributing to equality of opportunity.  Opportunity  for  people  through  promoting  better  health,  nutrition,  education,  and  skills  development,  along  with  helping  men  and  women  access  productive  work.    Institutions  that  promote  opportunity  are  often  integrated  with  those  supporting  resilience  and  equity.    For  example,  labor  market  programs  provide  unemployment  benefits,  build  skills,  and  enhance  workers’ productivity and employability.  Cash transfers incentivize investments in human capital  by promoting demand for education and health and help address gender inequalities.  And public  works programs provide cash payments to the poor,  while increasing physical capital investments.    What are Social Protection and Labor Programs?  The  goals  of  resilience,  equity,  and  opportunity    cannot be achieved with isolated programs, within a  Social assistance (social safety nets): Such as cash  transfers, school feeding and targeted food assistance  single  sector,  or  through  public  mandates  alone.    Attaining  them  requires  an  appropriate  policy,  legal  Social insurance: Such as old­age and disability pensions,  and institutional frameworks, as well as a portfolio of  and unemployment insurance  instruments  and  collaboration  across  economic    Labor market programs: Such as skills­building programs,  sectors.     job­search and matching programs, and improved labor  For  instance,  agricultural  crop  insurance  provides  regulations    resilience  to  farmers,  as  do  savings  from  microâ€? savings schemes and rotating savings associations.  Charitable institutions and worker remittances  provide equityâ€?promoting transfers in many societies.  The availability of good schools and clinics is  critical for the poor looking to improve their children’s human capital.  Private firms are the most  important  vehicles  for  good  jobs  and  opportunity,  and  often  invest  in  building  workers’  skills.  Informal social networks are often best for youth seeking better opportunities to use those skills.    The  government plays a role in setting the  agenda for social protection in line with societal goals  and  in  overseeing  the  efficacy  of  social  protection  and  labor  measures,  be  they  public,  private  or  informal.  The state has a particular role to play when there are the inevitable gaps in access—and  when private measures fail to meet societies’ objectives resulting from, for instance, failures in the  markets for credit or insurance.   Social  protection  and  labor  policies  and  programs  can  provide  a  broadâ€?based  foundation  for  inclusive  growth  and  social  stability,  and,  when  properly  designed,  are  also  affordable.    Although  there  remains  considerable  debate  on  the  role  and  contributions  of  social  protection,  there  is  growing evidence that it contributes to growth by:6  ï‚· Building and protecting human capital  ï‚· Providing the security to invest in higherâ€?risk–higherâ€?return activities  ï‚· Promoting greater labor market mobility  ï‚· Stabilizing aggregate demand, notably during recessions  ï‚· Enhancing productive assets and infrastructure (for example, through public works)   ï‚· Reducing inequality in society  ï‚· Making growthâ€?enhancing reforms more politically feasible    |  Page IV  Beyond risk management and poverty reduction, social protection and labor policies and programs  are increasingly recognized as a vehicle for implementing social contracts, securing people’s rights,  and fulfilling their obligations.  Strategic Direction: From Fragmented Approaches to More Coherent Systems Many  social  protection  and  labor  programs  are  fragmented  and  lack  harmonization,  hampering  their  effectiveness.    The  World  Bank’s  new  social  protection  and  labor  strategy’s  main  objective  is  to  help  countries  move  from  fragmented  Social protection and  approaches  to  harmonized  systems.    It  focuses  on  making  these  systems  labor systems are  more  inclusive  of  the  vulnerable  and  more  attuned  to  building  people’s  capacities  and  improving  the  productivity  of  their  work.    It  seeks  to  make  portfolios of coherent  people better able to respond to crises and shocks.    programs that can  Reducing fragmentation across programs, actors, and levels of government  communicate with each  can decrease inefficiencies, enhance coverage, and improve responsiveness  other, often share  to  risks.    The  strategy  also  focuses  on  three  critical  global  gaps  in  social  administrative sub­ protection and labor today: exclusion, where existing programs fail to reach  key  vulnerable  groups;  poor  links  to  opportunities,  where  programs  and  systems, and work  systems  do  not  always  connect  people  to  productive  potential;  and  together to deliver  inflexibility, where programs are unable to accommodate those made newly  resilience, equity, and  vulnerable because of systemic shocks.    opportunity.  From Fragmentation to Systems  In  many  countries,  social  protection  and  labor  programs  simply  do  not  exist  at  scale.    Instead,  smaller  unconnected  efforts  focus  on  distinct  regions,  discrete  groups,  or  specific  objectives  without complementing each other.  In other contexts, largerâ€?scale programs may exist, but may not  be  costâ€?effective,  coherent  in  terms  of  the  incentives  they  provide,  or  responsive  to  economic  downturns.    A  systemsâ€?oriented  approach  to  social  protection  and  labor  programs  strengthens  coordination and integration at the policy, program, and administrative subsystems levels; adapted  to different country contexts (see Figure 1).   In  many  lowâ€?income  countries,  especially  in  fragile  contexts,  taking  a  systems  approach  could  involve  first  investing  in  a  single  program  and  developing  basic  administrative  systems—for  example,  beneficiary  registries,  cash  delivery  mechanisms,  and  targeting  approaches.    Once  these  subsystems  are  functional,  they  could  then  be  expanded  incrementally  to  other  programs.    But  countries  face  the  larger  challenges  of  improving  and  coordinating  different  programs  that  serve  complementary functions, and of ensuring their fit with the broader policy environment.    Although  the  exact  form  of  social  protection  and  labor  systems  will  necessarily  vary  across  countries, many basic functions are similar.  At the policy, program and administrative levels, there  are common challenges  and the need for capacity building and knowledge sharing is widespread.  For example, at the policy level, there is a need for affordable, fiscally sustainable approaches that  can serve as a basis for meeting coverage gaps.  At the program level, countries need ways to costâ€? effectively  deliver  appropriate  benefits  to  the  most  vulnerable.    At  the  administrative  level,  many  countries  are  making  important  advances  in  developing  citizen  registries  by  household,  age,  and  income, and using them to coordinate service delivery across relevant social protection and labor  programs.      |  Page V  The  aim  is  to  help  countries  move  toward  systematic  approaches  that  have  five  “SMARTâ€?  characteristics:    Synchronized across programs  Monitored, evaluated, and adapted   Affordable, fiscally and in terms of costâ€?effectiveness  Responsive to crises and shock  Transparent and accountable  From Exclusion to Inclusion  Today, many who most need good social protection and labor programs and systems are often the  least  likely  to  have  access  to  them.    Poor  populations,  marginalized  groups,  and  those  working  in  the  informal  sector  are  particularly  excluded.    Countries  with  fewer  fiscal  resources  and  a  larger  share of poor people, especially in Subâ€?Saharan  Africa, typically have fewer beneficiaries of social  protection  and  labor  transfers  and  face  difficult  choices  about  how  to  expand  coverage,  while  ensuring fiscal sustainability.    Within  many  countries,  social  insurance  programs  (such  as  oldâ€?age  pensions  Extending social  and  disability  and  unemployment  benefits,  as  well  as  many  active  labor  protection and labor  market programs, such as skills training) benefit only formal sector workers,  systems to low­income  excluding the informal and agricultural workers who are often a large share of  the population.  And many programs are not available to those who are most  and fragile contexts  in  need—the  poorest  of  the  poor,  disabled  and  illiterate  people,  the  urban  will require investing  homeless, those who are socially excluded, and those who live in remote areas.   in basic administrative  The 2012 World Development Report  on gender and development notes that  subsystems, and  poor  women  are  often  among  the  most  disadvantaged,  especially  in  their  access to services.7    creatively addressing  But the challenges of inclusion are substantial.  It can be difficult to have the  institutional  excluded participate in social protection and labor programs, as they are often  weaknesses.   the hardest  to reach,  being cut off from information and education.   Aligning  coverage  goals  with  costâ€?effective  solutions  often  requires  difficult  choices  about  tradeâ€?offs.   Implementing  programs  effectively  is  usually  a  greater  challenge  than  developing  good  designs,  calling  for  attention  to  program  detail,  capacity  building,  and  performance  management.    And  sometimes  strong  vested  interests  or  engrained  perspectives  block  more  inclusive  policies— necessitating courageous political choices and changing societal attitudes.  Making social protection and labor systems more inclusive will require investment and innovation,  with particular challenges in lowâ€?income and fragile contexts.  This will require three major sets of  actions:   ï‚· First, providing catalytic investments to build the basic administrative subsystems that can  serve as the backbone of social protection and labor programs, such as through the Rapid  Social Response Program (see Box).    ï‚· Second,  creatively  addressing  the  institutional  weaknesses  by,  for  example,  engaging  civil  society  and  communities  (for  example,  through  social  funds)  and  using  information  and  communication technology.    ï‚· Third,  focusing  on  building  country  administrative  and  financial  capacity  to  develop,  integrate, and expand social protection and labor systems.    |  Page VI  In  all  cases,  decision  makers  will  need  to  use  creativity,  innovation,  and  adaptation—relying  on  greater  evidence  and  knowledge  sharing.    This  evidence  and  knowledge  is  important  for  raising  governments’ awareness of the social and economic benefits of social protection and labor, as well  as for guiding reforms.  It can also inform difficult decisions about how to allocate scarce resources,  and help policymakers address pressures to invest in more visible, immediate projects or respond  to more vocal and empowered constituents.  Many existing programs provide models of inclusion that can be studied and adapted.  Indonesia’s  Direct  Cash  Assistance  program  used  genderâ€?balanced  communityâ€?based  groups  to  identify  the  neediest.8  The National Health Insurance Program (RSBY) in India enrolls informal sector workers  (including  selfâ€?employed  women)  in  social  insurance.    The  Brasil  Sem  Miséria  and  Chile  Solidario  cash transfer programs use targeted communications and outreach by intermediaries to reach the  very  poorest.    The  successful  Jóvenes  skills  programs  in  Latin  America,  aimed  at  disadvantaged  young men and women, integrate programs with the private sector.9    From Less to More Productive  Enhancing  productivity  calls  for  focusing  both  on  young  children  and  on  those  of  working  age.   Studies  show  that  investing  in  early  childhood  nutrition  and  preschool  stimulation  can  be  predictors  of  productivity  later  in  life.10    And  a  continuing  agenda  can  link  beneficiaries  of  social  protection programs to other programs that can activate them into the labor market or equip them  with relevant and marketable skills—these effective “graduationâ€? strategies can provide pathways  to move people from welfare to work.  This work on enhancing people’s productivity will require World Bank social protection and labor  teams  to  collaborate  across  sectors  and  with  partners  to  support  client  countries.    It  is  critical  to  build on the resilience and equity dimensions central to many social protection and labor programs  and to use them to connect to complementary programs in other sectors.  For instance, a country  will  need  collaboration  among  the  education,  health,  nutrition,  and  agriculture  sectors  to  build  human  capital  for  children,  through  cash  transfers,  school  feeding,  and  other  programs.    To  help  workers develop skills and enhance their own productivity, partnerships are essential with sectors  that focus on developing private firms, ensuring access to credit and finance, and providing training  and  vocational  education.    Together,  these  partnerships  can  build  skills  programs,  help  workers  connect to productive jobs, and facilitate access to inputs and credits.  Upholding core labor standards is central to protecting workers and improving their productivity.   In this area, it is vital to look at  the determinants of child labor and unequal opportunity at work   and  explore  the  social  protection  and  labor  instruments  that  have  been  successful,  such  as  cash  transfers that reduce children’s work and womenâ€?focused labor market programs.11,12  Enhancing  productivity  also  calls  for  striking  the  right  balance  between  protection  and  competitiveness.  While recognizing the need for protection and equity, social protection and labor  policies need to be crafted so as to avoid disincentives, particularly with respect to employment.  From Inflexibility to Responsiveness  The  recent  food,  fuel  and  financial  crises  vividly  demonstrated  the  need  for  social  protection  and  labor  systems  that  can  quickly  and  effectively  respond  to  those  affected  by  systemic  shocks  and  crises.  Countries without adequate systems in place were less able to respond effectively to protect  the poor and support recovery from shocks.     A fundamental lesson is that social protection and labor systems are needed both in good times to  manage shocks to people and to address longâ€?term poverty and lack of opportunity, as well as being  critical in response to crisis.  This requires investment by countries at three levels: first, to ensure  that  there  are  longerâ€?term  programs  and  broader  social  protection  and  labor  systems  in  place  |  Page VII  before  crises  hit;  second,  to  enhance  existing  programs  so  that  they  can  more  easily  capture  the  newly  vulnerable  (such  as  more  flexible  and  frequent    mechanisms  for  identifying  beneficiaries);  and third, to add programs to the portfolio—such as public works and unemployment insurance— that can be easily scaled up to protect the newly poor and vulnerable.   Engagement Principles: Evidence-Based, Country-Tailored, and Collaborative To realize the strategy’s goals and priority, World Bank engagement with developing countries will  need to be: evidenceâ€?based to generate knowledge of what works, tailored to country contexts, and  collaborative across a range of sectors and actors.  Evidence­Based Knowledge of What Works  Implementing  this  strategy  will  involve  continuing  the  sector’s  strong  and  sustained  focus  on  knowledge  generation  and  sharing.    This  strategy  responds  to  three  significant  knowledge  gaps.   First,  knowing  what  exists—the availability of data on existing social protection  South­South  and  labor  programs  and  systems  is  extremely  uneven,  being  particularly  problematic  in  fragile  states  and  lowâ€?income  contexts,  and  especially  in  Subâ€? knowledge flows are  Saharan  Africa.    This  undermines  performance  management  in  client  countries  critical in finding  and  among  partners.    Second,  understanding  results—ongoing  programs  and  solutions in the area  systems are seldom carefully evaluated to assess whether they are performing as  of social protection  designed  and  achieving  their  intended  impacts.    Third,  transmitting  good  practices  about  development  effectiveness—there  is  still  a  gap  in  countries  and labor.  Fostering  learning from each other about designing and implementing effective programs.  these exchanges  Under the new strategy, the World Bank’s social protection and labor teams will  among practitioners  work collaboratively with partners to address these knowledge gaps by:   is going to be a  ï‚· Strengthening  client  capacity  for  performance  monitoring  within  and  central agenda for  across social protection and labor programs  the World Bank.  ï‚· Maximizing  the  availability  and  use  of  existing  data  (such  as  the  World  Bank’s International Income Distribution Database)  ï‚· Generating comparable, and accessible data on social protection and labor programs  (and,  over  time,  social  protection  and  labor  systems)  notably  by  strengthening  inâ€?country  statistical systems  ï‚· Making  information  on  social  protection  and  labor  widely  available,  consistent  with  the  World Bank’s Open Data initiative   ï‚· Scaling  up  support  for  impact  evaluations  to  understand  what  works  and  what  doesn’t  in  social protection and labor, with an initial focus on cash transfers, public works programs,  and youth employment   Monitoring  and  evaluation  will  be  complemented  by  efforts  to  ensure  that  results  flow  back  into  improved policies and programs.  Developing  countries  themselves  are  generating  much  of  the  most  important  knowledge  about  successes  and  failures  in  social  protection  and  labor.    A  major  theme  of  this  strategy  is  to  ensure  that  this  knowledge  is  broadly  available  and  used.    The  World  Bank  will  use  its  comparative  advantage as a global distiller, facilitator, and customizer of knowledge to invest strongly in Southâ€? South knowledge exchanges, notably in fostering countryâ€?toâ€?country knowledge exchanges among  practitioners about effective design and implementation.   |  Page VIII  Operations Tailored to Country Contexts    Social  protection  and  labor  programs  and  Box 2: Preparing for the Next Crisis: The Rapid Social systems  that  the  World  Bank  will  help  Response Program countries  build  cannot  be  “one  size  fits  all.â€?   The Rapid Social Response (RSR) Program provides catalytic resources in Past experience shows that the best programs  relatively small amounts to help low-income countries (LICs) build social are  led  by  the  countries  themselves  and  protection and labor systems, so that they are ready for future crises. RSR tailored to their contexts, while drawing from  is based on the $61.7 millon trust fund resources donated by the Russian global evidence of what works.    Federation, Norway, and the UK. This relatively small level of funding can effectively support system building efforts. In the medium to long run, it Social  protection  and  labor  programs  are  can also help to catalyze more resources as beneficiary countries’ centrally  aimed  at  family  and  individual  implementation capacity is upgraded. As of 2011, all initial funds have behavior.    Thus,  social  and  cultural  contexts  been fully committed, with Sub-Saharan Africa alone absorbing almost 50 affect  their  outcomes,  as  well  as  the  percent of RSR trust fund resources. interaction  of  formal  public  and  private  RSR is making a difference. The recently completed evaluation of Social programs  with  informal  institutions.    The  Safety Nets (SSNs) by the Independent Evaluation Group (IEG) of the implicit social contract in a country will shape  World Bank made the following observations, “…resources to support a  social  protection  and  labor  system  and  its  SSNs and institution building and to stimulate country demand were lacking programs.   in LICs. As additional funds were provided through the RSR ... engagement in LICs increased, and the Bank and countries focused more Progressively  building  social  protection  on institutional strengthening.â€? For the World Bank’s social protection and programs  and  systems  that  fit  within  a  labor strategy, RSR is the central pillar for implementing the strategy; it country’s fiscal and administrative capacity is  calls on donors’ efforts to invest in social protection and labor in low- income countries, and to help them prepare for the inevitable shocks to vital.    There  is  much  to  learn,  notably  in  come. tailoring  approaches  to  lowâ€?income  and  fragile  contexts,  where  social  protection  and  Source: www.worldbank.org/rsr. labor  systems  will  need  to  be  developed  within capacity constraints and where tradeâ€?offs are often most acutely felt in the face of pressing  needs.    Broadly Collaborative Partnerships  Social  protection  and  labor  systems  are  inherently  multisectoral—their  instruments  serve  the  development  objectives  of  other  sectors,  and  social  protection  and  labor  objectives  need  other  sectors’  instruments  to  be  realized.    For  example,  To realize effective  conditional cash transfer programs have been especially successful at reducing  social protection  poverty, along with improving both school attendance (especially for girls) and  systems in lower­ infants’ and children’s access to health services.  Skills and training programs  income countries,  facilitate private sector activity by allowing firms to expand with appropriately  trained  workers.    Resilience  for  rural  farmers  can  be  ensured  not  only  with  bilateral and multi­ cash  transfers,  but  with  instruments  outside  the  social  protection  and  labor  lateral agencies will  sector,  such  as  healthcare,  crop  insurance,  and  access  to  alternative  markets  need to coordinate  (via roads and such technology as mobile phones).  Creating opportunities for  closely to address   persons  with  disabilities  requires  a  multisectoral  approach  to  mainstreaming  disability.    More  broadly,  social  protection  and  labor  instruments  need  an  fragmentation.  economy and a private sector that thrives and employs workers productively  and provides opportunities for moving out of poverty.    The  work  described  above  will  require  close  collaboration  with  key  partners  and  stakeholders  at  global and country levels.  In lowerâ€?income contexts, coordination among bilateral and multilateral  agencies is essential to realize effective social protection and labor systems and make the best use  of IDA funds and other available financing.  Agencies, including the World Bank, need to coordinate  their  resources  and  advice  to  avoid  contributing  to  fragmentation,  and  to  help  develop  social  protection  and  labor  programs  to  scale,  rather  than  isolated  pilots.    They  also  need  to  generate  |  Page IX  catalytic funding for lowerâ€?income countries to build social protection and labor systems (as with  the Rapid Social Response Program, see Box 2) and encourage their longâ€?term fiscal sustainability.   Private sector actors are critical partners, not only to generate employment and growth, but often  as  direct  providers  of  social  protection  services  or  developers  of  innovative  solutions  including  information and communications technology.  At the country level, civil society organizations, trade  unions,  and  faithâ€?based  organizations  are  key  actors  in  knowing  the  challenges,  shaping  opinion,  and representing excluded groups.  Effective social protection and labor policies will need open and  mutual collaboration with all these stakeholders.  Implementing the Strategy and Measuring Success To achieve the goals of this strategy, the World Bank, developing countries, and partners will need  to recognize and mitigate political and institutional risks.  First, despite the recent attention paid to  social  protection  and  labor  during  crises,  governments  may  find  it  difficult  to  prioritize  social  protection and labor expenditures in better times, especially in the face of more visible investment  needs  and  vocal  constituencies.    The  strategy  addresses  this  by  assessing  and  building  on  what  works  in  social  protection  and  labor  programs  and  systems,  and  combining  this  with  knowledge  access, including intensified Southâ€?South exchanges.    Second, political economy considerations may deter governments and development partners from  investing  in  coordinated,  systemic  approaches  and  may  instead  favor  continued  fragmentation  or  duplication  of  programs.    Going  forward,  the  World  Bank’s  policy  advice  to  client  countries,  and  dialogue with partners, will thus emphasize both the value of inclusive and productive systems and  good technical solutions to achieve them.  The World Bank will work with partners to coordinate  efforts and resources, with a special focus on helping poorer countries build social protection and  labor systems.    Third, moving to a systems approach depends on countries’ abilities to develop their institutional  capacities,  especially  across  sometimes  weak  social  protection  and  labor  agencies.    Therefore,  capacity building is a key component of the strategy, especially in lowâ€?income and fragile contexts.  This  capacity  building  includes  the  generation  of  accurate,  useful,  and  timely  data  to  improve  results.    Finally,  social  protection  and  labor  efforts  need  to  be  sustainable,  with  costâ€?effective  use  of  resources  to  meet  country  goals—given  that  resources  are  often  wasted  on  ineffective  programs.   Accordingly, the World Bank aims to continue to build the evidence that effective, inclusive social  protection and labor systems do not have to be expensive or complex, and to help countries select  the most costâ€?effective approaches to meet their specific needs.    Affordability  in  terms  of  pursuing  costâ€?effective  approaches  and  ensuring  fiscal  sustainability  is  a  perennial  challenge.    Good  systems  are  affordable:  The  Brazil  Bolsa  Familia  program  has  demonstrated  significant  results  at  a  cost  of  around  half  a  percent  of  GDP.    The  challenge  of  affordability  often  rests  with  making  difficult  policy  choices  about  how  to  invest  scarce  public  resources.    However,  a  number  of  countries  have  successfully  reoriented  and  organized  available  resources in support of stronger, more effective systems.  Ethiopia’s systems approach, for instance,  channels national and global partner funding into a closely orchestrated set of programs that have  allowed  it  to  mount  an  effective  response  to  the  current  drought  in  the  Horn  of  Africa,  in  stark  contrast to past experience and its neighbors’ struggle with famine.13  In  terms  of  affordability,  the  World  Bank  and  its  partners  will  need  to  support  governments  in  prioritizing costâ€?effective, scalable solutions that can be easily implemented by existing institutions,  including  nongovernment  partners.    This  needs  to  be  applied  to  making  better  use  of  existing  resources, informed by detailed analysis of social protection and labor program financing (existing  |  Page X  and projected), coupled with commitments to increasingly move financing for social protection onâ€? budget to strengthen the government’s oversight and accountability.14    The new strategy will build on the World Bank’s demonstrated strengths in social protection and  labor.    The  World  Bank’s  comparative  advantage  lies  in  its  ability  to  combine  inâ€?depth  country  engagement  with  global  knowledge  exchange  about  effective  social  protection  and  labor  approaches, as well as the full portfolio of World Bank financing instruments.    The success of the new strategy will be measured through a set of performance indicators reflective  of the goals of social protection and labor and the strategy’s priority and principles (Table 1).    The  core  strategic  objective  of  moving  from  fragmented  programs  to  systems  will  be  assessed  using  a  new  index  of  country  social  protection  system  development,  a  measure  of  World  Bank  support  to  systems  in  lending  operations  and  by  the  percentage  of  coâ€?financed  IDA  lending  operations.   Each column in the results framework corresponds to a specific are in the strategy.   ï‚· Medium to longâ€?term country progress on sector development outcomes directly related to  resilience,  equity  and  opportunity  is  the  strategy’s  ultimate  objective.    Though  measurability  is  difficult  given  data  constraints,  the  strategy  will  make  use  of  available  indicators.    For  example,  the  first  two  measures  on  pension  coverage  are  indicative  of  resilience.  The other measures relate to equity and opportunity.  ï‚· Changes in country outputs and outcomes directly attributable to World Bank engagement  will  be  assessed  looking  at  a  simple  measure  of  the  number  of  countries  with  which  the  World  Bank  is  engaged,  as  well  as  more  challenging  and  ambitious  measures  of  systems  development  and  investment  loans’  contributions  to  expanding  coverage  of  labor  market  and safety net programs.  ï‚· World  Bank  activities  supporting  core  elements  of  the  strategy  will  also  be  assessed,  including, project monitoring and evaluation given the strong focus on results,  partnerships  and  knowledge  sharing  through  products  as  well  as  Southâ€?South  learning    and  mobilizing  staff across regions.   The performance indicators chosen for the strategy reflect a pragmatic approach which recognizes  the  challenges  inherent  in  tracking  results  well.    Many  indicators  on  important  aspects  of  performance, such as the impact of World Bank knowledge work or countries’ resilience, cannot be  measured  reliably  today.    Others,  such  as  those  on  systems  performance  and  partnerships,  will  need  to  be  improved  over  time.    The  indicators  selected  reflect  an  emphasis  on  data  quality  and  availability, as well as coherence with World Bank and global approaches to tracking results.   Indicators will be regularly updated to capture improved their quality, track progress on strategy  results,  and  highlight  areas  that  need  attention,  decision,  and  action.    A  midâ€?term  update  on  the  strategy is planned for 2017, which will include a full review of the performance indicators.    ******  Greater resilience, equity, and opportunity are essential for individuals and societies to prosper in  the 21st century.  The road ahead will be challenging, but this is a challenge that the world’s nations  need to take up.  With this strategy, the World Bank aims to chart a course that makes it an even  more effective partner in this endeavor.    |  Page XI  Table 1: Social Protection and Labor Strategy Results Framework at a Glance  World Bank activities to Outcomes and outputs of Country progress on sector support partner countries countries receiving World development outcomes Bank support ï‚· Percentage of satisfactory ï‚· Percentage of social ï‚· Share of working-age projects (IEG Ratings) protection and labor lending population accruing pension ï‚· Percentage of projects with operations supporting social rights satisfactory M&E (ICRs) protection and labor systems ï‚· Pension beneficiaries to ï‚· Number of downloads of ï‚· Number of countries with elderly (>65) population ratio social protection and labor social protection and labor (old-age, survivor, disability, knowledge products engagement and social pensions) ï‚· Number of countries involved ï‚· Number of beneficiaries of ï‚· Percentage of population in in World Bank sponsored social safety net programs+ the poorest quintile covered South-South learning events ï‚· Number of beneficiaries of by social protection and labor labor market programs+ programs+ ï‚· Percentage of social protection and labor staff time ï‚· Poverty gap at $1.25 per day spent on cross-support to (PPP) other regions ï‚· Percentage of children (7-14) ï‚· Percentage of IDA lending employed+ operations having co- ï‚· GDP per person employed financing partners ï‚· Youth/adult unemployment rate+ ï‚· Index of social protection and labor system development  Note:  +Disaggregated  by  gender;  this  matrix  will  be  updated  as  appropriate  to  capture  improved  indicators as they become available, including on measuring the impact of knowledge services.    |  Page XII  1. RESILIENCE, EQUITY, AND OPPORTUNITY: THE ROLE OF SOCIAL PROTECTION AND LABOR 1. The  need  for  effective  risk  management  is  an  increasingly  pressing  concern  for  both  people  and  societies.  Global interdependence and risk—from such systemic shocks as economic  crises  or  natural  disasters,  to  more  idiosyncratic  shocks,  such  as  unemployment,  disability,  and  illness—are  central  features  of  economic  life  in  the  21st  century.    The  poor  are  particularly vulnerable, because they are typically more exposed to risk, have access to fewer risk  management instruments, and are less prepared to find good jobs and engage in productive work.   Thus,  for  men  and  women  across  the  world  who  are  striving  to  improve  their  livelihoods,  while  addressing risks, social protection and labor (SPL) enables them to manage these risks and have the  opportunity to build a better life for themselves and their families.  2. Consider  some  evidence.  During the 2011 drought in the Horn of Africa, Ethiopia’s safety  net program prevented many poor, foodâ€?insecure families from starving through a combination of  programs,  including  temporary  employment  and  cash  assistance.15  Turkey’s  conditional  cash  transfer (CCT) program protected poor girls by allowing them to stay in school, advancing gender  equality.16  And in the Dominican Republic, a targeted job training program provided opportunities  for disadvantaged young men and women to secure higherâ€?paying and betterâ€?quality jobs.17    What is Social Protection and Labor? 3. Social  protection  and  labor  systems,  policies,  and  programs  help  individuals  and  societies  manage  risk  and  volatility  and  protect  them  from  poverty  and  destitution—through  instruments  that  improve  resilience,  equity,  and  opportunity.18    As  such,  SPL  has    three  intertwined goals:    ï‚· Resilience  through  insuring  against  drops  in  well  being  from  a  range  of  shocks.    Key  sources  of  resilience  are  social  insurance  programs  that  minimize  the  negative  impact  of  economic  shocks  on  individuals  and  families—such  as  unemployment  and  disability  insurance,  oldâ€?age  pensions,  and  scalable  public  works  programs.    Complementary  programs  in  other  sectors  are  also  extremely  important  for  resilience—such  as  crop  and  weather  insurance  and  health  insurance.    Private  and  informal  arrangements  (such  as  savings, assets, and familyâ€? or communityâ€?based support) are vital, too.    ï‚· Equity  through  protecting  against  destitution  and  promoting  equality  of  opportunity.19   Social  assistance  programs  (also  known  as  safety  net  programs—including  cash  transfers  and inâ€?kind transfers, such as school feeding and targeted food assistance) address chronic  poverty.  They also protect poor individuals and families from irreversible and catastrophic  losses of human capital (nutrition, health, and education), thereby contributing to equality  of  opportunity.20  They  contribute  also  lay  the  foundation  for  equality  of  opportunity,  notably by helping families feel secure enough to invest in their future and their children.    ï‚· Opportunity through promoting human capital in children and adults and “connectingâ€?  men  and  women  to  more  productive  employment.  Institutions that promote opportunity  are often integrated with those supporting resilience and equity.  Cash transfers incentivize  investments  in  human  capital  by  promoting  demand  for  education  and  health  and  by  helping address gender inequalities.  Public works programs provide cash payments to the  poor,  while  increasing  physical  capital  investments.    And  labor  market  programs  provide  unemployment benefits, build skills, and enhance workers’ productivity and employability.        Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 1      Figure 1.1:  Goals of Social Protection and Labor        O pportunity R   Promoting human capital    esilience  and access to productive    work      Insuring against impacts of    different shocks  E     quity       Protecting against    destitution       Source:   World Bank 2011b, derived from World Bank 2001, Bonilla Garcia and Druat ; ILO 2003, Devereux and Sabatesâ€? Wheeler 2004 and others.   4. These  goals  are  consistent  with  the  first  SPL  strategy  and  the  “3Pâ€?  framework  of  prevention, protection, and promotion used in the SPL literature (Figure 1.1).21   However, this  framework builds on the more traditional SPL engagement in equity and resilience (mainly through  social  assistance  and  social  insurance  programs)  to  put  forward  opportunity  as  a  goal  of  equal  importance and one that SPL instruments can help achieve.      5. This  2012­2022  World  Bank  Social  Protection  and  Labor  Strategy  supports  these  goals  and  lays  out  an  agenda  to  help  lowâ€?  and  middleâ€?  income  countries  build,  improve  and  harmonize their SPL programs, to increase their capacity to respond to crises and shocks, support  poverty reduction and inclusive growth, and build on the best global knowledge of what works.  6. These  goals  of  resilience,  equity,  and  opportunity  cannot  be  achieved  with  isolated  programs,  within  a  single  sector,  or  through  public  mandates.    Attaining  them  requires  an  appropriate  policy,  legal  and  institutional  frameworks.    Operationally,  it  calls  on  a  portfolio  of  instruments, collaboration across economic sectors, and the public sector working to stimulate and  complement private actors.   7. The  government  plays  a  role  in  setting  the  agenda  for  social  protection  in  line  with  societal  goals  and  in  overseeing  the  efficacy  of  SPL  measures,  be  they  public,  private  or  informal.  The state has a particular role to play when there are the inevitable gaps in access—and  when private measures fail to meet societies’ objectives resulting from, for instance, failures in the  markets for credit or insurance.   8. A  lesser  known  feature  of  SPL  is  that  it  provides  a  foundation  for  inclusive  growth,  which  can  have  a  transformational  effect  on  people’s  lives  (Figure 1.2).  There is evidence that  SPL  programs  supports  growth  outcomes  through  five  pathways:  (i)  building  and  protecting     Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 2      human  capital;  (ii)  empowering  poor  individuals  to  invest  or  to  adopt  higher  riskâ€?higher  return  activities;  (iii)  promoting  greater  labor  market  mobility;  (iv)  acting  as  stabilizers  of  aggregate  demand  or  enhancing  productive  assets  and  infrastructure  (for  example,  through  public  works  programs);  and  (v)  reducing  inequality  in  society  and  making  growthâ€?enhancing  reforms  more  politically feasible.22   Indeed, the Growth Commission has written: “…if governments cannot provide  much  social  protection,  they  may  have  to  tread  more  carefully  with  their  [growth­promoting]  economic reforms.â€?23   Figure 1.2: SPL Contributes to Productivity, Growth, and Poverty Reduction  ï‚·  Accumulates and protects assets, through avoidance of distress sales  ï‚·  Increases entrepreneurial activities: by reducing the cost of downside risk  ï‚·  Increases human capital and productivity: enrollment, skills, nutrition     Source: Alderman and Yemtsov 2012, adapted from multiple sources.  9. The  strongest  evidence  on  the  relationship  between  SPL  and  growth  is  in  improving  the  functioning  of  the  labor  markets  and  thus  improving  access  to  productive  opportunities,  and  for  allowing families to invest in human capital.  SPL programs around the world today are increasingly  aware  of  these  effects,  and,  therefore,  are  incorporating  them  into  program  design,  although  successful  models  are  not  yet  well  established.    Evidence  is  more  limited  in  other  areas—such  as  the  role  of  SPL  in  improving  savings,  and  the  early  evidence  on  how  SPL  can  increase  entrepreneurial activities by reducing downside risk.24    10. SPL  is  increasingly  recognized  as  a  vehicle  for  ensuring  social  stability  and  implementing  social  contracts to ensure that rights and state obligations are fulfilled and social  cohesion strengthened, as recognized in the prominent Oneâ€?UN Social Protection Floor initiative.  25   SPL  can  be  an  important  element  in  ensuring  social  cohesion  during  periods  of  rapid  structural    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 3      change (driven, for example, by demographics or migration) and in the face of crises.  SPL can also  help  transform  people’s  lives  and  societies’  capacity  to  meet  important  goals,  including  achieving  resilience, equity, and opportunity.   11. The strategy is ambitious and central to the World Bank’ mission.  For the World Bank,  helping countries move from fragmented approaches to harmonized SPL systems—the main focus  of  this  strategy—is  central  to  its  mission  of  poverty  reduction  through  sustainable  and  inclusive  growth.  This strategy outlines how this can be achieved during the decade ahead, drawing lessons  from  a  decade  of  global  engagement,  and  taking  into  account  recent  experience  with  global  economic crises and the guidance received from extensive external consultations.  12. Helping  countries  move  from  fragmented  approaches  to  harmonized  systems  will  be  difficult  and  calls  for  deepened  engagement  across  sectors  and  actors.    However,  the  level  of  ambition  reflects  the  level  of  need  for  these  measures,  for  effective  means  to  allow  everyone,  especially  the  vulnerable,  to  protect  themselves  against  risk  and  destitution  and  to  seize  opportunities.    Roles of Different Actors in Social Protection and Labor 13. The  traditional  domain  of  publically  provided  SPL  programs  includes  the  following:  social  insurance  programs,  such  as  old  age  and  disability  pensions;  social  assistance  inâ€?kind  or  cash  transfers that serve as safety nets; and labor market programs, which help people find jobs or help  workers enhance their skills or productivity.  But traditional SPL instruments are not enough to  achieve  the  goals  of  resilience,  equity,  and  opportunity  by  themselves.   These  goals  require  collaboration among a mix of public and private actors, working across multiple sectors.     14. For  instance,  the  provision  of  SPL  is  not  just  the  domain  of  government  social  ministries.  SPL is carried out by a wide range of arrangements and actors, using instruments from  multiple sectors—including health, education, finance, agriculture, and industry.  Indeed, a central  feature of SPL is being multisector.  For instance, agricultural crop insurance provides resilience to  farmers, as do savings from microsavings schemes and rotating savings associations.   15. In  addition  to  being  government­based,  SPL  institutions  can  be  informal  (family  or  community­based)  or  private  and  provided  by  firms  and  organizations.    Charitable  institutions  or  worker  remittances  provide  the  bulk  of  povertyâ€?reducing  protective  transfers  in  many  societies.    The  availability  of  good  schools  and  clinics  are  critical  for  the  poor  looking  to  improve their children's human capital.  Private firms are the most important vehicles for good jobs  and opportunity, and often invest in building skills of their workers.  Informal social networks are  often best for youth seeking better opportunities to use those skills.    16. The  case  of  jobs  illustrates  the  roles  of  different  actors.    As  the  forthcoming  World  Development  Report  on  jobs  underlines,  “jobs  are  the  cornerstone  of  economic  and  social  development.â€?26    From  a  SPL  perspective,  productive  jobs  are  the  main  avenue  for  opportunity,  affording  people  socioeconomic  mobility,  while  mitigating  risks  through  adequate  and  secure  incomes.  But such jobs cannot be sustainably created by SPL programs alone.  For that, a thriving  private  sector  that  demands  labor  and  skills  and  fairly  rewards  workers  for  their  productive  contributions is needed.  This requires policies and reforms that address market and government  failures  that  inhibit  labor  demand—often  the  domain  of  those  working  in  private  and  financial  sector development, agriculture, and infrastructure.    17. For  SPL,  the  jobs  focus  is  on  enhancing  those  policy  reforms,  and  facilitating  those  interventions  that  improve  workers’  access  to  jobs,  increasing  their  capability  to  reap  the  best  returns  from  work.    Examples  of  this  are  labor  regulations  and  institutions  that  protect    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 4      workers,  while  allowing  them  to  make  successful  labor  transitions—from  school  to  work,  or  between  jobs.    Other  examples  are  programs  that  facilitate  training  to  ensure  that  workers’  skills  match  those  demanded  by  employers—or  ease  the  asymmetry  of  information  that  inhibit  employers from finding the right workers, or workers to find the right jobs.  18. The  broader  jobs  agenda,  therefore,  requires  SPL  to  work  in  close  collaboration  with  other  sectors:  from  investment  climate  and  credit  policy  reforms  to  boost  labor  demand;  to  agricultural  extension services that improve the productivity of farming;  to educational programs  that provide the right sort of learning for the job market.  A Portfolio Approach to Social Protection and Labor 19. A major challenge of effective access to SPL is to ensure that programs—and ultimately the  whole SPL system in a country—are responsive to the needs of various groups and risks, drawing  from a “portfolioâ€? of programs that together provide resilience, equity, and opportunity to all who  need them.    Figure 1.3:  SPL Programs Work Dynamically over the Life Cycle to Provide Resilience,  Equity, and Opportunity    Source: World Bank 2011b.  20. One  way  to  structure  SPL  approaches  is  by  taking  a  life­cycle  approach  to  map  demands  to  the  portfolio  of  SPL  programs  (Figure  1.3).    This  example  provides  an  integrated  lens,  but  there  are  many  other  ways  to  think  of  a  program  portfolio,  including  distinguishing  by  formal/informal  sectors,  different  types  of  vulnerabilities,  gender,  poverty  levels  or  urbanâ€?rural  distinctions.    