Category: Social Protection

Covid-19, Latin America and the Caribbean, New social contract, Social Protection

Social protection and sub-regional integration: fundamental instruments for post-COVID-19 social reconstruction

By Alfredo Suárez Mieses, Secretary-General, Central American Social Integration Secretariat (SISCA), and Gabriela A. Ramírez Menjívar, Head of the Multidimensional Poverty, Human Capital Development and Social Protection Area- SISCA

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

Photography by Presidency of the Republic of El Salvador
Photo: Presidency of the Republic of El Salvador

The COVID-19 pandemic is causing an unprecedented health, economic and social crisis that threatens to leave a deeply negative mark in the SICA region (Central America and Dominican Republic), particularly on employment, poverty, and inequality levels. The depth of the impacts will depend on multiple factors, including the duration of the pandemic, the public policy responses to contain and control it, a country’s economic structure, the strength of its health and social protection systems, and its level of vulnerability to global dynamics. Social protection is a crucial tool to minimize the costs of the crisis; it is also a crucial investment to make the recovery stronger and more inclusive, thus more sustainable.

Measures taken by most countries to flatten the contagion curve, along with the current international environment, have impacted economic activity with direct effects on income generation and living conditions for a large part of the population. According to the latest report of the Central American Economic Integration Secretariat (SIECA), the region’s Gross Domestic Product will contract by 6.8%. The fall in tourism and decline of economic activity in the United States, the main trading partner and the largest source of foreign direct investment and remittances in Central America, are already having negative effects. The Inter-American Development Bank (IADB) estimates remittances could contract by 10% for each point less of growth in the United States. Continue reading “Social protection and sub-regional integration: fundamental instruments for post-COVID-19 social reconstruction”

Development Matters
Covid-19, Latin America and the Caribbean, New social contract, Social Protection

Mitigating the impact of COVID-19 in Latin America: time to be bold

By Nora Lustig, Professor of Latin American Economics, Department of Economics, Tulane University and Jorge Mariscal, Adjunct Professor of International and Public Affairs, School of International and Public Affairs (SIPA), Columbia University

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

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Empty streets of Guatemala City during lockdown, March 2020. Photo: Shutterstock

COVID-19 has hit Latin America hard on two fronts. The pandemic and the lockdowns to contain the spread of the virus have shut down significant portions of the region’s economies. However, even if the pandemic were to miraculously disappear from the region, falling demand for exports and tourism, declining commodity prices, interruptions in the supply chain of inputs, shrinking remittances and unprecedented capital outflows are significantly affecting countries’ growth prospects.

The International Monetary Fund (IMF) in its recent World Economic Outlook (April 2020), predicts that the world economy could fall by 3% in 2020 and in Latin America by 5.2% – higher than that observed during the 2008-09 global financial crisis. Still, the IMF’s growth forecasts for Latin America compared to those for advanced countries seem overly optimistic and will likely be subject to downward revisions. Based on data for 48 countries, the OECD has estimated that each month of containment measures translates to an approximate decline in annual GDP growth of up to 2 percentage points. Considering the extent to which the region’s economies depend on trade, foreign direct investment (FDI), commodities, tourism and remittances, in the absence of strong policy responses, we would add an additional decline equivalent to one-third of the total shock. Latin American economies could thus face GDP contractions of 9-10%. Continue reading “Mitigating the impact of COVID-19 in Latin America: time to be bold”

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Covid-19, Employment, New social contract, Social Protection

The COVID-19 crisis: income support to informal workers is necessary and possible

By Laura Alfers, Director, Social Protection Programme, WIEGO, Rachel Moussié, Deputy Director, Social Protection Programme, WIEGO and Jenna Harvey, Global Focal Cities Coordinator, WIEGO

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

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Photo: Shutterstock

Income recovery in the informal economy will require broad and longer-term support

Juana Corman wakes at 2:00 a.m., as she has for decades, to travel across town to the distribution centre where she picks up stacks of newspapers to sell. Normally, she would sell from her dedicated kiosk to pedestrians on Lima’s busy streets, but under Peru’s mandatory stay-at-home order, her work has changed. Now, she sells the daily paper house-to-house – delivering critical information to a city on edge. In one respect, Juana Corman is more fortunate than many other informal workers in the city – as an essential worker she is able to continue working. However, selling door to door has meant a significant reduction in earnings at the same time as her costs have increased due to limited public transport and the need to purchase protective equipment. Continue reading “The COVID-19 crisis: income support to informal workers is necessary and possible”

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Africa, Covid-19, Français, Social Protection

Le COVID-19 en Afrique : Comment les systèmes de santé peuvent-il faire face ?

