78652 Social Protection Systems Social Protection & Labor Policy Note June 2013 | Number 15 Highlight Common Ground Developing and UNICEF and World Bank Approaches to strengthening social protection systems Building Social Protection Systems 1 is at the core of the UNICEF Social Laura Rawlings, Sheila Murthy and Natalia Winder Protection Strategic Framework and World Key Messages Bank Social Protection ■■ Developing and strengthening social protection systems is at the core of the and Labor Strategy. UNICEF Social Protection Strategic Framework and World Bank Social Protection and Labor Strategy. This note outlines common ground in this commitment and This note outlines calls on other stakeholders to engage collaboratively in the systems agenda. common ground in this ■■ Social protection systems provide a coordinated portfolio of interventions to address commitment and calls different dimensions of poverty and deprivation, aiming to reduce vulnerability on other stakeholders to across the life-cycle and ensure cumulative benefits across generations. engage collaboratively in ■■ There are numerous challenges, risks and costs involved in taking a systems the systems agenda. approach, including challenges of political economy and differing donor views and practice, the risks of excessive centralization, and potential costs of transactions and limited transparency. ■■ The movement towards more integrated systems is a gradual and contextual process. In operationalizing this agenda, it is useful to consider different levels of systems coordination: policy, program, and administrative. ■■ There is no one-size-fits-all in terms of operationalization of systems. Pathways will differ according to country contexts, capacity, and needs; and approaches need to be country-led. ■■ UNICEF and the World Bank acknowledge the critical importance of donor coordination, and call for partner agencies to be part of the solution in order to: –– Work together to present coherent support to countries; –– Maximize synergies and common agendas, recognizing different organiza- tions’ value-added; –– Jointly support sustainable, scalable, evidence-based interventions; –– Enhance and share analytical work on systems development; –– Promote South-South learning and cooperation for knowledge sharing and capacity building. 1 Policy Note: Social Protection Systems June 2013 | Number 15 The recently released UNICEF Social Protection Strategic Risks, challenges, and costs Framework and the World Bank Social Protection and Labor strategy call for taking a systems approach to social protection Although a systems approach has potential benefits, it may as a way to help countries, communities, families and children also involve a number of risks, challenges, and costs. At the enhance resilience, equity and opportunity. forefront of challenges are political economy issues that can make it difficult to move toward increased coordination, even This note outlines common ground in the World Bank and where a strong mandate exists. Before investing financial and UNICEF approaches to building social protection systems, us- institutional resources along with political capital, it is impor- ing a focus on children to illustrate the premise and promise tant to take into account the political and institutional factors of a systems approach. It is part of a broader commitment by that need to be aligned for such an effort to be successful and both agencies to increase collaboration across different stake- sustainable in any given country. Donors often play a role in holders—governments, development partners, and others—in supporting or undermining a coherent policy environment. developing and strengthening social protection systems and Institutional capacity and country characteristics are also expanding their coverage. critical, highlighting the need for approaches to be tailored to national contexts. The rationale for a systems approach to There are also risks to a systems approach. Excessive central- social protection ization can lead to errors being propagated across programs that have common points of entry, and risks stifling creativity Central to a systems approach is a focus on coordination and and responsiveness. There may also be fewer checks and bal- harmonization in order to address the fragmentation that limits ances, as well as information asymmetries. the effectiveness and impact of social protection policies and programs. Although much of the systems discussion is cur- Finally, there are costs to coordination, notably transaction rently based more on theoretical grounds than on empirical costs to managing complex cross-program arrangements. evidence, there are, in principle, a number of benefits to moving There may also be costs and tradeoffs involved if systems toward a systems-oriented approach to social protection. crowd out effective private and informal arrangements. Many of these risks, however, can be minimized through careful What are the goals of a systems approach? A systems ap- design and clear understanding of country context. proach to social protection aims to provide a coordinated and harmonized response to the multi-dimensional vulnerabili- ties across a life cycle. Such an approach has the potential to A child lens for social protection systems build resilience, enhance equity and coverage by addressing heterogeneous needs, as well as to promote opportunity by The rationale for a systems approach is further enhanced building and protecting human