But  the  lifeâ€?cycle  approach  illustrates  well  how  programs  targeted  to  particular  demographic  groups  can  serve  one  or  more  of  the  goals  of  SPL—for  instance,  school  feeding  programs protect schoolâ€?age children, skills programs help promote opportunity by facilitating the  access of youth to productive jobs, and disability insurance provides resilience against the adverse  income consequences of an illness or accident.    21. The  SPL  challenge  for  many  developing  and  emerging  countries  is  to  progressively  develop  a  well­articulated,  fiscally  sustainable,  and  well­performing  portfolio  of  SPL    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 5      programs,  tailored  to  country  circumstances  and  meeting  the  needs  of  different  groups.    A  typical developing country may have several gaps in terms of serving the different groups who need  SPL  programs—with  some  having  just  broad  povertyâ€?targeted  programs  that  may  protect  all  age  groups but not provide sufficient resilience or opportunity, while others have a patchwork focused  on  the  SPL  goals  but  serving  only  a  small  group  of  the  population  (usually  the  formal  sector  or  urban  populations),  and  yet  others  have  programs  that  do  span  the  needs  but  are  poorly  performing in their ability to effectively deliver resilience, equity, and opportunity.  22. There  is  no  one  design  for  a  SPL  program  portfolio,  but  dynamic  links  across  programs  matter.   For example, in the lifeâ€?cycle approach, links across age groups mean that the  effectiveness  of  programs  catering  to  older  populations  will  depend  critically  on  the  success  of  programs that have helped the young.  Early child development is a crucial ingredient for resilience  across  the  life  cycle—with  adequate  nutrition  in  infancy  and  early  childhood  being  an  important  determinant  of  whether  children  can  escape  poverty.    Again,  preschool  stimulation  and  proper  education  is  a  major  predictor  of  being  able  to  avail  of  skillsâ€?building  programs  and  other  promotionâ€?oriented SPL programs later in life.  And oldâ€?age income security is greatly enhanced if  employmentâ€?oriented SPL programs allow individuals to work productively, save, and contribute to  their pension plans during their working life.    2. LESSONS FROM THE FIRST DECADE OF WORLD BANK ENGAGEMENT IN SOCIAL PROTECTION AND LABOR The First Social Protection and Labor Strategy 23. The  World  Bank  published  its  first  SPL  strategy  in  January  2001,  emphasizing  the  growing  importance  of  the  sector  for  poverty  reduction  and  reflecting  the  increased  recognition  that  while  growth  and  macroeconomic  policies  are  fundamental  for  sustained  poverty  reduction,  they  are  often  insufficient.  The first  Figure 2.1:  Share of SPL Lending: IBRD,  SPL  strategy  established  clear  goals  for  the  sector  with  a  IDA and Grants (FY98­11)  focus  on  (i)  improving  earnings  opportunities  and  quality  of  jobs;  (ii)  increasing  security  for  households  and  communities  through  better  risk  management;  and  (iii)  improving  equity  and  poverty  reduction  through  IDA assistance  to  vulnerable  groups.27    These  broad  goals  31% continue to guide the sector today.  24. A  major  contribution  of  the  2001  strategy  was  establishing  Social  Risk  Management  as  a  solid  conceptual  framework  that  identified  risk  and  IBRD vulnerability  as  one  of  the  major  drivers  of  poverty.   68% Using the Social Risk Management framework, the strategy  Grants focused  on  risk  as  a  complement  to  the  sector’s  more  1% common  emphasis  on  basic  needs  and  equity.    This    framework led to the introduction of vulnerability analysis  Source:  Honorati  et  al.  2012,  from  World  as  a  complement  to  poverty  analysis,  and  highlighted  the  Bank business warehouse.  importance of public, private, and informal mechanisms.     Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 6      25. During its first decade, the SPL practice evolved around five main areas: labor markets and  job  creation;  pensions  and  oldâ€?age  income  support;  social  safety  nets  (SSNs);  social  funds;  and  disability.    A Decade of Engagement in Social Protection and Labor 26. The  World  Bank’s  SPL  portfolio  has  shown  strong  growth  in  quality  and  quantity.  It  has evolved over the last decade to reflect three trends.   ï‚· A  global  presence  with  significant  involvement  in  all  regions,  although  the  portfolio  for  middleâ€?income countries (MICs) has been stronger than for other countries.   ï‚· A  central  role  in  helping  countries  in  crisis  response,  although  again,  with  MICs  being  better able to absorb World Bank SPL resources.   ï‚· Strongly  performing  projects  and  knowledge  portfolios  (additional  information  is  available in Annex 4).  27. A  little  more  than  a  decade  after  its  creation,  the  SPL  sector  today  is  well­established  with  a  growing  global  presence,  although  with  stronger  engagement  in  MICs  than  in  low­ income  countries  (LICs).  From  1998 to 2011, the World Bank committed about $30  billion28 to  finance SPL programs in developing and emerging countries, representing about 7 percent of total  World Bankâ€?wide lending commitments.29  In FY11 alone, the sector committed over $4 billion in  lending.30  Twoâ€?thirds of this lending was directed to the International Bank for Reconstruction and  Development (IBRD) countries, with a third flowing to the International Development Association  (IDA) countries (Figure 2.1).  This stronger historical engagement in MICs in SPL has encompassed  both lending and analytical work and is consistent with broader World Bank engagement.  28. Initially  concentrated  in  a  few  regions,  the  SPL  sector  portfolio  is  now  established  across  regions,  although  still  concentrated  in  MICs.  Lending remains concentrated in the Latin  America  and  Caribbean  (LAC)  and  the  Europe  and  Central  Asia  (ECA)  regions,  which  account  for  over  40  percent  of  the  lending  today.  But  over  the  past  decade  engagement  in  Africa  has  steadily  grown, the Middle East and North Africa (MENA) and the South Asia (SAR) regional practices have  consolidated and lending in East Asia and the Pacific (EAP) has increased in recent years based on  country demand as well as on the establishment of a new sector practice in 2008.  29. SPL  lending  has  been  cyclical,  spiking  in  response  to  economic  crises  and  price  shocks.  As reflected in Figure 2.2, lending has tended to peak during crises—such as in FY98 and  FY99 when it doubled compared to previous years, mainly because of the East Asia financial crisis.31   In  FY09  through  FY11,  largely  in  response  to  the  global  economic  crisis,  SPL  lending  increased  fivefold,  representing  the  largest  sectoral  increase  in  World  Bank  lending  over  this  period.    This  increase was based on strong client demand for scaled up safety nets, as well as unemployment and  pension reforms policies and programs.  30. But  lending  in  response  to  crises  has  been  concentrated  in  a  handful  of  main  middle­ income  countries.    The  FY09â€?11  crisisâ€?driven  increase  in  lending  was  driven  by  IBRD  countries,  with  many  IDA  countries  unable  to  absorb  resources  for  SPL  in  the  absence  of  existing  systems.  Fifty  four  percent  of  the  increase  in  commitment  went  to  five  IBRD  countries,  indicating  that  countries that had SPL programs in place were more able to rapidly scale up in the face of the crisis.   31. SPL  lending  and  analytical  portfolios  have  remained  some  of  the  best  performing  among  World  Bank  sectors,  as  underscored  by  Independent  Evaluation  Group  (IEG)  reviews.32   SPL projects ranked satisfactory in 82 percent of cases, above the World Bank average of 76 and the  average disbursement ratio of SPL projects was 44 percent (against 21 percent for the rest of the    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 7      World  Bank)  during  FY98â€?11.    It  peaked  at  67  percent  in  FY10  because  of  high  disbursement  by  crisisâ€?related projects.  Most recently, the IEG evaluation of the World Bank’s work on SSNs over the  last  decade  concluded  that  “Bank  support  evolved  in  positive  directions  over  the  decade  .  .  .    Bank  support  has  largely  accomplished  its  stated  short­term  objectives  and  helped  countries  achieve  immediate  impactsâ€?33 (see Box 2.1).  Moreover, an IEG review of analytical and advisory activities  (AAA) on employment highlights that they have been good quality, addressed the right issues, and  been  valued  by  clients,34  while  a  separate  report  underscores  the  effectiveness  of  the  work  in  influencing pension policies.35  Finally, IEG has frequently praised SPL’s impact evaluations.36   Figure 2.2: New World Bank Commitments to SPL, 1998­2011 ($ million)  4,500  Labor markets 4,000  Social risk mitigation 3,500  Other social prot. & risk mgt 3,000  Safety nets US$ million Social funds 2,500  2,000  1,500  1,000  500  â€? FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11    Source: Honorati et al. 2012, from World Bank business warehouse.    Box 2.1: IEG’s 2011 Evaluation of World Bank Support for Social Safety Nets IEG had a predominantly positive view of the World Bank’s support for SSNs over the last decade, with the greatest acknowledgment for the way the practice has evolved over the most recent years. In its summary, IEG wrote: Bank support evolved in positive directions over the decade. The Bank began to move from a project-focused approach that emphasized delivery of social assistance benefits toward an approach that focused on helping countries build SSN systems and institutions to respond better to poverty, risk, and vulnerability. Stronger demand for SSN support in MICs led to significantly stronger engagement there than in LICs. However, the recent crisis-related expansion of support included also LICs and permitted initiation of Bank support in 15 new countries. The Bank’s support to SSNs throughout the decade has relied strongly on both lending and knowledge sharing to engage clients. The evaluation pointed to five areas for the World Bank to strengthen its practice: First, to engage during stable times to help countries develop SSNs. Second, to continue emphasizing building SSN systems and institutional capacity. Third, to engage more strongly in LICs. Fourth, to focus on results frameworks for Bank SSN support. And fifth, to ensure strong cross-network coordination on SSNs. Each of these areas is underlined in the strategic direction and the engagement principles for this strategy for the SPL sector more generally (Sections 4 and 5). Source: IEG 2011a.    32. The  SPL  practice  has  forged  a  strong  reputation  as  a  knowledge  producer,  customizer,  and  connector.    As  knowledge  producer,  the  SPL  sector  has  developed  sound  frameworks  in  each  of  its  main  practice  areas  and  has  been  a  leader  in  developing  evidence  on  development  effectiveness,  which  is  shown  by  the  effective  and  widespread  use  of  impact    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 8      evaluations.37    The  SPL  sector  has  customized  available  knowledge,  helped  connect  clients,  and  translated inâ€?depth engagement at the country level into systematic global knowledgeâ€?sharing.    Learning from the Past Decade: What is New about this Strategy? 33. This  SPL  strategy  builds  on  the  achievements—as  well  as  the  lessons—from  practice  and evidence over the last decade and more.  It continues the basic analytical foundation of SPL:  programs and policies supporting risk management and protection against destitution.38  It aims, as  discussed,  to  consolidate  and  deepen  successful  practice  and  addresses  areas  where  there  were  shortcomings.  But it is also stakes out new ground, learning from areas where the strategy was less  successful.    Box 2.2: Results of the Strategy Consultations The consultations around the 2012–22 SPL strategy engaged over 2,000 people worldwide to provide insight and guidance to the strategy formulation. Representatives from government, civil society organizations (CSOs), academics, the private sector, and bilateral and multilateral development agencies met with the World Bank in 64 face-to-face events worldwide, reaching over 1,700 participants from 66 countries. There were focused discussions with country clients and policy makers. Discussions were also held with key development partners—from global trade unions, to CSOs such as Save the Children, Help Age International and the Africa Social Protection Platform, to UN agencies including the International Labour Organization (ILO), the United Nations Development Programme (UNDP), the United Nations Children’s Fund (UNICEF), and the United Nations World Food Programme (WFP). Written comments were also received from several organizations. The World Bank also convened an external SPL Advisory Group to marshal advice and insights from top academics, policy makers, and CSO representatives, and used an on-line forum to engage widely and transparently across a range of stakeholders. There was a clear support for three directions where the World Bank can help countries build better SPL: ï‚· Focusing on SPL systems, especially to address fragmentation and incorporate crisis response, with a particular focus on a fiscally sustainable, country-led approach ï‚· Expanding SPL coverage, especially in low-income countries and fragile states, and to neglected segments of the population, with the caveat that this focus should not imply less attention to vulnerable populations in MICs ï‚· Promoting links to human capital, skills and labor market insertion, while recognizing that risk management, including resilience against the adverse impacts of shocks and protection of the poor remain central elements of SPL, and that there is a need to systematically connect the two areas The consultations called on the World Bank to play a role in five areas: ï‚· Generating and sharing evidence and knowledge on SPL ï‚· Building capacity ï‚· Financing SPL initiatives, both directly and by mobilizing others’ support ï‚· Supporting coordination across global partners, government agencies, and other actors ï‚· Listening and collaborating with others in setting and implementing the SPL agenda Note: For more detailed information on the consultations, see Annex 4.   34. The  extensive  consultations  carried  out  to  inform  this  strategy  provided  critical  guidance  to  the  World  Bank  for  shaping  the  strategy  (see  Box  2.2  and  Annex  4).    These  consultations  were  central  to  confirming  the  need  to  address  fragmentation  and  move  toward  a  systemsâ€?focused  approach  to  SPL  and  to  providing  guidance  to  the  World  Bank  for  its  SPL  engagement in the years ahead.  35. Drawing from the IEG report on SSNs (Box 2.1), the Sector Strategy Implementation Update,  the consultations, and numerous other sources, four areas emerge as needing strengthening in the  new strategy, and thus key new areas of emphasis.    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 9      36. First,  the  new  strategy  brings  a  stronger  focus  on  solutions,  underscoring  the  need  to  build  coherent  and  country­appropriate  portfolios  of  SPL  programs—or  SPL  systems—that  together help people deal with multiple risks.  This is built on the realization that there is a need  for  greater  coordination  within  and  across  the  traditional  SPL  practice  areas  of  safety  nets,  pensions,  and  labor  markets,  as  well  as  disability  and  results,  in  order  to  reduce  fragmented  approaches.  The systems approach does not mean diluting the World Bank’s technical depth and  excellence in each one of these practices.  But it calls for enhanced engagement across sectors and  actors, and ensuring that SPL systems can adequately prepare countries to protect the vulnerable  during crises. It also calls for tailoring approaches to different institutional and country contexts.  37. Second,  the  strategy  underscores  the  need  for  increased  engagement  in  LICs, both to  help countries better serve their poor populations and to ensure that effective systems are in place  to  be  able  to  respond  to  crises.    This  is  an  ambitious  goal,  and  will  not  necessarily  be  marked  by  major increases in lending (already at the World Bank average).  The focus will be on developing  effective  solutions  specific  to  country  contexts,  building  both  a  knowledge  base  and  operational  experience,  and  helping  lowerâ€?income  countries  put  in  the  appropriate  building  blocks  that  can  move them towards their SPL goals.  It will not detract from attention to and engagement in MICs.   38. Third,  the  strategy  stresses  the  central  role  of  jobs  and  enhanced  productivity  as  the  pathway  to  opportunity.   This is enhanced emphasis on an area that has been a core practice in  SPL.  But this strategy crystallizes it by laying out the agenda for both operations and partnership— working  with  other  sectors  to  expand  the  number  and  quality  of  available  jobs,  improving  the  ability  of  people  to  access  these  jobs  and  livelihoods,  and  strengthening  human  capital  as  a  foundation for productivity.  39. Finally,  the  strategy  highlights  the  central  importance  of  appropriate  knowledge  in  SPL practice, especially through engendering a global Southâ€?South conversation about what works  and how in SPL.  40. This  diagnostic  reflects  the  evolution  of  the  World  Bank’s  engagement  in  SPL  in  the  areas  of  resilience,  equity,  and  opportunity.   In resilience, the agenda will need to include crisis  responsiveness  to  meet  the  needs  of  the  new  poor  in  addition  to  addressing  the  needs  of  the  chronic poor.  In equity, the World Bank has done well in targeting the poor and establishing core  programs,  especially  in  MICs.    The  new  frontier  is  how  to  engage  more  effectively  in  lowâ€?income  countries and reform insurance programs to ensure sustainability and access, especially to those in  the informal sector.  In opportunity, there is a concerted push towards a focus on productivity and  access to jobs, so as to propel individuals and households out of poverty.    3. SOCIAL PROTECTION AND LABOR IN TODAY’S WORLD A Global Challenge, an Emerging Consensus 41. Increased  interdependence,  risk,  and  vulnerability  are  central  features  of  today’s  global  economy.  Together  with  persistent  poverty,  relentless  demographic  trends,  and  an  ongoing  economic  crisis,  they  present  an  unprecedented  challenge  to  SPL  (Table  3.1).    The  recent global economic crisis has encompassed job loss, financial turmoil, and volatility in food and  fuel prices.  Demographic trends place aging at the top of the agenda in a number of countries, while  the growing  share of youth entering the labor force presents  an economic and social challenge in  others,  as  illustrated  dramatically  in  the  Arab  Spring  of  2011.    Climate  change  is  reshaping  temperature,  precipitation,  and  epidemiology,  while  driving  up  the  frequency,  intensity,  and    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 10      variability  of  extreme  weather  patterns.39  Acknowledging  the  heterogeneity  of  challenges  across  regions,  these  overall  trends  are  predicted  to  have  disproportionate  effects  on  poor  regions  and  populations.40  42. These  challenges  are  increasing  risks  to  individuals  and  families,  while  urbanization,  migration  and  modernization  are  changing  individuals’  and  families’  traditional  sources  of  resilience  against  these  risks.41    A  longâ€?term  increase  in  prosperity  has  welcomed  many  to  the  rising middleâ€?class, but many others—especially in lowerâ€?income and fragile contexts—continue to  confront deep poverty and inequality and remain disconnected from opportunity because of a lack  of  skills,  information,  or  finance.    This  lack  of  access  to  opportunity  affects  human  development   outcomes  and  is  a  source  of  inequality.    Persistent  shortfalls  for  many  remain  in  nutrition,  education  and  health,  notably  maternal  and  child  health,  underscored  by  lack  of  progress  for  numerous countries in reaching the Millennium Development Goals (MDGs).     Table 3.1: A Changing World  Indicator 1990 2000 2010 (1981–90) (1991–2000) (2001–10) Number of natural disasters (annual)1 181 322 438 Energy price index (constant 2005 US$) 58.49 37.77 97.12 Food price index (constant 2005 US$) 114.56 97.13 118.57 Poverty headcount ratio2 45.6 35.8 27.9 Workers' remittances (current US$, in millions)3 42,249 97,995 222,356 Mobile cellular subscriptions (in millions) 2.8 212.7 2,767.2 Source:    Data  adapted  from  the  International  Disaster  Database,  Center  for  Research  on  the  Epidemiology  of  Disasters  (CRED),  and  World Bank Commodity Markets and World Development Indicators (WDI).  Note:   1. Global average values per decade; 2. Percentage of population in lowâ€?income countries (LICs) and middleâ€?income countries  (MICs)  living  under  $1.25  a  day  (PPP);  data  available  for  1981,  1984,  1987,  1990,  1993,  1996,  1999,  2022,  2005;  3.  Workers’  remittances and compensation of employees, received.  43. This challenge has crystallized into a growing demand for societies to mobilize SPL as  a  centerpiece  in  responding  to  growing  risk  and  persistent  poverty.  As the April 2010 paper  on  postâ€?crisis  directions  for  the  World  Bank  states,  the  challenges  for  poverty  reduction  and  meeting  the  MDGs  remain,  but  new  challenges  include  “…  the  need  to  foster  multi­polar  growth;  respond  to  complex  global  interactions;  and  anticipate  risks,  potential  new  shocks,  and  unpredictable  crises.â€?42    44. This  emerging  global  consensus  is  manifested  in  numerous  country  actions  and  global  initiatives,  including  the  prominent  One­UN  Social  Protection  Floor  Initiative  (SPF­I),  adopted by the United Nations Chief Executives Board in April 2009 (Box 3.1).43,44  The SPL strategy  and  engagement  is  consistent  with  these  core  principles  of  the  SPFâ€?I,  particularly  through  the  strategy’s  emphasis  on  building  inclusive,  productive,  responsive  SPL  programs  and  systems  tailored  to  country  circumstances.    The  World  Bank  has  been  a  strategic  partner  in  the  Oneâ€?UN  Social Protection Floor initiative (SPFâ€?I, and has an important role to play both in helping countries  who sign on to the SPFâ€?I to operationalize it and in knowledge sharing.  The World Bank has been  engaged  in  extensive  strategic  dialogue  at  the  global  level  and  partnerships  at  the  country  level.   The World Bank also contributes to the initiative through knowledge generation and dissemination,  developing  data  on  the  state  of  SPL  across  countries,  and  knowledgeâ€?sharing  concerning  good  practice and results in SPL.     Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 11      The Global State of Social Protection and Labor: Progress, but Fragmented Approaches 45. Numerous  countries  have  augmented  the  coverage  and  efficacy  of  SPL,  often  with  support from the World Bank.  These countries include Mexico’s Oportunidades and Brazil’s Bolsa  Familia  programs  of  conditional  cash  transfers,  which  have  inspired  other  countries  around  the  world to design their own programs to attain similar goals.  China’s measures to reform its  hukou  system and Turkey’s merger of its pension systems for public and private workers are significant  reforms that, as they unfold, could serve as influential models to others.  India’s Mahatma Gandhi  National Rural Employment Guarantee program (offering 100 days of public work as a right to poor  rural  households)  and  South  Africa’s  social  pensions  are  both  being  keenly  watched  by  policy  makers in countries interested in establishing social protection as a right.    Box 3.1: The Social Protection Floor The One-UN Social Protection Floor initiative (SPF-I), currently co-led by the International Labour Organization (ILO) and the World Health Organization (WHO) and endorsed by the UN Chief Executives Board, calls for an integrated set of social policies to provide income security and access to essential social services for all, paying particular attention to vulnerable groups. The core elements of the SPF-I are the following:45 ï‚· A basic set of social transfers, in cash and in kind, to provide a minimum income and/or employment and livelihood security for the unemployed and working poor ï‚· Universal access to essential social services in the areas of health, water and sanitation, education, food security, housing, and others defined by national priorities While the design and implementation of national social protection floors will follow country-specific priorities, the Social Protection Floor sets forth a number of principles to be taken into account. These are outlined in the Report of the High Level Advisory Group to the SPF-I: ï‚· “Combining the objectives of preventing poverty and protecting against social risks, thus empowering individuals to seize opportunities for decent employment and entrepreneurship. ï‚· A gradual and progressive phasing-in process, building on already existing schemes, according to national priorities and fiscal constraints. ï‚· Coordination and coherence between social programmes; in particular and within a perspective treating human development on a life cycle basis, the floor should address vulnerabilities affecting people of different ages and socio-economic conditions, and should be regarded as a framework for coordinated interventions at the household level, addressing multidimensional causes of poverty and social exclusion and aiming to unlock productive capacity. ï‚· Combining income transfers with education, nutritional and health objectives, to promote human development. ï‚· Combining income replacement functions with active labour market policies as well as assistance and incentives that promote participation in the formal labour market. ï‚· Minimizing disincentives to labour market participation. ï‚· Ensuring economic affordability and long-term fiscal sustainability, which should be anchored in predictable and sustainable domestic funding sources; while noting that international solidarity in the form of cost-sharing may be needed to help to start the process in some low-income countries. ï‚· Coherence between social, employment, environmental and macroeconomic policies as part of a long-term sustainable development strategy. ï‚· Maintaining an effective legal and normative framework, so as to establish clear rights and responsibilities for all parties involved. ï‚· An adequate institutional framework with sufficient budgetary resources, well trained professionals and effective governance rules with participation of the social partners and other stakeholders. ï‚· Ensuring mechanisms to promote gender equality and support the empowerment of women. ï‚· Effective health financing systems to ensure access to needed health services of good qualityâ€? Source: ILO 2011a; ILO 2012; ILO and WHO 2011.   Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 12      46. Notably,  advances  in  SPL  programs  are  not  limited  to  large  or  middle­income  countries.  Armenia  and  Georgia,  two  countries  with  strong  SPL  programs,  are  IDA  countries.   Among island economies—Dominica, Mauritius and Seychelles—have good SPL programs.  In Subâ€? Saharan  Africa,  SPL  systems  are  being  built  in  a  number  of  countries,  including  Ethiopia,  Kenya,  Tanzania,  and  Rwanda.    The  World  Bank  has  been  a  major  partner  for  most  of  these  efforts—in  most  cases  providing  strategic  and  design  advice,  technical  assistance,  or  financing,  and  in  others  serving to distill and broker knowledge on these programs.  47. However,  across the developing world SPL today faces a  major challenge:  addressing  fragmentation—across  programs,  policies,  actors  and  levels  of  government.    Fragmentation  hampers  SPL  responsiveness  and  coverage,  limiting  its  ability  to  fulfill  the  goals  of  resilience,  equity, and opportunity.  48. Fragmentation  across  programs  is  common  in  most  countries,  in  MICs  as  well  as  LICs  (see Box 3.2 on Vietnam).    In MICs, there is typically a surfeit of programs with similar objectives  and  overlapping  targeted  individuals  and  groups—such  as  similar  programs  targeting  specific  demographic groups (for example, women, orphans, youth, or the old) overlapping with programs  targeting  vulnerability  or  capabilities  (for  example,  povertyâ€?targeted  cash  transfers  or  skillsâ€? building programs).  Largerâ€?scale programs may exist, but may not be coordinated, costâ€?effective,  or able to fully reach all those who need them, deliver on program objectives, or respond effectively  to shocks.   Figure 3.1: Cash Transfers in Africa are Fragmented Across Ministries and between  Government and Nongovernment Actors  Social welfare or Outside related, 35% government, 45% Social security/ labor, 9% Health, 4% Education, Other, 4% Social Fund, 1% 2%   Source: Garcia and Moore 2012.  49. In  many  lower­capacity  or  lower­income  contexts,  fragmentation  is  especially  acute  and  contributes  to  coverage  gaps.  Programs simply do not exist at scale and often a collection of  smaller unconnected efforts focus on distinct regions, discrete groups, or specific objectives—and  are  unable  to  complement  each  other,  leaving  large  needy  populations  uncovered.    As  shown  in  Figure  3.1  for  Africa’s  cash  transfer  programs,  these  programs  may  also  be  dispersed  across  different ministries.  In Africa, global partners and nongovernmental organizations (NGOs) outside  the government administer almost half of formal programs.    50. Fragmentation  is  also  present  across  the  different  government  ministries  and  other  actors  engaged  in  SPL,  including  between  national  province­level  and  community­level    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 13      programs  and  across  donors.    This  fragmentation  usually  results  in  a  lack  of  inclusion  as  some  vulnerable  groups  do  not  get  protected,  in  a  failure  of  coordination  and  costâ€?effectiveness,  and  in  incentive  traps  as  beneficiaries  have  little  motivation  to  move  across  programs  that  are  poorly  harmonized.  Box 3.2: Vietnam: Addressing Fragmentation and Modernizing SPL Currently, Vietnam has several cash transfer schemes aimed at alleviating poverty and vulnerability, which were developed largely on an ad-hoc basis and cost around 0.6 percent of GDP. Benefits are primarily targeted to remote and poor regions rather than toward vulnerable individuals and families. While the use of geographic targeting has been associated with reductions in the incidence of rural poverty, it has largely ignored urban poverty. In addition, the delivery of social assistance is hampered by weak institutional capacity at the level of district and commune (xã) governments where record-keeping systems are rudimentary, poorly integrated, and often not linked at the national level. As these programs face demands from growing numbers of beneficiaries, Vietnam has found that they are too disjointed to be effective for many poor families. Vietnam also has many different active labor market programs (ALMPs)—focused on everything from training to counseling, labor export, and credit—which collectively cost about 0.08 percent of GDP. These programs were designed outside of a coherent policy framework and evolved independently in several government institutions. Many of the programs target the same population groups, which creates duplication. Linkages with social assistance and social insurance systems are limited. Institutional and administrative capacity is hampered by inappropriate or poorly designed governance arrangements, inadequate monitoring and evaluation (M&E) tools, and a lack of linkages with the private sector. The government’s draft social security strategy for 2011–20 addresses many of the weaknesses in Vietnam’s SPL system. Its reform and agenda, in particular, includes broader coverage, providing access to basic goods and services to a larger share of the chronically poor and vulnerable (particularly to the informal sector) and linking social assistance to measures that help develop human capital. Source: Bender, Bodewig and Nguyen in Robalino, Rawlings and Walker 2012.   Addressing Fragmentation: Moving to a Systems Approach 51. To  effectively  mitigate  risks  and  foster  opportunity,  SPL  programs  need  to  be  able  to  work  together  as  a  portfolio  of  complementary  initiatives,  under  a  systems  approach.  46   SPL  systems  are  “portfoliosâ€?  of  coherent  programs  that  can  communicate  with  each  other,  share  common  administrative  subsystems,  and  work  together  to  respond  to  risks  and  to  deliver  resilience,  equity,  and  opportunity  to  the  population.   These systems can be a mix of public and  private/informal SPL institutions—ranging from national social assistance programs to charitable  actions,  from  informal  remittances  to  private  pension  funds  and  financial  institutions,  and  from  Active Labor Market Programs (ALMPs) to firmâ€?sponsored skills training.  The government plays an  important  role  in  providing  SPL  when  private  and  informal  mechanisms  are  insufficient  in  providing socially desirable levels of resilience, equity, and opportunity. The government also has a  clear role in supporting private provision (and, in the case of some large formal actors, regulating  them) to achieve these goals.  52. Strengthening  SPL  systems  can  provide  a  broad  set  of  advantages.    Stronger  SPL  systems can enhance equity by providing individuals with the means to secure their rights.  They  offer  efficiency,  through  betterâ€?designed  tax/financing  arrangements,  economies  of  scale,  and  common  platforms  such  as  registries.  They  impart  effectiveness,  through  harmonized  incentives  and fewer unintended consequence on behaviors.    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 14      Figure 3.2: Three Levels of Engagement for SPL Systems    Source: Robalino, Rawlings, and Walker 2012.    53. A Systems Approach to SPL Involves Three Levels of Engagement (Figure 3.2)  ï‚· The  administration  level  is  about  building  basic  management,  information,  and  service  delivery  tools.    The  focus  in  on  developing  the  “nuts  and  boltsâ€?  subsystems  that  facilitate  the  core business processes of SPL programs.  These include, for instance, beneficiary identification  systems  and  registries,  targeting  schemes,  M&E  arrangements,  and  contracting  and  payment  arrangements for providers.    ï‚· The  program  level  focuses on design and implementation issues, both within a given program  (the standard approach) and through synchronization across programs or integration of similar  programs.  Improving design of individual programs may include the following: better targeting  mechanisms  for  cash  transfer  programs  so  that  they  reach  the  poorest  or  women;  improved  M&E  in  skillsâ€?building  program  so  that  their  designs  can  be  adapted  to  changing  employer  needs;  and  parametric  changes  in  pensions  systems  to  make  them  more  adequate  and  affordable.  The  additional  step  needed  for  a  systems  approach  is  better  synchronization  of  programs—for example, with beneficiary databases communicating with each other to be able  to identify overlaps and gaps in benefits, and coordinated eligibility parameters across different  types of programs (see Box 3.3 on the five “SMARTâ€? design features of effective SPL systems).  ï‚· The  policy  level ensures policy coherence attuning the entire portfolio of SPL programs to act  coherently  in  delivering  national  goals  and  social  contracts.    In  many  cases,  the  policy  level  driver  is  a  general  strategy  for  the  SPL  system,  outlining  a  mediumâ€?term  vision  to  improve  integration and coordination across programs and functions.  This vision could map the existing  SPL programs and gauge their effectiveness in delivering resilience, equity and opportunity for  the population. It could also examine incentive effects (such as incentives to stay in inactivity or  to  overinvest  in  training)  along  with  charting  present  and  future  fiscal  needs  and  sources  of    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 15      revenue.    This  would  also  make  tradeâ€?offs  explicit, and clarify broader issues—such as how  Box 3.3: “SMARTâ€? SPL Systems to  deal  with  failures  in  insurance  and  credit  Five aspects are central to building well-functioning markets  and  information  asymmetries—that  SPL systems. This is summarized in the acronym may need government interventions in SPL.  The  SMART: Synchronized: Connected tools and programs, with operational  implication  of  this  vision,  which  overall policy coordination. This is the key “systemicâ€? ensures  adequate  SPL  services  to  all  who  need  feature of a SPL system—to ensure that individual them,  would  be  a  set  of  activities  that  would  programs that impact different groups and risks can be build  needed  programs  that  do  not  exist,  harmonized. Coordination across actors and functions eliminate  overlaps  and  redundancies  among  of resilience, equity and opportunity supports a programs,  and  ensure  sustainable  overall  dynamic system, encouraging movement out of poverty financing  and  administrative  capability  for  the  and responding to different needs. entire SPL system.    Measurable: Monitored, evaluated and adapted on basis of results. Careful M&E is important to see Challenges in Building SPL Systems  whether the desired results are being obtained—and, as importantly, evaluation results should be used to 54. Building  effective  SPL  systems  is  a  tweak or change design, as needed, to increase challenging  task,  particularly  with  respect  to  effectiveness. securing  political  will  and  ensuring  that  Affordable: Cost-effective and fiscally sustainable. approaches  are  affordable,  well  governed,  and  SPL systems should be fiscally sustainable today and results based.  tomorrow. Part of the solution is to design them cost- effectively, often targeting specific groups or 55. Strong  political  leadership  is  often  interventions and then progressively expanding to other essential  for  building  responsive  SPL  systems  groups or risks as resources and capacity increase. with  an  appropriate  design,  high  coverage,  and  Responsive: React counter-cyclically to crises. The effective  harmonization.      This  is  particularly  true  system’s program portfolio and financial structure for  SPL,  where  political  incentives  and  populism  needs to be able to scale up in times of shocks— often  argue  for  either  small,  fragmented  programs  either through new crisis-specific programs, or through designs that allow existing programs to include the aimed  at  distinct  slices  of  the  population,  or  hastily  newly eligible because of the shock. devised  generous  programs  that  may  not  be  Transparent and accountable: Well-governed, with financially  or  politically  sustainable.    And  there  clear rules, roles and controls. A systemic approach remains  some  skepticism  in  intellectual  and  policyâ€? delineates clear rules of the game, defined roles for the making  quarters  about  the  case  for  these  programs,  various agencies and individuals delivering services, as  well  as  concerns  about  their  affordability  and  and tight controls to redress any departures from the effect on incentives.  Development partners, too, can  rules and roles. contribute  to  fragmentation  by  sponsoring  specific  SPL programs that speak exclusively to their own priorities.  Strong and visionary leadership, often  at the highest level, is needed to cut through this set of incentives (Box 3.4).  Reforms spurred by  crisis can also jumpstart the process. When this political leadership is absent, it is very difficult to  craft a mandate and carve out accompanying fiscal resources.   56. Affordability  is  a  perennial  challenge  in  terms  of  pursuing  cost­effective  approaches  and  ensuring  fiscal  sustainability.  Although good systems are affordable  (the iconic case is that  of the Brazil  Bolsa  Familia  program, which has demonstrated significant results at a cost of around  0.5  percent  of  GDP),  the  challenge  of  affordability  often  rests  with  making  difficult  policy  choices  about how to invest scare public resources.  However, a number of countries have successfully reâ€? oriented  and  organized  available  resources  in  support  of  stronger,  more  effective  systems.   Ethiopia’s  systems  approach,  for  instance,  channels  national  and  global  partner  funding  into  a  closely orchestrated set of programs, which have allowed it to mount an effective response to the  current  drought  in  the  Horn  of  Africa,  in  stark  contrast  to  past  experience  and  its  neighbors’  struggle with famine.47    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 16      Box 3.4: Embedding Social Protection within National Priorities in Rwanda The Vision 2020 Umurenge Program (VUP) in Rwanda is rooted in the national development strategy, which includes a strong central government commitment to prioritize social protection as a tool in post-conflict recovery. VUP funds public works that provide employment to members of poor households with no land but can work, and provides direct cash transfers to poor households that have no land and cannot work. Global partners have aligned their activities with the government’s strategy, thus avoiding fragmentation. The government relies on its 2011 social protection strategy to advance its national goals of reducing social, economic, and structural weaknesses. According to this strategy, providing social protection to the whole population strengthens the social contract between the government and its citizens. VUP complements a well-developed set of social programs, including universal health insurance (covering 91 percent of the population), free education, social transfers, such as a pension scheme, a program of support to survivors of genocide, and the “one cow per familyâ€? program. The administration of all these benefits and VUP is decentralized under the supervision of the Ministry of Local Government, Good Governance, Community Development, and Social Affairs. Over the next 20 years, the government aims to build a system that includes greater access to public services for the poor and vulnerable, and more participation of informal sector workers in the contributory social security system. Over the medium term, it aims to reinforce existing programs as well as establish a universal old age grant for people over the age of 65. The government currently allocates 5 percent of its budget to social protection. Source: European Union 2010.    57. A  particularly  thorny  fiscal  issue  concerns  the  present  and  projected  fiscal  demands  of  existing  SPL  programs.   In many countries, the basic design parameters of some SPL programs  —particularly  contributory  pensions  systems—are  leading  to  actuarial  imbalances,  absorbing  a  large  share  of  fiscal  resources,  and  compromising  sustainability.  For  example,  in  the  transition  countries of Europe and Central Asia (ECA), addressing the fiscal sustainability of pension schemes  is  a  fiscal  and  social  imperative,  given  the  rising  costs  of  social  insurance  systems  coupled  with  a  shrinking  labor  force,  particularly  in  the  formal  sector.    Most  ECA  countries  are  discussing  deep  parametric reforms to their pension systems to meet this mediumâ€?term threat. However, even with  these  reforms,  it  is  likely  that  demographic  factors  will  dictate  deep  deficits  over  the  next  four  decades.  Box 3.5: Rules, Roles, Controls—Governance in Social Protection As outlined in the 2004 World Development Report, governance is also about improving incentives for policy makers and service providers to ensure that they are responding appropriately to their mandate to deliver effective public services, and strengthening citizens’ ability to hold policy makers and service providers accountable. Governance in social protection can be defined as the set of incentives and accountability relationships that influence the way in which providers are held accountable for their behaviors and ability to deliver services with quality and efficiency. Efforts to strengthen governance can be categorized into three broad areas: Rules of the game that define the context for accountability relationships among policy makers, providers, and citizens. At the program level, this refers to the legal framework governing the SPL system, or individual program, including legislation and secondary regulations and operational guidelines, such as clear criteria for eligibility, entry, and exit from programs, and predictable and transparent mechanisms for setting benefit levels. Roles and responsibilities of actors involved across levels of government and institutions. Mechanisms for strengthening roles and responsibilities include establishing institutional relationships, clarifying job descriptions for providers, and putting in place performance incentives. Controls and accountability mechanisms that help ensure that “the right benefit gets to the right person at the right time.â€? Most social protection programs—especially cash transfer programs—require measures to ensure appropriate flows of information and of money. Control and accountability mechanisms include both measures on the supply-side, including verification, M&E processes, such as audits, quality control mechanisms, spot checks, policies to ensure access to information, and formal grievance redress mechanisms. Accountability measures also include demand-side elements that involve citizens in oversight. These include engaging citizens in social audits, third-party monitoring, and information provision through report cards. Source: Bassett et al. 2012.   Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 17      58. Strengthening  transparency  and  governance,  both  in  administration  and  in  oversight  and  controls,  is  central  to  building  effective  systems.    As  discussed  earlier,  in  MICs  and  LICs  alike, responsibility for overseeing SPL programs is spread across a diverse mix of ministries, with  little  horizontal  coordination.    Complex  institutional  arrangements,  strong  vested  interests,  and  weak accountability mechanisms limit the reform of older programs and the establishment of new  ones.    Thus,  instituting  wellâ€?governed  SPL  systems  involves  strengthening  the  “institutional  architecture’â€?  within  and  across  programs,  along  with  using  effective  “rules,  roles,  and  controlsâ€?  (Box  3.5).    These  structures  and  systems  also  have  to  be  designed  with  a  clear  understanding  of  political  economy  issues,  such  as  the  political  visibility  of  standâ€?alone  programs,  and  public  perceptions of rights, obligations, and entitlements from SPL programs.  