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.

shutterstock_1716099655 — 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”

Development Matters12 May 20209 November 20201 Comment

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.

(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?”

Development Matters7 April 202028 April 20206 Comments

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

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

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.

Lia Beyeler23 July 20198 March 20232 Comments

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.

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 Beyeler29 May 201920 August 2019

Gender, Women and Girls, New social contract, Social Protection

What will it take for universal social protection to avoid the gender inequality trap?

By Alexandre Kolev, Head of the Social Cohesion Unit, OECD Development Centre

This blog is part of a special series marking the intersection between
the 2019 Social Institutions and Gender Index (SIGI)/
the 2019 SIGI Global Report and work on Social Protection

The author reflects on points raised in Development Matters blogs on the same topic by Shahra Razavi, Gaelle Ferrant and Caroline Tassot, and Liévin Feliho

Many very relevant things have been said about the adverse impact of gender-blind social protection systems on gender equality. Yet, at a time when many countries are embracing universal social protection, more clarity is needed on who amongst potential beneficiaries are most at risk of falling into the gender inequality trap. In the absence of gender-sensitive social protection reforms, my take is that the risk may fall disproportionately on those who may not be eligible for social assistance and who rely exclusively on social insurance systems. Indeed, gender-blind social insurance creates enormous space for perpetuating gender inequality.

Understanding why begins with recalling that social protection typically encompasses both social insurance and social assistance.
On the one hand, social assistance programmes are not conditional on previous payments of contributions. They are usually financed through general taxation and external resources. In developing countries, social assistance schemes have witnessed the most rapid growth amongst social protection programmes. By and large, social assistance, including cash transfers and benefits related to maternity and children, and social pensions have been instrumental in addressing gender-specific constraints in the labour market and society in general, increasing women’s income security and labour force participation. Yet, some specific forms of social assistance schemes are not free from criticism. Shahra Razavi rightly blames the paternalistic conditionalities often attached to cash transfer schemes for not acknowledging women as workers but instead reinforcing their traditional role as caregivers. Conditional cash transfers can also increase the opportunity costs for women to participate in the labour market by exposing them to greater insecurity if they have to travel long distances to reach collection points or health facilities. Still, I think it is fair to say that gains for women from expanding social assistance outweigh the costs. Continue reading “What will it take for universal social protection to avoid the gender inequality trap?”

Development Matters29 March 20199 November 2020

Gender, Women and Girls, New social contract, Policy, Social Protection

Social protection systems that work for women’s rights

By Shahra Razavi, Chief of Research and Data, UN Women

This blog is part of a special series marking the intersection between
the 2019 Social Institutions and Gender Index (SIGI),
the 2019 SIGI Global Report and work on Social Protection

Gender-responsive social protection systems have been very effective in mitigating the inequalities generated by markets. Take the case of work-related benefits, such as maternity and parental leave and sickness and unemployment benefits. Thanks to these transfers, the gender gap in disposable incomes in a range of high- and middle-income countries becomes much smaller than the gap in market incomes, while affordable childcare services have been pivotal in giving women, especially mothers, a foothold in the labour market.

Globally, however, only 41% of mothers with newborns receive a maternity benefit, with coverage rates as low as 16% in Africa. Widespread labour market informality is at the root of this exclusion. Yet, in Chile, Costa Rica and South Africa, social insurance-based leave schemes have been extended to cover informal wage workers, such as domestic workers and seasonal agricultural labourers. Mongolia provides an interesting combination of contributory and non-contributory benefits, including maternity cash benefits to all pregnant women and mothers of infants regardless of their contribution to the social insurance scheme, employment status or nationality. In recent decades, child- and family-related allowances have also gained traction in developing countries. Their aim is to offset some of the costs of raising children while promoting basic income security and investing in children’s capabilities. Such schemes mostly target mothers on the premise that women are more likely than men to prioritise child-oriented spending.

Continue reading “Social protection systems that work for women’s rights”

Development Matters13 March 20199 November 20201 Comment

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