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Social Protection and Economic
Development



Iene Muliati

International Policy Dialogue on Social Protection
Seoul, 2 November 2012
Social Protection as Investment in Growth

 Social justice and human rights
    Basic life necessities
    Enhance dignity
    Caring, just and prosperous society

 Growth with equity
    Integrate economic growth and poverty reduction master plans
    Ensure poor participate equally in economic growth

 Facilitate economic transition
    Protect those who lose jobs due to economic transition
    Maintain the peace and political support for transition




                                                                    2
Social Protection as Investment in Growth

 Empower the poor
    Greater equality of opportunity for all
    Improve access to education, health, infrastructure, public services
    Improve access to financial services and credit

 Enhance employment opportunities
    Mobilize savings of the poor for investment
    Create more flexible labor force
    Creating quality jobs




                                                                            3
Social Protection Tools

 Social assistance programs
    Protect the poor and vulnerable
    Prevent irreversible loss of human capital – links to education and
     health outcomes
    Rapid response to crises

 Social insurance
    Basic insurance coverage for workers against shocks
    Use pooling power of the central government
    Mobilize additional financial resources for health and retirement
    Increases labor mobility

 Labor market interventions
    Public works programs (work-fare)
    Skill building and job search



                                                                           4
Social Protection Challenges

 Targeting

 Efficient administration
    ID numbers
    Contribution collection
    Historical records
    Maximizing use of technology

 Changing demographics
    Aging society
    Increasing productivity to offset loss of demographic dividend

 Government risk management capacity




                                                                      5

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Social Protection and Economic Development - World Bank

  • 1. Social Protection and Economic Development Iene Muliati International Policy Dialogue on Social Protection Seoul, 2 November 2012
  • 2. Social Protection as Investment in Growth  Social justice and human rights  Basic life necessities  Enhance dignity  Caring, just and prosperous society  Growth with equity  Integrate economic growth and poverty reduction master plans  Ensure poor participate equally in economic growth  Facilitate economic transition  Protect those who lose jobs due to economic transition  Maintain the peace and political support for transition 2
  • 3. Social Protection as Investment in Growth  Empower the poor  Greater equality of opportunity for all  Improve access to education, health, infrastructure, public services  Improve access to financial services and credit  Enhance employment opportunities  Mobilize savings of the poor for investment  Create more flexible labor force  Creating quality jobs 3
  • 4. Social Protection Tools  Social assistance programs  Protect the poor and vulnerable  Prevent irreversible loss of human capital – links to education and health outcomes  Rapid response to crises  Social insurance  Basic insurance coverage for workers against shocks  Use pooling power of the central government  Mobilize additional financial resources for health and retirement  Increases labor mobility  Labor market interventions  Public works programs (work-fare)  Skill building and job search 4
  • 5. Social Protection Challenges  Targeting  Efficient administration  ID numbers  Contribution collection  Historical records  Maximizing use of technology  Changing demographics  Aging society  Increasing productivity to offset loss of demographic dividend  Government risk management capacity 5