Good governance need not  involve  complex  institutional  or  administrative  structures.    As  illustrated  in  the  India  and  Malawi  examples  (Box  3.6),  community  mobilization  can  be  used  to  strengthen  accountability  through  participatory governance approaches.  59. Strong  M&E  systems  are  essential  for  effective  management  and  filling  knowledge  Box 3.6: Using Communities to Enhance Accountability: India and Malawi gaps—with  their  most  powerful  use  being  not  Social audits are an important feature of India’s National accountability,  but  adaptation.    Secondâ€? Rural Employment Guarantee Act (NREGA) and have generation impact evaluation methods go beyond  contributed to increasing the program’s accountability and a  “black  boxâ€?  approach  of  assessing  whether  or  transparency. The Act mandated regular social audits of all not a program was successful.  Instead, they test  aspects of the NREGA scheme to review official records the  relatively  effectiveness  of  different  program  and determine whether the reports made by the states on design  features.    This  can  lead  to  important  their expenditures are consistent with the money that was changes  in  programs  design  to  improve  actually spent. An important innovation in this process has been the JanSunwai or public hearing, through which effectiveness.    The  example  of  Oportunidades  in  officials are directly accountable to citizens. The Mexico  demonstrates  this—careful  impact  government also plans to introduce an Ombudsman assessments  have  inspired  changes  in  program  program in which the NREGA scheme will be subject to design that have improved the ability of the CCT  “independent monitoring by eminent citizens.â€? program to improve children’s school attendance  Malawi’s Social Action Fund Project 3 (MASAF) uses a and  learning.    Mexico  has  also  been  a  leader  in  comprehensive community scorecard process to assess developing  performance  management  systems  whether services are benefitting the poor and to solicit through its establishment of the National Council  responses from public agencies. The process gives communities a central role in assessing the performance of for the Evaluation of Social Policy (CONEVAL), an  services and public agencies and in providing citizen autonomous  agency  responsible  for  monitoring  feedback to service providers on their performance. poverty  and  assessing  the  performance  of  social  Similarly, the service provider or the agency being assessed policies and programs. performs a self-assessment based on the perceptions of staff or people working in the agency. A meeting is then 60. Taking  a  more  systems  oriented  held between the service provider and the community where approach  is  a  frontier  agenda,  but  one  with  common concerns are discussed and a joint action plan for tremendous  potential  payoffs,  particularly  reform or improvements in the service are agreed. with  respect  to  three  persistent  gaps:   Source: Andrews et al. 2012. providing  adequate  coverage,  both  within  and  across  countries,  improving  responsiveness  of  programs  to  accommodate  those  made  newly  vulnerable  because  of  systemic  shocks,  and  effectively connecting beneficiaries of SPL programs to productive opportunities.    Leveraging Systems to Address the Coverage Gap: From Exclusion to Inclusion 61. SPL  programs  need  to  be  available  to  all,  but  lack  of  coverage  remains  a  pressing  issue across countries and among populations, with the poorest often being the least served.     Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 18      Countries with a larger share of the poor—especially in Subâ€?Saharan Africa—typically have fewer  beneficiaries of SPL transfers (Figure 3.3).  This is partly because SPL programs are fewer and less  effective,  but  also  because  those  SPL  programs  that  exist  are  often  available  only  to  urban  populations or those with formal sector jobs.  62. Setting  up  inclusive,  effective  SPL  systems  in  low­income  countries  is  particularly  challenging.   SPL systems are needed to address poverty, acute vulnerability, and crises—each of  which are disproportionately concentrated in LICs and often conspire to keep or drive households  into  destructive  coping  responses.    This  is  combined  with  restricted  fiscal  space  and  limited  institutional  capacity.    For  example,  Timor  Leste’s  SPL  transfers  only  reached  27  percent  of  the  poorest fifth of the population in 2007; Afghanistan’s reached 15 percent in 2007; and Cambodia’s  reached  only  2  percent  of  the  poorest  in  2008  (all  latest  available  data).    Contrast  this  with  SPL  transfers  reaching  well  over  90  percent  of  the  poorest  fifth  in  Mongolia  (latest  data  from  2007),  Thailand (2009), Romania (2008) Latvia (2008) and Chile (2009).48  63. Fragile  contexts  present  both  challenges  and  opportunities  in  terms  of  implementing  SPL.  On the one hand, they face greater challenges, including the existence of additional vulnerable  groups,  such  as  displaced  populations,  exâ€?combatants,  people  disabled  by  war,  and  widows  and  orphans.    When  this  is  combined  with  limited  state  capacity  and  an  insecure  environment,  it  can  affect both the supply of and demand for SPL and other services.  On the other hand, SPL programs  have the potential to help stabilize fragile situations.  The  World  Development  Report  2011:  Conflict,  Security,  and  Development (World Bank 2011) lists social protection as one of the options that can  be successfully introduced and incrementally increased in fragile and postconflict countries.    Figure 3.3: Most of the Population in Africa, MENA, and South Asia Receive Little in the Way  of SPL Transfers  Coverage of Social Protection and Labor, by Region 13 13 23 12 27 33 17 46 9 21 Percent 22 43 75 70 65 46 32 22 SS Africa MENA SAR LAC EAP ECA No transfer Only social insurance Only social assistance  Labor market programs    Source: World Bank Social Protection Atlas, using household survey data from 64 countries. Data excludes remittances.  Regions are, respectively: Subâ€?Saharan Africa, MENA, SAR, LAC, EAP, and ECA.   64. The  informal  sector  presents  another  set  of  challenges  to  inclusion.    Within  many  countries,  traditional  contributory  social  insurance  programs,  such  as  oldâ€?age  pensions  and    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 19      disability, and unemployment benefits, as well as many ALMPs (such as skills training) only benefit  formal sector workers.  They exclude the informal and agricultural workers who are a large share of  the  population.    Many  programs  are  not  available  to  those  who  are  most  in  need—women,  the  disabled, the illiterate, the urban homeless and itinerants, the destitute, older people living alone,  those who are socially excluded, and those who live in remote areas.    65. There  are  also  important  gender  dimensions  to  SPL,  relating  to  different  access  to  informal  and  formal  mechanisms  to  access  opportunity  or  cope  with  vulnerability  and  shocks.   First, in many developing countries, women still have less access to education, systematically lower  earnings, and weaker access to a range of assets and productive  resources (such as land or credit)  than do men.49  This means that women often have less capacity to protect themselves in the event  of  shocks.    Second,  the  impacts  of  shocks  on  women  and  men  are  almost  always  different,  partly  because of the different areas of work typically performed by women visâ€?àâ€?vis men.50   During the  recent  global  financial  crisis  in  Cambodia,  for  example,  the  external  demand  shock  led  to  considerable  labor  market  churning,  where  a  high  destruction  of  jobs  was  followed  by  an  even  larger creation of lowâ€?quality employment.  Women accounted for the greatest share of job losses,  but  also  were  the  largest  share  of  new  workers  in  agriculture  and  the  informal  sector.51    More  generally, female health  has been found to be more susceptible to shocks in developing countries  than male health.52  Third, women and men may have different ways of pooling risk, not necessarily  with other household members. In Ghana, for example, risk pooling appears to be gender specific,  rather  than  household  specific.    Women  pool  risk  with  other  women  in  their  villages,  while  men  pool risk with a more geographically diffuse group of men.53    66. Children and the elderly are also often inadequately covered.  Traditional, familyâ€?based  care of the very young or elderly has broken down in many developing countries, without adequate  formal  mechanisms  arising  to  take  its  place.    Death,  disease,  and  limited  productive  employment  have impacted caregivers’ capacity to provide children with adequate stimulation, nutrition, health,  and schooling—handicapping them for achieving productive futures (see next section).    67. For the elderly, inadequate transfers from either formal pension systems or from informal  family and community transfers can severely reduce their ability to cope with illness or inadequate  nutrition.  In LICs, only one in nine workers contribute to a pension program, and this proportion  has remained stagnant for decades, affecting their ability to receive adequate pension benefits.54    68. Public  spending  on  pensions  tends  to  be  regressive,  being  concentrated  on  a  very  small  proportion of workers, especially civil servants.  In MICs, there are also large gaps among the lower  income,  informal  sector  workers—even  for  the  higherâ€?income  MICs.    This  is  compounded  by  demographic pressures straining the ability of pensions systems to finance adequate benefits.  This  is  particularly  true  in  the  transition  economies  in  Eastern  Europe  and  the  Former  Soviet  Union,  where pension spending is frequently the largest government expenditure as well as a major source  of  fiscal  deficits,  and  accelerated  aging  has  reduced  the  number  of  younger  workers  supporting  those older workers needing pension coverage.55     Leveraging Systems to Address the Flexibility Gap: From Inflexibility to Responsiveness 69. The  recent  crisis  vividly  demonstrated  the  need  for  social  protection  and  labor  systems  that  can  quickly  and  effectively  respond  to  those  affected  by  systemic  shocks  and  crises.    Countries  without  adequate  systems  in  place  were  less  able  to  respond  effectively  to  protect  the  poor  and  support  recovery  from  shocks.      This  is  especially  true  for  poorer  countries  without SPL programs in place. By the end of 2010, the crisis contributed to an estimated 64 million  additional    people  living  below  $1.25  a  day  and  76  million  more  below  $2  a  day,  compared  to  a    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 20      scenario where the preâ€?crisis trend of economic growth (during 2000–07) continued for developing  and  emerging  countries.    This  is  on  top  of  the  130  to  155  million  people  pushed  into  poverty  in  2008  because  of  soaring  food  and  fuel  prices.56  Even  those  living  in  more  prosperous  countries  need effective SPL institutions—to mitigate welfare losses from economic downturn and to capture  opportunities  for  recovery.    This  translates  into  an  important  operational  agenda  for  building  inclusive  systems,  as  discussed  below.    It  also  calls  for  coordination  with  the  IMF  and  others  engaged directly in crisis response.  70. A  central  lesson  from  past  SPL  engagement  is  that  systems  must  be  built  in  “goodâ€?  times  in  order  to  able  to  respond  to  crises.   This was underscored by IEG’s 2011 evaluation of  safety nets.57    Given the lack of such systems, particularly in LICs, there is an urgent need to have  programs  and  financing  that  can  respond  rapidly  and  effectively.    In  particular,  the  advantage  of  having  instruments  already  in  place  resides  in  their  “automationâ€?—that  is,  their  ability  to  be  automatically  triggered  or  adapted  (increasing  the  level  of  benefits  and/or  thresholds  for  eligibility) in period of crisis.58   71. Social  protection  and  labor  systems  are  both  needed  in  times  of  crisis  to  protect  the  vulnerable  and  poor,  and  in  good  times  to  manage  individual  shocks  to  people  and  families  and to address long­term poverty and lack of opportunity.  However, practice differs across the  world.    In  some  regions,  such  as  Latin  America,  the  emphasis  has  been  on  the  role  of  social  protection  programs  to  reduce  inequality  and  poverty.    But  these  programs,  very  successful  at  targeting the chronic poor, have been less able to identify and serve the newly poor during broad  crises.    In  other  regions,  such  as  East  Asia,  there  has  been  a  focus  on  crisis  response,  but  many  countries  have  yet  to  put  in  comprehensive  systems  that  help  households  and  individuals  meet  their dayâ€?toâ€?day risks.  72. Moving to more crisis­responsive SPL systems requires concerted action by countries  during  “good  timesâ€?  to  build  resilience  into  their  broader  SPL  systems.    This  requires  investment in four areas:  73.  First,  investing  in  SPL  programs  for  the  most  vulnerable—to  ensure  that  there  are  longerâ€?term  programs  and  broader  social  protection  and  labor  systems  in  place  before  crises  hit,  and to immediately be able to address the needs of the most vulnerable in the population. This is  particularly  needed  in  many  lowerâ€?income  countries,  where  large  parts  of  the  population  could  become desitute because of price shocks or natural disasters.   74. Second,  enhancing  existing  programs  so  that  they  can  more  easily  capture  the  newly  vulnerable.    This  would,  for  instance,  examine  the  eligibility  mechanisms  in  programs  used  to  identify  the  vulnerable,  and  to  see  if  there  are  mechanisms  to  identify  the  newly  poor.    This  can  involve recourse and appeal mechanisms (where those who feel that they are unjustly excluded can  get a quick resolution) or the use of communities to identify the newly vulnerable.     75. Third,  adding  counter­cyclical  programs to the SPL portfolio—such as public works and  unemployment insurance—that can be easily scaled up to protect the newly poor and vulnerable.   For  example,  the  Ethiopia  Productive  Safety  Nets  Program  has  a  component  that  allows  it  to  be  scaled  up  if  there  is  warning  of  impending  drought,  which  was  used  to  protect  additional  beneficiaries during the 2011 drought in the Horn of Africa.   76. Finally,  financing  for  crisis  response  needs  to  be  a  central  part  of  planning  ahead.   Coordination with partners, including the IMF, is essential.  There is also scope for expanding the  use  of  rapidâ€?response  lending  instruments  and  establishing  insurance  mechanisms,  including  across countries such as the development of insurance against natural disasters in the Organization  of Eastern Caribbean States (OECS).     Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 21      Leveraging Systems to Address the Opportunity Gap: Towards More Productive Programs 77. A  well­functioning  portfolio  of  SPL  programs  can  help  improve  productivity  and  longer­term  growth  in  incomes.    However,  many  programs—in  social  assistance,  insurance,  or  labor—have  design  problems  that  either  fail  to  maximize  their  impact  on  productivity  or  create  incentive problems that can have a negative effect on productivity.  Access to social insurance, for  instance, can facilitate labor mobility and provide incentives for engagement in higher risk/higher  return activities.  By contrast, when programs are not properly designed, they can preclude labor  mobility or provide incentives to work in the informal sector.      78. There  are  three  core  elements  of  addressing  the  opportunity  gap  in  SPL:    first,  ensuring  investing in the  human  capital  of  children;  second,  activating  individuals,  especially youth, and  improving  the  functioning  of  labor  markets  to  include  them;  and  third,  improving  the  earning  opportunities of workers, especially through building their skills and productivity.  Box 3.7: Conditional Cash Transfers: Protecting the Poor and Providing Opportunity Conditional Cash Transfer (CCT) programs have rapidly become one of the most widely adopted anti-poverty initiatives in the world, growing from a handful programs in the late 1990s to presence in over 40 countries worldwide today. CCTs are viewed as an effective way to provide basic income support to poor families while strengthening children’s health, education, and nutrition—a cornerstone for breaking the intergenerational cycle of poverty. CCTs provide money to poor families—usually through payments directly to mothers—conditional upon investing in their children. Typical family ‘co-responsibilities’ include perinatal care for mothers; regular check-ups, vaccinations, growth monitoring for children under five years old, and school enrollment and attendance for school-age children. Evaluation evidence from a number of countries points to considerable achievements. First, CCTs are effective in reaching the poor and have helped raise their consumption and reduce poverty, with beneficiary households spending a larger share of their income on food and buying more nutritious food. Second, disincentive effects on adults’ fertility or labor market participation appear to be small or nonexistent, while having positive effects on child labor in Brazil, Cambodia, Ecuador, Mexico, and Nicaragua. Third, CCTs have substantially increased poor families use of education and health services—school enrollment and attendance has increased and families are more likely to bring children for regular health check-ups, growth monitoring, and vaccines. The impacts are strongest among the poorest and those with lower initial baseline levels. However, evidence on the impact of CCT programs on “finalâ€? outcomes is less clear-cut in areas such as child health and nutrition, school completion, and student learning. This suggests that there are important complementarities to be sought with programs that can affect children’s education and health, notably through early childhood development and by improving the quality of schools and health care. There are important remaining knowledge gaps currently being explored in a new generation of programs and related evaluations. One question is whether the cash or the condition matter more to outcomes, and whether similar outcomes could be obtained through unconditional cash transfers (UCTs). There are also design questions, including around transfer sizes, how to best monitor conditionalities, and how to combine CCTs with complementary services to ensure long-term poverty and human development impacts. CCTs are not the only way to effectively combine poverty-reducing transfers with investments in children. Other approaches— including UCTs—can also be successful. But the unique record of CCTs is built on strong evaluations demonstrating success around the world and in different country contexts—an agenda of evidence-based implementation that other SPL interventions can do well to emulate. Source: Fiszbein and Schady 2009.   79. First,  building  and  preserving  children’s  human  capital  is  a  prerequisite  for  future  productivity and for breaking the interâ€?generational cycle of poverty, but is compromised by poor  health, education, and nutrition, which can be exacerbated during crises.  SPL has an important role  to  play  across  sectors  in  helping  families  invest  in  their  children,  providing  a  basis  for  ensuring  equality in opportunities.   For example, CCTs combine immediate income support with incentives  for  families  to  invest  in  their  children’s  health  and  education  by  requiring  school  attendance  and    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 22      health  visits  (see  Box  3.7).    Programs  that  are  sensitive  to  specific  vulnerabilities  and  reach  orphans, street children, or pregnant women can help ensure that the youngest are not the most at  risk.    80. Developing  child­sensitive  social  protection  is  also  particularly  urgent  given  poor  children’s  vulnerability,  the  high  returns  on  investing  in  children,  and  the  consequences  of  inaction.    Investing  in  children  is  broadly  acknowledged  to  be  one  of  the  best  pathways  for  reducing poverty by reducing the interâ€?generational transmission of poverty.  The evidence on both  the  costâ€?effectiveness  and  consequences  of  deprivation  in  early  childhood  is  also  clear.    These  deprivations  have  lifelong  impacts  on  cognitive  development,  health,  and  earnings.  Conversely,  investing  in  early  childhood  is  among  the  most  costâ€?effective  use  of  resources.59    Fortyâ€?eight  percent of children in South Asia and 42 percent in Subâ€?Saharan Africa are malnourished and access  to education and health remains elusive for many.    81. Protecting  and  promoting  human  capital  can  be  particularly  important—and  challenging—in the face of crises.60  Infant mortality can spike during crisis—by one estimate, a 1  percent shortfall in per capita GDP from expected trends results in an increase in infant mortality of  between 10 and 15 percent.61  The mortality of girls is also significantly more sensitive to aggregate  economic  shocks  than  that  of  boys.    A  range  of  studies  point  to  the  effects  of  idiosyncratic  and  aggregate  shocks  on  mothers’  anemia,  child  birth  weight,  child  stunting,  child  underweight  and  wasting,  and  child  anemia.    In  these  cases,  SPL  and  other  social  services  can  play  a  key  role.    For  example,  Indonesia  implemented  a  supplementary  feeding  program  aimed  at  maintaining  the  nutritional  status  of  children  under  five  years  old,  with  a  particular  emphasis  on  children  under  two, in the face of its 1997 crisis.  The program had a significant effect in preventing stunting (low  height  for  age)  among  infants,  with  longer  exposure  to  the  program  resulting  in  ever  greater  protective effects.62  Thailand’s expansion of its social insurance program was also instrumental in  combating a decline in access to health care in the 1997–98 crisis.63    82. Second,  jobs  are  a  critical  aspect  of  the  opportunity  agenda,  and  a  SPL  focus  is  activating  individuals,  especially  youth,  and  improving  the  functioning  of  labor  markets  to  include  them.   These are interventions that are particularly relevant for MICs.  The goal is to use  wellâ€?conceived  incentives  and  active  ALMPs  to  increase  participation  rates,  help  connect  the  unemployed to jobs, and facilitate transitions between jobs.    83. Youth transiting from school to work are an important target group for these policies  and  programs,  which  in  addition  to  training  can  include  counseling,  jobâ€?search  assistance,  intermediation services, skills certification, and wage subsidies.    84. Third,  SPL  interventions  also  aim  to  improve  the  earning  opportunities  of  workers,  especially  through  building  their  skills  and  productivity.   Interventions are needed to focus on  building  the  skills  of  those  who  are  already  in  the  labor  market—to  address  the  persistent  mismatch between the skills individuals have and those that are needed by employers. In Tunisia,  more than 50 percent of university graduates are in jobs that do not use the skills they acquired in  university.64 The majority of the world’s workers have very low levels of education. Even those with  higher  degrees  might  not  have  acquired  the  skills  necessary  to  succeed  in  the  labor  market—  particularly high level analytical and interactive skills.65  Across countries, only very few graduates  attend top schools and get access to good jobs.  Compensation for these lucky few has been on the  rise—but  for others, job opportunities are scarce and labor  earnings have remained  stagnant.   At  the same time, employers frequently complain that workers’ skills are a binding constraint to their  business.      Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 23      85. An  effective  approach  to  skills  will  often  involve  rethinking  current  training  policies  often  focused on supplyâ€?driven technical vocational education and training or on the provision of adâ€?hoc  incentives for on the job training.  Countries will need to build on the experiences of countries from  Turkey, Tunisia, Jordan, the Dominican Republic, and the suite of Latin American Jovenes programs,  which  engage  the  private  sector  to  provide  training  and  work  experience  to  youth.    A  challenge  would be to adapt these programs to LICs.  86. In  addition,  countries  need  to  consider  policies  to  the  self­employed.    Selfâ€?employed  individuals—including  those  working  at  poverty  or  nearâ€?poverty  levels—are  the  majority  of  workers in many LICs.  They are often in activities with unrealized economic potential.  This is due  to constraints not only in terms of skills but also because of lack of knowâ€?how, information about  markets,  and  potential  clients,  and  access  to  credit.    Labor  market  programs  that  provide  comprehensive packages that address these multiple constraints, and connect the selfâ€?employed to  other opportunities, are important aspects of improving their productivity.  87. Enhancing productivity is a challenging objective.  It calls on multisectoral engagement and  on  building  knowledge  in  terms  of  the  best  way  to  design  and  implement  programs  that  can  address  these  constraints.    Going  forward,  this  is  an  important  area  for  research,  policy  analysis,  and operational innovation.  4. STRATEGIC DIRECTION FOR SOCIAL PROTECTION AND LABOR AT THE WORLD BANK 88. The central challenge of fragmentation and the global gaps in coverage, responsiveness, and  opportunity  identified  in  the  previous  section  establish  a  clear  strategic  direction  for  the  World  Bank’s SPL practice in the years ahead.  89. The  primary  objective  of  the  World  Bank’s  SPL  Strategy  2012–22  is  to  help  countries  move  from  fragmented  approaches  to  harmonized  systems  to  cover  multiple  risks  and  ensure  more  effective  coordination  across  SPL  programs  and  objectives.    Building  on  growing  empirical  evidence and a decade of operational experience, this strategy lays out an approach for increasing  World  Bank  involvement,  capacity,  and  knowledge  where  there  are  critical  gaps  that  a  more  harmonized, systemic approach can help fill.   This is central to SPL responsiveness to shocks and to  combating chronic poverty and destitution.  A more harmonized approach is also needed to reduce  coverage gaps in lowâ€?income countries or fragile contexts and for vulnerable groups (including the  very poor, women, and the disabled) and to promote opportunity through enhanced human capital,  better jobs, and higher productivity, especially for young people.66   90. Through  policy  dialogue,  operations  and  knowledge  work  over  the  next  decade,  the  SPL  practice  will  help  countries  move  from  fragmentation  to  a  systems  approach,  treating  SPL  as  a  portfolio  of  programs.    A  portfolio  approach  will  allow  SPL  programs  to  be  more  responsive  to  shocks  that  may  be  caused  by  sudden  calamities  within  the  family—a  loss  of  job,  illness, or the death of a breadwinner—or the effects of more widespread crises.  It will also help  SPL focus on the core functions of alleviating poverty and protecting against destitution.  91. Given  the  state  of  SPL  today,  the  World  Bank’s  practice  will  also  need  to  focus  on  addressing the inclusion, responsiveness, and productivity gaps.  SPL systems need to be more  inclusive,  reaching  excluded  groups  to  ensure  their  access  to  SPL,  notably  among  the  most  vulnerable,  the  informal,  and  the  disadvantaged  (including  women  and  disabled).    Deepening  engagement in LICs and fragile contexts will be needed to develop sustainable, effective approaches    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 24      in these contexts.  They  will need to  be  more  responsive,  to  ensure that  people can protect their  incomes and the welfare of their families during crises and shocks.  And to ensure that people are  able to access opportunities, SPL systems will need to be  more  productivity­oriented,  supporting  human capital, productivity, and longerâ€?term growth in incomes.  Enhancing productivity calls for a  particular  focus  on  children,  as  well  as  on  productive  jobs  for  all  workers.    Upholding  core  labor  standards, including child labor standards and equal opportunity at work, is a central area of this  broader agenda, which relies on working multisectorally to help ease the multiple determinants of  child labor and unequal opportunity at work.   Strengthening Systemic Approaches Tailoring to country contexts   92. SPL  programs  need  to  be  able  to  work  together  as  a  portfolio  of  complementary  initiatives  adapted  to  different  contexts, as described in Annex  1 on how different  World Bank  regional practices will apply the SPL strategy to meet the particular needs and conditions of their  client countries.  There is no “one size fits allâ€? approach.  Instead the strategy calls for improving  evidence,  capacity  building,  and  knowledge  sharing  across  countries  to  facilitate  building  appropriate portfolios of programs, tailored to country contexts (see Figure 4.1).  93. First,  in  weak  institutional  settings,  such  as  in  fragile  and  lowest  income  countries,  the  appropriate  focus  may  be  on  setting  up  one  or  more  basic  programs  and  ensuring  that  these  are  supported  Figure 4.1: Building SPL Systems Appropriate for Different  by  strong,  basic  Institutional Contexts  administrative  sub­ system  “building  blocksâ€?  that  can  be  used  across  SPL  programs.    This  effort  could  start  with  establishing  and  strengthening  the  basic  building  blocks  of  specific  SPL  programs  that  cover  only  the  most  vulnerable  (usually  transferâ€?based  safety net programs).  It  could  then  progressively  build  administrative,  institutional,  and  financial capacity to systematically and systemically extend these to cover more people and to add,  as needed, complementary programs to the SPL portfolio (such as oldâ€?age pensions, child benefits,  and disability benefits).    94. Second,  where  there  are  several  functioning  programs  already,  the  goal  would  be  to  improve the efficiency and efficacy of each program—through refining institutional frameworks  and improving incentive compatibility with other related programs.  This type of engagement will  be at the center of much of the World Bank’s SPL engagement in client countries.    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 25      95. Third,  in  contexts  where  many  individual  programs  are  well­functioning,  the  added  challenge  may  be  to  improve  their  harmonization  and  coverage.  Improving harmonization is  an  important  “secondâ€?generationâ€?  agenda  in  many  MICs,  which  the  World  Bank  will  continue  to  support  with  analytical  and  financial  instruments.    A  key  feature  of  these  reforms  is  synchronization  across  existing  tools,  programs,  and  policies  to  build  consistent,  harmonized  national  systems.    This  is  important  in  three  dimensions:  first,  across  similar  programs  (for  example, povertyâ€?oriented cash transfers targeting different  demographic groups); second, across  different  types  of  programs  (such  as  linking  unemployment  benefits  to  training  programs—the  “activationâ€?  agenda)67  to  enhance  complementarities  and  avoid  incentive  problems;  and  third,  coordinating  across  actors  and  different  levels  of  government, notably  in  federated  countries  (for  instance,  ensuring  coherence  and  compatibility  between  federal  and  stateâ€?level  unemployment  benefit criteria) (see Box 4.1 on Brazil).   Box 4.1: Brazil: Bolsa Família and the Impact of Integrated Social Assistance Social protection policies in Brazil are credited with helping to dramatically reduce poverty and inequality over the past decade. Moderate poverty fell from 26 percent of the population in 2003 to 14 percent in 2009 and extreme poverty was halved from 10 percent to 5 percent (Soares 2010). Inequality also fell from a Gini coefficient of 0.59 (among the highest in the world) to 0.54. A major contributor to this was the government’s flagship social assistance program, Bolsa Família, launched in 2003 and integrating several existing social assistance programs, including Bolsa Escola (which targeted primary and secondary education), Bolsa Alimentacao (nutritional needs for women and children), Cartao Alimentaçao (food security), and Auxilio Gas (subsidies for cooking gas). Collectively, these existing programs had consumed almost a fourth of all spending on social assistance and had similar goals, but suffered from insufficient policy coordination, overlapping target populations, and separate administrative arrangements. This created inefficiencies in service delivery coupled with duplication and gaps in coverage that Bolsa Família was designed to address. Bolsa Família is a CCT program that provides monthly payments to mothers from poor families conditional upon investing in their children. The following are required: school enrollment and attendance; regular health check-ups, vaccines and growth monitoring; and mothers attending seminars on nutrition, health and education. The program has allowed for greater cohesion and continuity in social policies and has expanded coverage to some 13 million families today, more than a quarter of Brazil’s population. At a cost of 0.6 percent of GDP today, Bolsa Família provides coverage to more poor and extremely poor families than does any other CCT program in the world. Recent analysis points to Bolsa Família contributing to roughly one-fifth of the reduction in Brazil’s 2003-08 poverty rates and income inequality. The program has also contributed to increased educational enrollment and attendance, as well as the utilization of health service providers. Much of Bolsa Família’s success is credited to its effective administrative procedures. A database, the Cadastro Único, is used to compile, manage, and analyze data for 22 million families, a large share of Brazil’s poor. The ongoing assessment, revision, and adjustment of procedures to identify and register families have helped minimize errors both of inclusion (that is, benefits to those who do not need them) and exclusion (that is, the failure to provide benefits to those who do need them). Benefits are paid through Caixa Econômica Federal, a government-owned bank with over 30,000 payment points nationwide where families can collect benefits using electronic cards. This enables administrators to create and publish a payment calendar early in the year, which facilitates budgeting for participating families. Source: Robalino, Rawlings, and Walker 2012.   96. Responses  will  also  need  to  be  tailored  to  countries’  particular  priorities  and  needs,  be  they  youth  unemployment,  a  rapidly  aging  population,  a  high  degree  of  informality,  severely  constrained financing, or other issues.  In many cases, the World Bank’s comparative advantage will  lie  in  transmitting  its  learning  from  interventions  and  programs  among  contexts  with  similar  institutional constraints, regardless of the region in which they are situated.  Ensuring Inclusion 97. The  World  Bank  will  need  to  help  countries  develop  innovative,  evidence­based  approaches  to  sustainably  expand  coverage  of  SPL,  notably  in  low­income  countries  and  among  excluded  groups.    This  will  build  on  experience,  including  current  engagement  with    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 26      programs  such  as  Pakistan’s  Benazir  Income  Support  Program,  which  covered  2.2  million  households  within  a  year  of  starting  up,  and  Ethiopia’s  Productive  Safety  Net  Programme,  which  currently reaches 7.6 million beneficiaries, close to 8 percent of the population.  Knowledge sharing  around  specific  country  experiences  will  be  coupled  with  evidenceâ€?based  advocacy  of  the  contribution of SPL to inclusive growth and with a deeper knowledge of effective SPL in LICs and  fragile contexts.    98. The  World  Bank  will  support  increased  inclusion  through  fiscally  sustainable  SPL  approaches.    A  more  systemsâ€?oriented  approach  to  SPL  will  also  bring  efficiencies.    Effective  targeting systems can help countries prioritize investments to ensure that they reach the poorest  and most vulnerable, using diverse approaches from dataâ€?driven methods to more reliance on selfâ€? targeting  or  community  targeting.    The  World  Bank  will  also  facilitate  sustainable  approaches  through  more  effective  donor  coordination,  particularly  by  encouraging  countries  to  move  away  from fragmented programs to scaledâ€?up national SPL programs, moving these programs onâ€?budget  and  getting  concerted  technical  and  financial  assistance  for  these  programs  from  development  partners, including the World Bank.  99. The World Bank can help support countries in making sure that their policy and program  choices  are  informed  by  generating  data  on  SPL  programs  and  beneficiaries,  linked  to  models  on  reform options, and by facilitating learning across countries.    100. Within  countries,  different  excluded  groups  will  need  different  operational  approaches,  as  discussed  below.    These  groups  include  the  ultraâ€?poor,  women,  the  disabled,  the  elderly, and children.  The particular challenge of low­income countries and fragile contexts   101. Setting  up  appropriate  systems  will  be  especially  challenging  in  lower­income  countries and fragile contexts, particularly as the World Bank’s SPL practice has historically been  more focused on MICs.   Restricted fiscal space and limited institutional capacity constrain effective  government action and limit the ability to apply traditional social protection instruments that may  have  worked  well  in  middleâ€?income  contexts.    From  an  operational  perspective,  this  is  further  complicated by institutional fragmentation across public sector institutions, NGOs and donors, and  limited  public  and  formal  sector  presence  in  many  of  the  most  disadvantaged  regions.    Fragile  contexts present particular challenges, but SPL has been used successfully to support stabilization  (see Box 4.2).   Box 4.2: Social Protection in Fragile Contexts: Three Approaches SPL programs in fragile situations can build fundamental institutions while at the same time protecting the vulnerable. Three approaches highlight this role: Labor-intensive programs can be a stabilizing force in fragile situations while at the same time yielding valuable infrastructure investments. Examples include the sporadic employment initiatives in the Gaza Strip since the 1990s and the Liberian Cash for Works Temporary Employment Program that created 17,000 temporary jobs in response to the 2008 Food Crisis, as well as being the basis for a Youth Employment Skills Project that has created an additional 45,000 temporary jobs in three years. Cash transfer programs can also help communities to re-establish their livelihoods and restore lost assets. These include transitional payments to demobilized ex-combatants in Angola, Mozambique, and Rwanda, along with cash payments to internally displaced people and veterans in Timor-Leste. In Nepal, programs such as social pensions for the elderly, single women, and people disabled during wars have stayed in place and grown throughout protracted conflict and its aftermath. Fee waivers for government services can also be a form of cash benefits—as was the case with education and health care in Liberia and maternal and child health care in South Africa. Such programs can redress the balance for those groups that were previously excluded from state programs. Source: Andrews et al. 2012; World Development Report 2011: Conflict, Security, and Development.   Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 27        102. The  World  Bank  and  its  partners  will  have  to  be  both  innovative  and  pragmatic  in  tailoring  sustainable  and  scalable  SPL  in  lower­income  countries  and  fragile  states.  To help  countries build the basic elements of social protection programs, and to improve and integrate the  ones that exist, will require deepened investments and coordination in at least five areas:68  ï‚· Building up evidence from operations by the World Bank and others on which programs and  approaches work best in LICs and fragile environments  ï‚· Strengthening central and local capacity for delivering SPL programs and services by building   a foundation of good governance and transparency  ï‚· Deepening  links  with  the  private  sector,  social  funds  and  other  community  based  organizations, which are often the institutions with the best capacity and local knowledge;   ï‚· Ensuring  financial  sustainability  in  order  to  expand  coverage,  often  through  the  improved  use of existing resources; and  ï‚· Using  information  technology—mobile  phones,  GPS  identification  and  cheap  data  processing—to  leapfrog  to  flexible  and  effective  governance,  service  delivery  and  system  integration mechanisms.  103.  Multisectoral  approaches  will  often  be  needed  to  promote  livelihoods  and  ensure  food  security  in  the  largely  rural,  informal  economies  characteristic  of  LICs  and  fragile  contexts.    As  box  4.3  illustrates,  this  can  be  accomplished  by  following  an  approach  aimed  at  helping households accumulate productive assets over time and invest in their human capital.  This  challenge is likely to become increasingly acute given the anticipated effects of climate change and  their  concentration  in  lowâ€?income  regions,  again  calling  on  SPL  to  engage  multisectorally  to  help  communities adapt and build resilience.  Box 4.3: Promoting Livelihoods and Food Security in Rural Economies Social protection can play a dual role in strengthening rural livelihoods and promoting food security in rural areas typical of LICs and fragile situations. Some best practices are emerging about how social protection systems can help households accumulate productive assets and build human capital: Increasing capacity to respond counter-cyclically. Shocks and seasonal stresses can create uncertainty in commodity prices and labor demand. Advanced planning during more prosperous times can help meet households’ basic income and consumption requirements in bad times. Making better use of early warning information—for example, regarding adverse weather events—can help this advance planning. Investing in productive safety nets. SPL instruments can be designed to generate economic benefits to communities. Labor- intensive public works offer temporary employment and income support to recipients but can also build or rehabilitate needed infrastructure. Cash transfers and locally managed school feeding programs can benefit the local economy by injecting cash and providing employment. Customizing interventions to community needs and vulnerabilities. The timing and types of transfers should be geared to meeting the specific needs and vulnerabilities of rural households, for example, protecting them against health shocks or promoting livelihood ladders. A promising approach is to capitalize on the key role that women play in maintaining household food security. This can be done by incorporating such simple features as targeting approaches and project selection procedures into the design of SPL programs to encourage positive intra-household distribution effects on, for example, children’s nutrition and school enrollment. Including agriculture and nutrition perspectives. Rural development is a multidimensional challenge, and SPL interventions need to build synergies with other sectors’ investments in agriculture and nutrition. Evidence suggests that multisectoral interventions, which combine SPL interventions with other efforts focused on livelihood promotion and human capital development, can have highly beneficial effects. This requires collaboration across sectors within the World Bank, as well as coordination between different specialized agencies, including the United Nations Food and Agriculture Organization (FAO), UNICEF, and WFP.    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 28      Reaching the most vulnerable  104. Despite  substantial  gains  in  the  coverage  of  SSNs,  many  poor  and  vulnerable  groups  remain  uncovered,  which often include children, women, ethnic minorities, and the disabled.  So  the  challenge  of  reaching  the  most  vulnerable  has  two  dimensions—increasing  the  availability  of  SPL programs in LICs and fragile contexts, and making sure that the most vulnerable can access the  programs that exist.  105. The  World  Bank  will  work  with  low­income  countries,  and  those  with  fragile  contexts,  to  help  institute,  improve  and  extend  SPL  programs  and  systems,  with  support  from  catalytic  resources,  such  as  the  Rapid  Social  Response  (RSR)  initiative.    As  described  earlier,  this  will  in  many  cases  take  the  form  of  helping  institute  the  “building  blocksâ€?  of  administrative subsystems that can effectively and efficiently support one or more SPL programs.   In others, the focus will be on improving and extending the programs that exist.  In many situations,  a few core programs—such as a cash transfer or seasonal public works program—can be used as a  platform for a larger menu of SPL services.  For example, beneficiaries could be encouraged to take  advantage of microâ€?insurance initiatives or health insurance, as has been done recently in Ethiopia,  Rwanda,  and  Pakistan.    In  fragile  and  postâ€?conflict  contexts,  SPL  programs  that  provide  basic  income  support,  strengthen  access  to  basic  services,  and  rebuild  infrastructure  can  be  transformative in helping both provide resources and build social cohesion.  In these contexts, the  World  Bank  will  be  most  effective  when  working  closely  with  NGOs,  the  UN  system,  and  communityâ€?based organizations to ensure access to basic services.    106. The World Bank will prioritize South­South  learning  to  champion  innovative  outreach  Box 4.4: Using Cell Phones to Protect the Poor in strategies  that  can  be  tailored  to  specific  needs  of  Kenya different  vulnerable  groups.  This may, for instance,  In Kenya, Safaricom (working with Vodafone) require broader ways of identifying and targeting the  launched an initiative called M-PESA originally co- poor,  including  the  involvement  of  genderâ€?balanced  funded by the UK Department for International groups,  communities  and  intermediaries  (as  in  the  Development (DFID) to enable customers with no Indonesia  Direct  Cash  Assistance  or  BLT  program).69   access to conventional banking to receive benefit payments through a pre-paid phone. All customers It may also involve using social assistance as an entry  need to register at an authorized M-PESA agent— point  to  access  a  network  of  services  tailored  to  usually petrol stations, supermarkets, and Safaricom multidimensional  needs,  as  in  the  Chile  Solidario  stores—by providing a Safaricom mobile number and program.  