Par Riku Elovainio, Consultant en santé mondiale et protection sociale et Alexander Pick, Centre de développement de l’OCDE

Ce blog fait partie d’une série sur la lutte contre le COVID-19 dans les pays en voie de développement. Visitez la page dédiée de l’OCDE pour accéder aux données, analyses et recommandations de l’OCDE sur les impacts sanitaires, économiques, financiers et sociétaux de COVID-19 dans le monde.

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(Read this post in English)

La pandémie de Covid-19 menace de submerger les systèmes de santé partout dans le monde. Le virus est désormais présent dans 52 pays africains. Les systèmes de santé de la région pourront-ils faire face, alors que beaucoup étaient déjà sous pression avant la pandémie et n’ont pas de capacité de réserve ? Un soutien international sera crucial pour aider les pays africains à réagir, mais les efforts pour renforcer les services de santé de la région à court terme se heurtent à une série d’obstacles qui vont au-delà du secteur de la santé lui-même. Même une crise de cette ampleur ne doit pas occulter les priorités à long terme des systèmes de santé africains : y répondre est essentiel non seulement pour renforcer leur capacité à gérer les besoins quotidiens, mais aussi pour faire face à la prochaine crise. Continue reading “Le COVID-19 en Afrique : Comment les systèmes de santé peuvent-il faire face ?”

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Covid-19, Employment, Social Protection

Why protecting informal economy workers is so critical in time of COVID-19

By Anders Gerdin, Swedish International Development Cooperation Agency (Sida), and Alexandre Kolev, Head of the Social Cohesion Unit, OECD Development Centre

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

The outbreak and spread of COVID-19 is having and will have a disproportionate impact on informal economy workers across the world, especially in developing countries, where they represent about 70% of the workforce. Many of these informal economy workers are poor and most lack labour, social and health protection. As they often simply cannot implement social distancing, they are particularly exposed and vulnerable to the pandemic. In turn, entire economic sectors, of which informal workers are a mainstay, could collapse. The food economy is a case in point. The combination of border closures and the likely shortages of informal workers due to confinement measures may put food security at risk. Urgent policy action is needed to protect these workers and recognise their value as essential service providers.

Continue reading “Why protecting informal economy workers is so critical in time of COVID-19”
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Africa, Covid-19, Social Protection

COVID-19 and beyond: How can Africa’s health systems cope?

By Riku Elovainio, Consultant in global health and social protection and Alexander Pick, OECD Development Centre

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

globe-life-line-AFRICA(Lire ce blog en français)

The Covid-19 pandemic threatens to overwhelm health systems everywhere. With the virus now present in 52 African countries, will health systems in the region, many of which were under strain before the pandemic and have no reserve capacity, be able to cope? International support will be crucial in helping countries in Africa respond, but efforts to strengthen the region’s health services in the short term confront an array of obstacles that extend beyond the health sector itself. Even a crisis of these proportions should not obscure the long-term priorities for Africa’s health systems, on which depends its capacity to deal with day-to-day demand, let alone the next crisis.

The West African Ebola epidemic of 2014-2016 exposed the affected countries’ limited capacity to deal with a widespread disease outbreak. The lessons for health systems across Africa were understood yet have not prompted a step change in public health services, even in the countries where the Ebola crisis struck. While there is great variation across Africa (South Africa’s health system is clearly very different from South Sudan’s, for example), many countries exhibit the same gaps in their health systems that make it extremely difficult to scale up a short-term response.

Continue reading “COVID-19 and beyond: How can Africa’s health systems cope?”

