Social protection

Types of social protection

This guide provides resources on three of the most common types of social protection:

1. Social assistance – resources, either cash or in-kind, are transferred to vulnerable individuals or households.  These transfers can either be unconditional (for example, social pensions or cash benefits) or they can be conditional (for example, given in exchange for work on public works programmes or attendance at school).

2. Social insurance - the beneficiary makes contributions to a scheme to mitigate risk, for example, health insurance or unemployment insurance schemes.

3. Labour market interventions – programmes designed to protect workers, for example, minimum wage legislation.

Page contents

Social assistance

Social protection programmes are described as ‘social assistance’ when resources, either cash or in-kind (such as food), are transferred to vulnerable individuals or households.  Social assistance programmes take many forms, including cash transfers or public works programmes.

Cash transfers

Cash transfers can be unconditional, for example, social pensions or disability allowances.  Alternatively, they can be conditional, for example where receipt of the payment is dependent on children attending school or a health clinic. 

Devereux, S. et al, 2005, ‘Making Cash Count: Lessons from Cash Transfer Schemes in East and Southern Africa for Supporting the Most Vulnerable Children and Households’, IDS, Sussex
To what extent have unconditional cash transfers been used in East and Southern Africa, and what can be learnt from these schemes? This report was commissioned by the United Nations Children’s Fund as part of a review of social protection measures reaching vulnerable children. It summarises findings from a survey across 15 countries, and from case studies in four countries, drawing out lessons learned with a particular focus on reaching the most vulnerable children (MVC).
Access full text: available online

Britto, T., 2005, ‘Recent Trends in the Development Agenda of Latin America: an Analysis of Conditional Cash Transfers’, Ministry of Social Development, Brazil
How and why did conditional cash transfer (CCT) programmes come about? What can they actually deliver, and what issues arise in their implementation? This paper discusses CCTs in Mexico and Brazil. It examines particular characteristics and implementation aspects, as well as contextual factors that help explain these programmes’ popularity. It concludes that whilst these programmes have potential, there are limits to what they can achieve.
Access full text:: available online

Lessons Offered by Latin American Cash Transfer Programmes, Mexico’s Oportunidades and Nicaragua’s SPN: Implications for African Countries’, UK Department for International Development’s (DFID’s) Health Systems Resource Centre (HSRC), London
Cash transfers are part of a new generation of programmes oriented towards mitigating the most negative consequences of poverty. This paper by the DFID Health Systems Resource Centre analyses the specific cases of 'Mexico-Oportunidades' and 'Nicaragua Social Protection Network' and looks at cash transfers in Malawi and Zambia. It discusses possible implications of the Latin American experience on the development of cash transfer programmes in Africa.
Access full text: available online

Barrientos A. and DeJong, J., 2004, ‘Child Poverty and Cash Transfers’, CHIP Report no. 4, Childhood Poverty Research and Policy Centre (CHIP)
There is increasing emphasis on targeted cash transfers as a key instrument in reducing poverty, deprivation and vulnerability among children and their households. How can cash transfers that are targeted at children be effective in reducing child poverty? Compiled for the Childhood Poverty Research and Policy Centre (CHIP), this paper considers the role of cash transfers within social protection and discusses some developments in the provision of cash transfers to reduce poverty in developing and transition countries. 
Access full text: available online

Social pensions are non-contributory pensions and are therefore a form of cash transfers targeted by age.  Research shows that they have a strong poverty reducing potential as the cash benefits tend to be shared within households.

HelpAge International and IDPM, 2003, ‘Non-Contributory Pensions and Poverty Prevention: A Comparative Study of Brazil and South Africa’, HelpAge International and Institute of Development Policy Management (IDPM), London and Manchester
What is the role of non-contributory pension programmes in reducing and preventing poverty and vulnerability among older people and their households in developing countries? This report by the Institute of Development Policy and Management and HelpAge International analyses non-contributory pension programmes in Brazil and South Africa, looking for evidence of their impact on well-being, participation and security. It concludes that extending such programmes to other developing countries could have a significant impact on reducing poverty and vulnerability among households with older people.
Access full text: available online