Often, this can be combined with the use of  their identification card. The agent then activates an intermediaries,  such  as  local  social  workers  and  account on their mobile phone handset that enables community  actors  to  reach  and  connect  the  excluded  customers to load cash in and take cash out at any to  existing  programs—as  is  being  tried  in  the  Brasil  M-PESA outlet, including their benefit payments. Sem  Miséria  program.    For  those  in  the  informal  Targeted households are clustered into groups of up to 10 to share the phone, and one literate person is sector,  new  efforts  are  underway  to  let  them  avail  of  nominated as the cluster leader. Although the social  insurance,  as  with  the  National  Health  equipment is shared by all cluster members, each Insurance Scheme (called RSBY) in India—a demandâ€? beneficiary receives his or her own SIM card to side,  voucherâ€?like  intervention  that  aims  to  provide  register for M-PESA to reduce the risk of fraud among catastrophic  health  insurance  to  a  potential  cluster members. This system currently serves 4 population of 60 million poor Indian households.    million customers, and there are over 360 M-PESA agents nationwide. 107. Finally,  the  World  Bank  will  increasingly  support  the  use  of  innovative  Information  and  Source: Africa Social Protection Strategy, World Bank. Communication  Technologies  (ICT)  as  a  way  to  reach  the  most  vulnerable.    The  dramatically  lower  costs  and  extensive  reach  of  smart  cards,  point of sale devices (POS), and cell phones provide opportunities to rapidly expand SPL coverage    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 29      while cutting fraud, error and corruption.  For example, biometric technology is increasingly being  used  to  register  beneficiaries  and  deliver  social  services,  often  through  strong  collaboration  with  the  private  sector.    It  has  been  used  to  scan  and  identify  beneficiaries  of  the  Disarmament,  Demobilization  and  Reintegration  (DDR)  project  in  the  Democratic  Republic  of  Congo.    India’s  unique  identification  scheme  has  already  enrolled  200  million  people  and  expects  to  reach  400  million—a third of all Indians—by the end of 2012.70  In Kenya, cash transfer payments are being  made using cell phones (see Box 4.4).   Ensuring gender­sensitive social protection and labor71   108. The  World  Bank  will  work  with  countries  to  ensure  that  programs  adequately  address  the  SPL  needs  of  both  women  and  men  (and  girls  and  boys).    In  social  assistance  programs, as relevant to the country context, the World Bank will ensure that women have access  to  the  transfers—building  on  the  evidence  that  increases  in  the  relative  resources  controlled  by  women  commonly  translate  into  a  larger  share  of  household  resources  going  to  family  welfare,  especially to expenditures on children.  In  workfare  programs,  program designs will incorporate  social  norms  about  genderâ€?appropriate  behavior,  as  well  as  genderâ€?specific  responsibilities  with  Box 4.5: Designing Gender-Sensitive Public Works Programs: India’s Mahatma Gandhi National Rural Employment Guarantee Program From its inception, India's Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) was designed to encourage women’s participation and empowerment. The scheme, which promises 100 days of work per year to all rural households, is equally available to male and female adults willing to do unskilled manual labor. Crucially, the statutory minimum wage set for the scheme is the same for men and women. In a context where market wages are typically much lower for women, the designers’ vision was that MGNREGS would raise the bargaining power of poor rural women whether they participate or not. The legislation also provides for a number of other design features that were deemed vital to ensuring women’s participation. These include the following:  Creche facilities for childcare at the jobsites  The availability of drinking water and a rest area in the shade at the work sites  A ban on contractors  Women's individual bank or post office accounts for direct wage payments. The scheme is very popular with women. The evidence so far suggests that MGNREGS has succeeded in attracting them into the workforce. Dutta et al. (forthcoming) find that across states, women’s participation rates in the scheme are twice that of their participation share in paid casual labor. They are also typically paid much higher wages on the scheme than in other casual work, although still often less than men. And in specific states, studies report positive impacts on women's lives and welfare (Holmes and Jones 2011). Yet, the reality on the ground differs substantially from the scheme’s articulated vision. There is huge variation in how MGNREGS is working across the states of India. But almost everywhere there is evidence of unmet demand for work and with few exceptions, rationing rates tend to be higher for women than for men. Not much is known about the provision of worksite facilities but anecdotal evidence and one study for Bihar find no sign of these facilities being provided on average. Contractors are rife and as expected, are less likely to provide work to women. Women’s awareness of their rights, off MGNREGS stipulations, and how to get work is generally very low. Together with the supply side constraints, this severely limits them from acting on their rights. Good legislation and policy design are key prerequisites and important first steps towards rendering SPL policies more inclusive of women. However they are often not enough. More needs to be done, including repeated awareness and sensitizing campaigns aimed at both men and women. These can help change social norms and attitudes and improve women's status and empowerment. Source: Dutta et al. forthcoming; Holmes and Jones 2012; Subbarao et al. forthcoming.   Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 30      respect  to  household  and  market  work  (see  Box  4.5).    The  counterâ€?example  from  the  workfare  programs  in  Indonesia  during  the  1997–98  East  Asia  crisis  was  that  female  participation  was  hindered  because  program  design  emphasized  work  typically  performed  by  men  (for  example,  repairing  roads,  rehabilitating  schools,  and  community  centers).    And  World  Bank  advice  on  old­ age  income  security  schemes will reflect the reality that since women live longer than men, they  have a greater need for oldâ€?age income security, particularly during widowhood.  Since women in  developing  countries  are  more  likely  than  men  to  work  in  the  informal  sector,  they  are  also  less  likely to benefit from formal pension schemes.    Protecting the elderly  109. Protecting  the  elderly  is  a  growing  challenge  for  many  developing  countries,  which  will  see  the  share  of  its  elderly  population  grow  rapidly  over  the  coming  decades.    World  Bank assistance to countries to close the coverage gap will involve a variety of approaches—from  “social pensionsâ€? (noncontributory transfers to the elderly) to voluntary savings.  Social pensions  are  an  increasingly  popular  response  to  the  coverage  gap  for  the  elderly,  as  with  World  Bankâ€? supported programs in the Maldives and South Africa.  For older workers who do not have enough  time  to  accumulate  pensions  in  contributory  programs,  this  noncontributory  social  pensions  approach  is  the  only  option  available,  but  will  require  investing  in  the  systems  agenda  of  coordination  between  SSNs  and  pensions  programs  and  coordinated  implementation  tools  and  processes (for example, ICT applications for identification and payment).  110. The  World  Bank  will  also  deepen  analysis  and  support  of  voluntary  savings  to  help  address  the  coverage  gap.    To  date,  significant  coverage  expansion  has  been  achieved  in  only  a  few developing countries, including China and Sri Lanka, but several initiatives are also underway  in  countries,  such  as  India  and  Vietnam.    In  order  to  succeed,  transaction  costs  must  be  kept  low  relative  to  the  amounts  saved  and  fiscal  incentives  are  needed  to  compensate  workers  for  sacrificing valuable liquidity.  Credible institutions that can be entrusted with workers’ savings will  also  be  required.    The  World  Bank  will  also  work  to  fill  the  large  knowledge  gap  with  regard  to  innovative mechanisms to expand voluntary coverage for social insurance programs.  In this area,  there appears to be much to be learned from recent experiences with health insurance targeted to  the poor, such as in Ghana and India.   111. More  broadly,  the  World  Bank  will  work  to  build  knowledge  and  practice  on  how  to  mobilize  and  systematize  both  contributory  and  noncontributory  approaches  to  pensions,  with  an  eye  toward  innovative,  financially  viable  and  scalable  solutions.    In  this  regard,  the  World  Bank’s  advice  will  be  pragmatic  and  contextâ€?specific,  focused  on  balancing  coverage  and  adequacy  of  pensions  with  financial  viability,  closely  guided  by  the  country’s  demographic/aging  profile, its social contract, its fiscal capabilities and regulatory/administrative capacity.  The right  “portfolioâ€? of pensions programs will depend very much on these countryâ€?specific conditions (Box  4.6).  112. Importantly,  the  role  of  programs  helping  resilience  (social  insurance)  and  equity  (social  assistance)  can  be  complementary  and  can  change  over  the  long  time  horizon  required  for  pension  policy.    As  populations  shift  from  rural  to  urban  areas  and  the  size  of  the  formal  sector  grows  (along  with  income  levels),  the  role  of  contributory  schemes  is  also  likely  to  grow.  However, the unprecedented aging of much of the developing world suggests a race between  the expansion of coverage and the aging process.        Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 31      Box 4.6: The World Bank’s Conceptual Framework for Pensions The conceptual framework for the World Bank’s analysis of pension systems was presented to the World Bank Board of Directors in 2007 and is summarized in a 2008 report. The now familiar terminology included five “pillars.â€? The zero pillar, sometimes referred to as “social pensions,â€? refers to noncontributory, cash transfers financed by the state. The first pillar is the more traditional social insurance model with mandated contributions typically aimed at insuring against the income risks associated with old age, disability, and death. In some cases, first pillar programs are explicitly redistributive, aiming for higher replacement rates for lower income workers. These programs are publicly administered and are either partially funded or operate on a pay-as-you-go basis. In contrast, the term “second pillarâ€? refers to a mandated, defined contribution plan, in most cases with the fund and data management at least partially handled by private sector entities. The third pillar refers to recognized modes of voluntary retirement savings, usually regulated and encouraged by government and taking varied forms (such as individual retirement accounts, employer sponsored defined benefit, or defined contribution plans.). Finally, the fourth pillar captures a range of nonpension sources of income support, including family support (private intergenerational transfers), health insurance, and even emerging financial instruments, such as reverse mortgages. The pillars are a  useful device for describing most of what is observed in practice across the world in a systematic manner. The characteristics of the systems can be broken down further into their specific financing, allocation of risks, governance and management arrangements. All of the pillars require supportive enabling conditions, which include the macroeconomic environment, institutional capacity, and adequately functioning financial markets. Financial market regulation, depth, and contestability are particularly important for first pillar reserve management and the effective functioning of second and third pillars. The conceptual framework considers pension systems in their country-specific economic and demographic context. Source: Dorfman and Palacios 2012.   Responding to Crises 113. The  World  Bank  will  work  with  countries  to  build  crisis  responsiveness  into  SPL  systems  as  an  important  complement  to  addressing  chronic  poverty  and  vulnerability  to  idiosyncratic  shocks.    This  holds  for  both  economic  crises  and  crises  resulting  from  climate  change (Box 4.7).  Three core elements stand out: financial planning, beneficiary identification, and  program design.    Box 4.7: Mobilizing Social Protection in the Face of Climate Change Social protection is increasingly recognized as an important instrument to help poor households respond to and build resilience against the impacts of climate change. In recent years, cash transfers, social pensions and public works programs have been utilized to respond to rapid onset natural disasters (for example, earthquakes or tsunamis) in such places as Turkey, Pakistan, Honduras, and Madagascar. Following the 1999 Marmara earthquake, Turkey’s Social Solidarity Fund successfully implemented a transfer of repair allowances to victims. After the 2004 Asian tsunami, the Maldives government developed a damage payment system that quickly targeted and reached the affected population. SPL programs have also increasingly responded to slow onset disasters, such as drought, which are likely to increase because of climate change. In Ethiopia, households affected by the 2008 drought received transfers that helped improve caloric consumption by 30 percent compared to nonbeneficiary households. Social protection can also help the poor adapt to climate change, reducing their vulnerability ex-ante through social and weather-based insurance, transfers, livelihoods, and asset diversification. In Ethiopia, the Productive Safety Nets Program is an example of a government-run safety net project that has built in risk reduction elements into its operation, for example, via cash-for-work activities where the public works aim at improving water management and soil erosion. In the longer term, however, social protection has the greatest potential to contribute to climate change adaptation through its promotion function. SPL programs and systems can help communities diversify risk, enhance incomes, and build skills and assets, including through climate-sensitive public works programs. Source: World Bank/UN 2010, Arnold and Burton 2011, and Kuriakose et al. 2012.   Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 32      114. Crisis  responsiveness  of  any  SPL  system  will  require  advanced  fiscal  planning  to  ensure  that  there  is  a  mechanism  to  release  additional  resources,  and  the  use  of  appropriate  financial instruments to ensure that this funding can be rapidly mobilized.  Moreover, mechanisms  to  identify  potential  risks  and  plan  responses  adequately  will  be  needed,  such  as  early  warning  systems, real time monitoring and others.   115. A  second  feature  of  crisis­responsive  SPL  systems  in  both  MICs  and  LICs  is  the  ability  to identify those who newly need access to SPL programs when faced with individual­level or  broader  shocks.    In  certain  contexts,  particularly  MICs,  part  of  work  will  be  on  “automatic  stabilizersâ€? such as unemployment benefits, which can protect some of the newly vulnerable—such  as those working in the formal sector. However, these instruments do not apply to many (including  the  working  poor)  and  may  be  less  relevant  for  many  in  economies  where  formal  employment  is  small.    Since  many  of  those  who  will  need  protection  during  a  crisis  will  not  be  those  who  are  already part of the existing benefits system, World Bank  approaches to identify the vulnerable during crises will  Box 4.8: World Development Report 2013 on involve  different  principles  of  targeting  than  those  Jobs: Preliminary Messages and Potential normally  used  to  identify  the  chronic  poor.    A  Links to the SPL Strategy particularly  effective  mechanism  is  relying  on  The 2013 World Development Report (WDR) from communities  or  local  actors,  especially  after  natural  the World Bank will focus on Jobs. Its outline, disasters, but it is more broadly applicable.   circulated October 2011, proposed three main sets of messages: 116. In  MICs  and  LICs  alike,  World  Bank  advice  First, jobs are transformational. Jobs connect around  responsiveness  to  widespread  shocks  will  improvements in living standards, productivity emphasize  creating  provisions  for  flexible  gains, and social cohesion. Second, some jobs do programs  within  the  SPL  system  portfolio.   Planning  more for economic and social development than ahead for such programs has three distinct advantages.  others, because they reduce poverty and inequality, First, and most important, they avoid significant lags in  strengthen value chains and production clusters, or implementation  caused  by  new  efforts  at  design  and  help build trust and shared values. Third, understanding how labor markets interact with policy  consensus,  and  allow  rapid  response.    Second,  government and market imperfections, and how this they  allow  the  creation  of  meaningful  “sunset  clausesâ€?  interaction affects development goals, is the key to (the  triggers  for  when  programs  stops  or  benefits  identifying and evaluating policies for the creation of decrease  when  the  crisis  and/or  its  consequences  are  good jobs. over).    And  third,  they  may  lead  to  a  smaller  fiscal  While the World Bank will work on the full burden, as opposed to discretionary  measures, such as  operational implications of the WDR once the report subsidies or programs that are hastily designed during  is finalized, its framing of jobs in terms of living crisis times.   standards, productivity gains and social cohesion are close to this strategy’s framing in terms of Enhancing Productivity resilience, equity, and opportunity. High productivity jobs are central to allowing people to 117. The  World  Bank  will  support  greater  protect themselves from poverty and to seize the investments  in  human  capital  among  children  and  opportunity to improve their living standards, and improved  access  to  better  jobs  for  adult  workers.   SPL mechanisms, including those that facilitate SPL  programs  that  support  proper  early  childhood  access to jobs, can be transformational in building social cohesion in postconflict contexts and in development—promoting  children’s  cognitive  abilities  building agency for men and women alike (themes and nutritional foundations—have been shown to have  in the previous two WDRs on Conflict, Security, and clear consequences for their future productivity.  Development (World Bank 2010) and Gender 118. It is also essential to consider interventions for  Equity and Development (World Bank 2011). those  individuals  who  are  already  in  the  labor  market  Source: World Development Report 2013: Jobs (Outline, or  close  to  entering  it,  often  without  the  necessary  October 2011). technical, cognitive, and noncognitive skills.  Facilitating    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 33      their transitions into productive jobs and building their skills are critical to promoting development  and  inclusive  growth.    In  this  context,  the  issue  of  how  to  think  about  development  through  the  “jobs lensâ€? will be the central question of the forthcoming  World  Development  Report  2013  on Jobs  (Box 4.8).  The SPL practice will be informed by the report’s analysis in the years ahead.    Protecting and promoting human capital, especially of children   119. The  World  Bank  will  continue  to  emphasize  SPL  programs  as  important  investment  channels  for  human  capital  development—and  thus  for  development  and  productivity.  The  World  Bank  will  highlight  and  build  the  evidence  of  SPL  programs’  role  in  the  accumulation  and  preservation  of  human  capital,  and  align  practice  with  evidence  as  has  been  done  with  CCTs  and  now increasingly with unconditional cash transfers. 72  120. The  World  Bank  will  work  collaboratively  with  other  sectors  and  actors  to  ensure  that  SPL,  notably  safety  nets,  is  playing  its  needed  role  in  protecting  and  promoting  human  capital  among  children.  SPL programs and systems, while bolstering the ability of and incentives  for parents to demand education and nutrition for their children, will partner with the education,  agriculture and health, nutrition and population (HNP) practices of the World Bank to ensure that  there  is  effective  supply  of  good  schools,  adequate  food,  and  health  clinics  for  children.  In  collaboration with partners (including UNICEF and Save the Children), the World Bank will further  develop  childâ€?sensitive  social  protection  approaches  to  help  mitigate  the  effects  of  poverty  on  families, strengthen families in their child care role, improve child nutrition and enhance access to  basic  services  for  poor  families.  This  is  particularly  important  during  crises,  given  the  vulnerabilities faced by children and the consequences of inaction.  Overall, this work will build on  the  important  advances  made  by  SPL  in  recent  years  in  linking  equityâ€?oriented  approaches  with  those promoting opportunity.73  121. The  World  Bank  will  also  undertake  efforts  to  address  food  price  volatility  and  undernutrition,  elements  critical  to  ensuring  the  preservation  and  growth  of  children’s  human capital.  Almost a billion people experience chronic hunger (30 percent of the population in  Subâ€?Saharan Africa) and nearly 2 billion lack the micronutrients they need for good health.74  The  World  Bank’s  safety  nets  practice  will  work  with  other  sectors  to  make  social  assistance  more  “nutritionâ€?specific,â€?  through  efforts  to  provide  nutritionally  appropriate  food  and  supplements  or  by linking beneficiaries to services needed to improve the nutritional status of women and young  children.  Crossâ€?sectoral  collaboration  is  also  needed,  particularly  with  agriculture,  private  sector  development  and  social  development,  for  example,  in  developing  agricultural  insurance  mechanisms that can address poverty and agricultural productivity.  Improving access to jobs  122. The  World  Bank’s  SPL  practice  will  work  with  countries  to  address  systemic  and  policy  reforms  that  can  help  access  to  jobs  for  their  population—including  youth.  Although  the current global crises has focused attention on this issue, the challenge is not merely cyclical and  crisisâ€?driven—in any country, it is not easy to ensure that workers can find and maintain suitable  jobs.     Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 34      123. First,  the  World  Bank  will  help  countries  Box 4.9: The MILES Framework improve  the  efficiency  of  job  creation.    This  is  an  The MILES framework is an operational and policy area  where  SPL  will  need  to  partner  with  other  relevant framework, which helps countries design sectors within the World Bank and external partners  comprehensive labor market strategies to create more working directly with the private sector, who would  and better jobs. MILES is multisectoral by its very help  countries  with  business  environment  reforms  design, focusing on five areas considered critical for employment creation (hence, the acronym MILES): that promote investments, innovation, and economic  Macroeconomic policies; Investment climate, diversification,  while  providing  adequate  protection  institutions and infrastructure; Labor market regulations to  workers  (see  Box  4.9  on  the  MILES  framework).    and institutions; Education and skills; and Social Within  the  World  Bank,  these  sectors  include  the  Protection (social insurance and SSN programs). Financial and Private Sector Development (FPD) and  Building on various diagnostic tools in areas central for Poverty  Reduction  and  Economic  Management  job growth, the framework aims at identifying key (PREM) networks.  SPL plays a complementary role,  constraints for job creation in an individual country, especially  in  the  design  of  labor  regulations  and  proposes policy priorities and required reforms, and helps implementing them. The implementation of income protection programs that can be extended to  MILES requires obtaining support from key a  majority  of  workers  but  without  creating  stakeholders and close cooperation across different distortions  in  the  labor  market  that  reduce  the  ministries, institutions, and social partners. The World creation  of  good  jobs.75  Evidence  suggests  the  Bank is well placed to carry out this task by using its importance  of  competition  in  facilitating  firm  entry,  Analytical and Advisory Activity (AAA) and economic innovation, and productivity growth.   and sector work (ESW) to provide analytical content, 124. Second,  the  World  Bank  will  support  SPL  and various loans and grants to provide necessary funding, and has successful piloted the MILES policies  that  improve  the  productivity  of  those  framework in more than 15 countries. already  at  work.      For  the  majority  of  the  world’s  Source: Banerji et al. (2008). workers  who  work  in  agriculture,  as  selfâ€?employed  in  low  productivity  activities,  or  as  nonpaid  employees in family business, a stable macroâ€?economy and an efficient business environment are  unlikely to be enough.  Targeted interventions will be required to either improve the productivity of  the activities where they are involved—if economically viable—or to help them transit into higher  productivity activities.  125. In  coordination  with  other  sectors,  SPL  will  design,  implement,  and  evaluate  interventions  to  address  the  constraints  facing  the  self­employed.    These  interventions  will  address the following: motivation and risk tolerance (via cultural and social norms); technical and  noncognitive  skills;  information  about  production  technologies,  best  management  practices,  and  prices;  access  to  value  chains  and  markets;  and  liquidity  constraints.  Interventions  of  this  sort  include business and life skills training, advisory services, networking, improving access to finance,  and microâ€?franchising.   126. Third,  the  World  Bank  will  help  countries  improve  the  facilitation  of  labor  market  transitions—from  school­to­work,  out  of  unemployment  or  inactivity,  or  between  jobs.   Indeed,  workers’  earnings  and  households’  welfare  ultimately  depend  on  the  incentives  and  constraints  that  workers  face  in  these  transitions.    Similarly,  low  participation  rates  can  be  explained by ineffectively designed transfer programs, the lack of support services (for example, for  child  care),  or  prevalent  social  norms  (for  example,  women  not  allowed  to  work  outside  the  household).  And the movement of labor from low productivity to high productivity sectors can be  constrained by lack of information about alternative opportunities, mobility costs, lack of skills, or  lack  of  credit.    Once  again,  this  will  necessitate  crossâ€?sectoral  work  aimed  at  addressing  these  critical gaps.     Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 35      Box 4.10: Active Labor Market Programs and the Youth Employment Challenge A key focal area of the World Bank is improved designs of ALMPs, including stronger links to the private sector. This is important for adult workers, but has particular urgency for youth, who have unemployment rates in most countries that are two to three times that of adults. The STEP framework, explained in Box 5.3, provides a long-run and comprehensive framework to address the skills of youth and ensure that they are productive and well integrated into the workforce. But what about the short run? Can ALMPs —such as those focusing on training or addressing lack of information about the job market—help youth find productive jobs? At first glance, the record seems disappointing. Evaluations of activation and ALMPs have given mixed results. However, these poor results may not say much about the potential efficacy of these programs, but more about design flaws in the programs being evaluated. In fact, there is no evidence to suggest that ALMPs as a whole are not needed or are not useful. And the market failures that these programs try to address are real—such as lack of knowledge about job opportunities or lack of skills demanded by employers. Successful programs linking individuals to jobs have two defining characteristics: first, they integrate various interventions addressing multiple challenges faced by job seekers, and second, they have a strong involvement of the private sector. For example, “training plusâ€? programs consisting of technical or life skills training followed by work experience through private sector internships and job placement assistance have been found to be quite successful at activating individuals. Interventions, such as the Jovenes programs in Latin America (mainly targeted to unskilled youth)76 and Probecat in Mexico77, fit in this category.78 Source: Almeida et al. 2010and Almeida et al. 2012.   127. A  key  SPL  focus  will  be  the  design  and  implementation  of  activation  policies  and  ALMPs.    The relevant interventions fall into two categories: programs to stimulate labor demand;  and programs to support job search and improve employability.   The first set of programs mainly  include public works and wage subsidies,79 while the second bring together such interventions as  intermediation,  counseling,  jobâ€?search  assistance,  training,  skills  certification,  and  social  services  that facilitate mobility (for example, child care).  For those unable to access formal jobs, programs  promoting  productive  selfâ€?employment  can  also  become  part  of  the  portfolio  of  programs,  all  coupled with policies that create the right incentives for work (Box 4.10).    128. A  particular  challenge  for  this  agenda  will  be  facilitating  “graduation,â€?  or  transitions  from  social  assistance  to  work.    This  involves  improving  the  incentive  structures  in  program  design to ensure that those who are able to move into employment are encouraged and supported  to  do  so.    Facilitating  this  operationally  will  also  involve  better  coordination  between  social  assistance  and  ALMPs,  so  that  those  receiving  social  assistance  can  build  the  skills  and  work  experience needed to move into productive employment.  Building workers’ skills   129. The  World  Bank’s  work  on  helping  workers  improve  their  skills  will  be  founded  on  two  prerequisites  to  effective  policy—understanding  how  skills  are  applied,  and  how  to  build  appropriate  skills.  This will require a better understanding of how different types of skills  (technical, cognitive, and noncognitive) affect labor market outcomes, and then developing systems  that  are  able  to  transfer  the  necessary  skills  to  current  and  future  workers.    Skills  are  acquired  through a multiplicity of channels—from parents and families, through informal apprenticing with  more experienced workers, or through formal education in schools, universities, vocational centers  or on–theâ€?job training.80  The SPL practice will be working closely with the World Bank’s education  practice  on  the  skills  agenda,  focusing  on  how  to  build  and  upgrade  jobâ€?specific  skills.    The  three  types of training programs that will receive attention are the following: preâ€?employment technical  and vocational education and training; onâ€?theâ€?job training; and trainingâ€?related ALMPs.  The last is    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 36      usually  targeted  to  individuals  without  access  to  the  first  two,  often  lowâ€?skilled  unemployed  or  informal workers.   130. Finally,  the  World  Bank  will  focus  on  improving  existing  labor  market  training  programs,  notably  in  MICs.    In  many  countries,  these  programs  are  neither  costâ€?effective  nor  responsive  to  labor  market  demand.    The  World  Bank  will  build  on  promising  advances  made  in  programs  (such  as  the  Latin  American  Jovenes)  in  strengthening  links  with  labor  market  demand  through directly engaging the private sector.  These operational experiences will be studied, shared,  and developed more closely. A challenging agenda   131. The  proposed  strategy  is  highly  ambitious—and  fully  achieving  its  strategic  aims  will  take  time  and  require  concerted  efforts  by  the  World  Bank,  developing  countries,  and  partners.    There  are  four  risks.    First,  despite  the  recent  attention  paid  to  SPL  during  times  of  crises, governments may find it difficult to prioritize SPL expenditures in better times—in the face  of  more  visible  investment  needs  and  vocal  constituencies.    Second,  political  economy  considerations  may  deter  governments  and  development  partners  from  investing  in  coordinated,  systemic approaches, and instead continue to fragment or duplicate programs.  Third, moving from  a program to a systems approach will also involve developing institutional capacities that are not  always present, especially across the myriad of sometimes weak SPL agencies.  Finally, SPL efforts  need to be sustainable, with a costâ€?effective use of appropriate resources to meet country goals.  132. But  the  challenges  facing  developing  countries  and  their  people  necessitate  this  level  of  ambition,  and  the  strategy  underlines  structured  ways  in  which  the  World  Bank  will  use  its  comparative  advantage  to  help  address  them.   First, the World Bank will support clients in  building evidence on the performance of SPL programs systems in promoting resilience, equity, and  opportunity—and will couple this work with knowledge access, including through intensified work  on Southâ€?South knowledge exchanges.  Second, the World Bank’s policy advice to client countries,  and collaboration with partners, will emphasize both the value of inclusive and productive systems  and good technical solutions to achieve them. Its work with partners will especially emphasize the  value  of  coordinating  work  and  resources  in  helping  poorer  countries  build  SPL  systems.    Third,  capacity  building  would  be  a  key  component  of  the  work,  especially  in  LICs  and  fragile  contexts,  including the generation of accurate, useful, and frequent data to improve results.  And fourth, the  World Bank will continue to build the evidence that effective, inclusive SPL systems do not have to  be expensive or complex —helping countries to select the most costâ€?effective approaches to meet  their specific needs.   5. PRINCIPLES OF ENGAGEMENT FOR THE WORLD BANK 133. Experience  from  a  decade  of  successful  SPL  engagement  and  demands  from  clients  confirm  that  success  flows  not  just  from  what  the  World  Bank  does,  but  how  the  World  Bank  engages.  This  experience  points  to  three  principles  of  engagement  as  central  to  success  in  the  World Bank’s work in SPL knowledge, operations, and partnerships:   evidence­based knowledge;  tailored to country contexts and evidence; and collaborative across a range of sectors and actors.  134. Ensuring  evidence­based,  tailored,  collaborative  engagement  will  allow  the  SPL  practice  to  derive  knowledge  from  the  evidence  in  operational  contexts.    It  will  also  allow  SPL  practice to use that knowledge about results to design contextâ€?specific, evidenceâ€?based operations.  Moreover, it will help mobilize partnerships at the World Bank, country, and global levels to create    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 37      a  virtuous  cycle  of  building  inclusive,  responsive,  and  productive  SPL  systems  in  all  the  World  Bank’s client countries.  Focus on Evidence-based Knowledge 135. The  strategy  prioritizes  the  generation  and  sharing  of  evidence­based  knowledge  to  address  the  three  gaps  outlined  earlier—on  what  programs  and  systems  exist,  how  they  perform,  and  how  results  can  be  shared.    This  capitalizes  on  the  World  Bank’s  comparative  advantage of combining inâ€?depth local engagement with an ability to leverage global knowledge, as  outlined in the World Bank’s Postâ€?Crisis Directions paper (2010).    136. This  strategy  will  be  selective  in  prioritizing  certain  knowledge  gaps,  and  couple  this  with  capacity­building to ensure that countries can be involved in generating the knowledge they  need to inform policy and effectively manage programs and systems.  This also has implications for  partnerships.  Filling these gaps cannot be done by the World Bank alone, but in partnership with  other  actors  in  SPL,  to  collectively  prioritize  effective  knowledge  sharing  and  complementary  approaches to knowledge generation.   137. Currently, three knowledge gaps exist on SPL.  138. Gap  1—knowledge  on  existing  programs.    SPL  system  design  in  many  contexts  is  handicapped by the lack of basic information on what programs exist, how they are structured, and  who receives benefits.  This information gap is particularly problematic in fragile states and LICs,  especially in Subâ€?Saharan Africa, which undermines both global knowledge and local management.   This gap can be filled by strengthening and expanding the country coverage of  SPL  assessment  and  benchmarking  tools, using labor force data, household data, and programâ€?level administrative data.   Strengthening national statistical systems, ongoing surveys and program level administrative data  are  needed.    Building  on  efforts  to  ensure  the  quality,  coverage,  and  comparability  of  data  within  and where needed across countries, analytical tools can be applied (including the World Bank’s SPâ€? ADEPT  software)  to  develop  comparable  and  systematic  SPL  indicators  that  will  allow  benchmarking over time and across countries.    139. The data generated by the World Bank can also be compared with other indices, such as the  Asian  Development  Bank  (ADB)’s  Social  Protection  Index  and  the  administrative  data  on  social  protection, especially social security, from the ILO and the International Social Security Association.   At  the  country  level,  performance  monitoring  mechanisms  can  be  strengthened  within  and  across  programs  (and  linked  to  beneficiary  registries),  with  the  World  Bank  facilitating  good  practice  across countries.    140. Gap  2—knowledge  on  program  impacts.    There  are  gaps  in  knowledge  across  types  of  program  and  contexts  about  whether  programs  are  achieving  their  intended  impacts.    Impact  evaluations can be applied selectively to look at both overall program effectiveness and the relative  effectiveness  of  different  programs  or  program  designs  (including  relative  to  costs).  This  will  be  particularly  important  in  areas  where  there  is  relatively  little  evidence,  including  the  following:  fostering  entrepreneurship  and  raising  the  productivity  of  small,  often  familyâ€?owned,  businesses;  designing  passive  income  support  schemes  that  don’t  discourage  people  from  finding  jobs;  designing public works programs that raise incomes, build skills, and create productive assets; and  building  on  the  evidence  from  CCTs  to  examine  the  performance  of  UCTs  (including  social  pensions).    As  the  number  of  impact  evaluations  in  the  SPL  area  grows,  there  will  be  an  added  challenge  of  effectively  disseminating  and  managing  this  knowledge.    This,  therefore,  will  require  investing  not  just  in  knowledge  generation,  but  in  knowledge  management,  especially  to  ensure  that evidence informs policy.      Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 38      141. Additionally, the SPL sector will continue to partner with the Development Economics Vice  Presidency  (DEC)  and  PREM  in  developing  modeling  tools  to  assess  the  fiscal,  behavioral,  and  welfare  impacts  of  parametric  reforms  in  SPL.    This  will  build  on  an  important  foundation  that  currently  includes  the  SPâ€?ADEPT/Social  Protection  Atlas,  the  Pension  Reform  Options  Simulation  Toolkit  (PROST), and  the  new  Unemployment  Benefit  Simulation  model  (UBsim).    Finally,  new  approaches will need to be developed to assess SPL systems, building on the efforts described above.  142. Gap  3—sharing  knowledge.   The search for scalable, sustainable solutions in SPL has been  particularly  influenced  by  countries  in  the  developing  world  learning  from  each  other  about  designing and implementing effective programs.  Wellâ€?performing programs and designs—such as  public  works  programs,  social  funds,  and  CCTs—have  influenced  authorities  setting  up  their  own  SPL  programs  in  other  developing  and  emerging  countries.    The  major  driver  has  been  the  synthesis and effective transmittal of  knowledge on good practices on development effectiveness.   The SPL practice has been at the forefront of  cross­country  and  cross­regional  knowledge  sharing— especially Southâ€?South knowledge sharing.  This has included formalized networks of practitioners  in the areas of socials funds and CCTs (notably the LAC learning circle), a series of highlyâ€?attended  annual  Southâ€?South  learning  conferences  on  SPL,  learning  partnerships  with  leading  think  tanks  (such  as  the  World  Bankâ€?IZA  partnership  on  labor  markets  and  development),  and  vibrant  communities of practice (Box 5.1).    143. The new strategy will broaden and deepen this global knowledge engagement and sharing¸  continuing to prioritize engagement both face to face and building on the promising use of ICT to  create  knowledge  platforms.    These  will  be  used  to  ensure  that  staff  members  have  access  to  the  latest knowledge, regardless of where they sit, and to reach out to clients and a broader community  of  practice,  including  civil  society,  academia,  and  private  actors.    Finally,  as  underscored  by  the  2011  Knowledge  for  Development  report  and  2011  IEG  review  of  safety  nets,  the  impact  of  analytical  work  is  greatest  when  client  engagement  is  prioritized  and  sustained.    Thus,  SPL  knowledge products will increasingly have a clear, clientâ€?based plan for ensuring, not only quality,  but also engagement and results.   Tailor Operations to Country Context and Evidence 144. Experience  shows  that  successful  and  sustainable  SPL  programs  and  systems  are  tailored to social contracts and national priorities, as well as reflective of countries’ political,  social,  institutional,  and  economic  contexts.  The principle of country tailoring implies that SPL  programs  and  systems  need  to  be  countryâ€?led,  and  countryâ€?implemented,  with  a  strong  focus  on  country capacity to do so—as established in the Paris and Accra agendas.  For most developing and  emerging  countries,  this  implies  a  strong  associated  need  to  build  capacity  in  the  government  ministries responsible for SPL.  Country leadership, context, and capacity are particularly important  for finding appropriate solutions to difficult questions and tradeâ€?offs—such as balancing the need  for  increased  coverage  and  crisisâ€?readiness  of  SPL  systems  with  constraints  relating  to  fiscal  affordability and administrative capacity.  Thus national goals and priorities determine the World  Bank’s role as a partner, working to deliver these goals together with a range of actors.    145. The  principle  of  country  tailoring  has  important  implications  for  applying  the  strategy in different regions, as outlined in the regional SPL strategy applications in Annex 1.   The  SPL  practice  will  vary  across  regions  and  countries  according  to  client  demands,  priorities,  existing challenges and available resources.    146. While  each  region  faces  the  whole  array  of  challenges,  existing  conditions  and  client  demand  points  to  some  areas  of  priority.    In  Africa  and  South  Asia,  where  many  lowâ€?income  countries are concentrated, a strategic focus is on building SPL systems that promote inclusion and    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 39      resilience—how  to  sustainably  expand  SPL  coverage  to  reach  vulnerable  groups  and  ensure  the  capacity to respond to crises.  Building  youth  productivity  is also an issue in Africa and South Asia,  which  face  substantial  challenges  from  a  large  population  of  youth  who  are  entering  the  labor  market, often without the requisite skills to engage in productive work.  The youth bulge is also an  issue for labor markets in MENA, as is low female labor force participation.   147. For  both  MENA  and  East  Asia,  a  major  challenge  is  ensuring  systematic  approaches  to  reduce the fragmentation of programs in its MICs, and setting up basic systems where these are less  developed.  Eastern  Europe  and  Central  Asia  is  a  heterogeneous  region,  where  challenges  include  affordability,  with  transition  economies  struggling  with  pension  reform  in  the  face  of  an  aging  population  and  shrinking  labor  force,  as  well  as  inclusion  of  vulnerable  groups  (for  example,  the  disabled  or  Roma).  In  LAC,  most  countries  are  facing  “second  generationâ€?  systemic  challenges,  calling for better harmonizing social assistance and social insurance approaches and ensuring more  effective  crisisâ€?responsiveness.    The  inclusion  challenge  in  LAC  is  extending  coverage  of  social  insurance to the informal sector.  