Child-focused Social Protection as a Path to Inclusive Human Development and Equitable Economic Growth

Michael Samson, Economic Policy Research Institute (msamson@epri.org.za)

Overview Child-sensitive social protection represents one of African

governments’ most effective instruments in promoting inclusive human development and equitable economic growth.

Child-sensitive social protection reduces poverty and inequality while delivering children’s rights.

Interventions for young children in Africa Nutrition Cognitive development Health Education

Impacts on labour market and local economies. Positive impacts on national economies. Comprehensive and integrated approaches can maximise

developmental impacts for children while strengthening pro-poor and inclusive growth.

Problem Statement An African Union report quantifies how under-nutrition

represents not only a social challenge but also a substantial drain on constrained health budgets and a growing cost for Africa’s economic growth due to lost labour market engagement

Without social protection, children suffer developmental lags and are unable to realise their labour market potential, in part because of under-realised educational potential: a 51-country study found a 10% loss of wage potential for each year of schooling lost

This perpetuates in inter-generational transmission of poverty which traps households in a cycle in which one generation’s poverty is the legacy for the next

Social protection has grown rapidly in Africa to tackle this problem

2000 9 countries, 25 programs

2010 35 countries,

120 programs

2012 41 countries,

245 programs

2000 2012

SOURCE: Garcia and Moore (2012)

The roots of economic impact are cognitive

The root of social protection’s impact is cognitive

Brain Growth

Human Capital Rates of Return

Pre-school School Post-School

Pre-school Intervention

Schooling

Job Training

Age

Source: Samson (2008) based on Carneiro and Heckman, 2003 and Handa, 2007

Evidence on social and economic impact

Human capital Nutrition Cognitive development Health Education

Labour markets Risk management Effective labour supply Increased labour demand Recent MIT study documents consistent and robust impacts

Macro-economic impacts Social cohesion Economic stimulus Pro-poor economic reforms

Evidence on social protection’s economic impact

Every dollar equivalent spent reducing under-nutrition generates $15 in future income in Ethiopia

Improved nutrition and an elimination of anemia in working adults results in a 5 to 17 percent increase in adult productivity, increasing GDP by up to 2 percent for some countries

Recent work by UNICEF’s Transfer Project and FAO’s Protection to Production programme document: Across the African continent—in Ghana, Kenya, Malawi, Zambia and

other countries—social protection produces vital impacts in terms of food security, nutrition, health, education and livelihoods engagement

the Africa-wide multipliers from effective social protection programmes, up to $2 in economic growth for every dollar invested

A recent (2015) MIT study of global social protection programmes (Africa, Asia, Latin America) finds no negative impact on labour markets or unproductive consumption

Evidence for Uganda A gold standard randomised control trial in Northern Uganda (Blattman et

al. 2015), cited by this MIT study, tested a cash transfer and training/mentoring package for women who had never run a business before: Hours worked rises by 10 hours per week Doubling of new non-farm enterprises Significant rise in incomes

The MIT study also cites the Blattman (2014) evaluation of the Youth Opportunities Program (YOP). A grant of $7,500 to youth groups (about $382 per group member), after four years, yielded: A 57% increase in productive assets 38% higher earnings 17% increase in hours worked

Ongoing work on Uganda’s SAGE social protection programme likewise finds positive labour market and economic impacts.

Social Protection and Employment

“Virtuous cycle”

Direct economic benefits

Heading of the Page Here

12

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Social inclusion

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Policy implications and recommendations

Child-sensitive social protection is one of Africa’s most effective instruments for tackling poverty and reducing inequality while delivering children’s rights

These investments generate substantial social and economic returns through multiple transmission mechanisms, including human capital, risk management, labour market development, social cohesion, and macro growth effects

Comprehensive and integrated approaches maximise the equity and developmental impacts and build the foundation for inclusive human development and equitable economic growth.