Social Safety And Social Safeness Net

What is sociable protection and back-up?

Social cover is a wide set of open public arrangements and devices that help individuals, homeowners and areas in managing dangers and shocks well, assure a basic level of consumption to the extreme poor. Public protection includes: public insurance, social assistance, protection nets, social services, legal and regulatory security. So that communal protection should match family, community, and market mechanisms for protect the susceptible against livelihood risk, and enhance the social position and assisting the very poor.

Safety nets are essentially income maintenance programs that protect a person or home against two negative results: a chronic incapacity to work and earn, and a decrease in this capacity brought on by imperfectly predictable lifecycle incidents (such as the sudden death of any bread victor), sharpened shortfalls in aggregate demand or expenditure shocks (through economical recession or changeover), or very bad harvests. Safety net programs provide two important redistribution (such as exchanges to disadvantaged categories) and insurance (such as drought alleviation). (World Loan company, 2003)

Social safety net is non-contributory, ex post treatment, it is purchased by the federal government from general income includes taxation and development assistance, in order to deal with existing poverty or shocks which may have already took place and targeted to the poor and vulnerable. Well-designed back-up can protect the poor for a while and it also can promote growth, for example, it can enable the poor to activate throughout the market by broadening their opportunities to take chances, diversify livelihoods, innovate, invest the individuals capital of their children etc.

Safety net equipment include: unconditional cash and near-cash exchanges, for case, non-contributory old age pensions and disability payments; conditional transfers includes conditional cash exchanges such as scholarships and conditional in-kind exchanges such as food rations and nutrition and feeding programs; unconditional food and other in-kind transfers; cost waivers for health, education and other basic services; basic commodity price subsidies includes for food or energy; general population workfare.

Social risk management concepts

Arrangements to manage risks can be made in advance, before a surprise has took place risk reduction and risk mitigation can be studied into account. Risk reduction is arrangements which make it not as likely that distress will take place, and risk mitigation is plans that ensure that if a shock does occur, the consequences are small alternatively than large. Moreover arrangements to control risks can also be made after having a shock has happened, coping ways of deal with the impact of the shock

Links between poverty, vulnerability and growth

The poor are the most vulnerable group, they are exposed to diverse risks, so are much more likely to put up with a shock; they have fewer resources to deal with these dangers, so whenever a shock occurs, the effects of your shock are more serious for the indegent; the rich are able insurance, or use cost savings to cope, but the poor generally can't. High vulnerability makes the poor avoid risk, so they are not able or unwilling to engage in higher risk or more return activities. Therefore lowering vulnerability is thus both a way and a finish: as a means, lowering vulnerability expands opportunities and helps growth; as an end, lowering vulnerability reduces poverty, which really is a goal in its own right.

Shocks make a difference people as individuals or groups


Groups(geographical areas, occupational groups)


Accident, illness, later years, house melts away down, robbery, family business fails etc

Macroeconomic and labor market shocks, warfare, riots, mother nature disasters, disease epidemic etc

Safety net plays multiple jobs in nationwide development policy

Safety net takes on multiple jobs in national development policy, such as reduce poverty and inequality straight by elevating the living standards of those at the bottom of society; help households take care of risk and vulnerability that experience a shock to keep their children in university, to keep eating enough, to avoid providing productive assets; enable homeowners to make long-term investment funds; encourage homes to innovate, take some dangers, invest in their children's education and health (real human capital of another era); help Governments make plan reforms and ensure political support for reform by compensating those who put up with short-term losses scheduled to reforms needed for long-term economic expansion. Safety net is merely one part of an overall poverty decrease strategy.

ЇјЛ†SourceЇјKalanidhi Subbarao. " Friendly Safety Nets: Ideas and Definitions. " World Loan company. Їј

The number above demonstrate what safeness nets has and belongs, basic safety nets contains and also belongs an integral part of social protection, equity, communal risk management and poverty lowering. Equity includes land redistribution, enforcement of agreements and property rights, general education and safety nets. Poverty Decrease is made up of providing services and facilities to the indegent, and safeness nets provide security. Community risk management products insurance and safeness nets.

Social insurance (cultural security)

These are ex ante, contributory strategies to mitigate risk that folks pay small amounts (contributions) beforehand, generally on a regular basis. This entitles those to benefits when shocks or occasions occur, for example health insurance, contributory old-age pensions and unemployment insurance.

Social insurance is most easily provided for non-poor groups in formal career who can pay contributions; have just a little spare cash left after buying food and other immediate needs; and have regular, secure wage incomes. Public insurance is vital in developed countries and middle-income producing countries, and typically plays an inferior role in low income countries. However, some low income countries are piloting insurance techniques for the indegent, In Ethiopia and India, the rainfall index-based crop insurance programs have been done very effectively. The catastrophe insurance programs have been done perfectly in Bangladesh.

Steps in an overall strategy in developing a national security nets system

Identify major risks and vulnerable categories by collecting and examining household data;

Review existing programs and identify spaces in coverage

Review options for equipment to address each of these gaps

Identify available financial envelope, such as increase taxes, reallocate existing general public spending from inefficient and ineffective programs.

Review institutional capacity and weaknesses

Choose a mixture of instruments to protect major dangers and organizations. "Weave" different programs and devices alongside one another into a coherent system. In a poor country with limited capacity, likely to get started on with safe practices nets, but build-up public insurance over time

Social back-up in Egypt

One out of every five people is poor in Egypt, and the poverty increased mildly between 2001 and 2005 from 18. 36 percent to 19. 63 percent. The federal government of Egypt has worked on reforms of economic, social and political transformation. This reform driven by the necessity to raise sustainable financial development, and ensure that the indegent reap the benefits of it. The role of condition also redefined, the state can no longer be observed as the job service provider, goods and subsidies company. But the condition is confronted with the task of poverty reduction, and oversees the public interest and defends the indegent and prone. Furthermore, the Government must redefine the public safety net to improve people assists by expand programs in struggling with poverty.

