Poverty and social protection policy, strategy and financing

An increasing emphasis on pro-poor growth and understanding of the role of risk and vulnerability in sustaining poverty has given social protection an ever more prominent role in efforts to reduce poverty and inequality across the developing world.  However, providing social protection support to potentially large sections of the population poses difficult choices about how domestic and aid resources should be allocated. It is essential that decisions are based on evidence regarding effectiveness and efficiency.

At a national level what level of resources should be allocated to social protection and poverty reduction?  Which types of social protection interventions are appropriate in a given context, and how should overall expenditure be balanced between these alternative interventions?  What should the relative emphasis be between formal and non-formal provision, and how can non-formal provision be fostered and sustained?  How can social protection programmes be designed so as to minimise welfare dependency and encourage investment in productive activities and assets?  How can planning and budgeting processes be improved to ensure that resources are allocated and spent with maximum impact?  OPM's work in developing policy scenarios has repeatedly proved invaluable in addressing these fundamental questions, highlighting potential resource conflict and helping policy makers clearly understand the tradeoffs facing them.

OPM have extensive experience in supporting the development of national social protection strategies, poverty reduction strategies, and policy reforms that are linked to adequate and sustainable financing.  The development of natonal social protection and poverty reduction strategies should incorporate or be preceded by a mapping of existing policies (sector review) and scoping analysis which assess a range of policy options.  Such scoping analysis should be underpinned by diagnostic analysis that uses nationally representative household survey data (e.g. HBS or LCMS) to identify the specific population group to which the policy is aimed, the likely impact on this target group and the projected cost. This analysis is often complemented by micro-simulations which model and forecast the incidence, impact and cost going forward.  OPM has proven technical expertise in these areas.