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