capital, skills, and productiv- when assessed through a child lens. A systems approach is ity. In addition to contributing to these goals, a systems ap- particularly relevant for children, given the need for a set proach also aims to improve the efficiency and sustainability of multi-sector interventions to address the evolving, com- of social protection programs. pounding and multiple dimensions of child poverty, depriva- tion, and exclusion across the life cycle. What is meant by a systems approach? Adopting a systems approach in social protection may take different forms and Providing a set of coordinated interventions, social protection pathways. In general terms, it comprises a portfolio of inter- systems are well suited to respond to the dynamic nature of ventions, which address social and economic vulnerabilities risk and vulnerability faced by children which is compounded using both short-term interventions to address temporary over time if not addressed. Social protection can serve as shocks and longer-term approaches to address structural vul- an effective catalyst for a range of multi-sector investments nerabilities and chronic poverty. Systems should be grounded needed to address children’s multiple needs, including invest- in established institutional arrangements, with clear assign- ments in child protection, education, cognitive development, ment of responsibilities and use of common administrative nutrition and health. A systems approach also speaks to the tools in order to provide channels for effective cross-program flexibility needed to respond during critical periods in a management. As social protection systems evolve, the devel- child’s development, and to the need to invest early to gain opment of multi-sector approaches and coordination can also efficiencies given that early childhood investments generate increasingly address multiple and compounding risks and vul- high rates of return. nerabilities. Social protection systems aim to be synchronized across a network of interventions and policies, equitable in the A systems approach also supports the establishment of distribution of resources, and transparent and accountable in cohesive national mandates to coordinate the range of actors their governance. and interventions necessary to secure effective investments in 2 Social Protection & Labor | Human Development Network | The World Bank children and generate the associated public goods. Further- only experience age-specific deprivations but also share those more, the foundations of equity and equality of opportunity that affect their families and communities. are established during childhood and can be strengthened by social protection systems that help ensure access to critical In sum, social protection systems ensure that individual investments among children from low-income settings or instruments interact with and support one another in reduc- socially excluded populations. Finally, a systems approach ing vulnerability across the life-cycle. This is important for provides responses that recognize the intergenerational and managing risk effectively, expanding coverage, and providing compounding nature of vulnerabilities, as children do not predictable benefits. Operationalizing a systems approach to social protection Figure 1: Three Levels of a Social Protection System Source: Robalino, Rawlings, and Walker (2012) Beyond the theory and rationale for moving toward a The administrative level focuses on developing the “nuts systems approach to social protection, there is a need to col- and bolts� tools that facilitate the core business processes laborate on supporting operational aspects. The movement of social protection programs. These include, for instance, towards a more integrated system is a gradual process and it beneficiary identification systems and registries, targeting is necessary to consider different levels: policy, program, and schemes, monitoring and evaluation arrangements, and con- administrative levels.2 tracting and payment arrangements for providers. The setup of these tools or building blocks can serve as an entry point The policy level defines a long-term vision and ensures for the operationalization of social protection systems. policy coherence within social protection and in relation to broader objectives. This is the highest and most strategic Social protection systems must also be developed relative to level of engagement. It is here that the objectives and func- the existence of other programs and policies, notably in the tions of social protection systems are defined in the context social sectors to effectively address multidimensional vulner- of national goals and priorities, and assessed given fiscal and abilities. In addition, multi-sector (horizontal) coordination administrative capacity. often also involves ensuring that social protection is coupled with effective supply-side investments in health, education, The program level is focused on integrating, harmonizing, child protection, and nutrition, to achieve its objectives. or coordinating programs. This second level of engagement When properly coordinated, social protection can serve as a is driven by initiatives aiming to improve the performance catalyst for expanding access to services and thus contribute of programs within a given function (such as child protec- to enhance equitable sector outcomes. There is also a need to tion) or to enhance coordination across programs to better consider how to best approach vertical coordination across exploit interactions (such as training policies to build skills national and local government stakeholders, as well as other and move young people from assistance into more produc- existing arrangements, including private and non-formal ar- tive opportunities). rangements such as community-based groups. 