What's next for social protection in light of COVID-19: country responses - IPC-IG
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A publication of
The International Policy Centre for Inclusive Growth
Volume 19, Issue No. 1 • March 2021
What's next for
social protection in light of
COVID-19: country responses
Policy in Focus is a regular publication of the International Policy Centre for Inclusive Growth (IPC-IG).
Published by the International Policy Centre for Inclusive Growth (IPC-IG) The IPC-IG disseminates the findings of its work in progress to encourage
the exchange of ideas about development issues. The papers are signed by
Policy in Focus, Volume No. 19, Issue No. 1, March 2021 the authors and should be cited accordingly. The findings, interpretations,
What's next for social protection in light of COVID-19: and conclusions that they express are those of the authors and not
country responses necessarily those of the United Nations Development Programme or the
Government of Brazil. This publication is available online at www.ipcig.org.
Copyright© 2021 International Policy Centre for Inclusive Growth
For further information on IPC-IG publications, please feel free to contact
The IPC-IG is a partnership between the United Nations and the publications@ipcig.org.
Government of Brazil to promote learning on social policies. The Centre
specialises in research-based policy recommendations to foster the Cover photo: Renato Alves/Agência Brasília .
reduction of poverty and inequality as well as promote inclusive growth. Some of the photographs used in this publication are licensed under
The IPC-IG is linked to the United Nations Development Programme The Creative Commons license; full attribution and links to the individual
(UNDP) in Brazil, the Ministry of Economy (ME) and the Institute for Applied licenses are provided for each.
Economic Research (Ipea) of the Government of Brazil. Rights and permissions—all rights reserved. The text and data in
this publication may be reproduced as long as the source is cited.
Director: Katyna Argueta
Reproductions for commercial purposes are forbidden.
IPC-IG Research Coordinators: Alexandre Cunha, Fábio Veras Soares,
Mariana Balboni and Rafael Guerreiro Osorio Acknowledgements: The Editors would like to express their
sincere appreciation to João Pedro Dytz, Luis Vargas Faulbaum,
Specialist Guest Editors: Charlotte Bilo, Roberta Brito, Maya Hammad, Anna Carolina Machado, Yannick Markhof, Nurth Palomo,
Aline Peres and Mariana Balboni (IPC-IG) Camila Pereira, Lucas Sato, Fábio Veras Soares and Anaïs Vibranovski for
reviewing and translating some of the articles in this issue. We would also
In-house Editor: Manoel Salles like to thank the whole socialprotection.org team and all partners who
made the e-conference ‘Turning the Covid-19 crisis into an opportunity:
Publications Manager: Roberto Astorino What’s next for social protection’ (5-8 October 2020) possible.
This issue is a direct result of the conference.
Copy Editor: Jon Stacey, The Write Effect Ltd.
Art and Desktop Publishing: Flávia Amaral and Priscilla Minari ISSN: 2318-8995
Summary
7 How countries in the global South have used social protection to attenuate
the impact of the COVID-19 crisis?
Charlotte Bilo, Maya Hammad, Anna Carolina Machado, Lucas Sato, Fábio Veras Soares and Marina Andrade
11 How might the lessons from the response to COVID-19 influence future
social protection policy and delivery?
Rodolfo Beazley, Valentina Barca and Martina Bergthaller
14 The COVID-19 crisis: A turning point or a tragic setback?
Shahra Razavi
17 The main lesson of COVID-19: Making social protection universal, adaptive and sustainable
Michal Rutkowski
20 Emergency Aid: The Brazilian response to an unprecedented challenge
Nilza Yamasaki and Fabiana Rodopoulos
22 Tools to protect families in Chile: A State at the service of its people
Alejandra Candia
24 Colombia’s experience in addressing the COVID-19 crisis
Laura Pabón
26 Lessons learned from Jordan’s national social protection response to COVID-19
Manuel Rodriguez Pumarol, Ahmad Abu Haider, Nayef Ibrahim Alkhawaldeh, Muhammad Hamza Abbas and Satinderjit Singh Toor
29 Morocco’s social protection response to COVID-19 and beyond—
towards a sustainable social protection floor
Karima Kessaba and Mahdi Halmi
32 The role of Namibia’s civil registration and identity system in the country’s
COVID-19 social response
Anette Bayer Forsingdal, Tulimeke Munyika and Zoran Đokovic
35 The Republic of Congo’s social protection response before and during COVID-19:
Perspectives from the Lisungi programme
Martin Yaba Mambou, Lisile Ganga and Cinthia Acka-Douabele
37 Tackling poverty amidst COVID-19:
How Pakistan’s emergency cash programme averted an economic catastrophe
Sania Nishtar
40 Cambodia’s social protection response to COVID-19
Theng Pagnathun, Sabine Cerceau and Emily de Riel
43 How to overcome the impact of COVID-19 on poverty in Indonesia?
Fisca Aulia and Maliki
Editorial
The wide-ranging consequences of the COVID-19 As a collaborative platform, socialprotection.org aimed at
crisis have had a huge impact on the world of social providing an extensive range of methodologies during
protection. The importance of providing comprehensive the conference, with a focus on giving each attendee the
and adequate social protection benefits to all has opportunity to make their own personal learning journey,
become more evident than ever. The pandemic has develop practical take-aways and action points from the
alerted national governments and the international conference and share results during the event and beyond.
community to the urgency of accelerating progress in Besides sending questions and engaging in discussions
building and expanding social protection systems and before, during and after the event, participants were invited
programmes to leave no one behind. Governments to participate in a self-reflection activity on their country’s
across the globe have mobilised a huge number of responses to the COVID-19 crisis by adding notes to a virtual
resources and effort to protect those who have been wall created especially for the event. To demonstrate their
most affected by the crisis. So far, countries with more commitment to social protection, participants were also
solid social protection foundations have been able to asked to list practical actions that they could pursue.
respond more rapidly and efficiently.
