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Preventing and reducing poverty in times of crisis: the role of non‐contributory cash transfers

  • English
Hoelscher,P.; Alexander, G.; Scholz, W.
2009
25
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Summary (English)

The social impacts of the global economic crisis are only slowly beginning to be felt in Eastern Europe, Turkey and Central Asia. Many countries in the region have tried to protect social spending during the crisis. Some countries have adjusted or expanded coverage, duration and levels of social benefits. Few countries however have made concerted use of employment and social protection policies to mitigate any social impact.

This paper assesses the effectiveness of social protection systems, focusing on non‐contributory cash transfers as arguably one of the most important vehicles of social protection in a crisis, especially in economies with large informal sectors. The analysis of existing legal provisions and entitlements for their potential to prevent poverty in families with children shows that in many countries family benefit packages have a negative net balance on families with children compared with childless couples. These findings help to explain the persistence of higher poverty risk of families with children across the region. This paper argues that the prospect of economic recovery offers an opportunity to reconsider the direction of social protection in the region and calls for a new ‘social consensus’ centred on a more coordinated approach between social insurance, categorical benefits and social assistance.

Conference 2261 Moldova , Azerbaijan , Kazakhstan , Kyrgyzstan , Türkiye , Uzbekistan , Ukraine , Belarus , Russian Federation , Armenia , Georgia cash / in-kind benefits , children
14.12.2010