Social Safety Nets in Response to Crisis: Lessons and Guidelines from Asia and Latin America
By Inter-American Development Bank, International Monetary Fund, World Bank, Asian Development Bank (02/01, En, Es) See also Poverty and Inequality
This document has been prepared in collaboration with Asia Pacific Economic Cooperation member countries and a core team from the World Bank, the International Monetary Fund (IMF), the Asian Development Bank (ADB), and the Inter-American Development Bank (IDB).
The APEC Finance Ministers want to establish guidelines on the implementation and use of safety nets in responding to crises, taking into account recent country experiences. In their September 1999 Memorandum to APEC Leaders, Finance Ministers stressed the importance of social safety nets in addressing the distress suffered by the most vulnerable members of society and expressed support for the international financial institutions to incorporate this approach into poverty reduction efforts. The Finance Ministers support the view that social policies must ensure that all members of society have the chance to benefit from the globalized economy and well-functioning markets.
The main findings of the report include: (1) social safety nets should be in place before a crisis occurs since they can address the needs of the poor in good economic times and be adaptable to combat the effects of crisis; (2) pre-crisis planning is essential to effectively address the social effects of crises and includes the availability of reliable and timely information on the poor and frequent evaluation of safety net programs; and (3) countries can select from a wide range of available instruments depending on their administrative capacity and target populations. In selecting the appropriate instruments, governments should ensure that the measures: (i) provide adequate protection to the poor; (ii) promote efficient targeting; (iii) avoid creating a culture of dependency among recipients by limiting size and duration of benefits; (iv) are consistent with economic incentives and overall targets of fiscal and macroeconomic policy; and (v) encourage transparency and accountability in the design and implementation of programs and in the use of resources.
Last updated: 05/08/07