Adapting face-to-face engagement to online formats,
In this context, from 5 to 8 October 2020, the with participants from different country and institutional
socialprotection.org team organised a global backgrounds, was a learning experience itself and
e-conference titled ‘Turning the COVID-19 crisis into demanded meticulous planning and creativity from
an opportunity: What’s next for social protection?’. our team members and partners, who worked around
The conference functioned as a virtual live space for the the clock to make this conference as participatory and
global social protection community to share innovative inclusive as possible.
ideas and practical insights, and brainstorm about the
Given the success of the e-conference and to further
future of social protection in a post-pandemic world.
disseminate its key discussions, the socialprotection.org
The e-conference also marked socialprotection.org’s fifth
platform and the International Policy Centre for Inclusive
anniversary, consolidating the platform’s position as the
Growth (IPC-IG) have developed two special issues of Policy
leading tool for knowledge-sharing and capacity-building
in Focus. This first issue focuses on experiences from countries
on social protection.
in Asia, the Middle East and North Africa, sub-Saharan
To ensure the active participation of a broad and diverse Africa, and Latin America and the Caribbean, as well as the
audience, a total of 72 sessions across three different overall lessons for the future, including shock-responsive
time zones were organised, with inputs from partners and universal social protection. The second issue provides
and collaborators across 55 different organisations. a thematic focus, delving in more depth into the main
Sessions were held in English, French and Spanish, with topics discussed during the round tables, such as financing,
simultaneous translation. This effort guaranteed the universal basic income, linkages to food security and
involvement of more than 2,100 participants among employment, as well as gender-, child- and disability-sensitive
social protection practitioners, policymakers, academics programmes, among others. All articles were written at the
and enthusiasts from all over the world. end of 2020 by panellists and/or organisers of the conference.
For the recordings of all sessions and more information about
On the first day of activities, a regional lens was used
the conference, see: .
to assess the various social protection responses across
different regions. Day 2 applied a thematic approach to We hope that the following set of articles contributes
address specific questions related to COVID-19 and beyond to the debate by communicating the urgency and
through round tables, expert clinics and virtual booth talks. importance of providing comprehensive and adequate
The third day was reserved for side events organised by social protection to all—especially in times of crisis.
some of our partners. Finally, on the fourth and last day
of the event, special guests reflected on the discussions,
lessons learned and conclusions of the previous days. Aline Peres, Mariana Balboni, Charlotte Bilo and Roberta Brito
6
How countries in the global South have
used social protection to attenuate
the impact of the COVID-19 crisis?1
Charlotte Bilo,2 Maya Hammad,2 objective to provide inputs for the Emergency cash and in-kind transfers
Anna Carolina Machado,2 Lucas Sato,2 assessment of the shock-responsiveness were the most prevalent social assistance
Fábio Veras Soares3 and Marina Andrade 2 of countries’ social protection systems.4 instrument used in the global South.
Preliminary findings of the analysis were Except for Latin America and the
Unprecedented social protection presented during the regional panels of Caribbean (LAC), subsidies on food,
measures have been adopted worldwide the global e-conference organised by utilities, housing and bills were also
in response to the COVID-19 pandemic, socialprotection.org on 5 October 2020.5 common, especially in SSA. Furthermore,
with a view to: (i) supporting the infected while very few measures adapting school
population so that they can afford the Policy overview feeding programmes were identified
direct and indirect costs of treatment; The majority (61 per cent) of the measures in South Asia (SA), East Asia and Pacific
(ii) compensating workers for the mapped were classified as social assistance, (EAP), SSA and the Middle East and
immediate loss of income and jobs due followed by 26 per cent for labour market, North Africa (MENA), a sizeable number
to restrictions on business operations and 13 per cent for social insurance. were found in LAC.7 An important policy
as part of containment measures, and In sub-Saharan Africa (SSA) social assistance change that was observed during the
incentivising compliance with them; measures represented 77 per cent of all crisis was the shift from targeting only
and (iii) responding to the negative measures adopted. The region also had the the poorest populations to also including
impacts of the pandemic on smallest share of social insurance measures the ‘missing middle’, mainly informal
employment, incomes and livelihoods (4 per cent). These numbers can be workers who were often not receiving
beyond the immediate effects of partial explained by the large size of the informal any social protection benefits before
or total lockdowns. The pursuit of these sector and the consequent low level of (see the articles on Morocco, Brazil,
objectives by countries, particularly social insurance coverage. Colombia and Chile in this issue). In total,
in the global South, has revealed the 76 out of 384 programmes for which
crucial importance of building inclusive, The literature on shock-responsive information was available explicitly
comprehensive and efficient social social protection broadly classifies social included informal workers.
protection systems that can be rapidly protection responses into horizontal
scaled up in times of crisis. and vertical expansions. Horizontal As for social insurance, unemployment
expansions refer to: (i) the inclusion of new insurance and contributory pensions were
Since the outbreak of the pandemic in beneficiaries in existing programmes,6 the most prevalent instruments used
March 2020, the IPC-IG research team even if only temporarily; and/or globally. Out of 31 responses through
and partners have mapped at least 786 (ii) the creation of new (emergency) unemployment insurance instruments,
(as of January 2021) social protection programmes, which can also be linked 14 countries created new temporary
responses in the global South (in 129 to existing programmes or at least unemployment benefits to protect
countries and territories), namely social build or piggyback on their systems workers who lost their jobs due to the
assistance, social insurance and labour (e.g. payment mechanisms, registries). COVID-19 crisis. The other 17 responses
market measures. While this number is Vertical expansions refer to: (i) increases adapted existing schemes mainly by
impressive, it does not say much about in benefit values; and/or (ii) adding a new waiving certain requirements such as
how many people they cover and how component (e.g. additional services) to the minimum contribution period or
adequately their benefits meet people’s existing programmes. extending the duration of benefits and/or
needs. This article aims to: increasing values. Moreover, contributory
(i) provide an overview of the main Looking at all the social protection measures pensions permitted anticipated
social protection measures adopted mapped, 70.5 per cent were horizontal withdrawals (of provident funds) or
in the global South to respond to the expansions, either through existing payments of benefits. Other measures
COVID-19 crisis; (ii) highlight innovations programmes (13.5 per cent) or emergency included the expansion of or changes to
in the process to identify, register and schemes (57 per cent). On the other hand, the coverage of health insurance services
deliver social protection measures to 23.3 per cent of the measures were vertical (more prevalent in EAP and LAC) or
beneficiaries in the context of the crisis; expansions through increases in benefit adjustments to sick leave rules (especially
and (iii) analyse their coverage and values (11.5 per cent), the introduction of in MENA). It should be noted that most
adequacy. The findings presented here new components for beneficiaries (11.3 per horizontally expanded measures (69.8
are based on information collected cent) or a combination of both approaches per cent) exclusively targeted workers in
through a tracking matrix with the (0.5 per cent). formal employment.