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Gender, Women and Girls, Human Development, Policy, Private Sector, Social Protection

The Case for Gender-Smart Work Policies: Key to Equality, Good for Business

LJD

By Sandie Okoro, Senior Vice President and World Bank Group General Counsel

This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). This blog is also part of a special series marking the launch of the updated 2019 Social Institutions and Gender Index (SIGI)

We have witnessed numerous efforts to enhance gender equality throughout the past decade. Legal reforms are taking place worldwide, and discriminatory laws are slowly being struck down in favour of parity.[1] But despite developments in employment laws, inequality persists. Women’s labour participation has been stagnant, and last year, the already low number of female CEOs tumbled even further.[2] As the provider of 90% of jobs worldwide,[3] the private sector plays a significant role in the push for gender equality in employment. By adopting gender-smart policies, companies may be able to fill the gaps unaddressed by laws and minimise the impacts of inequality in the workplace. Although not all women work in these institutions, such policies are nonetheless impactful for those who do and could set in motion a new and replicable culture of work – one that is both business-smart and more gender-inclusive.

Continue reading “The Case for Gender-Smart Work Policies: Key to Equality, Good for Business”
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Migration, New social contract, Social Protection

Social protection and risk: the ultimate root cause of migration?

By Jason Gagnon, Development economist / PGD coordinator, OECD Development Centre and Jessica Hagen-Zanker, Senior Research Fellow, Overseas Development Institute
 

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Receiving cash transfers in Freetown, Sierra Leone (photo: Dominic Chavez/World Bank)

According to recent estimates, 258 million people in the world were living outside of their country of birth in 2017, up from a total of 161 million in 1990. That represents an increase of 60%. Under different circumstances, most migrants would never migrate in the first place; they would choose to stay close to their family and friends, and the food, music and culture they cherish. Migration – in these cases – is the consequence of something gone wrong.

So why do they leave? Poverty and lack of opportunities for a better future are the typical culprits. But it’s more complicated than that.

Risk is another factor that pushes many people to migrate. The mere risk of falling (back) into poverty can motivate migration. Indeed, migration theory has long described migration as a coping strategy to deal with risk. Empirical evidence confirms this. A 2016 qualitative study on Bolivia found that (internal) migration was a typical response by rural households in response to risks related to land access, insufficient work opportunities and low agricultural productivity. More evidence (on China) suggests that attitude towards risk can even determine who migrates from within the household. Continue reading “Social protection and risk: the ultimate root cause of migration?”

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Gender, Women and Girls, Policy, SDGs, Social Protection

Tackling Employer-Supported Childcare: A journey from why to how

By Rudaba Zehra Nasir, Global Lead for Tackling Childcare and Women’s Employment, IFC Gender Secretariat [@RudabaNasir]

The OECD Policy Dialogue on Women’s Economic Empowerment aims to generate evidence and guidance for policy makers and development partners on how to unlock women’s economic potential. The latest publication, “Enabling Women’s Economic Empowerment: New approaches to unpaid care work in developing countries”, presents evidence-based analysis and policy guidance on what works to recognise, reduce and redistribute women’s unpaid care work and achieve SDG 5.4 as an entry point for promoting women’s economic empowerment in developing countries. Accessible quality childcare is one solution where both governments and the private sector can contribute, as explored further in this blog.

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My son calls me ‘Aunty’

Shazia, a mother to a toddler, migrated to Dhaka to work at a garment factory. “When I visit my village, my son calls me ‘Aunty,’” she says, with tears in her eyes. Separated from his mother for long periods of time, the son barely knows her.

I met Shazia last year at the factory where she works. She feels conflicted about leaving her son in her mother-in-law’s care. “Sometimes I think about quitting my job and going back to raise him myself.”

Shazia is not alone. The more parents we talk to in focus groups, interviews and surveys from Bangladesh to Fiji, the more it becomes clear that they share similar stories. Parents report feeling stressed and guilty, taking time off from work or being present but not productive, quitting due to lack of family-friendly workplace support, and low levels of awareness and trust in available childcare options.

Continue reading “Tackling Employer-Supported Childcare: A journey from why to how”

Lia Beyeler