Das, J., Do, Q. and Özler, B., 2004, 'Conditional Cash Transfers and the Equity-Efficiency Debate', Working Paper Series 3280, The World Bank, Washington
What are the rationales, problems and trade-offs associated with Conditional Cash Transfers (CCTs)? How can the tension between efficiency and equity be addressed? This working paper, published by the World Bank, urges policymakers to address these issues holistically in a comprehensive framework for the design of CCT programmes. It argues that equity and efficiency motivations, whilst theoretically distinct, are simultaneously present in CCT programmes and suggests how tensions between them can be overcome.
Access full text: available online

Palacios, R., and Sluchynsky, O., 2006, 'Social Pensions Part 1: Their role in the Overall Pension System', Social Protection Discussion Paper No. 0601, World Bank, Washington
Are social pension schemes (SP) an effective way of alleviating poverty among the elderly in developing and transition countries? What issues need to be considered in formulating pension policy in developing countries? This study for the World Bank reviews the global experience with social pensions, finding that coverage and cost of schemes varies widely. Policy formulation needs to take country specific contexts, extent of coverage, and the relative poverty status of the elderly. More research is needed on fiscal trade-offs, incentives, and comparative analyses of SP versus direct social expenditure.
Access full text: available online

Ehrenpreis, D., (ed.), 2006, 'Social Protection: the Role of Cash Transfers', Poverty in Focus, United Nations Development, International Poverty Centre, Brazil
Can social protection policies – including cash transfer schemes – promote pro-poor growth and reduce vulnerability? This issue of Poverty Focus, published by the UNDP International Poverty Centre (IPC), provides a snapshot of innovative social protection programmes and donor-led efforts to harness social protection as a means of reducing the risks for poor people engaging in markets. It also calls for a broader conceptualisation of social protection to address the complex dynamics of poverty and the range of factors that keep people in poverty.
Access full text:available online

DFID, 2006, Managing the Fiduciary Risk Associated with Social Cash Transfer Programmes: DFID How To Note
What fiduciary risks do social cash transfer programmes, like pensions or household allowances, carry? How can international donors limit the diversion of these funds away from their intended beneficiaries? This paper from the Department for International Development outlines methods for appraising, minimising and monitoring the fiduciary risk of a cash transfer initiative. It argues that, while such losses are almost impossible to eliminate, they can be reduced by assessing and recording the risks, designing programmes to mitigate these risk and regular monitoring and evaluations to ensure the objectives of the programme are being met.
Access full text: available online

Public works programmes

Public works programmes are a form of conditional transfer in that cash or food is given in return for work on public infrastructure projects, such as road building.  This form of social protection is popular with donors as it is seen to create assets, produce jobs and be self-targeting (unattractive to the non-poor as such low wages or rations are paid).  However, some authors argue that such schemes create as much dependency on the state as cash transfers, prevent the poor from engaging in their normal cash-generating activities, are expensive to manage and often produce sub-standard assets.  

McCord, A., 2005, ‘Win-win or lose?  An Examination of the Use of Public Works as a Social Protection Instrument in Situations of Chronic Poverty’, paper presented at the conference on Social Protection for Chronic Poverty, University of Manchester, 23-24 February 2005
Are public works an appropriate policy choice to address chronic poverty (defined as poverty experienced over an extended duration)? This paper from the Public  Works Research Project of SALDRU, at the School of Economics in the University of Cape Town, examines the role of public works as a social protection instrument (that aims to reduce poverty and vulnerability) in the context of chronic poverty, focusing on South Africa and Malawi. The adoption of public works in situations of chronic poverty is based mainly on ideological preferences rather than on empirical evidence.
Access full text: available online

Subbarao, K., 2003, ‘Systemic Shocks and Social Protection: Role and Effectiveness of Public Works Programs’, Social Protection Discussion Paper Series no. 0302, World Bank, Washington
Public works (workfare) programmes have been important counter-cyclical interventions in both developed and developing countries for many years. This paper from the World Bank discusses the rationale behind such programmes and gives an overview of experiences in a number of countries – many of them in Asia and Africa – focusing on design features and how the programmes were selected and implemented. The paper concludes that the success of each programme depends very much on its design features. 
Access full text: available online

In-kind transfers

In-kind transfers are when non-cash resources (such as food) are passed to vulnerable individuals and households.  Most recent research favours cash payments to the poor, rather than food transfers, as they give people choice and can be spent on a wide variety of needs.  Fee waivers for basic services such as health and education are a form of social assistance in-kind transfers.  The following resources consider the role of fee waivers in effectively reaching the poor.