The International Policy Centre for Inclusive Growth | Policy in Focus 7
FIGURE 1: Coverage and benefit level of selected cash transfer programmes
Guatemala – Bono Familia [3] 7%
77%
27%
Peru – Bono Familiar Universal [2] 60%
18%
LAC
Argen na – Ingreso Familiar de Emergencia 59%
29%
Brazil – Auxílio Emergencial [9] 61%
11%
Bolivia – Bono Universal [1] 35%
Malaysia – Bantuan Sara Hidup [1] 1%
76%
30%
Phillipines – Social Ameliora on Programme [2]
Asia-Pacific
69%
Pakistan – Ehsas Emergency Cash [1] 7%
49%
13%
Thailand – Cash Handouts [8] 45%
Malaysia – Bantuan Priha n Nasional [2] 35%
33%
18%
Morocco – Support for informal workers and families [3] 55%
11%
Iraq – Emergency Grant [2] 29%
MENA
Jordan – SPP for daily wage workers [3] 14%
12%
Tunisia – CT for families affected by the quaran ne [1] 12%
10%
6%
Egypt – Salary for informal workers [3] 7%
NA
Zambia – COVID-19 Emergency CT [3] 14%
NA
Mozambique – Programa Subsídio Social Básico 12%
NA
SSA
Rwanda – Vision 2020 Umurenge Programme 5%
NA
Zimbabwe – CT [3] 2%
0%
Guinea – Nafa Emergency CT [3] 1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Coverage (% total pop.)
Adequacy (benefit in % of household expenditure, montlhy) Adequacy (benefit in % of household income, montlhy)
Notes: In some cases, the benefit amount depends on the number of household members; therefore, maximum values were considered here. In the case of benefits paid per
person without a cap per household, the average household size was considered. The number in square brackets indicates the number of payments, when this information
was available. In some cases, numbers are based only on announcements. For expenditure and income, the latest data available were used and adjusted for inflation.
Source: Authors’ elaboration based on the social protection response mapping, as of February 2021.
Labour market measures were introduced implemented to protect self-employed Open registration (online portals) was the
to support firms to retain workers on the workers, but when adopted they usually main mechanism used to identify potential
payroll and struggling self-employed included lowering or deferring social beneficiaries, followed by social security or
workers or owners of micro and small security contributions (as implemented in tax databases and existing social registries/
firms. Wage subsidies were adopted as a MENA and LAC) and subsidised credit (as beneficiary databases (see the articles on
mechanism to compensate for reduced implemented in SA and SSA). Indonesia and Cambodia in this issue).
working hours and the suspension or
termination of contracts. The case of Jordan Innovative mechanisms for beneficiary Togo’s emergency Novissi programme
is worth highlighting, as even businesses identification, registration and payment was notable for its rapid delivery.
that were not registered in the social Providing a rapid expansion of social The programme relied on open
security system could register for wage protection to respond to COVID-19 registration through a USSD-mobile-
compensation, hence contributing to their (including the identification and based platform that enabled the country
formalisation. All regions (though only two registration of beneficiaries and the to identify potential beneficiaries, cross-
measures in SSA) lowered or deferred social logistics of benefit distribution) while check applicants’ eligibility through
security contributions for wage workers respecting health and safety requirements the voter identification database and
and their employers. Fewer measures were was a great challenge for most countries. deliver assistance through mobile
8
wallets approximately five days after the the duration of the emergency measures,
programme’s announcement.8 Chile’s Bono which seemed to be the assumption
de Emergencia relied on the social registry regarding the duration of the pandemic,
to identify new beneficiaries and delivered or at least the number of months for which
assistance within two weeks (see the article some containment measures would be
in this issue). Finally, Morocco’s Emergency necessary to reduce the number of cases
Support for Informal Workers programme and avoid the collapse of the health care
combined the use of the existing medical system. When it became evident that
assistance beneficiary (RAMED) database the pandemic would last longer, some
and SMS for verification, with a web portal countries started extending the duration
to enable open registration for those not in of transfers, even if reducing the number
the database (see the article in this issue). of beneficiaries and/or the size of benefits
This procedure allowed a first batch of (e.g. Brazil, Chile, Colombia and Thailand).
payments to be made to those registered
in the RAMED database within three days In terms of coverage, LAC and EAP reached
of the start of the programme. a higher proportion of their population
with cash transfers. On the other hand,
Coverage and adequacy of responses the adequacy of measures is generally
Figure 1 shows a number of selected cash low, with most programmes providing less
transfers (most of them new interventions) than 20 per cent of households’ national
in terms of their adequacy (the benefit average income or expenditure.
provided as a percentage of household
income or expenditure) and coverage Conclusion
(the number of beneficiaries as a The COVID-19 pandemic and its
percentage of the population). We chose consequences for people’s health and
the five largest programmes for each well-being are likely to continue during
region for which data were available. the coming years. As of January 2021,
vaccination campaigns have started in
Special attention should be paid to the more than 40 countries, bringing renewed
frequency of payments (see the square hope to all. Yet mid- and long-term
number in brackets for the number of policies to tackle rising poverty levels
payments), as some schemes, despites and increased vulnerability will be key to
their high coverage or benefit value, were guaranteeing that we can build back better
designed to offer one-off payments (such after the crisis.
as the Ehsaas Emergency Cash in Pakistan,
for example, which paid one sum covering Social protection has gained significant
four months; see also the article on importance over the course of 2020, with
Pakistan in this issue). Most programmes most countries in the global South making
adopted a three-month benchmark for significant advances in the area, not only
“
The COVID-19
pandemic and its
consequences for
people’s health and
well-being are likely to
continue during
the coming years.