Box 5.1: South-South Learning in Social Protection and Labor The SPL community, as one of the newest practices in the World Bank, has been very active in promoting and supporting South- South Learning, as demonstrated by the examples collected here. These efforts to facilitate South-South learning at all levels have been helping countries to share the secrets of success—and even failure—and as a result, enabled them to implement effective SPL policies and programs across the developing world.81 Social Investment Fund (SIF) networks. The first World Bank-financed SIF was the 1987 Bolivia Emergency Social Fund. By 1994, Latin American SIFs had formed a community of practice called Red Social (Social Network) and started exchanging information and experience on how to target communities, what types of subprojects to support, how to carry out social needs assessment, and so on. By 2000, the membership had grown to 33 SIFs, most of which had received World Bank financing in different instances. In 1997, through a World Bank grant of $311,000, Red Social created InterRED Social, a virtual platform of information and knowledge exchange. Similar developments took place in other regions. In 1998, seven SIFs in the Europe and Central Asia region formed the ECANet, with support provided by the World Bank ($285,000). ECANet membership doubled to 14 countries by 2005. Growing interest in cash transfers. Approved in March 2001, the Colombia Human Capital Protection Project (Familias en Acción) was the first CCT project financed by the World Bank. Familias en Acción was quickly followed by Jamaica Social Safety Net Project and Turkey Social Risk Mitigation Project (2001). By then, CCTs had started capturing the interest of client countries as they learned from the initial successes of Progresa (today’s Oportunidades) in Mexico and Bolsa Escola (today’s Bolsa Familia) in Brazil. To facilitate and promote their mutual learning about this emerging instrument, the World Bank supported bi- annual CCT conferences in Puebla, Mexico (2002), Sao Paulo, Brazil (2004), and Istanbul, Turkey (2006) in which hundreds of policy makers, practitioners, and global partner representatives participated. In LAC, this evolved into a CCT Community of Practice, for which the World Bank has been serving as a provider of a virtual meeting platform, using World Bank country offices facilities. A similar community is currently being formed among Anglophone African countries with Rapid Social Response (RSR) support (see below). SPL core courses. Every year, SPL has offered a two-week long core courses in its key thematic areas: pensions (since 1997), safety nets (since 2000), and labor (since 2003). Disability will be added in 2012. Courses are attended by an average of 75 participants, mainly practitioners and policy makers of World Bank client countries. Because courses use actual case studies as teaching materials, participants naturally share their expertise and perspectives, and build networks of professionals. RSR-supported South-South learning forums. As part of its support to client countries to build SPL systems, the World Bank has been organizing global South-South learning forums. The first forum was on the FFF (Finance, Food and Fuel) Crisis in Cairo, Egypt in 2009. Since 2010, thanks to support from Russia, Norway, and the United Kingdom, RSR trust funds have been able to fund forums in Arusha, Tanzania (2010: Making Public Works Work) and Addis Ababa, Ethiopia (2011: Building Resilient Social Safety Nets). Over 300 participants from more than 50 countries and global partner organizations have participated in these forums. In 2012, another global forum on jobs and labor market issues and an East-Asia/South-Asia knowledge forum on the use of ICT in SPL are scheduled to take place. The World Bank has also brokered and organized many country-to-country knowledge exchanges on issues ranging from high- level policy to nuts- and-bolts technical details.   Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 40      148. The  World  Bank’s  technical  expertise  and  global  knowledge  is  critical  in  helping  countries  design  SPL  approaches  appropriate  for  their  contexts.    The  World  Bank’s  engagement with countries would, thus, entail helping the government and other country actors in  both  the  “architectureâ€?  and  “engineeringâ€?  of  countryâ€?specific  SPL  systems  (Box  5.2)—from  diagnostic analysis, strategy formulation and identifying policy options, to advice on programs and  policy  designs  and  financing.    But  this  sort  of  countryâ€?led  engagement  has  to  be  grounded  in  a  strong  consideration  of  political  economy  across  a  range  of  issues,  from  awareness  of  the  opportunities  for  reform  presented  by  crises,  to  sensitivity  to  how  difficult  it  is  to  mobilize  scare  resources to invest in largely invisible SPL systems.  And, as underscored later, it puts a premium  on enhancing work across sectors and global partners to ensure alignment between the SPL system  and national goals and mandates.   Box 5.2: Architecture and Engineering: The World Bank’s Operational Services to Countries on SPL Systems The World Bank’s role in supporting countries in developing their SPL systems spans both the “architectureâ€? and “engineeringâ€? aspects. Depending on the client needs, the World Bank could work with country authorities on five main areas, with capacity building integrated in every aspects of our assistance. “Architectureâ€? 1. Diagnostically analyzing needs and evaluation of the effectiveness of existing SPL programs. 2. Formulating strategy and mapping the pathway from existing conditions to strategic goals. 3. Identifying policy options and articulating the structure of various programs to ensure policy consistency within the SPL system (including through South-South learning exchanges). “Engineeringâ€? 4. Devising detailed policy and implementation measures to deliver results and enhance performance, including instituting the “nuts and boltsâ€? subprograms (such as databases and beneficiary registries), developing processes and procedures, institutionalizing M&E mechanisms, and examining policy coordination. 5. Financing programs and technical assistance to support pilots and scale-up, and packaging investment or program financing with TA and impact evaluation.   149. A  key  aspect  of  the  World  Bank’s  work  with  countries  is  the  reliance  on  evidence  and  tangible  results  in  operations.  SPL lending (such as recent operations in Romania and Moldova)  increasingly  supports  operations  that  explicitly  establish  a  feedback  cycle  between  financing  and  specific, measurable results agreed upon with countries.  This can potentially be developed further  with the new programâ€?forâ€?results (P4R) lending instrument.  The design of lending operations need  to be increasingly informed by more resultsâ€?oriented economic analysis (notably costâ€?benefit and  costâ€?effectiveness  analysis),  coupled  with  references  to  available  global  evidence  on  development  effectiveness  (such  as  impact  evaluations  or  systematic  reviews).    In  carrying  out  lending,  strengthening  client  M&E  systems  will  play  a  central  role  in  SPL  programs  and  systems,  so  as  to  ensure that data are effectively used to track progress, inform management decisions, and support  transparency and accountability.82            Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 41      150. Central  to  country­tailoring  is  building  institutional  and  governance  Box 5.3: STEP: A Multisectoral Framework for Building capacity.    Identification,  payment  and  Skills and Enhancing Productivity monitoring  mechanisms,  beneficiary  registries,  and  simple  measures  to  support  accountability and reduce error and fraud are  all critical elements to a results focus and costâ€? effectiveness.  Institutional capacity also needs  support,  particularly  with  respect  to  coordination beyond the purview of individual  programs,  to  expanding  coverage  (notably  among poor  and vulnerable populations), and  to  support  effective  governance  through  appropriate  “rules,  roles  and  controlsâ€?  A simple conceptual framework—STEP—can help policy governing  public,  private  and  nonformal  makers, analysts, and researchers think through the (family or community) actors. 83   design of systems to impart skills that enhance productivity and growth. The framework focuses on five 151. There  is  also  a  need—especially  for  interlinked steps: global  partners—to  support  governments  Step 1. Getting children off to the right start, by developing in  prioritizing  cost­effective,  scalable  the technical, cognitive, and behavioral skills conducive to high solutions  that  can  be  easily  implemented  productivity through early child development, emphasizing by  existing  institutions,  including  non­ nutrition, stimulation, and basic cognitive skills. government  partners.    This  needs  to  be  Step 2. Ensuring that all students learn, by building applied  to  making  better  use  of  existing  stronger systems with clear learning standards, good resources,  informed  by  detailed  analysis  of  teachers, adequate resources, and a proper regulatory SPL  program  financing  (existing  and  environment. projected),  coupled  with  commitments  to  Step 3. Building job-relevant skills that employers increasingly move financing for SPL onâ€?budget  demand, by developing the right incentive framework for both to  strengthen  the  government’s  oversight  and  pre-employment and on-the-job training programs and accountability.84    institutions. Collaborate across Sectors and Step 4. Encouraging entrepreneurship and innovation, by creating an environment that encourages investments in Actors knowledge and creativity. 152. In the inherently cross­sectoral field  Step 5. Matching the supply of skills with the demand, by of  SPL,  effective  results  will  require  moving toward more flexible, efficient, and secure labor prioritizing  coordination  across  sectors  markets is the final complementary step transforming skills and  across  a  range  of  actors,  including  into actual employment and productivity. global partners, national agents, and CSOs.    SPL policies can play a critical role in fostering each of the five Engagement across sectors  steps. CCT programs can help improve nutritional outcomes and improve school attendance (Steps 1 and 2). ALMPs and 153. SPL  systems  are  inherently  skills programs can address Step 3. Risk management multisectoral  in  nature—sometimes  programs and focused training can help promote Step 4. And because  SPL  objectives  need  other  sectors’  providing effective SPL mechanisms that ease informational instruments  to  be  realized,  and  sometimes  asymmetries and promote mobility are critical for Step 5. because  SPL  instruments  serve  the  Source: World Bank (2010b). development  objectives  of  other  sectors.   As a result, to both meet their own goals and those of their clients as a whole, World Bank teams  will have to work with those in other sectors to best realize these important synergies.      Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 42      154. First,  instruments  outside  the  traditional  purview  of  SPL  are  crucial  to  achieving  resilience  and  opportunity.    For  example,  building  skills  needed  for  growth  and  productivity  involves  a  series  of  “stepsâ€?  from  early  childhood  development  to  education,  job  training,  entrepreneurship and labor market regulation, as illustrated in Box 5.3.  Again, resilience for rural  farmers  can  be  ensured  not  only  with  cash  transfers,  but  with  crop  insurance  and  easy  access  to  healthcare,  where  other  sectors  within  the  World  Bank  have  extensive  expertise.85    And  opportunity  is not ensured just with accumulated human capital  and supplyâ€?side interventions in  the labor market, but an economy and a private sector that thrives and grows and employs those  workers productively, where reforms in private sector development are critical.    155. Second,  managing  multifaceted  challenges—such  as  jobs,  climate  change,  crisis  management  and  poverty  reduction—necessarily  calls  on  multisectoral  solutions, often with  SPL playing a central role in these efforts.  Indeed, social protection is known for its ability to forge  effective  multisectoral  solutions,  drawing  on  experience,  such  as  CCT  programs  that  provide  cash  transfers  linked  to  demandâ€?side  incentives  to  poor  households  to  invest  in  the  health,  education  and nutrition of their children.  CCT programs have been especially successful at reducing poverty  while  improving  both  school  attendance,  especially  for  girls,  and  infants’  and  children’s  access  to  health services.  Similarly, skills and training programs facilitate private sector activity by allowing  firms to expand with the right workers.    156. Finally,  the  effectiveness  of  poverty  reduction  or  risk  management  efforts  is  often  enhanced  by  combining  interventions  across  sectors.  For example, while the Household Asset  Building Program (HABP) in Ethiopia had only a marginal impact on agricultural productivity when  implemented  alone,  when  combined  with  the  Productive  Safety  Net  Programme  (PSNP)  maize  yields increased by 38 percent.86  157. Within  the  World  Bank,  the  SPL  sector  has  strong  collaboration  with  other  key  sectors  that  share  objectives  and  instruments.    Within  the  Human  Development  Network  (HDN), SPL  works with  the education sector on  shared agendas in skills development, early child  development,  child  labor,  school  feeding,  and  school  access.    With  the  health,  nutrition  and  population sector, issues relating to nutrition, aging and demography, social protection, HIV/AIDS,  and social insurance are some areas of strong partnerships.  With PREM and FPD, SPL has a strong  analytical  partnership  on  the  broad  jobs  agenda,  where  the  sectors  work  closely  together  on  the  newly  created  Jobs  Knowledge  Platform  and  on  issues  relating  to  selfâ€?employment  and  productivity.  SPL has strong links with PREM, as well in the areas of fiscal sustainability, poverty  targeting, and governance and service delivery. With the Sustainable Development Network (SDN),  there are broad areas of collaboration around communityâ€?based development, youth issues, energy  subsidies, and emerging collaborations in the areas of livelihoods and adaptation to climate change.  And  with  FPD,  there  is  also  strong  collaboration  around  oldâ€?age  pensions  and  financial  literacy.   Annex 5 shows the interaction of the SPL agenda with other sectoral strategies of the World Bank.  Collaboration across actors  158. Partners  working  on  SPL  will  need  to  rise  to  the  challenge  of  coordination  on  the  design,  implementation,  and  evaluation  of  SPL  programs  and  systems.    Collaboration  among  partners is essential to strengthen national support and prioritization of social protection and labor  systems that are relevant to countryâ€?context. The need for partnerships is more evident in LICs and  fragile states where catalytic funding and knowledge is urgently needed to improve programs and  establish SPL systems to prepare for future crises, address current needs, and lay the foundation for  shared  growth.    This  sets  an  agenda  for  World  Bank  partnerships  with  multilateral  and  bilateral  agencies,  regional  institutions  as  well  as  the  private  sector  and  civil  society,  applied  to  both  operations and knowledge.     Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 43      Operational partnerships   159. The  World  Bank  has  active  engagement  with  multilateral  agencies,  including  joint  missions  in  client  countries  and  collaboration  at  the  country  level  on  specific  SPL  topics.    These  agencies include, among others, regional development banks, the ILO, UNICEF, the United Nations  Development Programme (UNDP), and the WFP.  There have also been a series of specific meetings  and  technical  workshops  on  the  multiagency  Social  Protection  Floor,  which  have  forged  closer  collaboration around this key initiative, notably around the goal of mutual learning and information  exchange.    160. Bilateral  and  regional  partners  will  continue  to  be  important  as  well,  as  they  have  been historically.  These actors share a common vision, but often provide differentiated support to  meet  these  goals,  responding  to  specific  regional  and  countryâ€?specific  challenges  or  objectives.   Among  many  key  partners,  the  World  Bank’s  SPL  practice  works  closely  in  countries  with  the  United Kingdom’s DFID in Africa and Asia, the Australia’s aid agency in the East Asia and the Pacific,  the  German  Ministry  for  Economic  Development  and  Cooperation  (BMZ)  and  the  German  Society  for  International  Cooperation  (GIZ)  in  Africa  and  Asia,  as  well  as  other  bilaterals  from  Europe,  Canada, Japan, and the United States in specific country contexts.  Among emerging donors, Brazil is  heavily  engaged  in  helping  provide  technical  assistance  to  African  countries  building  safety  net  systems,  and  the  Russian  Federation  has  been  an  important  partner,  through  the  RSR  fund,  in  helping build SPL systems in the poorest countries.  In the area of disability, a Japanese PHRD grant  for Disability and Development provides grants for projects across developing countries, aimed at  inclusion  of  persons  with  disabilities  in  development,  ranging  from  inclusive  education  to  accessible public buildings, roads, and transport.  Annex 6 presents a summary of select multilateral  and bilateral agencies’ definitions and applications of social protection.  161. NGOs  are  also  important  World  Bank  partners  in  helping  implement  the  SPL  agenda.   A  wide  range  of  partners,  from  CSOs  to  academia  and  the  private  sector,  play  different,  complementary  roles.    As  a  case  in  point,  trade  unions’  engagement  in  setting  the  global  labor  agenda has contributed to shaping core aspects of the strategy, including an emphasis on the global  crises of poverty and rising inequality, the need to address coverage of informal sector workers and  labor market issues in LICs, and recognition of gender dimensions of labor markets.  NGOs active in  SPL,  such  as  Save  the  Children,  the  African  Platform  for  Social  Protection,  HelpAge  International,  and  the  Institute  for  Development  Studies,  are  also  valuable  global  partners  in  providing  sectoral  expertise,  advocacy  partnerships  and  analytical  depth  to  help  in  implementing  and  realizing  the  SPL  strategy  across  client  countries.  Finally,  civil  society  organizations  have  had  a  key  role  in  the  design,  monitoring  and  implementation  of  social  protection  programs  around  the  world  and  will  continue to be an essential partner in moving this agenda forward.   162. The major partnership challenge is to join forces to build foundational SPL systems in  countries  where  these  are  lacking,  as  exemplified  by  the  RSR  initiative.  This effort builds on  the collaboration mobilized as an urgent response to the pressing 2008â€?09 food, fuel, and financial  crises (Box 5.4).  The RSR initiative, together with the Global Food Response Program and Japanese  Social  Development  Fund,  financed  programs  in  19  countries  (mainly  IDA)  that  had  previously  received no safety net support.  Today, the $61 million RSR fund financed by Russia, Norway, and  the  United  Kingdom  stands  out  as  a  prominent  example  of  a  successful  multilateral  partnership,  which will evolve to become the umbrella trust fund to support the implementation of this strategy.   Since December 2009, RSR has approved 70 projects/initiatives, primarily in LICs and fragile states.   For  example,  in  Burkina  Faso,  RSR  is  supporting  a  $550,000  program  assessing  the  feasibility  of  public works and cash transfer modalities, and designing key technical and operational features of a  new safety net program,  including poverty targeting, beneficiary registry,  payments  and M&E.  In    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 44      Timorâ€?Leste, $2.07 million supports the design and implementation of a management information  system  (MIS)  for  cash  transfer  programs.    And  in  Bangladesh,  $2.8  million  is  helping  design  a  conditionalâ€?cash transfer program to be implemented by local governments.  Box 5.4 Preparing for the Next Crisis: Building SPL Systems with the Rapid Social Response Program The RSR Program was established as a World Bank response to the food, fuel, and financial crises. While it leverages larger IBRD and IDA resources, the core of RSR operations is the $61.7millon trust fund resources donated by Russia ($50m), Norway ($8.5m) and the UK ($3.2m). After four rounds of competitive selection processes, 100 percent of funds have been committed for 85 projects. RSR’s clients are low-income IDA eligible countries, for which 92 percent of committed funds are allocated in the form of country/region-specific direct technical assistance and pilot projects. The remaining 8 percent are used for knowledge management and transfer. Sub-Saharan Africa alone absorbs almost 50 percent of RSR trust fund resources. RSR provides catalytic resources in relatively small amounts to help low-income countries build SPL systems, so that they are ready to protect and invest in their populations in future crises. RSR trust fund financing has ranged from $40,000 to $3 million per project. This level of relatively small funding can effectively support system building efforts. In the medium- to long-run, it can then help to catalyze more resources as beneficiary countries’ implementation capacity is upgraded. It should be noted that RSR does not support a stream of benefit payments, except for small pilot projects. Instead, it helps construct systems that are capable of supporting a large number of beneficiaries. RSR is demand-driven and results-oriented. One of the most important criteria for evaluating RSR funding proposals is implementability. This, by definition, requires strong client ownership even for relatively small-scale technical assistance projects. In order to ensure the proposal’s consistency with the World Bank’s overall strategy to assist the clients, the applicable World Bank Country Director’s office is consulted from a very early stage of project concept development. Another key evaluation criterion is solid monitoring and evaluation (M&E) arrangements to ensure that the project, if approved for funding, will generate concrete results. RSR is flexible and speedy. RSR operational procedures have been designed to enable the World Bank to deploy necessary expertise quickly. The procedures are also designed for speedy-processing of grant proposals. It usually takes only two months or less from a call for proposals to the approval decision. RSR gives more time to its LIC clients by speeding up the processing on the side of the World Bank. RSR is making a difference. The recently completed evaluation of SSNs by the IEG of the World Bank made the following observations, “…resources to support SSNs and institution building and to stimulate country demand were lacking in LICs. As additional funds were provided through the RSR trust funds, engagement in LICs increased, and the World Bank and countries focused more on institutional strengthening.â€? For the World Bank’s SPL strategy, RSR is a central pillar in global partner efforts to make a difference in SPL in the poorer countries in the world, and to help prepare them to address the vulnerability of their populations against the inevitable shocks to come. As of January 31, 2012, $23.5 million in RSR resources was accompanied by $1.06 billion of World Bank loans and grants approved and in the pipeline. These include, for example, $2 million to Tanzania on enhancing crisis response, complementing the $150 million Second Social Action Fund RSR grant; $2 million to DRC to build capacity to provide services to the vulnerable, complementing the $10 million Street Children RSR project; and $300,000 to Papua New Guinea on M&E and social accountability, complementing the $15.8 million Urban Youth Employment Project RST grant. This strategy proposes that RSR, which has supported the systems-building and South-South approaches core to this strategy, evolves to become the umbrella trust fund supporting the implementation of the World Bank’s SPL strategy. Source: www.worldbank.org/rsr.   Catalyzing global knowledge exchange  163. Partnerships  are  increasingly  central  to  ensuring  the  flow  of  knowledge,  particularly  on the effectiveness of various programs in meeting global challenges.  Under the strategy, the  SPL  sector  will  sustain  several  key  existing  partnerships  and  look  for  new  opportunities  for    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 45      leveraging  engagement,  building  on  promising  engagements,  such  as  the  following  in  youth  employment, skills development, jobs, and disability.    164. Ongoing  knowledge  partnerships  with  the  International  Labour  Organization  (ILO)  has resulted in joint initiatives to produce an inventory of labor policy responses during the 2008â€? 10  global  economic  crises.    The  ILO  is  also  a  member  of  the  Global  Partnership  for  Youth  Employment,  which  builds  and  disseminates  evidence  on  youth  employment  in  Subâ€?Saharan  Africa and the Middle East by fostering new research, policy dialogue, and capacity building of local  stakeholders.  Members  of  the  partnership  include  Understanding  Children’s  Work  (UCW),  the  Youth Employment Network (YEN) —both interagency initiatives between the World Bank, ILO and  the  UN—the  Arab  Urban  Development  Institute  (AUDI),  and  the  International  Youth  Foundation  (IYF).87   165. The  World  Health  Organization  and  the  World  Bank  recently  released  the  first­ever  World  Report  on  Disability.    Using  data  from  the  World  Health  Survey  and  the  Global  Burden  of  Disease, the report provides the first global estimates of persons with disabilities since the 1970s,  and it provides an overview of the status of disability in the world.     166. The  “Employment  and  Developmentâ€?  initiative  was  created  in  2006  by  the  World  Bank  and the Institute for the Study of Labor (IZA) in Germany to stimulate and promote research on jobs  in LICs and MICs.  The annual conference on employment and development has become the premier  event  for  researchers  working  on  the  issue,  and  the  7th  annual  conference  is  due  to  take  place  in  2012 in New Delhi, India.  Collaboration will be continued with IZA on activities related to the Jobs  Knowledge Platform,88 such as the "World of Labor" joint training events and conferences that help  push the knowledge frontier on employment issues in the developing world.   167. There  are  several  other  important  topic­specific  partnerships,  financed  by  global  partners  through  multidonor  trust  funds  (MDTFs).  A major analytical initiative on measuring  the cognitive, noncognitive, and technical skills of the adult population, and the links between skills  and  labor  market  outcomes  and  firm  productivity,  is  being  undertaken  through  the  combined  resources of several trust funds, notably the MDTF on Job Creation89, the World Bankâ€?Netherlands  Trust Fund (BNPP) and the Russian Education Aid for Development (READ) Trust Fund.  The MDTF  for  Global  Partnership  for  Disability  and  Development  (GPDD)  financed  by  Finland,  Norway,  and  Italy supports activities of the partnership focused on knowledge creation and exchange.  Another  MDTF  on  Labor  Markets,  Job  Creation  &  Economic  Growth  (financed  by  Austria,  Germany,  the  Republic  of  Korea,  Norway,  and  Switzerland)  has  funded  important  analytical  work  on  labor  markets  and  helped  build  client  capacity  to  work  on  labor  market  issues.    The  Russia’s  Financial  Literacy and Education Trust Fund has, similarly, financed new and innovative research on effective  programs on financial capability.  168. Cutting across a range of sectors, the Spanish/Strategic Impact Evaluation Fund (SIEF) has  provided  support  to  the  results  agenda  by  financing  impact  evaluations  and  related  capacity  building, generating evidence in seven strategic areas, including CCTs, youth employment, ALMPs,  and early childhood development.      Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 46      6. MEASURING AND ACHIEVING SUCCESS: EXPECTED RESULTS AND BUSINESS PLAN IMPLICATIONS Measuring Results 169. The  success  of  the  new  strategy  will  be  measured  through  a  set  of  performance  indicators  reflective  of  SPL  goals  and  the  strategy’s  priority  and  principles.    Progress  on  results  will  be  regularly  monitored  using  a  results  framework  tracking  impacts,  outcomes,  and  outputs in partner countries, and World Bank activities undertaken to advance strategy priorities  and  principles.90    The  results  framework  follows  a  threeâ€?tier  approach  (Table  6.1  provides  a  snapshot  and  Annex  7  a  full  presentation),  which  reflects  the  link  between  the  World  Bank’s  programs  and  activities  under  the  strategy,  changes  in  country  outcomes  that  could  be  directly  attributable  to  World  Bank  engagement,  and  changes  in  mediumâ€?  and  longâ€?term  country  development outcomes.  Details about indicator measurement, aggregation, data sources, baseline  values and selected targets are provided in Annex 7.  Indicators will be regularly updated to track  progress on strategy results and to highlight areas that need attention, decision, and action.   Table 6.1: SPL Strategy Results at a Glance  World Bank Activities to Support Outcomes and Outputs of Countries Country Progress on Sector Partner Countries Receiving World Bank Support Development Outcomes ï‚· Percentage of satisfactory projects ï‚· Percentage of SPL lending ï‚· Share of working age population (IEG Ratings) operations supporting SPL systems accruing pensions rights ï‚· Percentage of projects with ï‚· Number of countries with SPL ï‚· Pension beneficiaries to elderly (>65) satisfactory M&E (ICRs) engagement population ratio (old age, survivor, ï‚· Number of downloads of SPL ï‚· Number of beneficiaries of SSN disability, and social pensions) knowledge products programs*+ ï‚· Percentage of population in the ï‚· Number of countries involved in World ï‚· Number of beneficiaries of labor poorest quintile covered by SPL Bank sponsored South-South learning market programs*+ programs+ events ï‚· Poverty gap at $1.25 per day (PPP) ï‚· Percentage of SPL staff time spent on ï‚· Percentage of children (7-14) cross support employed+ ï‚· Percentage of IDA lending operations ï‚· GDP per person employed having cofinancing partners ï‚· Ratio of youth/adult unemployment rate+ ï‚· Index of SPL system development Note: +disaggregated by gender; *proposed SPL Core Sector Indicators.   Disaggregation by IDA/IBRD will be applied as appropriate.    This matrix will be updated as appropriate to capture improved indicators as they become available, including measuring  the impact of knowledge services.  170. Indicators  will  be  tracked  by  gender  and  IDA­IBRD  distinctions  to  ensure  that  progress  is  monitored  closely  across  people  and  types  countries.    In  addition,  to  ensure  coherence  in  tracking  results  across  World  Bank  SPL  engagement,  the  strategy  results  matrix  indicators have been aligned with other measures used within the World Bank, including Country  Policy and Institutional Assessment (CPIA) measures on SPL systems performance, SPL core sector  indicators, and corporate scorecard indicators, all in close collaboration with the Operations Policy  and Country Services (OPCS).  171. The  selection  of  indicators  in  the  strategy  results  framework  has  been  guided  by  four  principles:    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 47      ï‚· First,  an  emphasis  on  the  quality  and  availability  of  data.    Many  indicators  on  important  aspects  of  performance,  such  as  the  impact  of  World  Bank  SPL  knowledge  work,  cannot  be  measured reliably today. Others are not available across countries.  ï‚· Second,  coherence  in  tracking  results  across  World  Bank  SPL  engagement.   The strategy  results matrix indicators have been aligned with other measures used within the World Bank,  including CPIA measures on SPL systems performance, SPL core sector indicators (which have  been  developed  in  parallel  with  the  strategy),  IDA16  indicators,  and  corporate  scorecard  indicators, all in close collaboration with OPCS.    ï‚· Third,  an  acknowledgment  that  coverage  indicators  linked  to  World  Bank  engagement  will  likely  reflect  the  strongly  counter­cyclical  nature  of  World  Bank  lending.    The  indicators on the number of beneficiaries of safety net and labor market programs, which will  be  measured  in  the  core  sector  indicators,  should  be  expected  to  rise  during  crises  when  SPL  lending has historically gone up, and fall when crises abate.    ï‚· Finally,  a  commitment  to  further  develop  the  indicators  over  time.   Several indicators are  still in their infancy. Notably the systems indicators will have to be developed and refined over  the  next  years,  as  will  appropriate  measures  of  World  Bank  engagement  in  policy  reform,  including in social insurance.  172. This  implies  that  results  of  the  strategy  will  be  more  accurately  measured  by  indicators  of  quality  and  of  engagement,  than  by  coverage  and  lending  volumes,  and  that  measures  will  be  reviewed  and  updated  over  time.    These  measures  include  the  quality  of  World Bank projects and the World Bank’s ability to help countries access knowledge and technical  support to set up more effective approaches to SPL that are more responsive to risk, inclusive, and  linked  to  opportunities.  The  indicators  will  be  reviewed  and  updated  over  time,  with  a  thorough  review planned for the 2017 fiveâ€?year strategy update.    Country progress on sector development outcomes   173. Long­term  development  impacts  are  defined  within  the  SPL  objectives  of  improving  resilience,  equity,  and  opportunity.   Indicators in tier I track results at the country level in these  areas  and  provide  the  context  and  direction  for  the  World  Bank’s  work  in  social  protection.  Although  World  Bank  SPL  engagement  aims  to  improve  these  indicators,  changes  in  these  indicators cannot be attributed to World Bank engagement.  These impact indicators are consistent  with  the  MDGs  and  include  pensions  coverage  measures  (old  age,  disability,  survivors,  and  social  pensions),  the  share  of  poor  population  covered  by  safety  nets  programs,  poverty  gap,  and  indicators of labor productivity, child labor, and youth unemployment.    Changes in outcomes and outputs of countries receiving World Bank support   174. The  results  framework  will  track  direct  World  Bank  contributions  to  countries’  movement  toward  more  responsive,  inclusive,  and  productive  SPL  systems.    An  initial  measure  of  World  Bank  support  will  be  to  track  the  number  of  client  countries  with  World  Bank  SPL  engagement,  which  is  expected  to  increase,  especially  among  IDA  countries.    Some  of  the  strategy indicators in this area draw on the new SPL core sector indicators, which will be derived  from investment lending projects’ ISRs (implementation supervision reports).  They will, therefore,  not be reflective of World Bank SPL engagement through other lending instruments and knowledge  products.  175. Measuring  progress  in  building  SPL  systems  is  a  new  agenda  that  will  need  development  in  the  years  ahead.   A central element of the World Bank’s current and future SPL    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 48      engagement  with  countries  is  to  provide  support  for  strengthening  country  institutions  and  fostering  links  across  social  protection  programs.    Building  social  protection  systems  is  complex  and requires longâ€?term engagement; therefore, it can be harder to measure how such systems are  practically implemented.  The composition of the World Bank lending portfolio is expected to move  towards supporting systemâ€?oriented operations, but recognizes that entry points are often through  engagement on individual projects.  To track performance of countries in this area, the volume of  lending and nonlending engagements explicitly aimed at supporting SPL system will be used as an  indicator.  Looking  ahead,  tools  will  have  to  be  applied  to  assess  the  degree  of  integration,  harmonization, and connectivity among SPL programs to ultimately provide guidance on the type of  reforms/policy  recommendations  that  can  be  considered  in  specific  cases  and  to  allow  benchmarking social protection systems.    176. Coverage  is  a  challenging  indicator  that  will  likely  continue  to  be  highly  countercyclical.  It is a World Bank priority to help countries expand their coverage of public social  protection  programs,  notably  to  reach  the  poorest  and  most  vulnerable.    The  number  of  beneficiaries of safety nets programs supported by the World Bank in IDA countries will be used as  a measure of progress to track increased coverage.  By contrast, in some IBRD countries—notably  in  the  ECA  region—SPL  reforms  are  aimed  at  reâ€?orienting  coverage  and  could  involve  some  reductions in coverage of certain programs.  A relative measure of coverage (such as the coverage  rate  of  the  poor)  would  be  more  informative  but  is  fraught  with  measurement  and  comparability  problems at the project level (though this will be tracked at the country level).  Moreover, the SPL  portfolio  is  highly  counterâ€?cyclical,  so  World  Bank  contributions  to  expanding  coverage  are  expected  to  rise  substantially  in  response  to  crises—and  contract  in  normal  times.    As  a  consequence,  the  indicator  measuring  the  number  of  safety  nets  beneficiaries  of  programs  supported by the World Bank will reflect the portfolio counterâ€?cyclicality.   177. Improved  access  to  jobs  and  earning  opportunities  will  be  tracked  by  looking  at  the  coverage of active labor market programs.  The greater demand from clients for the “promotionâ€?  function  of  their  social  protection  systems  calls  for  an  expanded  World  Bank  role  in  helping  the  most vulnerable access jobs and earnings opportunities.  Results in this area will track the expected  increased coverage of labor market programs and “productiveâ€? safety nets programs experimenting  with  approaches  to  link  their  beneficiaries  to  activation/graduation  services.    The  number  of  beneficiaries  of  labor  market  programs—including  programs  fostering  entrepreneurship— supported  by  the  World  Bank  will  serve  as  an  output  indicator  to  monitor  World  Bank  contributions to enhancing productivity and improving labor market outcomes.  Business implications World Bank activities to support partner countries   178. The  strategy’s  focus  has  implications  for  how  the  SPL  practice  will  engage  in  terms  of  managing  its  staff  and  conducting  its  business  in  the  areas  of  knowledge,  lending,  and  partnerships to help client countries achieve their development goals.   179. Much  of  the  challenge  in  this  area  will  be  to  maintain  the  sector’s  high  performance  while taking on more ambitious engagement.  Target values are set for indicators in this domain  as  these  indicators  track  performance  in  areas  that  the  World  Bank  most  directly  controls  and  actions for which the World Bank will be accountable (see Annex 7).  While baseline values show  that SPL is performing remarkably well â€? and above the World Bank average—the challenge in the  next  years  will  be  to  maintain  the  high  quality  of  the  SPL  portfolio,  M&E  ratings  and  partnership  arrangements, and while at the same time meeting the ambitious strategy goals.  The formulation of  targets in tier 3 reflects the expected increase in the three areas of operating principles identified in    Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 49      the  strategy—knowledge  (reflected  in  knowledge  production  and  dissemination  and  Southâ€?South  sponsored  learning  events),  collaboration  (reflected  indicatively  at  country  level  through  coâ€? financing  arrangements  in  IDA  operations  and  at  Bank  level  through  intraâ€?Bank  crossâ€?support),   and countryâ€?tailored operations, where they reflect the ambitious objective of keeping maintaining  the high quality performance and resultsâ€?orientation of the portfolio while expanding our lending  engagement to challenging contexts as in such as lower institutional capacity countries and fragile  states.  Knowledge    180. In  the  knowledge  area,  the  World  Bank  will  continue  to  be  a  leading  global  provider,  disseminator,  and  customizer  of  knowledge  about  effective  SPL  approaches.    As  in  the  past  decade, knowledge will be based on generating evidence on performance and then translating inâ€? depth engagement at the country level into systematic global knowledgeâ€?sharing.   SPL will need to  help  address  the  knowledge  gaps  on  existing  programs,  program  performance,  and  knowledge  sharing, using the approaches discussed in Section 5.  The SPL “anchorâ€? (as the global policy unit is  called) will need to take a leading role in facilitating a coordinated approach to knowledge, but in  close  partnership  and  mutual  learning  with  regions.    The  anchor  will  continue  to  develop,  strengthen,  and  disseminate  knowledge  tools  that  can  be  applied  across  countries—including  impact evaluations, modeling tools, and benchmark assessments to assess what programs exist and  how  they  perform  (see  Section  5  and  the  anchor  discussion  in  Annex  1).    As  the  practice  moves  towards supporting SPL systems, there will be demand for new knowledge regarding how different  programs can work together effectively, recognizing that most of the knowledge today focuses on  programs working independently.   181. The  World  Bank  SPL  practice  will  place  greater  emphasis  on  knowledge  dissemination  and  exchange.   Knowledge exchange across countries and staff will be a priority,  especially  drawing  on  faceâ€?toâ€?face  Southâ€?South  learning  and  ensuring  access  through  knowledge  platforms using webâ€?based approaches.  The SPL practice is committed to continuing to prioritize  Southâ€?South  knowledge  exchanges,  to  share  knowledge  amongst  practitioners,  and  to  promote  exchange on design and implementation issues relevant to current and future SPL agenda.   182. The  practice  will  also  improve  virtual  knowledge  sharing.    The  objective  is  to  have  accessible,  clear  webâ€?based  sites  for  each  of  the  SPL  areas  of  practice,  including  safety  nets,  pensions,  labor  markets,  and  SPL  systems,  which  would  allow  information  on  evidence  and  good  practice to be disseminated and serve as a vehicle for supporting communities of practice.  The new  Jobs  Knowledge  Platform  has  been  recently  launched  as  a  joint  initiative  of  the  HDN,  PREM,  FPD  and  DEC  to  facilitate  knowledge  sharing  and  best  practice  on  how  to  tackle  the  challenge  of  expanding  job  opportunities.    World  Bank  performance  in  disseminating  knowledge  will  be  measured by the number of countries involved in Southâ€?South learning events, and the number of  downloads of World Bank knowledge products as a proxy for client demand for these products.   183. The  World  Bank’s  highly­regarded  “core  coursesâ€?  for  clients  on  safety  nets,  pensions,  and  labor  markets  will  continue  to  evolve,  using  both  more  technology  (such  as  webâ€?based  introductory  courses)  and  more  handsâ€?on  experience  on  program  design  and  administration.   Impact evaluation training will also be a priority for HDN through collaboration across SPL, health,  and  education.    Beyond  these,  the  SPL  practice  will  prioritize  a  deeper  investment  in  making  knowledge  more  accessible,  through  the  development  of  easily  digestible  policy  and  “howâ€?toâ€?  guides to equip both staff and clients across the globe to make better policy decisions.        Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 50      Operations  184. In  its  operational  work,  the  SPL  strategy  calls  on  teams  to  use  evidence  and  be  client­ focused  in  order  to  inform  and  support  their  development  of  tailored,  effective,  scalable  solutions  to  the  pressing  demands  for  SPL.    Client  tailoring  puts  a  premium  on  innovation,  as  well as attention to political economy issues and encourages creative, often multisectoral solutions.   It also calls on World Bank SPL staff to use global evidence to inform policy dialogue and program  design and to help clients develop programs that will generate their own evidence on performance  so as to better inform program design and management in individual countries.    185. The  strategy’s  focus  matches  well  with  the  full  portfolio  of  World  Bank  financing  instruments.    Countries  will  be  able  to  use  those  appropriate  to  the  task  at  hand  to  couple  catalytic  funding  with  technical  engagement  in  the  design  of  effective  operations.    Sector  investment  loans  and  grants  will  continue  to  be  needed,  including  investing  in  the  basic  administrative  subsystems.    Policyâ€?based  loans  and  grants,  a  major  element  of  World  Bank  SPL  lending, will also continue to support reforms that inform more effective SPL approaches and help  countries  respond  to  financing  needs  during  downturns.    The  new  program  for  results  (P4R)  instrument  is  particularly  well  suited  to  the  systemâ€?building  agenda,  as  it  takes  a  resultsâ€?focused  view across programs.  Finally, technical assistance and capacity building will continue to serve as  important complements.   186. The  strategy  calls  for  a  continued  focus  on  quality  and  results—two  areas  that  have  been  hallmarks  of  the  SPL  practice  for  the  past  decade.    Quality  project  design  and  quality  implementation  are  critical  to  ensuring  operational  impact.    Indicators  of  portfolio  quality  and  performance for operations and AAA will be tracked. Reinforcing the focus on results is key aspect  of  operational  effectiveness.    The  results  focus  of  SPL  operations  has  been  generally  strong  at  appraisal,  but  needs  to  be  sustained  throughout  the  operation  and  beyond. SPL  has  been  at  the  forefront of using resultsâ€?based lending approaches over the past ten years, mostly in the context of  CCT  programs.91    Resultsâ€?based  lending  is  likely  to  be  in  high  demand  by  SPL  clients  in  the  next  years, especially through such innovative financing instruments as the P4R.  The resultsâ€?orientation  of SPL projects will be tracked using IEG ratings and M&E performance ratings.    Partnerships  187. A  central  element  of  the  strategy  is  a  call  for  increased  collaboration  across  sectors  and  global  partners  to  help  countries  develop  more  harmonized,  responsive  approaches  to  risk.  There are particular challenges and demands on partnerships in IDA countries given resource  constraints and the need for aid harmonization.  The results framework will reflect collaboration by  measuring  the  percentage  of  projects  in  IDA  countries  that  are  cofinanced  with  other  global  partners.  The practice is also likely to become more crossâ€?sectoral, building on an existing strong  base of crossâ€?sectoral engagement given the complementarities across sectors (see Annex 5).   188. Partnerships  will  be  central  to  helping  countries  build  effective  SPL  programs  and  systems,  particularly  to  respond  to  future  crises.    