Social Protection: Pros & Cons

by Mark Raygan E. Garcia

Summary • Social Protection Brief

• Major Categories of Social Protection

• Types of Social Protection

• The Debate

• Pros and Cons (Welfare Perspective, Political Perspective, Economic Perspective)

• ADB Findings on Social Protection Index in Asia

• Conclusion

“Social protection and labor systems help the poor and vulnerable cope with crises and shocks, find jobs, invest in the health and education of their children, and protect

the aging population.” (World Bank)

3 Major Categories of Social Protection

Types of Social Protection • Unconditional Cash Transfers

(government subsidy; without condition on use)

• Conditional Cash Transfers (government subsidy; purpose/use is specified)

• In-Kind Transfers (provision of government support through non-cash items)

• Price Subsidies (government subsidy for food, utilities, medical care)

• Public Works (provides labor-intensive construction work to unskilled workers)

The Debate • Should promoting the well-

being of citizens override economic considerations?

• Should it be a state function or an individual responsibility?

• Should it be universal or selective and conditional?

• Should it be free or contributory?

Pros & Cons: Welfare Perspective

• Protects people’s income against contingencies or risks (i.e. work injury, unemployment)

• Mitigates/Alleviates poverty (provisions for education, food, employment, child benefits)

• Achieves social justice; equitable allocation of resources

Pros

Pros & Cons: Welfare Perspective

• Limited coverage (exacerbates urban-rural disparity)

• Gender-biased; discriminates against low-income women; male-dominated system

• Promotes racial discrimination; creates potential abuse and marginalization

Cons

Pros & Cons: Political Perspective

• Facilitates healthy competition to address pressing social concerns that resonate with the public

• Brings social issues into the public consciousness and national agenda

• Bolsters relevance of social policy vis-a-vis economic policy in policy debates

Pros

Pros & Cons: Political Perspective

• Prone to exploitation for meeting political ends

• Serves as a leverage among political elites to generate votes and keep power

• Capitalized as a tool among capitalist societies in accumulating legitimization functions

Cons

Pros & Cons: Economic Perspective

• Normalizes/Increases consumer spending and production, propelling economic growth

• Enhances human capital; increases productivity

• Frees up government of unnecessary burden caused by extreme poverty

Pros

Pros & Cons: Economic Perspective

• Breeds dependence and complacency; discourages savings

• Expensive financing costs; inflationary impact

• Highly redistributive; brings about disincentive to work harder

Cons

ADB Findings on Social Protection Index in Asia

ADB Findings on Social Protection Index in Asia

ADB Findings on Social Protection Index in Asia

ADB Findings on Social Protection Index in Asia

Conclusion • Social protection is forward-looking

and progressive but expensive.

• Resources poured in towards social protection are proving to be insufficient vis-a-vis growing population and increasing poverty indexes.

• Financing social protection needs to reinforce trisector partnership.

• Social protection (social assistance) needs to veer away from the concept of dole-out

Social Protection: Pros & Cons

by Mark Raygan E. Garcia