Photo: World Bank/Henitsoa Rafalia. COVID-19 testing, Madagascar, 2020 .
The International Policy Centre for Inclusive Growth | Policy in Focus 9
“ The protracted
economic crisis is
putting pressure on
national budgets,
and the continuation
of new or expanded
programmes will
require more than
just emergency
budget allocations.
Photo: IMF Photo/Saiyna Bashir. Porters waiting for passengers to hire them for work, Karachi, Pakistan, 2021
.
by providing—often for the first time— Latin America and the Caribbean, the Middle
(emergency) cash transfers for the so-called East and North Africa, sub-Saharan Africa, and
East Asia and the Pacific. In addition to the type
missing middle, but also by introducing of policy responses, the mapping also includes
technological innovations (such as e-wallets information on coverage, benefit level, target
and digital registration) and mobilising groups, implementation and registration details
resources quickly. This can lay the ground as well as financial and legal framework etc. The
indicators were developed by the IPC-IG jointly
for improving the coverage and shock-
with Valentina Barca and Rodolfo Beazley (see
responsiveness of social protection systems. also the second webinar on COVID-19 social
Yet, for this to happen, it is key that the protection responses on the socialprotection.
lessons learned and the gains made during org platform: ).
The mapping is based on publicly available
the COVID-19 responses are incorporated
information in several languages and other
into the national social protection systems, mappings, including: “Social Protection and Jobs
such as by levering databases used for Responses to COVID-19: A Real-Time Review of
emergency responses, for example. Country Measures: ; the
International Labour Organization’s Country
policy responses: and
It has also become clear that the protracted Social Protection Monitor databases: ; as well as the International Social
national budgets, and the continuation Security Association’s Coronavirus country
of new or expanded programmes will measures database: .
require more than just emergency 5. See: .
budget allocations. A national debate 6. Some existing measures were not expanded
but had certain design tweaks applied, such
on progressive tax reforms and, in some
as changes in delivery methods and waiving
contexts, debt relief, with support from the of conditionalities, for example. For this article,
international community, will be needed. measures that had only implementation
To end on a more positive note, this crisis changes were excluded.
has certainly put international and national 7. After the disruption of school activities, at
least 21 countries in the region converted
discussions about the importance of social
them into take-home rations, distributed cash
protection systems that provide protection or adopted mixed approaches to tackle food
to all when they need it on another level. insecurity among students and their families. For
more information, see also Rubio, M., G. Escaroz,
A. Machado, N. Palomo, and L. Sato. 2020. “Social
1. The authors would like to thank all IPC-IG Protection and Response to Covid-19 in Latin
researchers and partners who contributed to America and the Caribbean. 2nd Edition: Social
the mapping that this article draws on. Assitance” City of Knowledge: United Nations
2. International Policy Centre for Inclusive Children’s Fund. .
Growth (IPC-IG). 8. The programme was announced on 8 April,
3. Institute for Applied Economic Research (Ipea) and information indicates that beneficiaries had
and IPC-IG. already received payments by 14 April. See Togo
4. The mapping was conducted by the IPC-IG First. 2020. “Social safety is key in the fight against
and partners and financed by the UNDP Brazil Coronavirus, Faure Gnassingbé affirms.” Togo First
Country Office and GIZ, covering countries in website, 14 April. .
10How might the lessons from the
response to COVID-19 influence future
social protection policy and delivery?
Rodolfo Beazley,1 Valentina Barca1 social protection systems are very diverse Overcoming the rural ‘bias’
and Martina Bergthaller 2 across countries and regions, the crisis has In many low- and middle-income countries,
both exposed limitations and revealed cash transfer programmes have low coverage
Introduction potential policy options to address them. in urban settings and have been typically
The COVID-19 pandemic has triggered designed to address the needs of the rural
an unprecedented global use of social Including the ‘missing middle’ and population. The pandemic has shown the
protection schemes and systems to vulnerable populations need to improve coverage in urban areas
provide support to those affected by the The impact of COVID-19 and the (though not at the expense of rural coverage),
crisis, especially in high- and middle- containment measures implemented while adjusting programme design (e.g.
income countries (Gentilini, Almenfi, and in many countries have been especially eligibility criteria) and service delivery
Orton 2020). It poses a huge challenge devastating for informal workers, who make mechanisms to contexts with different
to the sector for a range of reasons: its up more than 60 per cent of the total global characteristics: higher mobility, higher
global reach, speed, widespread effects workforce. At the same time, the crisis has opportunity costs, informal settings where
on many different segments of a country’s shed further light on the extent to which service delivery is challenging (i.e. high crime
population, and its uniqueness—meaning informal workers are not covered by social rates, limited access to government services),
most countries did not have previous protection schemes. On the one hand, they less reliance on community structures,
experience to rely on. Although the are not poor enough to benefit from social greater penetration of mobile phones and
effects of the crisis expanded quickly, the assistance; on the other, they are excluded the Internet, among others.