3 Policy Note: Social Protection Systems June 2013 | Number 15 Pathways toward building stronger Looking forward systems This note presents an initial discussion on the common Social protection systems will take many forms, with portfo- understanding behind the development and strengthening lios of programs tailored to the demands of different coun- of social protection systems—a focus that is needed to ad- try contexts. There is no one-size-fits-all approach. Instead dress existing fragmentation and limited coverage problems policies, programs, and administrative systems will need to across regions. At the core of UNICEF’s and the World Bank’s be adapted to countries’ different institutional contexts and to recently released strategies is a call to focus on integrated the demands of particular regions and groups within coun- social protection systems as a promising approach to address- tries. Initial conditions set the context for how pathways can ing the multiple and compounding vulnerabilities of children, evolve and there is much to be learned from knowledge shar- families, and communities. ing across countries in setting goals and managing transitions toward stronger systems. UNICEF and the World Bank are committed to contributing to the emerging global social protection agenda, working in Regardless of country context, there are a number of areas partnership with each other and different stakeholders—gov- to consider in building stronger and more effective systems ernment, partner agencies, civil society—to help build nation- including the importance of institutional capacity, financial ally led social protection systems. Given the multi-sectoral resources, and political leadership. These need to be assessed nature of social protection and the existing fragmentation in and solutions tailored accordingly. approaches, these partnerships are essential in supporting the development and strengthening of social protection systems. Furthermore, there is also a need for analytical work, both In this process, UNICEF and the World Bank acknowledge to better understand the need for social protection and to the critical importance of donor coordination, and call for shape effective responses to risk and vulnerability. On the partner agencies to be part of the solution: working together demand side, continued improvements are needed to assess to present coherent support to countries; maximizing syner- the dynamics of risk and vulnerability. This calls not only for gies and common agendas while recognizing the value-added understanding micro-determinants of households and com- of different organizations; aiming at sustainable and scalable munity resilience, but also for better knowledge of how these interventions; enhancing analytical work to further the un- are driven by macro elements including climate change and derstanding of systems development; promoting South-South economic shocks such as volatility in food and fuel prices. learning and cooperation for knowledge sharing and capacity building at all levels and thus address/surpass the inherent The World Bank, UNICEF, national government agencies, institutional and financial challenges countries face when and many others are investing in assessment tools to inform harmonizing systems. the design, performance, and impacts of a systems approach. This includes developing a new approach to program evalua- tion to focus on assessing initiatives that aim to merge, bridge, 1 This note was prepared by Laura Rawlings at the Human Development or coordinate programs. It also calls for monitoring-based Network, World Bank, and Sheila Murthy and Natalia Winder at the Social inventories of the performance of existing social protection Policy and Economic Analysis Unit, UNICEF. The authors would like to thank Iffath Sharif, Qaiser Khan, Cem Mete, Mattias Lundberg and Anush interventions, as well as modeling tools to understand the Bezhanyan at the World Bank; and Jeffrey O’Malley, Jennifer Yablonski, impacts of different reform options. Each of these analytical Gaspar Fajth, Mariana Stirbu, Roberto Benes, Qimti Paienjton, Enrique Delamonica, and Rachel Yates at UNICEF; for their valuable insights and tools calls for improving the availability, quality, and use of review. micro-data; notably from household surveys, administrative 2 See Robalino, D., L. Rawlings, and I. Walker, “Building Social Protection and records, and evaluations. In most countries today, these data Labor Systems: Concepts and Operational Implications�, Background paper are of poor quality and often not produced regularly enough for the World Bank 2012-2022 Social Protection and Labor Strategy, Social Protection and Labor Discussion Paper Series No. 1202, World Bank, March to serve as useful sources of information for informing policy 2012. and program decisions. The findings, interpretations, and conclusions expressed herein are those of the author(s), and do not necessarily reflect the views of the International Bank for Reconstruction and Development/The World Bank and its affiliated organizations, or those of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. For more 4 information, please visit www.worldbank.org/sp.