Katsura, H. and Romanik, C., 2002, ‘Ensuring Access to Essential Services: Demand-Side Housing Subsidies’, Social Protection Discussion Paper no 232, World Bank, Washington
the World Bank examines the strengths and the weaknesses of demand-side subsidy approaches for improving access to housing for poor households. It suggests that different subsidies are appropriate in different situations. Moreover, the design of housing-related subsidy programmes varies in response to philosophical, political and resource considerations.
Access full text: available online

For more information on fee waiver systems for health and education, please see the section on Health within the Service delivery Topic Guide.

Social insurance

Social insurance schemes are contributory programmes, where the beneficiaries make regular financial contributions in order to join a scheme that will reduce risk in the event of a shock.  Because health costs can be very high, health insurance schemes are a popular way of mitigating risk from illness.  However, some people argue that they are too expensive for the poor and should be complemented with social assistance.  Other types of social insurance schemes include contributory pensions, unemployment insurance, funeral assistance and disaster insurance.

Hatlebakk, M. and Eujen Olsen, O., ‘Evaluation of NPA’s Support to Mutuelle, a Voluntary Health Insurance Scheme in Rwanda’, CMI, Norway
Declining demand for health services in Rwanda prompted the introduction of community-based health insurance schemes called Mutuelles in 1999. Mutuelles have been supported by international donors such as the Norwegian People’s Aid (NPA) as instruments for increasing access to health services. This report by the Chr. Michelson Institute evaluates NPA’s support to health services in the Gisenyi district of Rwanda, focusing on its support to Mutuelles. Reform of the Mutuelles is recommended to increase their financial sustainability.
Access full text: available online

Ranson, M., 2002, ‘Reduction of Catastrophic Health Care Expenditures by a Community-Based Health Insurance Scheme in Gujarat, India: Current Experiences and Challenges’, Bulletin of the World Health Organisation, 80 (8)
Spending on medical care can be a major financial burden on poor people in developing countries. Can community-based health insurance schemes reduce health care costs for the poor? This study published by the World Health Organisation investigates the impact of a community-based medical insurance scheme in Gujarat, India on the use of health care and the financial burden of medical expenses. Such community-based health insurance schemes can protect poor households from the uncertain risks of medical expenses.
Access full text: available online

Labour market interventions

Labour market interventions focus on providing protection for the category of the poor who are able to work.  They vary between active and passive programmes.  Active programmes include training and skills development and employment counselling.  Passive interventions include unemployment insurance, income support and changes to labour legislation, for example in establishing a minimum wage or safe working conditions. 

DFID, 2004, ‘Labour Standards and Poverty Reduction’, UK Department for International Development, UK
How can labour standards contribute to poverty reduction? This paper, written by the UK Department for International Development (DFID), focuses on the nature and impact of labour standards in developing countries. Effective and well-judged implementation of labour standards can play an important role in reducing global poverty and achieving the Millennium Development Goals (MDGs). A commitment to core labour standards is part of a broader rights-based approach to poverty reduction.
Access full text: available online

Betcherman, G., Olivas, K. and Dar, A., 2004, ‘Impacts of Active Labor Market Programs: New Evidence from Evaluations with Particular Attention to Developing and Transition Countries’, Social Protection Discussion Paper Series no. 0402, World Bank, Washington
What is the impact of active labour market programmes (ALMPs) on reducing the risk of unemployment and increasing the earning capacity of workers in developing and transition countries? This report, published by the World Bank, claims that ALMPs generally have a positive impact on the employment prospects of participants, however, there are mixed results in many cases. Successful interventions require a comprehensive package of services and carefully targeted programmes that are oriented towards labour demand and linked to real workplaces.
Access full text: available online

Abrahart, A. and Verme, P., 2001, ‘Labour Market Policies: Theoretical Background’, Chapter 2 in Social Protection in Asia and the Pacific, ed. Ortiz, I., Asian Development Bank, Manila
Labour market policies (LMPs) are key elements of social protection strategies (defined as policies and programmes that aim to reduce poverty and vulnerability). But do LMPs actually facilitate social protection? This paper by the Asian Development Bank reviews LMPs in the context of social protection, drawing on experiences in Asia. Designing LMPs to contribute to social protection implies a shift in orientation from addressing labour market problems to a more comprehensive approach.
Access full text: available online

New additions