full understanding of these effects, their from social insurance schemes usually
duration and depth evolved slowly. dedicated to workers in the formal sector. Building a ‘systems’ approach
The crisis has also highlighted that some
What is certain is that the ongoing role This situation represents an immense fundamental issues remain unresolved in the
of the social protection sector in the challenge to governments: to deliver timely sector. Many social protection systems are
pandemic response is a unique experience and effective social protection measures fragmented and patchy in practice, and fail to
which should inform future policies and to informal workers and their families in provide a social protection floor.6 Moreover,
programming. Although it is not possible the wake of this crisis. Many countries even though many of national social
to foresee how the COVID-19 crisis have met the challenge, via a combination protection programmes and systems are
will change the sector in the medium of strong political will and innovative legally constituted as being rights-based, in
to long term, we present some policy delivery approaches. At the same time, practice they exclude large segments of the
issues that are likely to shape future the role of informal workers in ‘essential’ population and do not address all the basic
global and national debates, as well as activities, such as food production and needs mandated. In other cases, the funding
some operational innovations in service distribution, informal care work or waste source (contributory or non-contributory)
delivery that are likely to have long-term picking, has increasingly been recognised. and the type of labour market participation
effects. These ideas are largely based on This provides a window of opportunity to (formal or informal) lead to very different
the presentations and discussions from link informal workers with social protection entitlements and unequal treatment.
the global e-conference3 organised by systems in the medium term—including by Various experts see the post-pandemic
SocialProtection.org in early October 2020, establishing a long-term bridge between period as an opportunity to invest in more
on the many knowledge products and social assistance and social insurance, as comprehensive, coherent and universal
events available during 2020 and on the well as other livelihood support measures.5 systems. This would include moving away
evidence and material generated by the from individual ‘programmes’ to ‘systems’
Social Protection Approaches to COVID-19 Similar is the case of other vulnerable that combine a range of social assistance
team (SPACE).4 populations, such as refugees and programmes (not just narrowly targeted
migrants, who have been severely affected ones) and social insurance components,
The main lessons learned from the by the crisis and are often excluded moving away from ‘benefits’ towards
COVID-19 crisis at policy level from social protection schemes. The rights-based ‘entitlements’. Interestingly, the
The COVID-19 crisis has put social COVID-19 crisis has shown the urgency of concept of Universal Basic Income—defined
protection at centre stage as a shock developing strategies (and legal backing) as a transfer that is provided universally,
response tool, and it is likely that the to integrate these populations into unconditionally, and in cash—is also gaining
demand of societies for stronger and more national systems, or alternative strategies traction in global debates (e.g. with a
inclusive systems will increase. Although for ensuring their coverage. Temporary Basic Income being proposed
The International Policy Centre for Inclusive Growth | Policy in Focus 11by the United Nations Development protection programmes, as well as specific in issues related to the interoperability
Programme),7 although no country has a measures designed to respond to the crisis. and integration of information systems,
‘true’ Universal Basic Income scheme in place This is not only because of the scale and as well as the development of effective
yet (Gentilini et al. 2020). speed of the shock. ‘Containment’ measures mechanisms for the continuous updating
such as lockdowns, school closures and social of data. It will be critical to reap this
Accelerated coordination across distancing norms have also posed significant opportunity while ensuring it focuses on
sectors, actors and government layers barriers to the timely and effective delivery of and serves the right objectives—ensuring
In some countries, the response to the social protection measures. the inclusion of those in need while
pandemic has relied on some degree of strengthening policy coherence within
collaboration or coordination between Many countries have pushed the boundaries the sector and across sectors—while not
national social protection and other key of service delivery. Recent innovations and exacerbating risks (Chirchir and Barca 2019).
actors such as humanitarian agencies, but new approaches are likely to have long-term
also local actors, including civil society effects on the implementation of social Innovative mechanisms for
organisations, the private sector and protection programmes, with some countries mass registration and enrolment
communities.8,9 The pandemic seems to advancing more rapidly compared to Many countries have set up innovative
have accelerated a pre-existing process of what would have been a ‘normal’ evolution mechanisms for registering new
greater collaboration of the social protection (‘leapfrogging’). Below we present some of beneficiaries quickly, while also safeguarding
community with other sectors, which may the main innovations. social distancing, using online platforms,
lead to stronger partnerships in the future, helplines and unstructured supplementary
focused on common outcomes (SPACE 2020). Leveraging existing data service data technology, alongside reliance
and information systems on local government offices. The data
Increased and predicable financing The need to reach large segments of collected through the registration processes
Coverage gaps in social protection revealed the population swiftly has led to an were often complemented with pre-existing
during this crisis are closely linked to unprecedented use of pre-existing data (see above) to assess eligibility (Barca
significant financing gaps. Part of the crisis databases to provide additional support and Beazley 2020).
response has entailed the mobilisation of to existing beneficiaries and to identify/
considerable amounts of financial resources complement information on new The innovation in this regard has been
to finance temporary social protection beneficiaries (people likely to be affected tremendous, allowing programmes to
measures. Strategies observed in different by the crisis and in need of support). register millions of potential beneficiaries in
contexts include budget reallocations, Prior to the pandemic, there were very few a few days—further enabled by simplified
national debt and deficit measures, tapping experiences of this globally, for good reasons eligibility criteria and a ‘pay now, verify
state reserves and contingency funds, (Barca and Beazley 2019). In the COVID-19 later’ approach. This contrasts with ‘regular’
as well as external sources of financing, response, many countries have leveraged mass registrations, which are usually very
such as loans or grants from international beneficiary registries, social registries and cumbersome, costly and time-consuming,
financial institutions, which have played other information sources such as civil particularly for poverty targeted programmes.
an important role in supporting countries’ registration and vital statistics, informal
financial stability (Almenfi et al. 2020). worker organisation data, farmer registries, Although the new mechanisms have faced
tax and social insurance data, mobile money many challenges and the extent to which
Experiences with these different financing provider data, among many others—often they managed to reach the intended
modalities can inform the design of measures with identification systems acting as a populations (especially those most
to strengthen the financial resilience and backbone (Barca and Beazley 2020; Gelb and vulnerable) still needs to be assessed, it is
responsiveness of social protection systems Mukherjee 2020; World Bank 2020).10 This very likely that these innovations will have
to future shocks. The potential role of linking was done both to ‘target in’ and ‘target out’. effects on future registration and enrolment
social protection to disaster risk financing processes in many countries, with some
mechanisms to ensure that additional funds The crisis has promoted the exchange of evidence of change already happening (e.g.
