Social safety nets critical to building back better

16 December 2020, Washington DC – An estimated 70 percent of the global population does not have adequate access to social protection, and the majority live in rural areas, according to the International Labour Organization (ILO). To discuss the potential of and challenges to social protection, FAO North America and the Alliance to End Hunger organized a webinar entitled Social Safety Nets in a Global Crisis: Challenges and Lessons Learned amid a Pandemic.

Eric Mitchell, newly appointed Executive Director of the Alliance to End Hunger, emphasized that social safety nets are one of the most effective ways to reduce hunger and poverty. “As countries currently fight the health and economic crisis due to COVID-19, demands for these programs are skyrocketing, also highlighting shortfalls and inefficiencies,” said Mitchell. Vimlendra Sharan, Director of FAO North America, reinforced that “with COVID-19 threatening the lives and long-term livelihoods of millions of vulnerable individuals and families around the world, social safety nets for those fighting poverty and hunger have become absolutely critical.”

To discuss this topic further, Michal Rutkowski, Global Director for Social Protection and Jobs at the World Bank, provided a keynote lecture. He explained that prior to the COVID-19 pandemic, only 1.5 percent of countries' GDP was spent on social safety nets around the world, and when the pandemic hit, many countries were faced with the decision of expanding their programs or facing an even larger social crisis. He highlighted different dimensions of the programs, challenges in ensuring financial sustainability, and the need to target programs to the specific needs of vulnerable groups. “Building back better means designing cash transfers for women’s empowerment is one important tool,” he added.  

A panel discussion followed the lecture. Benjamin Davis, Director at the Inclusive Rural Transformation and Gender Equity Division at FAO underlined how to build social safety nets for the population equally and effectively. He noted that while many programs are essential for food security and nutrition, “there are gaps, such as the temporary nature of most programs. Most don't address vulnerabilities faced by particular groups, especially women and girls, Indigenous Peoples, migrants and seasonal agriculture workers.” He added that results have shown that FAO’s cash-based programs have helped build farmers’ and rural populations’ resilience to shocks and stresses, and have multiplier effects in local economies.

Asma Lateef, Director at the Bread for the World Institute, also offered recommendations to bridge the gap in social protection programs to realize their full potential. “Social safety nets should not be seen as a cost, but as an investment in the future, as even short-term programs can prevent long-term damage. Especially for nutrition, the first 1000 days of a child’s life are key, and undernutrition can lead to a life of lower performance in school and increased poverty throughout life.” She noted lessons learned from the 2008 economic crisis and emphasized that countries should learn and apply lessons to prepare for future challenges.

During the pandemic, 209 countries adopted 1600 social safety measures, according to Valérie Schmitt, Deputy Director for Social Protection Department, ILO, from the Organization’s Social Protection COVID-19 Monitor. To achieve the Sustainable Development Goals by 2030 in low-income countries, she emphasized that “domestic resource mobilization will not be enough, these countries should be able to seek international support at least for temporary financing.” Underlining the need for international cooperation, more specifically Goal 17 which calls to revitalize global partnerships for sustainable development.

Arloc Sherman, Vice President for Data Analysis and Research at the Center on Budget and Policy Priorities (CBPP), provided a US-perspective on social safety net programs. “In the US, social assistance programs, the glass is half full, half empty. We have been much more effective with our social safety net than 40 years ago. We now lift about 50 percent of people, who otherwise would be in poverty, above the poverty line.” He emphasized the multiplier effect that social assistance programs can have for society, noting that 1 USD invested in food assistance programs results in a USD 1.50 economic outcome.

This webinar brought into focus a very significant issue that will continue to be relevant both in the short and long term. Speakers showcased that social protection measures can be highly cost-effective and need to be targeted to meet the needs of vulnerable populations. The main challenges include sustainable financing for social safety nets, especially in developing and informal contexts, as well as the short-term nature of many measures.

Further information:

- Watch the webinar | Twitter thread

- FAO’s work on social protection

- World Bank Blog: Building back better means designing cash transfers for women’s empowerment

- ILO’s work on Social Protection

- CBPP: Boost SNAP to Capitalize on Program’s Effectiveness and Ability to Respond to Need