Can low-income countries afford social protection?

Proposals to accelerate the establishment of social protection floors in low-income countries have gathered strength in the early years of the millennium. But is their goal a realistic one? Can they afford to implement sustainable social protection floors?

Article | 30 April 2013
Contrary to “received wisdom”, social protection measures at a basic level, of the kind comprising the floor, can be kept within a relatively modest percentage of national income, even in severely resource-constrained countries.

Several studies, notably by the ILO, UN DESA, UNICEF, WHO and ECLAC, attest to this affordability.To what extent resources should be devoted to such measures remains a country-specific choice. In other words, levels of social provision are driven much more by a country’s political and policy environment than its level of economic development.

The cost of a well-designed social protection floor is small compared to the tax revenues often forgone by not effectively collecting revenue from the wealthy and by not tackling inefficiencies that exist in many expenditure programmes.

Effective country-specific social protection floors, which can gradually expand, are not only affordable but can, in the long run, pay for themselves by enhancing the productiveness of the labour force, the resilience of society and the stability of the political process.

For more information on social protection, visit the ILO Social Protection Department.