are available and can be quickly disbursed data within and beyond the social protection South Africa and Peru). The challenge will
when needed has been particularly sector and highlighted the potential of pre- be to set up the capacity required to sustain
highlighted by this crisis (Poole et al. 2020). positioned data for rapid responses to large- these efforts and shift towards more on-
scale shocks. It has also re-emphasised the demand approaches to registration (Barca
The timely and efficient delivery of benefits importance of having data-sharing protocols and Hebbar 2020).
to affected populations is, however, not and mechanisms in place—alongside
exclusively reliant on available financial adequate data protection legislation—as well Nimble and flexible payment mechanisms
resources, but also requires effective as data that are inclusive, current and relevant The delivery of benefits during the
implementation mechanisms. for the response to covariate shocks, among COVID-19 pandemic has been seriously
other dimensions (Barca and Beazley 2019). constrained by mobility restrictions and
The main lessons learned at social distancing. This has helped to
operational level This experience will certainly shape future break new ground, particularly in relation
COVID-19 has posed a serious challenge investments in social protection information to electronic transfers.11 Although the
to the implementation of routine social systems. There is already increasing interest shift to electronic delivery is not new,
12the pandemic has fostered innovations of these innovations are going to have Barca, V., and R. Beazley. 2020. “Building
including (but not limited to) relaxing the long-term effects on the sector. on existing data, information systems
and registration capacity to scale up
processes and requirements for opening social protection for COVID-19 response.”
remote bank/mobile money accounts and The increased interest in and demand for SocialProtection.org blog, 1 June. . Accessed 22 January 2021.
spending in this sector, is only one side of Barca, V., and M. Hebbar. 2020. On-demand and
The innovations in payment delivery are the coin; countries are also likely to face up-to-date? Dynamic inclusion and data updating
for social assistance. Bonn: Deutsche Gesellschaft
likely to have long-term effects. This is important fiscal constraints (and pressures für Internationale Zusammenarbeit. . Accessed 22 January 2021.
in several countries, many more people put social protection spending at risk.
Chirchir, R., and V. Barca. 2020. “Building
have bank/mobile money accounts and Moreover, evidence is already showing an integrated and digital social protection
experience of government-to-person that the pandemic is exacerbating pre- information system.” Technical Paper. London:
payments. In addition, the experiences of existing needs and inequalities, and that UK Department for International Development,
and Bonn: Deutsche Gesellschaft für
new modalities, collaboration between social protection is going to be even more Internationale Zusammenarbeit, on behalf
private- and public-sector providers, necessary than before. Consequently, the of the German Federal Ministry for Economic
and registries containing account sector is likely to face a scenario of resource Cooperation and Development. . Accessed 22 January 2021.
details, are likely to promote a profound constrains and increased needs, which is
transformation in social protection going to require courageous policy choices. Gelb, A., and A. Mukherjee. 2020. “Digital
Technology in Social Assistance Transfers for
payment delivery in many countries.12 COVID-19 Relief: Lessons from Selected Cases.”
Finally, despite the sudden interest in social CGD Policy Paper, No. 181. Washington, DC:
Conclusion protection as a (large-scale, covariate) Center for Global Development. . Accessed 22 January 2021.
Responses to the pandemic have shown shock response tool, it is important to
the importance of social protection in crisis recognise that its core role is to provide Gentilini, U., M. Almenfi, and I. Orton.
adequate support to those in need, 2020. Social Protection and Jobs Responses
contexts, while also stressing the significant
to COVID-19: A Real-Time Review of Country
provision gaps in many countries and regardless of whether the need is caused Measures. Living paper version 10, 22
shedding light on many fundamental issues by an individual shock, a large shock, May. Washington, DC: World Bank. . Accessed 2 March 2021.
that are still unresolved: the sector’s role in
promoting economic inclusion, resilience, Gentilini, U., M. Grosh, J. Rigolini, and R.
social justice and many other outcomes is still Yemtsov. 2020. Exploring Universal Basic Income:
Almenfi, M., M. Breton, P. Dale, U. Gentilini, A. Pick, A Guide to Navigating Concepts, Evidence, and
limited. However, the momentum created by and D. Richardson. 2020. “Where is the money Practices. Washington, DC: World Bank. . Accessed 22 January 2021.
social protection responses to COVID-19.” Social
progress on these issues in the near future. Protection & Jobs, Policy & Technical Note, No. Poole, L., D. Clarke, and S. Swithern. 2020.
23. Washington, DC: World Bank. . Accessed 2 March 2021. London: Centre for Disaster Protection. . Accessed 2 March 2021.
pandemic, social protection has also Barca, V., and R. Beazley. 2019. Building on
broken new ground, especially in a few Government Systems for Shock Preparedness and World Bank. 2020. Scaling up social assistance
countries where routine systems were Response: the role of social assistance data and payments as part of the COVID-19 pandemic response.
information systems. Canberra: Department of Washington, DC: World Bank Group. . Accessed 22 January 2021.
service delivery. It is likely that many Accessed 22 January 2021.
1. Social Protection Approaches to COVID-19:
Expert Advice (SPACE).
2. Independent consultant.
3. See: .
4. See: .
5. For a SPACE background note with options
for providing social protection to informal workers,
see . For Socialprotection.
org Clinic 7, see .
6. See the International Labour Organization’s
2012 Social Protection Floors Recommendation
(No. 202) at .
7. See: .
8. For a SPACE guidance note for embedding
localisation in the response to COVID-19, see
.
9. For a SPACE note with options for linking
humanitarian assistance and social protection in the
response to COVID-19, see .