Further  support  for  the  RSR  initiative  (see  earlier  Box  5.4)  will  be  a  priority  to  help  with  this  effort  in  LICs.    The  global  partnership  will  be  supported through a regular annual dialogue with bilateral, multilateral, and civil society partners.   As a result of this dialogue, more joint approaches in LICs are expected to increase, and the results  matrix tracks this indicator as well.          Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 51      Implications for staffing and budgets  189. While  SPL  policy  specialists  will  continue  to  be  recruited  to  work  within  and  across  core  areas  of  pensions,  labor,  markets  and  safety  nets,  staff  with  a  multidisciplinary  orientation  and  diverse  skills  as  well  as  practitioners  with  experience  in  designing  and  managing  SPL  programs  will  also  be  needed  to  implement  the  strategy.    SPL  staff  today  are  typically  wellâ€?versed  and  highly  demanded  by  clients  for  their  core  areas  of  expertise  (such  as  safety nets, pensions, or labor markets).  However, as the strategy is implemented, they will need to  develop  new  expertise  in  three  areas:  taking  a  systems  approach  to  engagement;  understanding  how  portfolios  of  programs  can  be  better  coordinated  through  sharing  common  administrative  subsystems;  and  harmonizing  different  types  of  programs  across labor  markets,  social  assistance,  and social insurance.  Moreover, to better align staff skills with the systems vision, SPL operational  and network teams will need to deepen expertise on the “nuts and boltsâ€? of SPL systems drawing  on the expertise of experienced practitioners.   190. SPL  will  continue  to  ensure  that  the  staff  is  well  trained  in  both  core  competencies  and  emerging  areas,  building  on  the  global  knowledge­sharing  agenda.   Staff will continue to  access the global core courses, which are primarily aimed at clients, but will also help train sector  staff.    Staff  located  in  country  offices  will  be  a  particular  focus,  and  SPL  will  develop  more  online  training modules, such as the one already pioneered for SSNs.  191. To  be  effective,  SPL  will  also  need  to  ensure  that  expert  staff,  in  whom  knowledge  is  embedded,  are  mobile  enough  to  serve  all  clients.   This calls for two measures.  First, ensuring  that the World Bank’s global experts in SPL are made available to all clients.  This will build on the  success of the SSN Global Expert Team (GET), which has allowed the World Bank’s practice leaders  to provide key advice to clients and develop global knowledge products.  In addition, the SPL Sector  Board  (recently  recognized  by  IEG  as  the  best  performing  in  the  World  Bank)  will  continue  to  ensure highâ€?frequency crossâ€?support—to ensure that needed expert staff (whether in the regional  practices or in the SPL anchor)—are effectively mobilized to ensure that clients receive the highest  quality support.  Cross support is already at 15 percent of staff time—well above the World Bank 3  percent  average—and  this  level  will  be  maintained  and  tracked  as  a  performance  indicator.   Second,  the  SPL  practice  will  ensure  that  expert  staff  members  also  serve  as  technical  and  operational mentors to more junior staff or those with less experience in relevant areas.   192. Additional  internal  World  Bank  budget  is  not  requested  for  implementing  the  strategy,  but  a  central  catalyst  for  implementing  a  key  aspect  of  the  strategy  would  be  the  RSR  umbrella  trust  fund,  supporting  systems­building  (especially  in  lower­income  countries)  and  global  knowledge­sharing  in  SPL,  especially  South­South.  This funding is not  needed  for  World  Bank  operations,  but  critically  for  countries  to  meet  their  SPL  goals,  notably  in  IDA countries where fiscal space is most constrained.    ****************************  193. Greater  resilience,  equity,  and  opportunity  are  essential  for  individuals  and  societies  to prosper in the 21st century.  This strategy lays out a roadmap for the World Bank to help client  countries to invest in their people through effective SPL systems that reduce fragmentation, bolster  responsiveness,  ensure  inclusion  and  promote  productivity  for  all.    The  road  ahead  will  be  challenging, but this is a challenge that the world’s nations need to take up.  With this strategy, the  World Bank aims to chart a course that makes it an even more effective partner in this endeavor.   Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 52      REFERENCES Ahmed,  Akhter,  and  others.  2006.  “Interim  Impact  Evaluation  of  the  Conditional  Cash  Transfer  Program  in  Turkey:  A  Quantitative  Assessment.â€?  Washington,  DC:  International  Food  Policy  Research Institute.   Alatas,  Vivi,  Abhijit  Banerjee,  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Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 59      ANNEXES        ANNEX 1: REGIONAL AND ANCHOR APPLICATIONS OF THE SOCIAL PROTECTION AND LABOR STRATEGY   The  strategy  will  need  to  be  adapted  to  fit  demands  and  priorities  across  different  clients  and  contexts—reflected  in  the  World  Bank’s  different  regional  SPL  practices.    This  section  presents  a  summary  of  the  main  challenges,  objectives,  and  corresponding  areas  of  focus  for  the  World Bank's SPL practice in the coming years in each of the six regions of World Bank engagement.   It also presents an overview for the World Bank’s Social Protection and Labor anchor unit, a global  policy center which serves the regional teams, providing support on policy, strategy and knowledge  services.  Given the challenges of being too specific about particular contexts, these approaches take  a fiveâ€? rather than tenâ€?year perspective, which will be updated during the midterm review of this  strategy.  The  regional  approaches  reflect  the  variety  and  nuance  of  the  World  Bank's  global  SPL  practice,  but  also  underscore  the  common  themes  stemming  from  the  strategy's  main  goals,  priorities, and principles.  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 61      Africa Region (AFR)  Focus area Challenges Objectives Bank SPL practice SPL systems ï‚· Limited coverage and little or no coordination ï‚· Help countries develop programs that can be ï‚· Provide an evidence base for policy and programmatic between programs, resulting in highly part of a SPL system. reforms in support of SPL systems through (i) better fragmented SPL systems. Very few systems ï‚· Support country-owned national SPL systems, understanding appropriate safety nets in Africa, (ii) are able to scale in response to crises. by scaling up effective SPL programs in expanding safety net assessments to SPL coordination with other development partners. assessments where possible; (ii) strengthening poverty ï‚· Promote institutional development and the assessments to include analyses of chronic and move to SPL systems through the use of transitory poverty and vulnerability to inform SPL common ‘building blocks,’ such as single programming; (iii) conducting regional studies, such as beneficiary registry, unified MIS, and the one on targeting; and (iv) continuing to invest in harmonized targeting systems, among others; impact evaluations to inform policy and program reform and advance the use of ICT. and design. ï‚· Support country efforts to strengthen the policy environment for SPL through creation and/or revision of national SPL policies and strategies, to establish and expand SPL systems; and to share experience across countries in the region. Social safety nets ï‚· Safety net instruments, while growing in ï‚· Consolidate and expand the coverage of ï‚· Expand the use of SPL assessments as the basis for coverage, tend to be small, fragmented, and existing small programs to create sustainable, an informed dialogue on reforms of price subsidies and largely donor-driven, although there are some predictable safety nets, particularly cash other ineffective safety nets. notable exceptions in the region. Moreover, transfers and public works, and to build their ï‚· Support impact evaluations to generate information on humanitarian relief is the most prevalent form of long-term scalability and crisis response approaches that work in Africa to inform program scale- assistance for poor populations in many African capacity. up and expansion, to assess the relative effectiveness countries. Price subsidies continue to be used ï‚· Over time, integrate these programs into of CCTs and UCTs in this context, and to support in many places. national SPL policies and systems, including South-South learning to promote best practices. ï‚· Deep inequalities in access to basic social continuing to invest in social funds as an ï‚· Provide financial support and technical assistance to services continue. Targeted demand- and important social protection instrument, SSN programs in a number of countries across the supply-side interventions are, therefore, needed particularly in fragile and post-conflict states. continent. to close the coverage gap. Targeted service ï‚· Support learning among countries, including fragile and delivery has proven to be particularly effective post-conflict states, on basic service delivery at delivering results in fragile states and post- instruments. The focus is on the evolution of long- conflict settings. established social funds into institutions that can help manage and deliver permanent SPL programs. Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 62      Pensions/ social ï‚· The majority of countries in Africa spend less ï‚· Provide social protection for older people ï‚· Enhance cross-sectoral work within the World Bank to insurance than 1 percent of GDP on pensions and fewer through a multipillar system approach by support, in appropriate country contexts, pension than 10 percent of older people receive a reforming mandatory contributory schemes to programs that can address contributory and non- contributory pension. Pensions are a make them fiscally affordable, expanding contributory schemes. If requested by clients, work significant fiscal concern in many countries. In pensions to the informal sector, and with them to harness existing evidence and practice response to these (and other) considerations, introducing noncontributory social pensions. to inform policy and develop links between safety nets various countries have enacted pension and insurance. reforms in recent years and some are seeking to expand coverage to the informal sector. ï‚· Social security coverage in Africa is extremely limited. Labor markets ï‚· Unemployment and underemployment rates, ï‚· Promote market-based skills development for ï‚· Advance the analytical agenda on employment in particularly among youth that represent a large the poor, particularly in the informal sector, Africa, focusing particularly on youth unemployment, share of the population, are high in most Africa and to enable household enterprises and to inform policy and practice. The Bank is supporting countries and there is a strong demand to entrepreneurship that will strengthen a number of youth employment projects that, together address these issues from client countries. livelihoods and help them rise out of poverty. with rigorous impact evaluations, will provide much ï‚· The applicability of ALMP-type programs to needed information on what works in this area. African setting is debated because of the characteristics of African labor markets and the limited evidence base on the effectiveness of such approaches in Africa.  (Continued)    Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 63      East Asia and the Pacific Region (EAP)  Focus area Challenges Objectives Bank SPL practice SPL systems ï‚· SPL interventions are often disjointed, lack ï‚· Assist countries in developing an efficient, ï‚· Facilitate sharing of relevant lessons from common institutional and policy underpinnings, equitable, and inclusive SPL system and, in ongoing engagement in the region and from have limited M&E. particular, help (i) develop a strong institutional international experience; and engage in South- ï‚· Weaknesses in decentralization, public finance basis, including common targeting, unified South learning on practical approaches toward management, or social accountability hamper beneficiary registries, single payment systems, SPL system development. SPL policies and program performance. and harmonized institutional arrangements; and ï‚· Develop regional thematic knowledge work in (ii) promote policy coordination, accountability for the areas of labor markets, SSN, fiscal/ policy implementation and program performance, governance, social insurance, skills, impact and harmonization across programs. evaluation, and gender. ï‚· Assist countries to connect top-down reforms, ï‚· Strive to develop complementarity in policy such as those in public sector management, dialogue and operations between SPL and governance and public finance, with bottom up other sectors, especially public sector/ approaches on the SPL agenda. In collaboration governance, and social accountability. with other sectors, help clients identify and address external problems impeding progress on SPL, and strengthen accountability for results in SPL. Social safety nets ï‚· Majority of population are vulnerable to shocks, ï‚· Support new and strengthen existing programs, ï‚· Tailor “how-toâ€? toolkits on the nuts & bolts of particularly with respect to rising employment such as community-based programs, cash SSNs. shocks, natural disasters, economic volatility, transfers, basic health coverage programs, public ï‚· Promote learning and innovation on addressing and other covariate shocks. Policy makers works, school feeding, and disaster relief. marginalized groups’ access to services. demand strong links between SSN and ï‚· Provide “how-toâ€? assistance on targeting, benefit ï‚· Integrate SSN dialogue into the broader productivity. structure, program implementation, and inclusive growth agenda and tailor advice on ï‚· The majority of SSN benefits do not reach the evaluation. technical design and institutional development, lowest income quintile. ï‚· Improve efficiency and effectiveness of large-scale with possible operational support. programs, including strengthening their links to productivity. ï‚· Promote innovative approaches to increase access of marginalized groups to essential social services, and address the widespread vulnerability to covariate shocks. Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 64      Pensions/ social ï‚· Social insurance schemes are often fragmented ï‚· Assist countries to consolidate and integrate ï‚· Build and share knowledge on approaches for Insurance and inefficient, in some countries coverage is social insurance in the broader SPL policy extending social insurance and old-age support still limited, benefits can be regressive and dialogue and agenda giving priority to insurance to the informal sector. difficult to sustain. expanding coverage (health, unemployment, ï‚· Integrate social insurance in the broader SPL and old age), and addressing benefit uniformity agenda. and portability, cost and competitiveness, ï‚· Continue to deepen policy dialogue across informality, and policy coordination with social countries, identifying further opportunities for assistance. effective technical and operational support. ï‚· Support reforms to reduce fragmentation and enhance coverage, particularly extending social insurance programs to the informal sector, and build on the existing programs to improve efficacy and develop a cohesive social insurance system. Labor markets ï‚· Growth of working age population is slowing ï‚· Work with multiple stakeholders to promote a ï‚· Generate new knowledge and deepen policy down in East Asia, but labor productivity has better understanding of labor markets at dialogue through regional analytical work on been growing steadily, in part, reflecting moves subregional and country level. jobs. out of agriculture. ï‚· Assess labor policy and regulations in the ï‚· Build on the rich skills policy dialogue, sharing ï‚· The share of wage employment has also been context of ASEAN integration. policy lessons and linking the dialogue with the increasing, while the share of unpaid family ï‚· Assist countries to integrate the labor and youth broader SPL agenda. work has fallen. agenda with the skills, migration, and country ï‚· Unemployment problems, including among economic development agendas. youth, are less prevalent than in other regions. ï‚· Enhance skills development systems and ï‚· The concern is with equality of opportunity and consider the expansion of ALMPs targeted to outcomes, and the fact that workers are vulnerable workers. vulnerable to shocks.  (Continued)  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 65      Europe and Central Asia Region (ECA)  Focus area Challenges Objectives Bank SPL practice SPL systems ï‚· While most ECA countries operate extensive ï‚· Improve the equity, efficiency, and sustainability ï‚· At country level: Sustained engagement to and expensive SPL systems, these systems of SPL systems, through (i) improved support capacity building, institutional are largely fragmented, with multiple schemes coordination and harmonization of SPL policies strengthening and improvements in benefits within each area and with few links across the and programs across the broad areas of social administration/ revenue collection, and oversight spheres. insurance, social assistance, activation, and and controls. ï‚· Inadequate opportunities for inclusion, lack of labor; and (ii) strengthened governance of SPL ï‚· At country level: Broader diagnostics of social access to integrated services, and inequitable/ systems, including management, implementation, protection systems (expenditure and financing) to inefficient social benefits. administration, monitoring, evaluation, oversight, support technical assistance and dialogue on and controls. coordination and incentive compatibility across ï‚· For specific excluded and vulnerable groups, spheres, as well as linkages to broader economy. such as the Roma and people with disabilities: ï‚· Knowledge priorities at regional level: (a) social opportunities for employment, skills development insurance/pension systems regional study; (b) and productivity, and access to social services effective approaches for governance, benefits (promotion agenda), and effective social benefits administration systems and oversight/ controls. (social assistance, protection). ï‚· For specific vulnerable groups: (i) Building evidence-base on effective Roma inclusion policies. (ii) develop and share knowledge on disability benefits administration, disability certification, and active inclusion. Social safety nets ï‚· Social assistance systems are often ï‚· Consolidate social assistance programs and ï‚· Regional knowledge areas: monitoring fragmented and inefficient, provide inadequate strengthen governance (administration, oversight expenditures, programs and performance; support to key poor and vulnerable groups, and controls, M&E) to improve efficiency and monitoring response of social benefits to crises; including in times of crisis. equity in the face of fiscal constraints, political "nuts-and-boltsâ€? of SSNs (MIS, oversight and ï‚· Many “passiveâ€? entitlements that can result in pressures, and competing social demands; controls); political economy; and incentive effects transfer dependency and work-disincentives ï‚· Promote inclusion of specific excluded and of social assistance programs. without effective links to employment and vulnerable groups (for example, the Roma or ï‚· At country level: sustained engagement to other social services. people with disabilities). strengthen capacity and improve effectiveness of SSN programs in LICs and MICs through lending instruments and AAA and in MICs through fee- based services (FBS). Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 66      Pensions/ social ï‚· Given demographic pressures and the ï‚· Significant and sustained reforms to pension ï‚· Regional analytical work on social insurance and Insurance shrinking labor force, public pension systems systems across the region, to address issues of pension systems; review of effective governance in ECA are fiscally unsustainable. coverage and informality, adequacy (social and administration of services, benefits and ï‚· Reforms are politically challenging—and pensions vs. income replacement; public vs. revenue systems; and sustained monitoring of frequently subject to reversals—given high private savings), and fiscal sustainability core indicators for pensions. social expectations and the political weight of (affordability). ï‚· Sustain engagement through lending, AAA, and the large number of current pensioners FBS, including functional SPL reviews, as countries refocus their limited pension spending on the most vulnerable to provide basic benefits. ï‚· Promote knowledge-sharing between reformed and reformer countries, drawing on the regional study on social insurance and pensions with empirical review of reform experience and lessons-learned. Labor markets ï‚· Low labor-force participation, skills, and ï‚· Increase employability, productivity, and skills ï‚· Develop and apply diagnostic tools both productivity. and labor-force mobility regionally and for specific countries on effective ï‚· Shrinking labor force in face of demographic ï‚· Reduce dependency on social transfers and interventions to promote activation-benefits links decline. improve employability by encouraging effective ï‚· Promote knowledge sharing (with other ï‚· Expensive “passive benefits systemsâ€? create “activationâ€? to support and incentivize people to MICs/LICs and experience from OECD countries) work disincentives, and compromise the get jobs and contribute productively to society, on activation. opportunity of many citizens to achieve their with a focus on the “active inclusionâ€? of the ï‚· Conduct a regional “Jobs Studyâ€? planned as full social and economic potential. unemployed, the “work-ableâ€? beneficiaries of companion to the global World Development social assistance, youth, the elderly (as Report. retirement ages are increased), and specific ï‚· Carry out skills and employment surveys/ AAA. vulnerable groups. ï‚· Support crisis/ labor-market monitoring, skills- employment diagnostics, efforts to incentivize labor participation, analysis and reforms of labor markets, and activation approaches.  (Continued)      Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 67      Latin America and the Caribbean Region (LAC)  Focus area Challenges Objectives Bank SPL practice SPL systems ï‚· While most countries have interventions across ï‚· Help countries improve the coverage and ï‚· Develop a knowledge platform on core elements the Prevention-Promotion-Protection areas, few effectiveness of the SPL system for individuals required to move towards an integrated system, have made significant progress towards the and families by establishing links between including technical notes on information systems, development of overall systems, where programs, within and across social assistance, coordination mechanisms, institutional and legal interventions are coordinated and integrated and social insurance, and labor spheres through frameworks; and program to document and ensure “continuity of service.â€? In some, CCTs changes at three levels: policy, design, and exchange experiences across countries, building have de facto formed the basis for the tools, that are conducive to a systemic on innovative mechanisms in the region. emergence of systems, using CCT information perspective. ï‚· Build and share lessons learned across the systems and operational capacity as backbones ï‚· Help client countries develop the capacity of region. for linking beneficiaries to other services. their SPL systems to respond to crises and ï‚· Focus on understanding the HD impacts of crises ï‚· Most SPL systems are not ready to deal with help households mitigate their impacts, by and their implications for social policy, and economy-wide shocks. Many countries do not developing capacity to monitor crises and elaborating a regional database to monitor have the necessary budgetary or administrative anticipate the nature of their impacts; designing programs; analyze their coverage, incidence, and flexibility, programs often do not reach the programs that can be activated in case of generosity; and help define policy responses for populations most likely to be affected by crisis crises, or defining changes to existing emerging crises. and designing and implementing ad-hoc crisis- programs that could be triggered; and ensuring response programs takes time. the availability of resources for these interventions in times of crises (counter-cyclical spending). Social safety nets ï‚· Programs have expanded significantly in the ï‚· Work with governments to consolidate their ï‚· Consolidate knowledge on core SSN issues from region— mostly CCT programs, workfare core programs (expand them where they still countries across the region and spearhead a programs, and UCT programs for specific have limited coverage), with the aim of regional network of practitioners that meets demographic or income groups. Their impact improving efficiency and effectiveness. regularly to discuss cutting-edge reforms. has been established, but many countries want ï‚· Improve processes of entry and exit, ï‚· Continue providing financial and technical to move beyond the traditional parameters to developing more efficient payment systems, support to social assistance programs in many address employment concerns and social care/ incorporating the most marginalized citizens, countries of the region, including the flagship social service issues, such as nutrition early building linkages to other social programs, and programs in Argentina (Universal Child childhood development, and the need for supporting graduation strategies for families. Allowance), Brazil (Bolsa Familia), Colombia personalized counseling. (Familias en Acción and Unidos), Dominican Republic (Solidaridad), Jamaica (PATH), and Mexico (Oportunidades). Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 68      Pensions/ social ï‚· Coverage of contributory schemes is low and ï‚· Increase the coverage of old-age income- ï‚· Develop alternative contributory and non- Insurance reaches mostly formal sector workers. In most protection programs in a financially viable contributory social insurance approaches countries, coverage is below 40 percent of the manner, in order to include those outside the drawing on regional innovations. economically active population and hasn’t formal labor market. ï‚· Focus on typology of policy reforms highlighting improved over recent decades. Coverage is their advantages and limitations; on exploring particularly low for the poor, although the options and mechanisms to integrate old-age introduction of noncontributory systems have income protection with other social assistance reduced the gap in some countries. programs, and with other services for the ï‚· Social insurance systems are often fragmented, elderly; nontransparent, and regressive, and face the ï‚· Model the impacts of reform alternatives to challenges of an aging population. address demographic and socio-economic ï‚· Noncontributory systems have limited changes on demands for old-age income sustainability and can potentially distort incentives. security and other welfare programs. Labor markets ï‚· The region has among the most educated labor ï‚· Improve the design of current unemployment ï‚· Deepen understanding of labor markets core force in terms of numbers of years of education insurance systems to reduce distortions in issues in the region, with a particular focus on (second only to ECA), but labor productivity labor markets while extending their coverage in skills, and in particular on identifying gaps in growth in the majority of countries has been a financially sustainable manner. skills and their implications for the design of stagnant. ï‚· Support the design and implementation of labor programs and policies. ï‚· Labor regulations, including severance pay, are market interventions, such as activation ï‚· Develop mechanisms to promote more efficient among the most expensive in the world and may programs that improve employability, labor markets, greater productivity, and discourage employment creation in the formal particularly of vulnerable groups, including employability and promote activation. sector. Large segments of the labor force remain youth. ï‚· Increase support to labor market interventions, in the informal sector and lack access to with lending operations supporting employment contributory social protection systems. services and reforms to unemployment ï‚· Youth unemployment and inactivity remains a insurance and training programs. problem. ï‚· Labor market programs and unemployment insurance mechanisms are relatively underdeveloped and not integrated internally as an employment protection system, or within a broader SPL system, especially for the most vulnerable population groups.  (Continued) Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 69      Middle East and North Africa Region (MENA)  Focus area Challenges Objectives Bank SPL practice SPL systems ï‚· Big share of government budgets devoted to ï‚· Move away from fragmented SPL programs to ï‚· Improve targeting to increase program subsidies. systems, including (i) effective SSNs (for effectiveness. ï‚· Programs are fragmented and uncoordinated. example, targeting of cash assistance and ï‚· Support the design and implementation of (i) ï‚· Segmentation in the labor market accounts for workfare programs) and (ii) comprehensive social funds, to address challenges across jobless growth. ALMPs that promote increased coordination sectors in a participatory manner, thus ï‚· Weak information systems that hinder effective across government agencies. promoting coordination across ministries and targeting (beneficiary identification) and M&E. laying the ground for the design of a SPL ï‚· Low capacity of government and system; and (ii) front office SPL services– one- nongovernment agencies. stop shops, to improve efficiency in labor market processes. Social safety nets ï‚· Existing SSN programs are highly inefficient; ï‚· Short-term: scale up existing programs in ï‚· Improve understanding of SSN issues and they are based on noncash benefits (food and countries where SSN infrastructure is already in programs through regional analytical work, fuel subsidies), with fragmented coverage, poor place. including user surveys to assess the impact of targeting, low capacity, and little or no ï‚· Medium-term: build SSN infrastructure in SSN interventions on beneficiaries. monitoring of results. countries where SSNs are inexistent or highly ï‚· Promote, through dialogue and technical ï‚· Any reform of (the currently regressive) ineffective, and engage in consultations for assistance, safety net programs that raise subsidies will invariably hurt the middle class consensus building on the need and design productivity and help create jobs. and therefore be very difficult. features of SSNs. ï‚· Support this process through knowledge sharing, technical/financial assistance, and especially dialogue, as it requires comprehensive approaches supported by top political leadership, transparent in their potential effects on all parties, consistent over the long- term and often accompanied by transition supports. Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 70      Pensions/ social ï‚· Low coverage, with around 70 percent of the ï‚· Provide client countries assistance in (i) shifting ï‚· Regional dialogue on social insurance Insurance labor force in MENA not covered by pensions. to consolidated and long term sustainable portability for improved migration management ï‚· Absence or weaknesses in other social pension systems, (ii) extending coverage of at the Marseille Centre. insurance programs (such as unemployment, social security programs, (iii) introducing new ï‚· Engage in dialogue and provide client countries disability, or survivorship). social insurance programs, such as with financial and technical assistance to ï‚· Culture of job protection, rather than worker unemployment insurance and maternity promote integrated social security reform. protection. benefits, (iv) improving the design and ï‚· Long term unsustainable schemes that, given implementation of less traditional social the low coverage, result in regressive income insurance programs such as disability and distribution. survivorship benefits; (v) promoting financial ï‚· literacy among disadvantaged groups, and (vi) increasing transparency and governance through regulatory frameworks. Labor markets ï‚· MENA has the lowest female participation rate ï‚· Short-term: design and implement employment ï‚· Jobs Flagship Regional Study will shed light on in the world and highest unemployment rate response packages to address the youth key challenges and provide policy options to among youth. unemployment crisis (skilled and unskilled), improve labor market outcomes in the region. ï‚· The region also suffers from skills mismatch including a mixture of programs and policies for ï‚· Continue AAA work in migration, focusing on among workers with tertiary education. employment generation, temporary employment regional solutions to improve labor mobility. ï‚· Large public sectors, rigid labor regulations, and and income protection. ï‚· Provide technical support in the design/ high tax wedges discourage employment ï‚· Medium-term: reform labor regulation, promote implementation/ evaluation of activation creation in the formal sector. private intermediation, and improve public programs and of workfare programs for both ï‚· Only 19 percent of the working age population employment services through investment skilled and unskilled workers. hold a formal sector job (2010). operations in order to assess and monitor ï‚· Promote policy dialogue and operations to ï‚· A continued high share of youth, and continuing ongoing employment programs, reform ALMPs increase access to information and statistics (in some cases high) population growth can systems, develop/design labor market and to increase capacity to conduct impact exacerbate problematic labor market outcomes. information systems, and open up dialogue on evaluations to assess program performance, increase productivity in informal sector. increase transparency, and promote good governance .  (Continued) Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 71      South Asia Region (SAR)  Focus area Challenges Objectives Bank SPL practice SPL systems ï‚· Existing programs and systems are limited in coverage, ï‚· Strengthen country-owned national SPL systems. ï‚· Strengthen existing SPL program and system especially of poor and vulnerable populations, and ï‚· Promote institutional development and the move design, administration and governance through fragmented, and suffer from weak administrative to SPL systems through the use of common improving coordination across programs, capacity. subsystem ‘building blocks,’ such as identification targeting, fiscal sustainability, and M&E. ï‚· The region is home to over 1/2 billion poor people, has campaigns, single beneficiary registry, unified ï‚· Promote the evidence base for SPL systems the worst nutrition indicators among children across all MIS, and harmonized targeting systems. reforms: (i) expand safety net assessments to regions and has the largest number of conflicts, ï‚· Foster and build on existing innovation, including SPL assessments; (ii) strengthen poverty insurgencies and/or civil strife among all regions. the use ITC innovations to improve delivery (for assessments to include analyses of chronic ï‚· The region vulnerable to natural disasters and climatic example, cash less systems). and transitory poverty and vulnerability to shocks. ï‚· Strengthen governance and accountability inform SPL programming; (iii) continue to ï‚· Limited fiscal space and close to 90 percent of the labor ï‚· Scale up effective SPL programs in coordination invest in impact evaluations to inform policy force working in the informal sector make the with other development partners. and program reform and design; (iv) assist sustainable financing of the SPL systems a challenge. ï‚· Improve emergency crisis response mechanisms governments in the preparation/ update of their ï‚· There is a need to improve donor coordination in safety that can be deployed at short notice. SPL strategies. net work in some countries in the region. ï‚· Expanding coverage of SPL systems to reach the ï‚· Support climate change and disaster risk informal poor. management work led by other units. ï‚· Review the sustainability of safety nets by ï‚· Mobilize partnerships across sectors (SDN, eliminating poorly targeted interventions, PREM, and HD) and agencies (ADB, WFP, eliminating leakages and prioritizing programs. UNICEF, ILO, GIZ, DFID, Italy, USAID). ï‚· Build on success of innovative pilots and influential investments, including the recent Pakistan CCT Benazir Income Support Program, the Bangladesh Employment Generation Program for the Poorest, and India’s RSBY health and NREGA workfare innovations.         Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 72      Social safety ï‚· Coverage, benefits, and quality of targeting vary across ï‚· Expand coverage, improve targeting. ï‚· Support building effective safety nets through nets the different countries in South Asia. Bangladesh, India,ï‚· Improve capacity to scale-up in the face of crises. development policy credits, emergency loans, and Pakistan have moderate capacity in SSNs with one ï‚· Improve M&E geared toward reducing leakages investment lendings, and results based or more progressively targeted programs to build on. and problems of exclusion. financing. Regularly update vulnerability The other countries have weaker SSN systems, which ï‚· Strengthen linkages with human development diagnostics. require substantial improvement in terms of coverage outcomes, including better nutrition for women and ï‚· Gradually initiate CCT programs as an add-on targeting and M&E. There is weak policy coordination children, girls’ education and overall access to to basic UCTs, to increase poor households’ across the region and evidence based policies need to services. investments in human capital. be strengthened. Most countries have a multitude of ï‚· Continue carrying out innovative impact small programs with overlapping mandates. evaluations to document program effectiveness. Pensions/ ï‚· Coverage of old age pensions, disability and health ï‚· Provide social protection for older poor people by ï‚· Support civil service pension reform. Social insurance is 10 percent or less of the population, introducing noncontributory social pensions in a ï‚· Move to policies that protect workers not jobs. Insurance leaving the huge informal sector to rely on family fiscally sustainable way. ï‚· Programs that provide health insurance for the resources or limited SSNs to respond to crises. ï‚· Use entry points across programs and poor will be piloted and rolled-out as ï‚· Pensions programs focused on nonpoor (share of GDP administrative subsystems to connect programs appropriate. low relative to OECD, but implicit pension debt can be and schemes (for example, from pensions to social very high). insurance; or SSNs to social insurance). ï‚· Expanding coverage to the informal sectors by reforming contributory schemes. ï‚· Address fiscal sustainability of civil service pensions. Labor markets ï‚· Job opportunities are limited: formal sector jobs only ï‚· Improving skills and employability is a priority, ï‚· Promote market-based skills development for cover 10 percent of the labor force. particularly for the informal sector; this calls for the poor, making programs accessible to ï‚· Over 25 percent of the labor force in every country skills development opportunities linked to private those who work in the informal sector. (except Sri Lanka) has no formal education. sector employment, complementing short term ï‚· Utilize technology to reduce the mismatches ï‚· Low productivity jobs are predominant in the labor SSN mechanisms. between labor demand and labor supply by market. ï‚· Foster innovative solutions to improving increasing the availability of information. ï‚· More than1 million people will enter the labor market productivity, supporting entrepreneurship. ï‚· Develop activation/ skills programs for the each month over the next two decades, mainly informal sector. unskilled youth facing uncertain employment prospects. ï‚· Migration from rural to urban areas. ï‚· Second-lowest female labor force participation in the world, behind MENA. Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 73      Anchor1  Focus area Challenges Objectives Bank SPL practice SPL systems ï‚· Fragmented programs that are not able to work ï‚· Develop a better understanding of SPL system design ï‚· Develop better knowledge/ global data on SPL together effectively. and implementation, notably how SPL programs can regarding: (i) what exists (inventories of SPL programs ï‚· Limited understanding of program design and work together to be more responsive, inclusive, ); (ii) how much it costs (with cost-benefit/effectiveness related incentives that affect people’s choices sustainable, and productive. analysis); (iii) who gets it (targeting, beneficiary ID and behaviour. ï‚· Develop and share knowledge on SPL systems analysis); and (iv) how it works (including incentives, ï‚· Weak M&E across SPL programs. across countries, partner organizations. design). ï‚· Lack of country and global data/knowledge on ï‚· Support regions in their engagement with clients on ï‚· Facilitate and organize global learning, especially the full set of SPL programs in countries (what SPL systems policy, programs, and administrative South-South. exists, costs, beneficiaries, performance). tools. ï‚· Provide direct support to regional teams through high- ï‚· Sustainability and cost-effectiveness across ï‚· Facilitate global operational and analytical level operational support, peer review, advisory programs. partnerships on SPL systems. services, and high quality analytical products. ï‚· Ensuring responsiveness to crises and shocks. ï‚· Catalyze financial support for the development of SPL ï‚· Manage staff training on SPL systems. ï‚· Strengthening transparency and accountability. systems, especially in IDA countries. ï‚· Mobilize international financial support for SPL systems ï‚· Expand the evaluation agenda to a systems-focus. development, notably through the RSR initiative. Social safety ï‚· Coverage remains low especially in LICs and ï‚· Support regions in the design and implementation of ï‚· Develop data to inform crisis responsiveness, nets fragile states. policies and programs to test ideas and programs and coordinated with poverty data and impact evaluation ï‚· Fragmentation across poorly coordinated, formulate fiscally sustainable SSN strategies. work. temporary and not well targeted programs. ï‚· Develop and share knowledge on: (i) expanding ï‚· Inform expanded World Bank SSN focus from MICs to ï‚· Crisis responsiveness often missing as many coverage and reducing fragmentation through more include a tailored focus on LICs-fragile contexts. SSNs are focused on reducing chronic poverty. coherent SSN approaches; (ii) strengthening ï‚· Support knowledge on how to develop administrative ï‚· Affordability, notably in LICs where needs are affordability by building sound basic administrative “building blocksâ€?, harmonized and coordinated across greatest and competition with other systems; (iii) focusing on good governance; (iv) SPL. expenditures most acute, calling on better cost including cost-benefit/effectiveness and evidence in ï‚· Strengthen the results approaches in SSNs: cost- data and impact evidence. analytical work. benefit, cost-effectiveness analysis in impact ï‚· Leveraging knowledge across the global South, ï‚· Focus on the productive role of safety nets for evaluations (including across design options); the source of much SSN innovation and advocacy and greater impact, both in analytical work benchmarking of SSN programs; and modeling. interest. and design. ï‚· Continue capacity building through South-South ï‚· Promote South-South learning, especially to share learning and core training, incorporating crisis innovations. resilience, systems.                                                               1 The anchor’s work program also includes a focus on disability and on results.  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 74      Pensions/ ï‚· Aging populations. Ratio of pensioners to ï‚· Support regions in the design and implementation of ï‚· Improve PROST and other models, tools, databases social workers rising, dramatically in some regions policies and programs to manage the challenge of and benchmarks to measure pension performance. insurance (ECA, EAP). developing fiscally sustainable pensions for their ï‚· Knowledge development, training and sharing, ï‚· Low coverage. Less than a third of the world’s aging populations. especially in the areas of core challenges—coverage, working age population is covered by ï‚· Develop and share knowledge on: (i) expanding adequacy and sustainability. contributory pension provisions (1/10 in LICs). coverage through innovative programs for the ï‚· Further development of core indicators and M&E ï‚· Adequacy. In LICs, periods outside of formal informal sector and social pensions; (ii) ensuring the methods to measure performance. labor force reduce pensions while low benefit adequacy of contributory and non-contributory levels in social pensions can prove inadequate. benefits together; (iii) ensuring sustainability and ï‚· Sustainability. A key challenge will be to resilience to shocks. support parametric and structural reform ï‚· Strengthen administrative efficiency/ capacity, measures which can improve sustainability including MISs and long run financial projections. while ensuring adequacy. ï‚· Build capacity within the World Bank and at the ï‚· Low administrative efficiency/capacity. country level on the design, implementation, and evaluation of pension policies and programs. Labor ï‚· Knowledge gaps regarding the best ways to ï‚· Support regions in the design and implementation of ï‚· Develop a Jobs Knowledge Platform to mobilize the markets and create jobs and improve workers’ labor market policies and programs to improve labor market global community of practice. youth opportunities. outcomes. ï‚· Move to a second generation of impact evaluations ï‚· Low employment/ productivity levels driven by ï‚· Develop and share knowledge in three areas: (1) focused on cost-benefit/ effectiveness and design low female participation rates; a high share of promoting the creation of good jobs—wage or self options. the labor force working in agriculture, low employment; (2) facilitating labor market transitions ï‚· Develop a data warehouse to monitor labor market productivity self-employment, or informal wage and managing risks; and (3) building skills. outcomes and understand their determinants. employment; high unemployment rates among ï‚· Build capacity within the World Bank and at the ï‚· Improve modelling tools to support labor policy youth; a high share of unskilled workers or country level on the design, implementation, and analysis. skilled workers who do not have relevant skills; evaluation of labor policies and programs. ï‚· Develop partnerships to mobilize human and financial and large migration flows. resources to support data collection at the country ï‚· Limited labor data and research in developing level, analytical and policy work, and impact countries, particularly LICs. evaluations. Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 75      ANNEX 2: BACKGROUND PAPERS TO THE SOCIAL PROTECTION AND LABOR STRATEGY 2012–22 Nine papers were developed as inputs to the strategy, providing background on the main areas of  practice  and  themes  facing  the  World  Bank’s  social  protection  and  labor  practice  in  the  decade  ahead.  Together  with  the  IEG  report  on  social  safety  nets,  these  background  papers  provided  critical inputs to the stategy’s development and will be important to guiding its application.  The full papers can be found at http://www.worldbank.org/spstrategy    Building Social Protection and Labor Systems: Concepts and Operational Implications  David A. Robalino, Laura Rawlings, and Ian Walker. 2012.    The  paper  presents  a  framework  for  designing  and  implementing  SPL  systems  in  MICs  and  LICs.   The  main  motivation  is  that  although  the  term  “systemâ€?  is  used  to  describe  the  set  of  social  protection  arrangements  that  countries  implement,  the  reality  is  more  an  amalgam  of  programs  operating  with  little  or  no  coordination.    The  paper  shows  that  reducing  fragmentation  and  coordinating and harmonizing programs have the potential to enhance programs’ performance, as  well  as  the  overall  provision  of  social  protection.    The  first  part  of  the  paper  discusses  the  characteristics  of  wellâ€?designed  SPL  systems  and  the  gains  that  can  be  achieved  in  terms  of  the  following:    (i)  more  effective  risk  management  in  crisis  and  noncrisis  periods;  (ii)  improved  financial sustainability; (iii) more equitable redistribution; (iv) economies of scale in administration  and IT systems; and (v) better incentives.  The second part discusses issues related to design and  implementation  based  on  country  studies  for  Brazil,  Chile,  India,  Niger,  and  Vietnam.    It  suggests  three levels of engagement: (i) defining a longâ€?term vision for the SPL system and ensuring policy  coherence;  (ii)  integrating  and  coordinating  programs;  and  (iii)  setting  up  basic  administrative  tools.    This  includes  a  discussion  of  choices  about  instruments,  financing  mechanisms,  and  institutional  arrangements.    The  last  part  of  the  paper  outlines  the  operational  implications  of  a  systems vision for social protection.    Productive Role of Safety Nets  Harold Alderman and Ruslan Yemtsov. 2012.  The paper contains a short theoretical framework for linking SPL with growth and productivity, an  updated review of the literature, new original work filling in gaps in the available evidence, and a  discussion  of  operational  implications.    The  paper  demonstrates  that  there  was  a  shift  in  economists’  view  on  social  protection:  it  is  no  longer  regarded  as  a  drag  on  resources  or  a  distortion,  but  recognized  as  a  force  that  can  make  a  positive  contribution  towards  economic  growth  and  reduce  poverty.    The  paper  looks  at  pathways  through  which  SPL  programs  (social  insurance  and  social  assistance  programs,  as  well  as  labor  programs)  can  support  better  growth  outcomes: (i) at the individual level (building and protecting human capital, and other productive  assets, empowering poor individuals to invest or to adopt higher risk, higher return strategies), (ii)  at the local economy level (enhancing community assets and infrastructure, positive spillovers from  beneficiaries to nonbeneficiaries,  greater labor market mobility), (iii) at the overall economy level  (acting  as  stabilizers  of  aggregate  demand,  improving  social  cohesion  and  making  growthâ€? enhancing reforms more politically feasible).  Most SPL programs affect growth through all of these  pathways.  The paper concludes with a discussion of how to design and implement SPL programs to  maximize their growth enhancing effects, while minimizing the disincentives that may reduce effort  or efficiency.  The paper is a joint effort between the HD Anchor, GET, PREM Anchor, regional SPL  family members, and ARD in partnership with DFID and FAO.    Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 76      Improving  Access  to  Jobs  and  Earnings  Opportunities:  The  Role  of  Activation  and  Graduation  Policies  Rita Almeida, Juliana Arbelaez, Maddalena Honorati, Arvo Kuddo, Tanja Lohmann, Mirey Ovadiya, Lucian Pop,  Maria Laura Sanchez Puerta, and Michael Weber. 2012.  Throughout the developing world there is a growing demand for advice on the design of policies to  most vulnerable individuals’ access to more and better jobs, while reducing their dependency from  public  income  support.    Even  though  these  policies  are  common  to  both  the  activation  and  graduation  agendas,  a  separation  is  needed  as  the  graduation  of  beneficiaries  out  of  poverty  is  a  much  more  ambitious  agenda.    This  paper  proposes  a  simple  policy  framework  highlighting  the  most  common  barriers  to  productive  employment.    It  also  reviews  the  incentive  compatibility  between  income  support  and  employment  support  programs.    The  paper  finds  that,  especially  in  MICs,  activation  and  ALMPs  play  an  important  role  connecting  individuals  to  jobs  and  improving  earnings  opportunities.    In  LICs,  these  programs  are  far  from  being  a  panacea  to  graduate  beneficiaries  out  of  poverty.    Furthermore,  only  scant  evidence  is  available  on  the  pathways  to  graduation and significant knowledge gaps remain.  More crossâ€?disciplinary research is needed to  strengthen  the  evidence  base  and  develop  recommendations  for  different  contexts  and  capacity  levels.    Crisis Response in Social Protection  Federica Marzo and Hideki Mori. 2012.  Globalization,  demographic  trends,  urbanization,  migration,  and  climate  change  compound  each  other in increasing the frequency of crises.  This will require governments to have better, faster, and  stronger  social  protection  responses,  and  the  World  Bank  must  be  well  prepared  to  provide  support.    To  this  end,  this  paper  reviews  selected  crises  (1990–present),  their  social  impact  and  government  responses  to  evaluate  the  performance  of  social  protection  instruments  deployed,  developing lessons for the future.  While experience suggests that governments and the World Bank  are  increasingly  committed  to  mainstreaming  social  protection  in  crisis  prevention  and  management,  important  challenges  still  remain  in  effectively  protecting  populations,  especially  in  the case of LICs and fragile states.  A key conclusion of this review is that countries need scalable  systems  in  place  before  crises  arise  to  be  able  to  respond  effectively.    The  World  Bank  can  assist  countries with crisis management in four ways: adapting ongoing, established programs to respond  to  crises;  developing  programs  that  can  be  implemented  during  crises;  supplying  countercyclical  financing; and sharing knowâ€?how and toolkits.    Rules, Roles and Controls: Governance in Social Protection with an Application to Social Assistance  Lucy Bassett, Sara Giannozzi, Lucian Pop, and Dena Ringold. 2012.  The paper develops an operational definition of governance that can be applied to social protection.  The paper uses the 2004 WDR accountability framework as a starting point, defining accountability  in  terms  of  a  set  of  principalâ€?agent  relationships  between  policy  makers,  providers,  and  citizens.  Applying this framework to social protection, the paper looks at three broad areas where the Bank  is involved in governance in social protection: rules of the game, including clear criteria for entry  and exit of programs; roles and responsibilities, including defining accountability relationships and  incentive  frameworks  across  levels  of  government  and  institutions  involved  in  social  protection;  and controls and accountability measures, including the broad set of implementation mechanisms  and procedures for ensuring that “the right benefit gets to the right person at the right time.â€?  The  paper applies this framework to social assistance policies and programs, reviews what is currently  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 77      being  done  across  the  Bank  in  this  area,  and  identifies  future  opportunities  for  clients  and  Bank  engagement.    Labor Markets in Middle and Low Income Countries: Trends and Implications for Social Protection  and Labor Policies  Yoonyoung Cho, David Margolis, David Newhouse, and David Robalino. 2012.  The  paper  reviews  labor  market  trends  over  the  last  two  decades  in  over  133  MICs  and  LICs,  identifies  specific  problems  and  policy  priorities  across  groups  of  countries,  and  derives  implications for the Bank’s work on labor for the SPL Strategy.  The paper shows that over the last  two  decades  the  main  problem  facing  developing  countries  has  not  been  the  quantity  of  jobs  but  their quality.  It argues that while having policies in place that improve the efficiency of  businesses  and job creation (and destruction), it is also critical to devise interventions that improve the quality  of the jobs and occupations that already exist—in part through interventions targeted to the selfâ€? employed and small entrepreneurs.    The World Bank in Pensions: A Background Paper for the Social Protection Strategy  Mark Dorfman and Robert Palacios. 2012.  Pensions  and  social  insurance  programs  that  prevent  a  substantial  loss  in  consumption  resulting  from old age, disability, or death are an integral part of any social protection system.  In addition,  social insurance programs often insure against unemployment, work injury, and illness.  The dual  objectives of such programs are to allow for the prevention of a sharp decline in income when these  lifeâ€?cycle  events  take  place  and  protection  against  poverty  in  old  age.    This  background  paper  reviews the World Bank’s conceptual framework for the analysis of pension programs, defines the  major challenges facing low and middle income countries, and proposes a broad, forwardâ€?looking  strategy to help address these challenges.    Social Protection in Low Income Countries and Fragile Situations: Challenges and Future Directions  Colin Andrews, Maitreyi Das, John Elder, Mirey Ovadiya, and Giuseppe Zampaglione. 2012.  Demand for social protection is growing in LICs and fragile situations.    In recent years, the success  of  social  protection  interventions  in  middleâ€?income  countries  (MICs),  such  as  Brazil  and  Mexico,  along  with  the  series  of  food,  fuel,  and  financial  crises,  has  prompted  policy  makers  in  LICs  and  fragile  situations  to  examine  the  possibility  of  introducing  such  programs  in  their  own  countries.   Flagship  programs  in  countries  as  diverse  as  Ethiopia,  India,  Pakistan,  and  Rwanda  have  shown  how social protection interventions can be adapted to the LIC context.  Yet despite growing levels of  support for these initiatives, many challenges remain.  In LICs and fragile states, governments are  confronted with a nexus of mutually reinforcing deficits that increase the need for social protection  programs  and  simultaneously  reduce  the  ability  of  the  governments  to  successfully  respond.   Governments face hard choices about the type, affordability, and sustainability of social protection  interventions.    The  paper  reviews  how  these  factors  affect  social  protection  programs  in  these  countries  and  identifies  ways  to  address  these  deficits.    It  supports  the  establishment  of  resilient  social  protection  systems  to  address  specific  needs  and  vulnerabilities  and  to  respond  flexibly  to  both slow and sudden onset crises.  To achieve this, both innovation and pragmatism are required  in three strategic areas: (i) building the basic blocks of social protection systems (such as targeting,  payments,  and  M&E);  (ii)  ensuring  financial  sustainability;  and  (iii)  promoting  good  governance  and transparency.  These issues suggest the possibility of a different trajectory in the development  of social protection in LICs than in MICs.  The implications for World Bank support include the need  to  focus  on  increasing  knowledge  on  and  operational  effectiveness  of  social  protection  programs,  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 78      fostering  institutional  links  between  multiple  social  protection  programs,  and  using  community  capacity and technological innovations to overcome bottlenecks in operations.        Climateâ€?Responsive Social Protection   Anne T. Kuriakose, Rasmus Heltberg, William Wiseman, Cecilia Costella, Rachel Cipryk, and Sabine Cornelius.  2012.  Increases  in  temperature  and  greater  variability  in  rainfall  are  already  being  recorded  in  various  regions, leading to more frequent and severe extreme weather events, rising sea levels, and related  hazards of flooding, drought, and vectorâ€?borne disease.  Climate change and natural disasters will  shape our world in the decades to come, making incomes, livelihoods, and food prices more volatile.   These  impacts  disproportionately  affect  the  poor  as  they  have  less  capacity  for  response  and  adaptation.  They consequently are at increased risk of losing life and assets in natural disasters and  climatic  shocks  and  of  having  to  rely  on  adverse  coping  mechanisms  with  longâ€?term  negative  implications  for  human  development.    It  is  critical  to  identify  and  implement  investments  to  help  the  most  vulnerable  populations  to  become  resilient  to  these  shocks.    SPL  mechanisms  are  increasingly being called upon to help communities affected by natural disasters, whether these are  climateâ€?related  or  not.    Moreover,  it  is  increasingly  recognized  that  social  protection  can  play  an  important role in building adaptive capacity at both the local and national levels.  Such investments  include  not  only  consumptionâ€?smoothing  safety  nets  but  also  investments  in  land  and  water  management,  smallâ€?scale  infrastructure,  and  education  and  training  to  enable  local  people  to  diversify  their  livelihoods.    By  integrating  climate  and  disaster  risk  considerations  into  their  planning and design, SPL programs can help prevent poor and vulnerable households from falling  deeper into poverty, reduce their overall risk exposure, and contribute to longâ€?term adaptation to  climate change.  The objective of this paper is to assess the linkages between social protection and  climate  change  and  identify  specific  steps  that  can  strengthen  the  climate  responsiveness  of  SPL  programs  and  systems.    For  this,  the  paper  proposes  a  framework  for  climateâ€?responsive  social  protection  (CRSP)  and  identifies  key  principles  for  design  and  implementation,  drawing  on  examples from Ethiopia and Mongolia.  In making the case for CRSP, this paper argues that taking  climate  change  into  account  when  planning  and  designing  SPL  programs  will  contribute  to  resilience  and  adaptation  for  SPL  target  groups  via  a  broad  range  of  preventive,  protective,  and  promotional functions.  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 79      ANNEX 3: WORLD BANK SOCIAL PROTECTION AND LABOR PORTFOLIO A. Lending Table 1: New World Bank Commitments to SPL, 1998â€?2011 ($ million)  SP&L practice Lending ($ millions) area FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Social funds 111 442 199 352 506 275 187 324 - 108 61 342 117 Safety nets 551 243 345 318 211 1,069 321 553 509 444 273 3,133 2,517 3,506 Other SPL & risk 184 327 17 276 80 167 101 113 166 115 26 71 462 228 management Social risk 790 480 450 116 130 275 323 322 233 137 100 148 36 46 mitigation Labor markets 796 1,033 596 448 349 360 271 439 318 405 227 720 921 262 Total 2,431 2,525 1,608 1,510 1,276 2,147 1,203 1,752 1,226 1,209 686 4,414 4,053 4,042 Source: Business warehouse and staff calculations for social funds.    Figure 1: IBRD vs. ID—Annual SPL Lending Figure  2:  IBRD  vs.  IDA—Annual  SPL  Disbursements  4,000  4,000 3,500  3,500 IBRD 3,000 3,000  IBRD IDA 2,500  2,500 IDA $, millions $, millions 2,000  2,000 1,500  1,500 1,000  1,000 500  500 â€? 0 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011                 Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 80      Table 2: Geographic Coverage of SPL Lending  Region Number of countries As percent of total Prior to 1998 As of 2011 Prior to 1998 As of 2010 Africa 29 42 33 33 East Asia and the Pacific 5 14 6 11 South Asia 5 8 6 6 Europe and Central Asia 20 25 23 20 Middle East and North Africa 6 11 7 9 Latin America and the Caribbean 23 26 26 21 Total 88 126 100 100     Figure 3: Top Ten SPL Borrowers, FY1998â€?2011 ($, millions)    Indonesia   Ethiopia Pakistan   Poland   Romania   Colombia   Turkey Brazil   Argentina   Mexico   0 500 1,000 1,500 2,000 2,500 3,000 3,500     Figure 4: Aggregate Number of SPL Projects by Region, FY1998â€?2011   120 Social funds 100 Social risk mitigation 80 Other social protect Safety nets 60 Labor markets 40 20 0 Africa East Asia and  South Asia Europe and  Middle East and  Latin America  the Pacific Central Asia North Africa and the  Carribean   Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 81      Figure 5: Percentage of Approved SPL Projects by Lending Instrument, FY1998â€?2011   100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Investment Development policy       B. Portfolio Performance Table3: Portfolio Indices for Selected Years (Percent)  Portfolio indices FY98 FY00 FY02 FY04 FY06 FY08 FY10 FY11 Average Disbursement ratio 41 34 22 35 39 46 67 42 44 Bank average 19 19 19 20 22 21 26 21 21 Projects at risk 14 15 21 14 18 23 24 22 17 Bank average 25 15 19 16 14 17 21 19 18 Commitment at risk 3 5 27 19 11 22 12 9 13 Bank average 21 16 17 16 12 17 18 14 16 Proactivity 91 83 71 100 50 91 78 71 80 Bank average 72 84 84 83 81 81 70 61 78 Unsatisfactory projects 9 14 10 12 16 9 15 8 11 Bank average 17 12 11 13 11 11 13 12 12 Disbursement lag 25 34 33 27 15 14 -47 -7.2 15 Bank average 36 40 40 36 33 25 15 19 32     Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 82      ANNEX 4. RESULTS OF THE SPL STRATEGY CONSULTATIONS Consultations Process The  development  of  the  SPL  strategy  was  supported  by  a  global  multistakeholder  consultation  process that sought to elicit views and inputs in as broad, inclusive, and transparent a manner as  possible on challenges and opportunities for SPL policies and programs in the next decade, as well  as creating a space for dialogue and expanding channels for ongoing stakeholder engagement.   The  consultations  process  entailed  two  different  phases  that  allowed  stakeholders  and  interested  parties to provide feedback throughout the strategy development process.  During Phase I (January  – May 2011), the World Bank sought inputs to the strategy based on a concept note that described  the approach towards a new strategy and proposed a framework focused on building resilience and  opportunity through protection, prevention, and promotion as core SPL functions and an emphasis  on building SPL systems.  During Phase II of consultations (October 2011â€? January 2012), the World  Bank sought feedback on the strategy itself (based on a slide presentation highlighting key concepts  from the draft strategy) that helped finalize the draft version of the strategy submitted to CODE for  review  in  early  2012.    During  this  process,  a  website  has  supported  the  development  of  the  SPL  strategy and contains all relevant documents (www.worldbank.org/spstrategy)   Consultations Timeline      Channels for Consultation ï‚· Faceâ€?toâ€?face  meetings  at  the  country  and  regional  level,  complemented  by  video  conferencing  ï‚· Faceâ€?toâ€?face meetings alongside global and regional conferences  ï‚· Online feedback through an online survey, webâ€?based discussion forum and email platform   ï‚· An  external  Social  Protection  Advisory  Group  composed  of  top  academics,  policy  makers,  civil society, and others   Stakeholders Consulted Stakeholders  consulted  during  this  process  comprised  a  broad  range  of  actors  involved  in  SPL,  amounting to over 2,000 individuals from government, development agencies, CSOs, trade unions,  the private sector, academia, think tanks, and others.    ï‚· Face to face events: A total of 64 faceâ€?toâ€?face and videoconference consultation events and  roundtables  were  held  to  discuss  the SPL  strategy,  involving  over  1,700  participants  from  governments,  CSOs,  academics,  the  private  sector,  and  both  bilateral  and  multilateral  development agencies, representing 66 countries in all regions.  Seven consultation events  were held in the context of ongoing global and regional events.   Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 83    ï‚· Online  consultations:  The Bank set up a website that included a webâ€?based survey, an onâ€? line discussion forum, and a dedicated email contact point.  Over 150 people responded to  the  online  survey,  providing  essential  feedback  on  the  main  areas  of  focus  for  the  new  strategy as well as on the challenges for SPL in the coming 10 years.  A Discussion Forum  featured blogs on subjects germane to the SPL Strategy, including social protection systems,  crises,  disability,  rights  and  accountability,  jobs,  and  the  role  of  social  protection  in  LICs.   The  forum  totaled  204  participants  that  provided  comments  to  the  discussion  topics.   Finally,  comments  from  around  25  institutions  and  individuals  were  received  to  the  strategy  email  contact  point  from  research  institutions,  development  agencies,  CSOs,  and  the private sector.  ï‚· Advisory  Group:  The  World  Bank  also  convened  an  external  SPL  Advisory  Group  to  marshal  advice  and  insights  from  top  academics,  policy  makers,  and  civil  society  representatives from client countries.  Two workshops were held with the advisors in April   and September 2011.2   Findings a. This  section  presents  a  summary  of  the  input  collected  during  the  consultations  around  four  general topics: (i) challenges  and issues in SPL in the  next decade; (ii)  the role of the Bank in  SPL;  (iii)  feedback  on  the    strategy  framework  and  focus  areas;  and,  (iv)  important  elements  and challenges for the main SPL practice areas.   b. Challenges and issues in SPL in the next decade  ï‚· Demographic  trends,  including  the  following:  (i)  the  youth  bulge  and  the  corresponding  pressure  for  jobs  and  productivity;  (ii)  aging  populations  with  attendant  implications  for  pensions & labor markets; (iii)  rapid  urbanization trends, but also (iv) changes in  rural  and  agricultural contexts, and (v) migration.   ï‚· The need for  coordination  given the multiplicity of stakeholders and actors involved in SPL,   and fragmentation among numerous programs.  ï‚· Financing and sustainability of SPL given pressures on limited fiscal space.  ï‚· Coverage  and  social  inclusion,  notably  with  respect  to  (i)  informality  and  the  challenges  of  extending  SPL  coverage,  and  (ii)  vulnerable  groups,  including  children  and  youth,  women,  people  with  disabilities,  and  those  impacted  by  climate  change  and  economic  crises,  including food price volatility.    ï‚· Effective  SPL  approaches  are  needed  both  in  stable  times  to  address  poverty  and  vulnerability  and  during  crises  to  respond  to  shocks,  with  a  strong  focus  on  fiscal  sustainability.                                                                 2  Advisory Group members include:   Jose  Manuel  Salazar­Xirinachs, Executive Director of the ILO Employment Sector and  former Minister of Foreign Trade, Costa Rica; Romulo Paes de Sousa, Deputy Minister of Social Development, Brazil; James  Dorbor Jallah, Deputy Minister for Sectoral and Regional Planning, Liberia (Marchâ€?July 2011); Samura Kamara, Minister of  Finance  and  Development,  Sierra  Leone  (from  July,  2011);  Victoria  Garchitorena,  President  of  the  Ayala  Foundation,  Philippines;  Cai  Fang,  Director  of  the  Institute  of  Population  and  Labor  Economics  at  the  Chinese  Academy  of  Social  Sciences, China; Fatima M. Al­Balooshi, Minister of Social Development, Bahrain; Ravi Kanbur, T. H. Lee Professor of World  Affairs, International Professor of Applied Economics and Management, and Professor of Economics, Cornell University;  and  Evgeny  Gontmaher, Former Minister of Labor, Russia, now Director for Socialâ€?Economic Development at the Institute  of Contemporary Development (INSOR), and Head of the Center for Social Policy Studies at the Institute of Economics of  the Russian Academy of Sciences.  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 84    ï‚· The  productive  role  of  SPL  and  the  importance  of  social  protection  for  economic  growth  need to be a key message of the strategy.   ï‚· A  focus  on  the  role  of  political  economy  for  introducing,  implementing,  and  measuring  impacts of SPL interventions is needed.    ï‚· Communities,  civil  society,  and  the  private  sector have an important role as providers of SPL  functions, as well as agents for transparency and accountability.   c. Role of the World Bank for SPL  ï‚· Generate  and  share  evidence  on  the  role  of  social  protection,  especially  with  respect  to  growth and results, highlighting good practice and innovations.  ï‚· Support  coordination  across  donors,  government  agencies,  and  other  actors  engaged  in  social protection.  ï‚· Financing for social protection, both directly and by mobilizing others’ support.    ï‚· Capacity building for effective SPL programs and systems.  d. Feedback on the  strategy framework and focus areas  ï‚· The 3P Framework, which highlights the role of SPL in providing prevention, protection, and  promotion functions was welcomed, in particular, the newer focus on promotion.   ï‚· Broad  consensus  regarding  the  need  to  focus  on  SPL  systems,  with a particular eye toward (i)  coordinating  across  programs  serving  similar  functions;  (ii)  using  complementary  programs  to  foster  graduation  from  social  assistance  and  access  to  jobs;  (iii)  having  a  multisectoral  perspective;  (iv)  aligning  resources  and  promoting  fiscal  sustainability;  (v)  ensuring  a  strong  institutional  and  legal  foundation;  and  (vi)  tailoring  systems  to  country  contexts.  ï‚· Support  for  expanding  coverage,  especially  in  LICs  and  fragile  states, with  some caveats: (i)  the  focus  on  fragile  contexts  and  LICs  should  not  imply  less  attention  to  MICs;  especially  vulnerable  populations  in  MICs,  (ii)  there  is  a  need  to  differentiate  between  fragile  states  and  LICs;  and  (iii)  the  World  Bank  should  maintain  a  countryâ€?led  process  responsive  to  client demands.  ï‚· Consensus  on  promoting  links  to  human  capital,  skills,  and  labor  market  insertion.    Links  between  poverty  reduction  and  productivity  should  be  emphasized.    Promising  areas  of  engagement  include  the  following:  education  and  skills  development,  ALMPs,  entrepreneurship  development,  livelihoods  programs  (especially  in  rural  areas),  and  microfinance.    However,  not  all  people  will  be  able  to  graduate  from  social  assistance  or  enter the labor market, underscoring the continued need to protect the most vulnerable.  ï‚· Unanimous  call  for  emphasizing  knowledge  and  results  given  the  serious  gaps  in  this  area  and the World Bank’s recognized role in generating evidence on program performance and  supporting learning across countries.  The World Bank should focus on both inâ€?depth and  crossâ€?country analysis to learn from and leverage innovations and knowledge, including an  understanding of contexts and lessons on successes and failures.   e. Important elements and challenges for the main SPL practice areas   ï‚· Focus on the balance between the supply and demand sides of labor markets, as some factors  that constrain labor creation lie outside the labor markets area and SPL’s primary focus is  on labor supply issues, recognizing that crossâ€?sectoral interventions are key.   Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 85    ï‚· Productivity and the returns to labor should be emphasized in the SPL strategy.  Increasing  the  productivity  of  work  in  formal,  as  well  as  in  informal  and  rural  areas,  implies  an  increased ability of poor people to use labor as a risk management instrument.   ï‚· The  linkages  between  labor  and  safety  nets  are  key,  in  particular  with  regards  to  the  development of human capital, and promoting the transition from social assistance into the  labor market.  ï‚· Increased coverage of safety net interventions, especially in LICs and fragile states, is crucial,  given the increasing incidence of economic shocks, weatherâ€?related disasters, and political  instabilities, and their impact on the vulnerable populations.   ï‚· Greater  attention  to  the  life­cycle  approach  and  the  role  of  categorical  transfers  to  build  resilience and opportunity.  ï‚· Sustainable  financing  for  safety  net is key and requires a continued investment in advocacy  and highlighting the positivite linkages between safety nets, poverty reduction, and human  capital development.   ï‚· In  LICs,  social  pensions  are  able  to  effectively  address  income  security  for  the  elderly.  Options  for  reaching  the  elderly  in  a  more  inclusive  way  need  to  be  explored  in  these  contexts, when resources are constrained;  ï‚· Insurance  and  pension  schemes  generally  benefit  a  small  segment  of  employees  in  the  formal  sector.    It  is  thus  vital  to  extend  the  coverage  to  the  informal  sector  (including  youth), while keeping in mind capacity and resources constraints.   The following section presents some conclusions and implications of these findings for the World  Bank’s work on SPL.  A report on the consultations provides further, disaggregated details on the  main issues discussed by stakeholders by themes, country context, region, and type of stakeholder.   Implications for the SPL Strategy While much of the feedback received during the consultations contributed to drafting the strategy  paper, the results from this process will also provide a stronger sense of direction to SPL practice in  the decade to come.  Some of the conclusions and implications that can be extracted for the strategy  and its implementation in the next 10 years are as follows:    ï‚· Strong  endorsement  of  the  main  areas  proposed  by  the  SPL  Strategy  concept  note,  particularly a focus on the need for building SPL systems.    ï‚· Broad  support  to  the  Bank’s  role  for  generating  knowledge  and  serving  as  a  channel  for  knowledge exchange;.  ï‚· A strong call for expanding the coverage of SPL in LICs and fragile states, as well as MICs.   ï‚· A  call  for  the  Bank  to  support  coordination  and  play  a  convener  role  with  other  development actors for policy dialogue around SPL issues.   ï‚· A strong call to keep in mind the essential role of SPL for risk management and addressing  vulnerabilities, which are at the core of the practice’s prevention and protection functions.  ï‚· A need to tailor SPL systems and programs to country contexts and a role for the Bank in  providing options and tools for client countries anchored in best practice and evidence.          Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 86    ANNEX 5: MULTISECTORAL APPROACHES: LINKAGES BETWEEN THE SPL STRATEGY 2012–22 AND OTHER WORLD BANK GROUP STRATEGIES Sector Strategic priorities Linkages to SPL Strategy 2012-22 (in alphabetical order) Agriculture Action Plan 1. Raise agricultural productivity ï‚· SPL has role in strengthening rural livelihoods and 2010–20 2. Link farmers to markets and strengthen promoting food security by enabling the rural poor to value chains smooth consumption, particularly during slack 3. Reduce risk and vulnerability agricultural seasons when prices are volatile and demand for labor decreases; and, preventing them 4. Facilitate agricultural entry and exit and from having to deplete their productive assets in raise rural nonfarm incomes order to survive. 5. Enhance environmental services and sustainability ï‚· SPL can improve livelihoods by enabling the rural poor to accumulate productive assets over time and giving them more and better human capital and livelihood options. ï‚· Improved agricultural practices provide opportunities for increased productivity and long term resilience. Climate Change (strategic 1. Support country-led climate action ï‚· SPL is relevant to protect the poor and vulnerable framework) 2. Mobilize additional concessional and after climate shocks (through cash transfers, public innovative, market-based finance works, or others). 3. Leverage private sector resources ï‚· SPL has a role in enhancing adaptive capacity by 4. Accelerate development and reducing vulnerability ex-ante (through social and deployment of new technologies weather-based insurance, transfers, livelihoods 5. Step up policy research, knowledge, diversification, and others) and by encouraging risk and capacity building diversification, enhancing incomes and assets and building skills. Education Strategy 2020 1. Strengthen education systems ï‚· SPL contributes to access to education by providing 2. Building a high-quality knowledge base income support to poor households and incentives to to underpin education reforms send children to school (for example through conditional transfers, school feeding programs). ï‚· SPL encourages skill development through active labor markets programs. ï‚· Increased quality of education contributes to SPL by supporting human capital development and increased skills for labor markets development. ï‚· SPL protects human capital during crises. Energy Strategy Approach 1. Improve the operational and financial ï‚· Energy contributes to SPL by supporting economic Paper performance of the energy sector development and poverty reduction, fueling 2. Strengthen governance commerce, agriculture, and important social services. ï‚· Adequate and reliable electricity supply increases enterprise productivity, competitiveness, and growth; increasing opportunities for employment and skills development. ï‚· SPL increases incomes and improves livelihoods of households, thus helping to decrease reliance on harmful use of solid fuels for cooking and heating. Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 87    Sector Strategic priorities Linkages to SPL Strategy 2012-22 (in alphabetical order) Environment Strategy 1. Improve the quality of life ï‚· SPL contributes by promoting assets to restore 2001 (new strategy still in 2. Improve the quality of growth environmental degradation, reforestation, and so on progress) 3. Protect the quality of the regional and (through public works programs). global commons ï‚· SPL provides support for alternative livelihoods in the face of exploited natural resources. ï‚· SPL protects agains the effects of natural resource degradation on poor people’s health. Gender Equality as Smart Goal: Advance women’s economic ï‚· SPL supports a gender perspective by empoweing Economics: A World Bank empowerment by enhancing women’s women through increased control of resources Group Gender Action Plan ability to participate in land, labor, (transfers), gender-appropriate opportunities for (fiscal years 2007–10) financial, and product markets employment in workfare programes, skills 1. Engender operations and technical development, and so on. assistance in economic sectors ï‚· A gender approach to the design of SPL can 2. Implement results-based initiatives improve program effectiveness, strengthening the (RBIs) protection afforded to families. 3. Improve research and statistics ï‚· Taking gender into account in the design of old-age 4. Undertake a targeted communications income security ensures that both women and men campaign are well protected, both because women live longer on average and, they are more likely to work in the informal sector. Governance and Anti- 1. Recognize that a capable and ï‚· SPL addresses exclusion through empowering Corruption Strategy 2007 accountable state creates opportunities vulnerable people, promoting community-driven for the poor development and supporting skills development 2. Support country-driven governance and greater labor market participation. and anticorruption policies and ï‚· Governance is central to improving service delivery implementation and enhancing accountability relationships among 3. Support even poorly governed citizens, policy makers, and service providers. countries ï‚· Appropriate ‘rules, roles and controls’ is a focus of 4. Engage with a broad array of SPL program and system approaches, including stakeholders attention to enhanced accountability mechanisms 5. Harmonize and coordinate approach and reducing error, fraud and corruption. with governments, donors, and other actors at country and global levels Health, Nutrition, and 1. Improve level and distribution of HNP ï‚· SPL faciliates access for vulnerable and Population (HNP) Results outcomes (for example, MDGs), outputs, marginalized children to the necessary services for 2007 and system performance physical growth and well being; cognitive 2. Prevent poverty because of illness (by development; and socio-emotional development. improving financial protection) ï‚· SPL helps strengthen health and nutrition access 3. Improve financial sustainability of and outcomes for vulnerable groups, particularly sector and its contribution to children and pregnant mothers and during crises. macroeconomic and fiscal policy and ï‚· Multisectoral early childhood development policies country competitiveness serve prevention, protection, and promotion by 4. Improve governance, accountability, providing the adequate nutrition to children, which and transparency of sector reduces future physical vulnerability (prevention), ensuring basic service delivery to those children and pregnant women who most need it (protection), as well as to generate a better family environment conducive to healthy child development and increasing children learning capacities (promotion). Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 88    Sector Strategic priorities Linkages to SPL Strategy 2012-22 (in alphabetical order) Information and 1. Connect: expand affordable access to ï‚· ICT supports SPL programs and systems in service Communications ICTs delivery, from handling a large volume of Technology (ICT) 2011 2. Innovate: across the economy and transactions and data to helping ensure payments promote the growth of IT-based service and other administrative processes. industries ï‚· ICT supports accountability in SPL by allowing for 3. Transform: support ICT applications to greater transparency and informed communication transform efficiency and accountability of between citizens and service providers. services ï‚· ICT is used to to control error, fraud, and corruption. ï‚· ICT helps expand access to SPL through beneficiary registries, mobile payment systems and access to information. Infrastructure Action Plan 1. Respond to country demand ï‚· Service delivery infrastructure plays a critical role 2003 2. Rebuild sector knowledge bases both for supporting economic growth as well as 3. Maximize leverage via new and existing improving SPL service delivery. instruments ï‚· Infrastructure services can increase the general welfare of poor households through reductions in the opportunity costs to meet essential needs. ï‚· SPL supports the development of social and economic infrastructure through workfare programs and social funds. Private Sector 1. Extend the reach of markets: sound ï‚· PSD contributes to extend the reach of markets, Development (PSD) 2002 investment climate for poor areas to create promoting a sound investment climate for poor areas jobs and entrepreneurial opportunity to create jobs and entrepreneurial opportunity. 2. Basic service delivery: where it makes ï‚· PSD supports basic service delivery by promoting, sense, new entry of private providers, where it makes sense, new entry of private including small- or medium-scale local providers, including small- or medium-scale local entrepreneurs entrepreneurs. 3. PSD and environmental sustainability ï‚· SPL increases consumption capacity of poor households incentivizing the local economy and the development of small business. Science, Technology, and 1. Form partnerships ï‚· STI contributes to developing a suite of skills and Innovation (STI) Action 2. Carry out inclusive innovation technical capabilities in developing countries Plan 2009 assessments and projects including, among others, training policy makers, 3. Organize workshops and forums for developing local institutions, and helping local promotion and dissemination enterprises become more innovative, all of which have relevance in the implemtation of SPL programs. 4. Provide policy advice and capacity building ï‚· SPL helps families invest in their human capital, and contributes to skills development and deepening 5. Provide information on what other STI labor markets. actors are doing Social Development (SD) 1. Improve macro-level analysis that ï‚· SPL promotes social development by promoting Strategy 2005 incorporates social development into individual and community empowerment through poverty reduction and/or development social funds, transfers, and other interventions. strategies ï‚· Social development improves understanding of 2. Promote efficient mainstreaming of context and variables for SPL implementation by social development into projects promoting macro-level social analysis. 3. Improve research, capacity building, and partnerships Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 89    Sector Strategic priorities Linkages to SPL Strategy 2012-22 (in alphabetical order) Transport Business 1. Create conditions to increase support ï‚· Transport contributes to creating economic Strategy 2008–12 for transport investment opportunity and growth in rural areas by increasing 2. Deepen engagement in the roads and poor people’s access to markets and servcies and highways and urban subsectors reducing the risks of travelling. 3. Diversify engagement in transport for ï‚· Better access to education and health facilities trade increases enrollment rates in rural schools and 4. Transport and climate change: control leads to more visits to health care services. emissions and mitigate impact ï‚· Workfare programs often contribute to expanding transport networks through small access roads, etc. Urban and Local 1. Focus on core elements of the city ï‚· Smart urban and local development contributes to Government Strategy system: management, finance, and rising productivity, fluid labor markets, and greater 2009 governance market access. 2. Make pro-poor policies a city priority ï‚· SPL can contributes to increasing income and 3. Support city economies opportunities of vulnerable populations through 4. Encourage progressive urban land and transfers, skills development, and so on. housing markets 5. Promote a safe and sustainable urban environment Water Resources Sector 1. Focus on management, together with ï‚· Broad-based water resources interventions provide Strategy 2004 connections between resource use and national and regional economic benefits to all, service management including the poor. 2. Develop and improve management of ï‚· Improved water resources management (such as infrastructure watershed projects in degraded environments) 3. Recognize political economy of directly benefit poor people. management reform ï‚· SPL improves availability of water resources and water resource management through workfare activities and increased basic service delivery. World Bank Post-Crisis Goal: Overcome poverty ï‚· A crisis approach emphasizes targeting the poor Directions Paper 2010 1. Target the poor and vulnerable and vulnerable (in particular, women and children) 2. Create opportunities for growth and creating opportunities for growth. 3. Provide cooperative models ï‚· SPL promotes interventions that are essential to 4. Strengthen governance protect households in the face of crises. 5. Manage risk and prepare for crises ï‚· SPL can help countries lay the groundwork for crisis response before it is needed. Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 90    ANNEX 6. SOCIAL PROTECTION STRATEGIES OUTSIDE OF THE WORLD BANK To support the development of its new SPL Strategy, the World Bank commissioned a stocktaking  analysis of the international agencies involved in social protection3 that looked at the following: (a)  definitions  of  social  protection;  (b)  areas  of  convergence  and  divergence  among  international  agencies; and (c) key challenges in SPL global dialogue.  This annex summarizes the main findings  of that analysis.  a. Definitions of social protection   For  the  effective  collaboration  among  international  agencies,  there  must  be  a  common  understanding and shared definition of social protection.  However, among international agencies  there  is  no  standard  definition  of  social  protection  or  the  policy  and  sectoral  areas  it  covers.   Despite this, Social Risk Management (SRM) is the core concept used in definitions of international  agencies working in social protection (Table 1).   Under  this  general  umbrella,  several  common  themes  emerge.    Agency  definitions  of  social  protection  typically  incorporate  vulnerability  in  terms  of  the  presence  and  scale  of  risks  and  exogenous  shocks  acting  upon  people.    Social  protection  definitions  tend  to  include  both  the  absolute  deprivation  and  vulnerability  of  the  poorest,  as  well  as  the  needs  of  the  nonpoor  for  security  in  the  face  of  shocks.    Deprivation  is  often  found  as  part  of  social  protection  definitions,  most frequently inferring some  minimum  acceptable level of standard of living.  Social protection  definitions  typically  encompass  targeting,  with  a  focus  on  the  poor  or  the  extreme  poor  as  those  most in need of social protection interventions and/or certain vulnerable groups.  And inclusion is a  common theme, with social protection as a means to provide excluded populations with protective  interventions and to promote access to basic services.  b. Summary of key agency strategies and program focus  Even  though  there  is  relative  consistency  in  the  conceptual  definition  of  social  protection,    donor  agencies diverge significantly on how this is operationalized within their overall agency strategies  and  development  assistance.    Table  1  identifies  general  areas  of  intervention  across  the  broadest  range of types of activities that may  fall under social protection, and then denotes which of these  are considered under each agency’s specific definition of the social protection field.                                                                  3 This analysis was carried out by Julie Van Domelen.  The main international agencies involved in the social protection  area and covered in this review include multilateral development banks (Interâ€?Anerican Development Bank [IDB], ADB  [Asian  Development  Bank],  and  African  Development  Bank  [AfDB]),  UN  agencies  (ILO,  UNDP,  UNICEF,  WHO),  bilateral  donors, and the European Union (EU).  