SOCIAL PROTECTION AND SOCIAL RISK - Environmental risks

MANAGEMENT: POVERTY AS THE INABILITY TO o Floods, rains

MANAGE RISKS o Earthquake
o Landslides
Triggers for a new approach: o Drought
1. World Bank and IMF Structural adjustments led to - Social/governance risks
safety nets o Political instability
2. Social welfare adjustments in transition countries o Exclusion/ losing social status/capital
(communism to capitalism) o Crime or domestic violence
3. Increased Globalization - Lifecycle risks
a. Globalization: generates benefits but the
benefits are not shared by all. The poor are especially vulnerable
b. Increased inequality. - The poor are most exposed to diverse risks.
4. East Asian crisis 1990s (biggest trigger) - The poor are affected most by various shocks.
a. Recognition that non-poor can become - Poor women are even more vulnerable.
poor. o Less education
b. o Less property rights
“Sound macroeconomic policies, while of great importance, - The poor have the fewest instruments to deal
are not sufficient for sustained poverty reduction.” with risks. They thus resort to coping strategies
which are counterproductive.
Social Protection: - The poor have the least capacity to take risks.
- Poverty—used to be as material deprivation and - Government cuts back on programs for the poor
income deprivation during crises.
- In the social protection—talks about people - Other highly vulnerable groups:
who can become poor (vulnerable population) (Inability to manage risks )
o 21% material deprivation o Child labor
o 50% vulnerable population o Disable
o Unemployed youth
Vulnerability and Poverty o Orphans
- Poverty as Vulnerability (The poor are o Poverty
vulnerable)
- Vulnerability as a cause of poverty (Non-poor Why the poor are vulnerable:
becoming poor) - Lack of human capital
- Vulnerability as a form of poverty (Non ‘poor’ o Education, health
as vulnerable) - Lack of savings
o Mental health, #MeToo, Climate - Lack of access to social assistance
Change - Voiceless-ness
- Informal labor
- Informal business
We are all vulnerable, - Insecure property rights
The question is: how vulnerable are you?
Coping strategies of the poor:
- Reduce consumption of goods and services
Poverty as the Inability to Manage Risks o Reduce consumption of food or alter
- Exposure the menu
o some people are more exposed to o Withdraw children from school
threats than others - Make children and women work
o Greater exposure - Sell (productive) assets
o Example: Health
 Ulingan Risk Management Mechanisms
 Payatas - After the event (EX POST)
 Untreated infectious o Coping strategies
dieseases, ex. TB  Relieve the impact of risk
 No screen (mosquito- borne once it has occurred
diseases - Before the event (EX ANTE)
- Likelihood o Prevent strategies
o Flooding  Prevent or reduce the
o Crime and security probability of risk occurring
o Sexual violence and living o Mitigation strategies
arrangements  Reduce the impact of the risk
event
Vulnerability to economic risks Risk Management Arrangements
- Economic crisis to transition - Informal
- Change in prices of basic needs - Market-based
- Unemployment - Public
- End of source of livelihood
- Low income
(Informal and market based arrangements are not a. Risk coping
effective in handling macro-risks. War and conflict, Market-based coping strategies
widespread AIDS, price volatility, drought, macro-  Sale of financial assets
economic shocks)  Borrowing from banks
b. Risk Prevention
Strategies and Arrangements for Social Risk Market-based prevention strategies
Management  In-service training
1. Informal  Market-based labor standards
a. Risk coping c. Risk Mitigation
Informal coping strategies Market-based Mitigation Strategies
 Transfers  Investment in multiple
 Child Labor financial assets
 Dissaving in Human Capital  Microfinance
 Sale of Assets  Insurance
 Migration
 Borrowing from neighbors or Social protection and social risk management
relatives or friends - Social protection has been associated with
b. Risk Prevention particular policies such as social assistance,
Informal prevention strategies labor market policies and pension provision.
 Multiple jobs - Lenses through which we can understand and
 Migration deal with poverty.
 Hygiene and disease - Identifies many forms of risks and
prevention vulnerabilities.
 Proper feeding - Identification of strategies involving public,
 Less risky production market, or informal arrangements that prevent
c. Risk Mitigation risks or help affected sectors mitigate or cope
Informal Mitigation Strategies with the effects of risks.
 Multiple jobs
 Investment in human,
physical and real assets
 Investments in social capital
 Share tenancy

2. Public
a. Risk coping
Public coping strategies
 Transfers
Cash, in-kind benefits, food
stamps, shelter provision,
community-based social
services, mobile health and
education services
 Subsidies
Food subsidies, health
subsidies
 Public works
b. Risk Prevention
Public prevention strategies
 Labor market policies
 Infrastructural improvements
 Macroeconomic policies
 Disease prevention
 Conflict prevention and
resolution
 Pre-service training
 Child labor interventions
 Public labor standards
c. Risk Mitigation
Public Mitigation Strategies
 Pension systems
 Asset transfers
 Support for financial services
to the poor
 Mandated insurance

3. Market-based