Poverty continues to be a major insurance plan challenge

Poverty continues to be a major task in Egypt, with one out of every five people (about 13. 6 million people) living below the poverty line. In order to attack poverty, a much better understanding of who the indegent are should be included initially. In Egypt, almost three quarters of the poor live in rural areas, in Top Egypt, the majority of them employed in agriculture and development and with little education.

Strengthening the interpersonal safety net

In Egypt, while the social back-up provide assistance to the indegent critically, profit still many more non-poor individuals and group than poor, and do little to reduce overall poverty.

Egypt spends about 2 percent of its GDP on the central social back-up, a roughly steady level since 2000. It generally does not have every type of program above, but resources are specialized in

General social protection (5 percent of GDP);

Consumer subsidies on food (1. 7 percent of GDP);

SFD (Social Account for Development) programs (0. 18 percent of GDP); and

Social assistance cash exchanges from MOISA (Ministry of Insurance and Social Affairs) (0. 12 percent of GDP).

The largest talk about of resources, 8. 1 percent of GDP, is spent on energy subsidies to manufacturers and consumers which serve as an important back-up but also absorb resources that may be better directed to the indegent. (World Loan provider, 2005) Those statistics is significantly below most Europe.

So that reform of the back-up is important for three reasons: firstly, this program often will not reach the poor and the fewer subsidies can not provide important assistance. Second of all, programs are too expensive when subsidies taken into account. And thirdly, inefficient programs that with overlapping beneficiaries and goals.

Administration of Friendly Assistance Programs in Egypt

Eligibility for MOISA (Ministry of Insurance and Public Affairs) social assistance cash-transfer programs require applicant supported with document including family delivery certificates and salary information at an area MOISA office. This assistance program supply more subsidies to females than males. Application is followed up with a home visit by communal workers and a decision is made within 60 days and nights. Total expenses for the programs were 1. 1 billion of Egyptian Pound in 2004, this number includes pension and cultural assistance functions.

Geographic targeting

The geographic aim for should target in overall poverty lowering, but not reduces poverty in the poorest areas. If all the prevailing resource specialized in poorest area, no matter the resident is poor or not, the even distribution would reduce poverty in top of the Rural areas. However, poverty increase just a bit in the the areas. Nowadays Egypt use basic poverty map to guide projects, which includes regularly home income, usage and costs.

Smart Safety Net in Egypt

The task intends to create E-Government, which brings all information and services of government for people online, and make service better. This project started in 2005, and it will be finished in 2010 2010. The cards itself contains a number of information as the amount of family members, delivery, fatality and other eligibility criteria, which will automatically check the rations and accurate amounts transferred. Authorities of Egypt expected the smart-card system will decrease the price tag on providing subsidies by 10 percent, and amount of keeping is 400 million Egyptian pounds yearly. That is a pilot task, which will gradually be extended nationally. (Ministry of State for Administrative Development, www. mcit. gov. eg )

Conditional Cash Copy Programs (CCTs)

Conditional cash copy programs (CCTs) are a comparatively new tool that looks for to foster real human capital development. The cash helps reduce poverty in its right, compensates family members for the chance cost of changing action, and is likely to contribute to long-term real human capital development for the young. (Rawlings and Rubio, 2004) The prospective more targets vulnerable households with children. In order that cash transfer is definitely an important mechanism to alleviate poverty, such as education and basic health care must be accessible for the indegent. CCTs experienced a great impact in a few countries, for occasion, Mexico provided additional equipment and drugs in order to meet increased health services demanded; Nicaragua provided professors and pay for institution materials; Honduras provided immediate CCTs to schools and health centers.

CCTs become more popular in Latin America, Jamaica used CCT to changed former food stamps and interpersonal assistance programs; Mexico used CCT to changed the tortilla subsidy; Brazil created the largest CCT in the growing world by consolidating four cash transfer programs in to the Bolsa Familla program.

Using Nicaragua as an example, CCTs have a great impact in education, health insurance and consumption

Nicaragua CCTs

Program Impact


(primary university)


(children under 2 years-old)


(Per capita annual)

+ 21. 7%

+18. 3%

+N$ 753

CCTs are also a means to consolidate disparate cash transfer programs into better, effective targeted interventions to support human capital development. (Ayala, 2003)


Social safeness nets are the most important priority, which package with existing poverty or shocks have previously occurred and geared to the indegent and susceptible. Before insurance policy making and action applying, several questions should be find out in the beginning: Who are the poor and prone group? What kind of risk face now? What programs against what dangers? What programs cover what kind of organizations? Where is the distance? What's the new task?

For each program and device, the steps in developing national social basic safety nets can be: first of all set objects; subsequently develop an implementation composition to clear define the institutional functions and responsibilities; finally, develop mechanisms for targeting, enrolment and payment, use technology to help plan making and action putting into action, such as use poverty maps and smart cards in Egypt; finally, monitory and evaluate during the programs, that can be good experience to learn. While getting better knowledge of poverty triggers and dynamics, however communal protection and cultural safe practices nets still face many obstacles, there's a need for a long-term technique to fulfill a number of specific spaces in the foreseeable future.

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