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 91      Table 1: Distribution of Potential Social Protection Interventions by Agency, Classification as Social Protection by Agency is Shaded Agency Labor market policies and programs Social Insurance Safety nets Other Labor Safe work ALMPs Child Entrepren Pensions Unempl- Health Disability Public Cash and Social funds, Post- Micro- market conditions labor -eurship & oyment insurance works in-kind local conflict, insurance policies, micro- transfers development natural including finance disaster standards World X X X X X X X X X X X X X X Bank ILO X X X X X X X X X X X X X UNDP X X X X X X X X X X X X Local X X funds UNICEF X X WHO X WFP X X X AfDB X X X X X X X ADB X X X X X X X X X X X X X X agriculture IDB X X X X X X X X X X X X X X DFID X X X X X X X X X X X X X GTZ X X X X X X X X X X X X X JICA X X X X X X X X X X X X X CIDA* X X X X X SIDA X X X X X X X X X EU/EC X X X X X X X X X X X X Note: *CIDA strategies do not use the term “social protectionâ€? per se.  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 92        There  is  near  universal  agreement  on  a  core  set  of  social  protection  interventions  that  comprise  social  insurance  and  safety  net  operations.    About  half  of  the  agencies  that  have  programs  addressing  labor  market  issues  consider  this  part  of  social  protection.    Several  agencies  only  consider  parts  of  the  labor  agenda  as  social  protection  (for  example,  standards  or  child  labor).  There is no consensus on the other possible elements of social protection.  In some cases, inclusion  under social protection may be determined based on a bureaucratic division of the work program,  rather  than  a  conceptual  one.    For  example,  the  WHO  only  focuses  on  health  insurance  and  HIV/AIDS  and  UNICEF  on  child  labor,  safety  nets,  and  HIV/AIDS—which  is  more  fitting  with  the  narrower mandate of these agencies.  c. Convergence, divergence and key issues  Moving  from  individual  donor  and  country  social  protection  strategies  to  more  regional  and  multi­ partner  strategies.    Over  the  last  few  years,  there  have  been  efforts  to  frame  social  protection  strategies by such entities as the African Union (AU) and the EU.  These efforts have helped provide  coherence to donor and government policies and programs, particularly in Subâ€?Saharan Africa.   Consensus  that  social  protection  is  a  core  part  of  pro­poor  economic  growth.    The  international  community has come to consensus that social protection programs and policies have a key role to  play in poverty reduction.  Traditionally, this has been viewed singularly through the lens of equity  and  redistribution.    The  innovation  in  the  last  ten  years  is  the  linking  of  social  protection  to  the  economic growth agenda.  The role of risk and vulnerability and the effects of shocks on longâ€?term  economic growth potential are now accepted as a key driver of proâ€?poor growth.   Social  protection  is  viewed  as  a  basic  human  right  by  many  agencies.    Social  protection  figures  prominently in many international conventions, but there is divergence among agencies as to how  this right is actually perceived.  There is, however, convergence on the need for systematic access to  a varied set of social protection instruments.  Although there is no consensus on the content of the  set of social  protection instruments,  there is  also convergence on the need to expand  coverage of  both social assistance and social insurance programs, notably among the poorest.  The  future  of  social  insurance.    Reliance  on  public  sector  funding  and  institutions  linked  to  the  limited reach of formal labor employment have resulted in exceedingly low coverage rates of social  insurance in the developing world.  However, insurance is still a preferred mechanism to mitigate  risks.  The challenge has been how to expand social insurance coverage in a way that is affordable  and fits with the institutional capacities of developing countries.  Without such mechanisms, there  tends to be an overâ€?reliance on exâ€?post coping with shocks through safety nets.   The need for ‘permanent’ social protection instruments.  There has been a significant shift in the view  of  social  protection—in  particular  social  assistance  as  transitory  to  the  consideration  of  more  permanent  mechanisms.    In  part  this  is  due  to  the  realization  that  vulnerable  populations  need  more  support  than  oneâ€?off  compensation  schemes.    In  addition,  the  volatility  and  frequency  of  shocks means that countries need to have developed and in place a basic set of programs  able  to  deliver benefits and scale up or down depending on what the situation warrants.               Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 93        Box 1: The 2010 European Development Report: Social Protection for Inclusive Development The European social model is characterized by unity in commitment to social protection within a diversity of national experiences in the evolution, functioning and approaches to social protection. In 2010, the EU commissioned the European Development Report with a focus on social protection, and regionally, on Africa. The Report acknowledges that there is momentum for social protection in Africa and an important supportive role for international assistance in this agenda. The EU position on social protection is that social protection is not only a right but also an investment critical to the success of the wider development approach. Tackling vulnerability and inequality directly impacts building resilience and achieving inclusive growth. Social protection is viewed as a strategic instrument to achieve MDGs targets linked to education, health, gender and poverty outcomes and improve sustainability in many other sectors. It can also be a forward-looking tool to address African current and future needs linked to demographic trends, migration, climate change, and global instability. In addition, it can be an essential means to reinforce social cohesion and the social contract, thus enhancing political accountability and social stability. The Report concludes that social protection is a key missing piece of the development puzzle and can significantly improve the impact of EU development policies. The Report outlines seven priorities for effective intervention in social protection, with a focus on Africa: ï‚· Make social protection an integral part of EU development policy. Opportunities in the pipeline should be seized upon to ensure that the wide array of EU approaches and instruments is geared towards providing long-term, predictable, and appropriate support to social protection. ï‚· Promote and support domestic processes to ensure ownership and lay the foundations for long-term sustainability. ï‚· Assist in tackling sustainability: Policy dialogue on the financial and fiscal aspects of social protection as well as broader public financial management issues is paramount. Development aid can act as a catalyst for social protection and inclusive growth by relaxing the affordability constraint in a transition phase. ï‚· Tailor intervention modalities to specific contexts and needs. There is no “one size fits allâ€? for support to social protection. Approaches should be deeply rooted in local contexts and underlying politics, to assess both what is most appropriate and what is feasible. ï‚· Support knowledge building and lesson sharing, including research into the various impacts and benefits of social protection for development, to feed the learning process and enable evidence-based investments and decision-making. ï‚· Improve the coordination, complimentarity, and coherence of EU action in order to fully comply with the aid effectiveness agenda and with EU treaty obligations. ï‚· Strengthen EU partnerships for a progressive social protection agenda. The focus is on regional cooperation in social development and social protection, building on the existing momentum and instruments as well as cooperation with UN agencies, the private sector, and other SP partners. Source: European Union 2010.   d. Key challenges  Key challenges identified across international agencies include the following:  ï‚· Mobilizing the international resources to fulfill the vision of a minimum expanded coverage  of basic social protection instruments.  ï‚· Developing  a  common  classification  and  shared  approach  to  labor  market  policies  and  interventions.  Employment and jobs continue to be at the top of the policy agenda of both  developed and developing countries.  ï‚· Finding alternative mechanisms to expand social insurance schemes, for example by using  microâ€?insurance or building on traditional social insurance mechanisms at the community  level.   Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 94        ï‚· Developing a more robust empirical basis to assess the impacts of different social protection  programs on the longerâ€?term transition out of poverty in order to better substantiate social  protection as an investment and not just welfare.   Box 2: The African Union’s Social Protection Agenda The AU’s social protection policy identifies key strategic challenges in social protection as the following: ï‚· Addressing social exclusion: by promoting the direct participation of people who are currently outside of social insurance and social assistance programs. ï‚· The need for conceptual clarity on social protection and policy framework: A lack of a common understanding of social protection and the absence of a coherent policy framework for social protection in Africa is reflected in the uneven responses to poverty and vulnerability and social inequities in most countries. ï‚· Asymmetric Information and disjointed approaches: There is an urgent need to update information on what is currently being implemented by African governments. Government interventions are uneven, piecemeal, and range from short term emergency relief to approaches that target special categories of vulnerable people at risk because of age, disabilities, or gender inequities. ï‚· Lack of employment opportunities for younger job seekers (between 18-35 years) leaves millions of households without the expectation of getting out of poverty. ï‚· Capacity to advance a social protection agenda: Mainstreaming social protection strategies across government and nongovernmental organizations requires significant institutional and financial capacity. The AU’s 2006 Livingstone Call for Action on Social Protection promotes an approach that links employment policies and poverty alleviation and calls for a sustainable basic package of social transfers that is affordable within current resources of governments with the support of international development partners. The recommendations were adopted by the First Session of the AU Conference of Ministers in charge of Social Development held in Namibia in October 2008 and endorsed by the 14th AU Executive Council and 12th Assembly of Heads of State and Government in January/February 2009. Among the strategic options for social protection in Africa, the AU finds that implementing a social protection agenda is feasible and practicable even in LICs in Africa. However, institutions, resources, state power, and the capacities of government institutions to implement social protection policies differ across countries. Overall, social protection policies, institutions, and financing arrangements need to be clear and simple and implementation can be phased in ways that build on what works in existing programs and processes. The main recommendations for moving forward on social protection in Africa are the following: ï‚· Adopt a pro-poor social protection agenda based on developing a collective vision for reform of social protection, including prioritizing the rights of the poor, the vulnerable and those at risk; ï‚· Review existing policies and programs against strategic objectives; ï‚· Integrate policy options and reform process in order to an environment for the introduction of short, medium and long term policy and program changes into a time frame that is realistic; ï‚· Review and mobilize legislation as an important initial step in building a road map towards a social protection framework in Africa; ï‚· Prioritize the most vulnerable and at risk within an inclusive approach as a means to prevent further human devastation and social fragmentation; ï‚· Mobilize resources for social protection and ensure the financial sustainability of programs. Source: Taylor (2009)       Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 95        Appendix A: Agency Definitions of Social Protection Agency Definition Multilateral Development Banks Social protection and labor systems, policies, and programs help individuals and societies manage risk and World Bank volatility and protect them from poverty and destitution—through instruments that improve resilience, equity, and opportunity. AfDB Social protection and labor market regulation reduce the risk of becoming poor, assist those who are poor to better manage further risks, and ensure a minimal level of welfare to all people (CPIA 2008). ADB The set of policies and programs designed to reduce poverty and vulnerability by promoting efficient labor markets, diminishing people’s exposure to risks, and enhancing their capacity to protect themselves against hazards and interruption/loss of income. Social protection consists of five major elements: (i) labor markets, (ii) social insurance, (iii) social assistance, (iv) micro and area-based schemes to protect communities, and (v) child protection. IDB Prevention and compensation systems to reduce the impacts of shocks on the Latin American poor. United Nations United Nations A set of public and private policies and programs undertaken by societies in response to various contingencies to offset the absence or substantial reduction of income from work; to provide assistance to families with children as well as provide people with basic health care and housing. ILO The set of public measures that a society provides for its members to protect them against economic and social distress that would be caused by the absence or a substantial reduction of income from work as a result of various contingencies (sickness, maternity, employment injury, unemployment, invalidity, old age, and death of the breadwinner), the provision of health care, and the provision of benefits for families with children. UNDP Social protection refers to policies designed to reduce people's exposure to risks, enhancing their capacity to protect themselves against hazards and loss of income. Social protection involves interventions from public, private, voluntary organizations, and social networks, to support individuals, households and communities prevent, manage, and overcome the hazards, risks, and stresses threatening their present and future well- being. UNICEF A set of public actions that address not only income poverty and economic shocks, but also social vulnerability, thus taking into account the inter-relationship between exclusion and poverty. WFP Integrated systems of institutionalized national measures, which may include contributory pensions, insurance schemes, and safety nets. Bilateral Donors, EU and OECD DFID Social protection can be broadly defined as public actions—carried out by the state or privately—that: a) enable people to deal more effectively with risk and their vulnerability to crises and changes in circumstances (such as unemployment or old age); and b) help tackle extreme and chronic poverty. SIDA The concept of social security systems is defined as formal systems that create security for human beings in vulnerable situations. EU Measures put in place to provide a minimum standard of welfare and to protect citizens against the risks of inadequate income associated with unemployment, illness, disability, old age, the cost of raising a family, or the death of a spouse or parent. GTZ A framework that helps people to cope with life's risks and cushion their consequences. OECD Social protection refers to policies and actions that enhance the capacity of poor and vulnerable people to escape from poverty and enable them to better manage risks and shocks.   Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 96        ANNEX 7: RESULTS FRAMEWORK The strategy results framework outlines a series of outputs and outcomes at the World Bank and  country  level  that  will  be  tracked  to  assess  the  strategy’s  performance  over  the  next  10  years.    It  demonstrates  the  link  between  the  World  Bank’s  programs  and  activities  under  the  strategy,  changes in country outcomes that are directly attributable to World Bank engagement, and impacts  in client countries.   The results framework follows the threeâ€?tier approach consistent with OPCS guidelines4  reflecting  respectively  the  World  Bank  contribution  to  sector  development  outcomes  (Tier  1),  country  outcomes and outputs attributable to Bank support (Tier 2), and the actions and activities for which  the  World  Bank  will  be  accountable  for  (Tier  3).5    Each  tier  tracks  country  and  World  Bank’s  progress in the strategy main focus areas.  Specifically—  Tier  I:  Country  progress  on  sector  development  outcomes.  Country development outcomes in Tier I  are  defined  within  the  social  protection  objectives  of    improving  prevention  to  achieve  security,  improving  protection  to  achieve  equity,  and  improving  promotion  to  achieve  opportunity.    These  indicators are often mediumâ€? and longâ€?term indicators consistent with the MDGs, common Country  Partnership Strategy objectives, and Country Policy and Institutional Assessment (CPIA)6 indicators  and  aligned  with  the  Corporate  Scorecard  and  the  IDA16  Results  Measurement  System.    They  reflect SPL goals and benchmark country performance in meeting those goals.  These are goals to  which  World  Bankâ€?supported  SPL  work  contributes,  but  do  not  reflect  attribution  to  World  Bank  engagement as countries and all their development partners contribute to these achievements over  the  longâ€?term  through  a  combination  of  multisector  interventions  and  policy  decisions.    Average  values for each indicator are disaggregated by IDA and IBRD countries and by gender when gender  disaggregated data is available.  Tier II: Changes in outcomes and outputs of countries receiving World Bank support.  These indicators  track  results  at  the  country  level  directly  attributable  to  World  Bankâ€?supported  operations  in  the  three  strategy  priority  areas  of  strengthening  country  SPL  systems,  increasing  coverage,  and  promoting opportunity.  They reflect the World Bank’s accountability as a development institution  in  delivering  country  level  investments,  (usually  outputs)  linked  to  key  outcomes  that  often  have  multiple determinants.  Data for these indicators are aggregated at the country level and collected  bottomâ€?up from projectâ€?level data7 through the new core sector indicators, as well as desk reviews  of  lending  and  AAA  activities.    Specifically,  the  new  core  sector  indicators  (outlined  in  the  results  matrix below) will apply to investment lending projects only.  They will, therefore, not be reflective  of  World  Bank  SPL  engagement  through  other  lending  instruments.    Summary  statistics  are  reported  and  disaggregated  by  IDA  and  IBRD  countries.  Future  core  sector  indicator  updates  will  also be disaggregated by gender.                                                                4 “Results Frameworks for New Sector/Thematic Strategies.â€? OPCS Guidance Note, World Bank.  5 Tier 3 in the strategy results framework also includes indicators related to World Bank organizational effectiveness (for  example staff time spent on cross support) which are tracked in a separate 4th tier in the OPCS framework developed and  used for the Corporate Scorecard and the IDA 16 Results Measurement System.  6  In  line  with  the  strategy  priorities  the  World  Bank  is  introducing  a  new  CPIA  measure  to  rate  the  functioning  and  performance of SPL systems.  This new indicator will become part of the regular internal process of monitoring progress  towards system building.  7  The results framework focuses on operations falling under the following SPL thematic codes: Social Protection thematic  codes: Improving Labor Markets (51), Social Safety Nets (54), Vulnerability Assessment and Monitoring (55), Other Social  Protection and Risk management (56), Social Risk Mitigation (87).  Specifically, indicators in Tier II and III are based on  the portfolio mapped to SPL sector plus projects mapped to other sectors having an SPL theme code of 20 percent and  above.   Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 97        Tier  III:  Changes  in  World  Bank  activities  to  support  partner  countries.    These  indicators  track  the  activities that the World Bank will undertake to advance strategy in terms of lending engagement,  knowledge  production  and  dissemination,  and  broadâ€?based  partnerships,  as  well  as  in  terms  of  internal  organization  of  processes  and  resources.    Indicators  in  Tier  III  reflect  the  principles  of  engagements and include measures of effectiveness of the World Bank’s SPL portfolio, including IEG  reviews,  measures  of  resultsâ€?orientation,  the  continued  investment  in  knowledge  generation  and  transmission,  staff  time  spent  on  cross  support,  and  partnerships  with  bilateral  and  multilateral  donors, civil society including trade unions.  Data for these indicators are aggregated at the sector  level.  The  identification  and  selection  of  indicators  in  the  results  framework  was  based  on  data  availability  and  reliability,  drawing  from  several  sources.    Specifically,  data  sources  include  the  Social Protection Sector Strategy Implementation Update (SSIU),8  the pension database developed  within  the  SPL  anchor,  Social  Protection  Atlas,  MDGs,  governance  indicators,  WDI,  ILO’s  key  indicators  of  the  labor  markets,  SPL  core  sector  indicators,  the  Business  Warehouse,  IEG  reports,  and the World Bank Learning Management System.  Baseline values are reported for all indicators in the results framework. The year of the most recent  available value is set as the baseline year for indicators in tier I.  Generally, fiscal year 2011 is set as  the baseline year for indicators in tier II and III, unless specified in the matrix. The indicators will be  regularly reviewed and updated over time, with a thorough review planned for the 2017 five year  strategy update.    Target values are set for indicators in tier 3 as these indicators track performance in areas that the  World  Bank  most  directly  controls  and  actions  for  which  the  World  Bank  will  be  accountable.   While baseline values in tier 3 show that SPL is performing remarkably well â€? and above the World  Bank  average—the  challenge  in  the  next  years  will  be  to  maintain  the  high  quality  of  the  SPL  portfolio,  M&E  ratings  and  partnership  arrangements,  and  while  at  the  same  time  meeting  the  ambitious strategy goals.  The formulation of targets in tier 3 reflects the expected increase in the  three  areas  of  operating  principles  identified  in  the  strategy—knowledge  (reflected  in  knowledge  production and dissemination and Southâ€?South sponsored learning events), collaboration (reflected  indicatively at country level through coâ€?financing arrangements in IDA operations and at Bank level  through  intraâ€?Bank  crossâ€?support),  and  countryâ€?tailored  operations,  where  they  reflect  the  ambitious objective of keeping maintaining the high quality performance and resultsâ€?orientation of  the portfolio while expanding our lending engagement to challenging contexts as in such as lower  institutional capacity countries and fragile states.                                                                    8  The  SSIU  was  a  key  Anchor  deliverable  to  OPCS  and  was  intended  to  define  its  strategic  priorities  in  SPL,  develop  implementation plans for pursuing them, and monitor progress in achieving them.   Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 98        World Bank Group Results Framework for the SPL Strategy 2012–22  COUNTRY PROGRESS ON SECTOR DEVELOPMENT OUTCOMES (TIER 1)  Indicators Data collection instrument/ Baseline Source Value Year Share of working age population accruing Patterns of Pension Provision II Total 28.7% Latest year available pensions rights databas IDA 20.3% [2001–10] IBRD 38.9% Pension beneficiaries to elderly (>60) Patterns of Pension Provision II Total 39.1% Latest year available population ratio* database IDA 26.0% [2001-2010] IBRD 54.1% Percentage of population in the poorest SP Atlas Total 51.0% Latest year available quintile covered by SPL programs IDA 32.5% [2004–10] IBRD 64.0% Poverty gap at $1.25 per day (PPP) WDI Total 6.2% Latest year available IDA 11.1% [2005–09] IBRD 0.9% Percentage of children (7-14) Understanding Children Total 21.5% Latest year available economically active Work/WDI IDA 29.5% [2001–10] IBRD 9.7% Male 23.5% Female 19.5% GDP per person employed (constant 1990 WDI Total 12,836 2008 PPP $) IDA 8,093 IBRD 18,256 Ratio of youth unemployment rate to adult International Income Distribution Total 3.0 Latest year available unemployment rate Database (I2D2) IDA 2.7 [1998–2008] IBRD 3.4 Male 3.3 Female 3.0 Index of SPL system development (scale 1 Staff calculation Total 3.2 2011 to 6, 1 the lowest)** IDA 2.8 IBRD 4.0 Note:  The  "IDA"  category  includes  both  IDA  and  blend  countries.    The  "Total"  category  includes  IDA  and  IBRD  countries.  Baseline values are simple average across countries within each group.  * This coverage indicator refers to the total number of beneficiaries (of all ages, including oldâ€?age, survivors, and  disabled), divided by the population aged 60 and above. Population data in the denominator are for year 2008. The  indicator does not capture elderly SA beneficiaries.  ** The SPL system index combines assessment ratings of four main dimensions of SPL system performance.  (1)  Policy/strategy:  the  extent  to  which  a  country  has  an  overall  strategy  for  social  protection  and  accompanying  policies  for  addressing  prevention,  protection,  and  promotion.  (2)  Coordination:  whether  there  are  shared  administrative  systems  that  allow  for  coordination  across  programs  that  realize  economies  of  scale  and  help  inform  gaps  and  duplication.  (3)  Coverage:  how  well  the  system  as  a  whole  covers  the  various  groups  appropriately, providing meaningful benefits to whichever subset of the population they are meant to assist.  (4)  M&E:  whether  there  is  access  to  information  on  performance  to  support  management,  accountability  and  knowledge generation on program effectiveness.  Each of the four main areas is rate from 1 (lowest) to 6 (highest).  Baseline value is based on the assessment of 19 countries.    Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 99        CHANGES IN COUNTRY OUTCOMES AND OUTPUTS SUPPORTED BY THE WORLD BANK (TIER 2)  Indicators Data collection instrument/ Baseline Source Value Year Percentage of SPL lending operations Project Appraisal Documents Total 41.0% FY11 active lending (whose components/pillars are explicitly (PADs)/ Project documents portfolio aimed at) supporting SPL systems IDA 33.7% IBRD 56.8% Number of countries with lending and Business warehouse Total 71.3 Moving average of last nonlending (ESW,TA) SPL engagement 3 years (FY09-FY11) IDA 40.3 IBRD 29.5 Number of beneficiaries of safety nets SPL Core Sector Indicator IDA 13.4 Cumulative FY10- programs in IDA countries* (million) FY11 closed projects* Number of beneficiaries of LM programs* SPL Core Sector Indicator Total 1.8 Cumulative FY10- (million) FY11 closed projects* IDA 1.0 IBRD 0.9 Note:  The  "IDA"  category  includes  both  IDA  and  blend  countries.    The  "Total"  category  includes  IDA  and  IBRD  countries.    *  Baseline  values  based  on  a  review  of  41  Implementation  Completion  Reports  (ICRs)  of  projects  that  closed  during FY10 and FY11 (eight ICRs do not report on the number of beneficiaries covered).  Future updates will be  based on actual numbers provided in ISRs for the active portfolio.             Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 100        CHANGES IN WORLD BANK ACTIVITIES TO SUPPORT PARTNER COUNTRIES (TIER 3) Indicators Data collection instrument/ Baseline Targets source Value Year 2017 2022 Percentage of projects rated moderately satisfactory or IEG 75.0% 75% 75% better according to IEG Rating * Percentage of projects with M&E performance rated ICRs 69.8% FY10-FY11 closed 70% 70% satisfactory or above projects Number of downloads of SPL knowledge products** Omniture Site Catalyst 34,115 FY11 40,000 45,000 Number of countries involved in World Bank sponsored Anchor calculation 94 FY11 Above # of SPL Above # of SPL South-South learning events client countries client countries Percentage of SP staff (regions and anchor) time spent on Quarterly report from Chennai 15% FY11 15% 15% cross support (grades GF+) *** Percentage of IDA lending operations having co-financing Business Warehouse 27.0% Moving average of 32% 37% partners***** projects approved in the past 3 years (FY08-FY10) Note:    * "Outcome % satisfactory" rating for available projects in FY10 portfolio.  The SPL baseline value is greater than the World Bank moving average over  the same time interval which is 73 precent.   **  The  indicator  tracks  the  number  of  downloads  of  knowledge  products    (excluding  other  AAA  products)  from  internal  and  external    SPL  anchor  website, IDEAS (REPEC) and World Bank documents and reports.  ***The World Bank average indicator of interâ€?VPU cross support for the same year (FY11) is 3.7 percent, much lower than the SPL baseline.  Moreover,  the  World  Bank  indicator  reported  in  the  Corporate  Scorecard  is  defined  more  broadly  as  “time  spent  by  all  professional  staff  (in  grades  GE  to  GI,  including managers, as well as ETCs in grades EC1 to EC4 in Regions and Networks) on tasks managed outside their VPU as a percentage of total time  recorded by such staffâ€? than our indicator which only accounts for professional staff GF and above.  ****  The  indicator  captures  coâ€?financing  from  recipients  executed  TFs,  MDTFs,  donor  partners,  and  special  financing.    It  may  not  capture  whether  parallel financing is occurring.  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 101        NOTES                                                               1  Ethiopia’s  transfers,  through  the  Productive  Safety  Nets  Program  (PSNP),  have  also  helped  boost  treeâ€? planting  and  thus  helped  environmental  sustainability.  (Andersson,  Mekonnen,  and  Stage  2009).  In  the  Dominican Republic, “The Program impact on earnings was statistically significant for young males and adult  females... the estimated Program impact on employment was statistically significant for adult females onlyâ€?  (Aedo and Nuñez 2001).    2  Growth  Commission  2008.    See  also  evidence  on  social  protection  facilitating  the  transition  in  Eastern  Europe, where there is evidence that social welfare benefits spending facilitated restructuring in the face of  falling real wages.  See Boeri and Terrell 2002 and Garibaldi and Brixiova 1998.  3  The strategy builds on the World Bank's first social protection and labor strategy (World Bank 2001) and a  decade  of  successful  operational  and  analytical  engagement.    It  maintains  the  first  strategy's  fundamental  development  objectives—greater  security,  greater  equity  and  good  jobs—and  builds  on  experience  and  evidence  to  reframe  these  objectives  to  a  more  explicit  operational  context  consistent  with  new  global  priorities and contexts, and reflective of the World Bank's global social protection and labor practice.   4 This definition corresponds to that in the original social protection and labor strategy (World Bank 2001),  which  was  that  social  protection  consists  of  public  interventions  (i)  to  assist  individuals,  households,  and  communities  in  better  managing  risk,  and  (ii)  to  provide  support  to  the  critically  poor.    The  three  goals  of  resilience, equity, and opportunity equate to what is more widely known among social protection and labor  practitioners  as  the  “3Pâ€?  framework:  prevention,  protection,  and  promotion;  see  World  Bank  2011a,  the  concept note for this strategy, and Deveraux and Sabatesâ€?Wheeler 2004.  5 See the definition of equity in the 2006 World Development Report (World Bank 2006).  6 Alderman and Yemstov, 2012.  7 World Bank 2011b.  8 Alatas et al. 2010.  9 For Colombia, Attanasio and others 2008 show that the program raised earnings and employment for both  men but especially women. Also see Aedo and Nuñez 2001 for the Dominican Republic.  10 See, for example, World Bank 2010.  11  The  World  Bank  works  on  child  labor  issues  jointly  with  the  ILO  and  UNICEF  in  the  Understanding  Children’s  Work  project.    See  http://www.ucwâ€?project.org/.    More  details  on  genderâ€?focused  social  protection and labor interventions are in Chapter 4 of this strategy.  12 The World Bank is undertaking a process for updating and consolidation of the environmental and social  safeguard policies, and the issue of how the World Bank may address labor standards within the safeguard  policies is currently part of listening and consultations around this process.  13  For  a  compelling  review  of  how  Ethiopia’s  new  approach  has  saved  lives,  see  the  One  Campaign  video  documentary by Mohamed Amin at http://www.youtube.com/watch?v=Iri9Y4A5YfI.   14  “Onâ€?budgetâ€?  refers  to  funding  that  is  part  of  the  national  budget  process  and  includes  both  government  resources and those from development partners.    15 These transfers, through the Productive Safety Nets Program (PSNP), have also helped boost treeâ€?planting  and thus helped environmntal sustainability.  Andersson, Mekonnen, and Stage 2009.  16  “The  CCT  program  in  Turkey  raised  secondary  school  enrolment  for  girls  by  10.7  percentage  points.  In  rural areas the program boosted beneficiary enrolment by 16.7 percentage points overall, especially for boys  (22.8 percentage points) compared to nonâ€?beneficiariesâ€?, from Ahmed and others 2006.  17  “The  Program  impact  on  earnings  was  statistically  significant  for  young  males  and  adult  females.  This  result was not sensitive to the number of nearest neighbors. Furthermore, the estimated Program impact on  employment  was  statistically  significant  for  adult  females  only.  Again  the  result  was  not  sensitive  to  the  number  of  nearest  neighbors.  Finally,  impact  estimates  on  earnings  and  employment  for  the  groups  with  statistically significant results were not sensitive to the different sources of information used to estimate the  propensity scoresâ€? from Aedo and Nuñez 2001.   18 This definition corresponds to that in the original social protection and labor strategy (World Bank 2001),  which  was  that  social  protection  consists  of  public  interventions  (i)  to  assist  individuals,  households,  and  communities  in  better  managing  risk,  and  (ii)  to  provide  support  to  the  critically  poor.    The  three  goals  of  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 102                                                                                                                                                                                                             resilience, equity, and opportunity equate to what is more widely known among social protection and labor  practitioners  as  the  “3Pâ€?  framework:  prevention,  protection,  and  promotion;  see  World  Bank  2011a,  the  concept note for this strategy, and Deveraux and Sabatesâ€?Wheeler 2004.  19 See the definition of equity in the 2006 World Development Report (World Bank 2006).  20 The equity principles of protecting against destitution and providing equality of opportunity are articulated  in the 2006 World Development Report: Equity and Development  21 This is an operational translation of the “Social Risk Managementâ€? Framework that formed the intellectual  basis of the first Social Protection and Labor strategy (see Holzmann and Jorgensen 2000). The preventionâ€? protectionâ€?promotion framework has also been used by the ILO: “There are three broad categories (in Social  Security): Promotional measures that aim to improve endowments, exchange entitlements, real incomes and  social consumption; preventive measures that seek more directly to avert deprivation in specific ways; and  protective  (or  safetyâ€?net)  measures that are  yet  more  specific  in their  objective  of guaranteeing relief  from  deprivationâ€? (as in Guhan 1994). In the academic literature, see Sabatesâ€?Wheeler and Devereux 2008).  The  3P frameworks has also been adapated by a number of institutions and countries, for example by the African  Union.  22 See Alderman and Yemtsov 2012. Background paper to this strategy.  23  Growth  Commission  (2008):  “The  Growth  Report:  Strategies  for  Sustained  Growth  and  Inclusive  Development,â€?  available  at  www.growthcommission.org.    See  also  evidence  on  social  protection  facilitating  the  transition  in  Eastern  Europe,  where  there  is  evidence  that  social  welfare  benefits  spending  facilitated  restructuring  in  the  face  of  falling  real  wages.    See  Tito  Boeri  and  Katherine  Terrell  (2002).  “Institutional  Determinants of Labor Reallocation in Transition.â€? Journal of Economic Perspectives 16 (1,Winter): 51–76 and  Pietro  Garibaldi  and  Zuzana  Brixiova  (1998).  “Labor  Market  Institutions  and  Unemployment  Dynamics  in  Transition Economies.â€? IMF Staff Papers 45(2): 269–308. Washington, DC: IMF.  24 Ibid  25 For SPFâ€?I, see box 2.1, and ILO 2011a. ILO 2005, OECD 2009, EC 2010 discusses links with proâ€?poor growth;  Yemstov  et  al.  2012  assesses  the  productive  role  of  social  protection,  including  a  review  of  impacts  at  the  micro, meso and macro levels.  26 See World Bank (2011e):  “World Development Report 2013: Jobs—Outlineâ€? October 25, 2011, The World  Bank, Washington DC.  27 World Bank, 2001b.  28 All dollar amounts are U.S. dollars unless otherwise indicated.  29 Honorati et al. 2012. Background paper to this strategy.  30 Ibid.   31 Lessons from World Bank Group Responses to past Financial Crises (2008), Evaluation brief n.6 IEG, WBG.  32 IEG evaluations ratings, from Business Warehouse.  33 See IEG. 2011a.  Executive Summary, page x.  34 Honorati et al., 2012. Background paper to this strategy.  35 See IEG, 2008.  36 See IEG. 2011a and IEG. 2011b.  37 Results Readiness (2010) shows that 50 percent of SPL projects have a IE component. This is the highest  percentage in the World Bank.  38 The social risk management framework identifies SPL as aiming (i) to assist individuals, households, and  communities better manage risk, and (ii) to provide support to the critically poor (Holzmann and Jorgensen,  2000).  39 IPCC 2011.  40 Mitchell and van Aalst 2011.  41  See,  for  example,  the  data  in  Centre  for  Research  on  the  Epidemiology  of  Disasters  (www.cred.be)  and  Table 1 in Hale, Razin, and Tong 2008.   42 “New World, New World Bank Group: (I) Postâ€?Crisis Directionsâ€?, submitted to the Development Committee,  April 20, 2010.  43  See,  for  example  Fact  sheet.  The  UN  Social  Protection  Floor  Initiative.  July  2010â€?08â€?11  available  from  http://www.ilo.org  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 103                                                                                                                                                                                                             44    Innovative  programs  outside  social  protection  include  weatherâ€?based  insurance  programs  that  protect  farmers (India) or trigger early and effective disbursements of funds to local governments and communities  (Ethiopia).  45  The  June    2011  International  Labor  Conference  called  on  member  countries  to  adopt  a  twoâ€?dimensional  strategy  to  extend  social  protection  coverage  and  build  coordinated  and  comprehensive  social  protection  systems, implementing national social protection floors as a first priority within such strategies.  46 This section is based on Robalino, Walker, and Rawlings 2012. Background paper to this strategy.  47  For  a  compelling  review  of  how  Ethiopia’s  new  approach  has  saved  lives,  see  the  One  Campaign  video  documentary by Mohamed Amin at http://www.youtube.com/watch?v=Iri9Y4A5YfI   48 Data from household surveys, SP Atlas  49 World Bank 2011a.  50 World Bank 2011a.    51 Bruni et al. 2010.  52 Strauss and Thomas 2008.  53 Goldstein 1999.  54 Based on World Bank pension database covering 78 LICs, there were about 100 million contributors from a  labor force of almost 900 million or about 11 percent.  55 See Chawla, Betcherman and Banerji 2007.  56 Chen and Ravallion 2010.  57 See IEG (2011).  58 See Marzo and Mori. 2012.  Background paper to this strategy.  59 See, for example, Heckman 2008.  60 Friedman and Sturdy in Alderman et al. 2011  61 Baird, Friedman, and Schady 2010.  62 Giles and Satriawan 2010.  63 Waters and Pradhan 2003.  64 See World Bank (2010b)  65 See Almeida,  Bernstein,and Robalino (forthcoming)  66  The  strategy  builds  on  the  World  Bank's  first  SPL  strategy  from  (World  Bank  2001)  and  a  decade  of  successful operational and analytical engagement.  It maintains the first strategy's fundamental development  objectives—greater  security,  greater  equity  and  good  jobs—and  builds  on  experience  and  evidence  to  reframe  these  objectives  to  a  more  explicit  operational  context  consistent  with  new  global  priorities  and  contexts, and reflective of the World Bank's global SPL practice.   67 For more information, see Almeida et al. 2012. Background paper to this strategy.  68 These conclusions and recommendations are developed more fully in the Africa Social Protection Strategy  (World  Bank  2012)  and  in  the  background  paper  “Social  Protection  in  Lowâ€?income  Countries  (LICs)  and  Fragile Situations: Challenges and Future Directionsâ€? by  Andrews et al, 2012  69  See  Alatas  et  al.  2010  for  an  interesting  experimental  evaluation  in  Indonesia  between  different  types of  targeting, which showed that communityâ€?based targeting did worse than PMTin identifying the incomeâ€?poor,  but  yielded  higher  satisfaction.    The  authors  explain  this  by  inferring  that  the  community’s  conception  of  poverty was different from that based solely on perâ€?capita consumption.  70 The Economist January 14, 2012 issue has two articles on India’s biometric identity system.  71  Developed  by  Andrew  Mason,  drawn  from  Haddad,  Hoddinott,  and  Alderman  1997;  World  Bank  2001a;  James, Coxâ€?Edwards, and Wong 2008.  72 See, for example, Duflo 2003; and Baird, McIntosh, and Ozler, 2010.  73 See Grosh et al 2008.  74 See FAO,2010.  75  Research  also  shows  that  significant  reductions  in  regulations  can  increase  the  number  of  business  and  wage  employment  (see  Bruhn  2011  and  Klapper  and  Love  2010).    Important  questions  remain  in  terms  of  how  different  regulations  and  policy  interventions  affect  competition  (for  example,  competition  councils,  antiâ€?trust law) and ultimately jobs.  (Hallwardâ€?Drieimier and Pritchett 2010).  Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 104                                                                                                                                                                                                             76  Jovenes programs have a strong emphasis on demandâ€?driven skills training, ensured by ex ante agreements  with the private sector to provide internships to their graduates. Wages during the internship are financed by  the program.  77  The  program,  which  is  not  specifically  targeted  to  a  disadvantaged  population,  provides  a  stipend  equivalent to the minimum wage to beneficiaries while the private sector businesses provide the training and  the internship (for a minimum of 3 months) and cover the training costs. Most importantly, private firms have  to  agree  to  retain  at  least  70  percent  of  the  trainees  for  a  year  each  in  order  to  participate  in  the  program  (Ibarraran and Rosas, 2009).  78 For a detailed review of programs and a more in depth discussion of the various issues see Almeida et al  2012,  a  background  paper  to  this  strategy.    For  a  recent  discussion  about  how  wage  subsidies  are  used  in  Tunisia see Robalino et al. 2011.  79  Some  of  these  and  other  programs  (such  as  workâ€?sharing)  have  also  being  used  to  protect  jobs  during  a  recession.  Their use, however, is more controversial. More effective interventions to temporarily help firms  in distress can include credit and access to public tenders.   80 See the STEP framework as presented in World Bank. 2010b.  81 The material is this box is developed by Hideki Mori  82 Support for monitoring should not be confined to client counterparts directly responsible for SPL.  As noted  in the 2011 IEG report on social safety nets, support is also needed to strengthen central statistical capacity to  collect  harmonized  annual  data  on  expenditures  and  coverage  for  SPL  programs,  as  well  as  to  monitor  poverty and living standards, especially over the long term and in LICs and fragile states  83 See Basset et al. 2012.  84  “Onâ€?budgetâ€?  refers  to  funding  that  is  part  of  the  national  budget  process  and  includes  both  government  resources and those from development partners.    85 For example, The World Bank Disaster Risk Financing and Insurance (DRFI) Program in the Financial and  Private Sector Development network works with countries to increase their financial response capacity postâ€? disaster and reduce the economic and fiscal burden of natural disasters.  The DRFI Program builds on a four  pillar  approach  to  increase  countries'  financial  resilience  to  natural  disasters,  including  sovereign  disaster  risk financing, property catastrophe risk insurance, agricultural insurance, and disaster microinsurance.  86 IFPRI/CSA 2009.  87 Detailed information about the partnership as well as products and activities are available at www.gpye.org  88  The  JKP  has  been  launched  in  mid  2011  and  will  go  live  in  January  2012.    The  objective  of  the  JKP  is  to  catalyze a multiâ€?sectoral (HDN, PREM, FPD) approach to the jobs agenda.  This is done through partnerships  bringing together policy makers, researchers, the private sector, unions and the development community to  share  lessons  learned  and  best  practices  and  to  create  new  ways  to  tackle  the  challenge  of  expanding  job  opportunities.  Partners include IZA, LACEA, IDRC, McKinsey, Fedesarrollo, AERC, and others.  89 Financed by Austria, Germany, Korea, Norway, and Switzerland.  90 Tier 1 and tier 2 indicators are monitored by LICs and MICs and by gender when data are available.   91 See Rawlings et al. 2011 and Honorati et al 2011.        Resilience, Equity and Opportunity: The World Bank’s Social Protection and Labor Strategy  |  Page 105    Â