Feasibility of social protection schemes in developing countries

Social protection can play a key role in reducing poverty and inequality. Growing recognition of this potential impact has led social protection to rise up the agenda of policymakers in the international development community. In recent years, increased social protection coverage in developing countries has been achieved by the expansion of a combination of programmes. The further expansion of social insurance remains a challenge as a result of low participation in the formal economy and the types of risks encountered by the poor. Initiatives to address these obstacles include the promotion of formal employment, reduction of inequalities in education and extension of coverage through community-based schemes with the support of government. While some degree of private for-profit and non-for profit involvement in social protection provision may contribute to extending coverage, government efforts are central to ensuring that the barriers faced in reaching the poorest are overcome and that access to and quality of services are guaranteed. Social protection lies at the heart of the European social model. The European experience awards a unique role to EU development cooperation in supporting social protection in developing countries. In coordination with other donors, the EU should support the efforts of governments in promoting inclusive social protection.