10. For a SPACE guidance note on the rapid
Photo: ILO. Worker receives her emergency employment payment, Day Cotabato, Philippines, 2020 expansion of social protection caseloads,
. see .
The International Policy Centre for Inclusive Growth | Policy in Focus 13The COVID-19 crisis:
A turning point or a tragic setback?
Shahra Razavi 1 International human rights and social emerging new forms of employment, such
security standards are very clear that all as work on digital platforms. In addition
The COVID-19 pandemic, which started as persons— regardless of the existence, to tax-financed life-cycle benefits, social
a major public health challenge, quickly type and duration of their employment insurance can be an effective mechanism
morphed into a protracted socio-economic relationship—should enjoy the right in this respect, as it can cover people in
crisis with which countries are still to social security.2 However, for a long different situations throughout their life
grappling. The crisis, as many have argued, time, those promoting labour market cycle and support labour mobility, and
has been a great revealer, laying bare the deregulation have portrayed informality life and work transitions (ILO 2019a).
structural inequalities of class, gender, as an inevitable process (Packard et This requires concerted policy action
race and migration status that fracture our al. 2019), rather than proposing active and clear recognition of the considerable
societies, while exposing yawning gaps in transition strategies towards formalisation diversity of workers.
social protection systems. and decent work. The corollary to a
deregulated labour market has been an Extending contributory social protection
While those with secure employment, unfounded ideological assault on the coverage to self-employed workers with
adequate health care coverage and relevance and effectiveness of the social no recognised employer is particularly
ample savings have been able to weather insurance model, while sanctioning means- difficult given the double contribution
the storm, 61.2 per cent of the global tested ‘safety nets’ to catch those unable challenge, meaning that in the absence
workforce—2 billion workers, 1.6 billion to pull themselves up by their bootstraps. of an employer the worker has to make
of whom have been affected by the COVID-19 has shown (once again) the the entire contribution, which in the
COVID-19 crisis and/or work in the hardest- limitations of such residualist approaches case of employees is usually shared with
hit sectors—remain uncovered by social that only respond when people fall into employers (ILO 2019b). Yet there are a
protection systems, making them and their abject poverty (and not even effectively so, number of countries that have extended
families particularly vulnerable to poverty given the well-known errors of exclusion). both legal and effective coverage to self-
(ILO 2020d; 2020c). Invariably, they have In doing so, the current crisis has hopefully employed workers by making concrete
not been able to count on the protection created some consensus on the need to adaptations to their social security systems.
provided by contributory social security extend social protection to the millions of Argentina, Brazil and Uruguay, for example,
schemes, nor have they been well served workers in the informal economy, the so- have simplified their contribution and
by narrowly targeted cash transfers. called ‘missing middle’ (ILO 2020a; 2020e). tax payment mechanisms (through a
‘monotax’) to allow self-employed workers
‘Safety nets’ for poor people have proven Extending social protection to and micro-enterprises to pay a single flat
to be neither safe nor appropriate in workers in the informal economy payment instead of various social security
contexts where poverty is extensive and Countries that have invested in social and tax contributions. Other countries
for the kind of systemic shocks that have insurance and tax-financed life-cycle have adapted their contribution modalities
become more frequent in our globalised schemes are clearly faring much better by making them seasonal rather than
world (Kidd and Athias 2019; Mkandawire than those that built their systems on monthly, lowering the contributions, or
2005). During this pandemic, it is not just narrowly targeted programmes alone (ILO not requiring any contributions from some
those living in extreme poverty who are 2020a). This underlines the importance of groups with limited contributory capacity
being adversely affected by its socio- building contributory schemes that cover all (with governments stepping in to subsidise
economic disruptions, but also those who types of workers (and decent jobs) against their contributions from general revenue
seemed to be getting by relatively well. measures that undermine acquired rights, to enhance solidarity) (ILO 2019a).
In response, many governments have put such as waiving contributions, and creating
in place measures to reach workers in the jobs with due regard to their quality. The In the process of making such adaptations,
informal economy: Viet Nam, for example, importance of supporting the transition several useful lessons have been learned.
provided cash transfers to workers who from the informal to the formal economy Voluntary coverage does not usually lead
had lost their jobs but were ineligible must be at the centre of these efforts. to a significant extension of effective
for unemployment insurance, while coverage, nor to the creation of sufficiently
Costa Rica introduced a new emergency Workers in the informal economy are a large risk pools to provide adequate
benefit, for three months, to employees very diverse group—from wage workers in provision; it may also lead to adverse
and independent workers (both formal agriculture and domestic service, to the self- selection3 and undermine the sustainability
and informal) who had lost their jobs and employed, including urban own-account of the scheme. It is also becoming
livelihoods, and a smaller transfer to those workers and contributing family workers in increasingly clear that specific schemes
who were working reduced hours. smallholder agriculture, as well as those in for workers in the informal economy that
14“ The extension of social
protection to workers in
the informal economy
must bring a clear value
to people that they can
see, thereby building
trust in the system.
Photo: IMF Photo/Saiyna Bashir. Informal worker sells cellphones accessories at a stall in Saddar, Pakistan, 2021
.
are separate from those for formal workers gap’ (ILO 2020b). Many of these countries crisis subsides, to ensure that people are
can create disincentives for workers already face severe fiscal constraints, protected against the adverse economic
to formalise, or even create perverse including over USD1 trillion of scheduled and social consequences that are likely
incentives for their informalisation. Most external debt repayments in 2020 and 2021. to persist for longer, and to counter the
importantly perhaps, the extension of danger of growing poverty, joblessness and
social protection to workers in the informal According to the latest ILO estimates (Durán inequality. Rather than calling for another
economy must bring a clear value to Valverde et al. 2020), the additional resources round of austerity—already in full force in
people that they can see, thereby building needed to close the global financing many countries—it is urgent to streamline
trust in the system. This requires a social gap in social protection has increased by the policy frameworks of all relevant
protection system that effectively delivers approximately 30 per cent since the onset actors, including the international financial
the benefits and services that meet of the COVID-19 crisis. Developing countries institutions, with the principles set out in
workers’ and employers’ needs, as well as would need to invest an additional sum international human rights instruments and
meaningful participation of workers’ and equal to about 3.8 per cent of their average social security standards. This is particularly
employers’ organisations, including the GDP to meet the annual financing required relevant for fiscal policies, so that they can
representatives of workers in the to close coverage gaps in 2020, while for low- accommodate, rather than undermine,
informal economy. income countries (a subset of developing much-needed investments in universal
countries) the additional resources required social protection systems.
