Current Context: The recently released World Bank report emphasizes significant gaps in global social protection coverage.
Key Highlights
- Global Gaps: 1.6 billion people lack any form of social protection.
- LMICs (Low- and Middle-Income Countries): Nearly 2 billion people inadequately covered.
- LICs (Low-Income Countries): 80% have no access to social protection.
- LMICs: Over 30% of the population inadequately covered.
- Sub-Saharan Africa: Over 70% without any protection.
- UMICs (Upper-Middle-Income Countries): Only 11% excluded, but due to population size, large numbers still uncovered.
- Progress (2010–2022): Coverage in LICs & LMICs improved from 41% to 51%, mainly via cash transfers.
- Remaining Gap: 75% of people in LICs still lack coverage.
- Future Projections: At the current pace, full coverage of the extreme poor may take until 2043.
- Climate Impact: Climate change could push an additional 130 million people into extreme poverty.
- Risk to SDGs: Delay threatens achievement of Sustainable Development Goals by 2030.
Financing Gaps:
- Global average spending:3% of GDP.
- LICs spend only8% of GDP on social protection.
- Policy Suggestion: Reallocate fossil fuel and agriculture subsidies to fund social protection.