Financing much-needed are close to 16 per cent of their GDP.
investments in social protection Today we are at a turning point.
Building universal and comprehensive social This underlines the urgency of mobilising We can turn the COVID-19 crisis
protection systems that can make the right resources from diverse sources. However, into an opportunity to build robust,
to social security a reality for everyone— in doing so, particular attention needs to comprehensive and universal social
as called for in Convention 102 and be paid to the equity of tax collection— protection systems and resist the
Recommendation 202 on social protection for example, by taxing the wealthy and self-defeating push for austerity that is
floors—requires fiscal capacity. While the politically connected, and challenging on the horizon if not already here. Or we
COVID-19 crisis has exposed severe gaps in corporate accounts for potential transfer can stumble zombie-like through this
coverage and adequacy and underscored mispricing (Moore and Prichard 2020). crisis and leave ourselves exposed to
the urgency of investing in social protection and unprepared for future shocks.
systems, it has also clearly shown the global While domestic resource mobilisation
inequities in fiscal capacity. must remain the cornerstone of national
social protection systems, for low-income Durán Valverde, Fabio, José Pacheco-Jiménez,
Taneem Muzaffar, and Hazel Elizondo-Barboza.
Nearly 90 per cent of the global fiscal countries international support is also 2020. “Financing Gaps in Social Protection: Global
response to the COVID-19 crisis has taken critical, especially in the current context of Estimates and Strategies for Developing Countries
place in advanced countries (averaging falling commodity prices, disruptions in in Light of COVID-19 and Beyond.” Working Paper.
Geneva: International Labour Office. . Accessed 2 March 2021.
domestic product—GDP). Shockingly, less
than 3 per cent of the total global stimulus It is equally important that countries ILO. 2019a. “Extending Social Security Coverage
to Workers in the Informal Economy: Policy
has occurred in lower-middle-income and are able to sustain their levels of social Resource Package.” International Labour
low-income countries, creating a ‘stimulus spending when the immediate health Organization Social Protection website.
The International Policy Centre for Inclusive Growth | Policy in Focus 15Accessed 19 January 2021. . Can Governments of Low-Income Countries
Create More Tax Revenue?” In The Politics
ILO. 2019b. “Extending Social Security to Self- of Domestic Resource Mobilization for Social
Employed Workers: Lessons from International Development, edited by Katja Hujo, 109–138.
Experience.” Issue Brief, No. 4/2019. . Accessed 19 January 2021.
Kidd, Stephen, and Diloá Athias. 2019. “Hit and
ILO. 2020a. “Extending Social Protection to Miss: An Assessment of Targeting Effectiveness
Informal Workers in the COVID-19 Crisis: Country in Social Protection.” Working Paper. Sidcup, UK:
Responses and Policy Considerations.” Social Development Pathways, and Uppsala, Sweden:
Protection Spotlight, 14 September. Geneva: Church of Sweden. .
International Labour Organization. . Accessed 19 January 2021.
Packard, Truman, Ugo Gentilini, Margaret Grosh,
ILO. 2020b. “Financing Gaps in Social Protection: Philip O’Keefe, Robert Palacios, David A. Robalino,
Global Estimates and Strategies for Developing and Indhira Santos. 2019. “Protecting All: Risk-
Countries in Light of COVID-19 and Beyond.” Sharing for a Diverse and Diversifying World
Social Protection Spotlight, 17 September. Geneva: of Work.” White Paper. Washington, DC: World
International Labour Organization. Accessed 19 Bank. . Accessed 19 January 2021.
World of Work. Sixth Edition. Updated Estimates
and Analysis. Geneva: International Labour
Organization. .
International Labour Organization (ILO).
Accessed 19 January 2021.
2. The Universal Declaration of Human Rights
ILO. 2020d. “COVID-19 Crisis and the Informal of 1948 (Arts 22 and 25) and the International
Economy: Immediate Responses and Policy Covenant on Economic, Social and Cultural
Challenges.” ILO Brief, May. Geneva: International Rights of 1966 (Arts 9 and 11) recognise social
Labour Organization. . Accessed 19 January 2021. and employers of the ILO’s 187 Member States,
highlight the need to extend social protection
ILO. 2020e. “Social Protection Responses to the coverage—notably, the Social Protection Floors
COVID-19 Pandemic in Developing Countries: Recommendation of 2012 (No. 202) and the
Strengthening Resilience by Building Universal Transition from the Informal to the Formal
Social Protection.” Social Protection Spotlight, Economy Recommendation of 2015 (No. 204).
May. . Accessed 19 security as a human right and the general
January 2021. responsibility of the State to guarantee the
due provision of adequate benefits and the
Mkandawire, Thandika. 2005. “Targeting and sustainability of social protection systems.
Universalism in Poverty Reduction.” SPD Working 3. People who are in poor health and older are
Paper, No.23. Geneva: United Nations Research more likely to become affiliated, while those
Institute for Social Development. . Accessed 2 March 2021. not see a reason for doing so.
“ We can turn the
COVID-19 crisis into an
opportunity to build
robust, comprehensive
and universal social
protection systems and
resist the self-defeating
push for austerity that is
on the horizon if not
already here.
Photo: Acácio Pinheiro/Agência Brasília. Mother and her child during the COVID-19 pandemic, Brasília, Brazil, 2020
.
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