This report presents policy background, institutional arrangements and innovations related to linking social protection programmes and productive inclusion instruments, specifically for Chile, Indonesia, Mexico, Peru, and the Philippines.
Social protection measures such as Conditional Cash Transfer (CCT) programmes have been shown to have significant positive impact on poverty reduction in both Southeast Asia and Latin America. The challenges ahead, however, remain daunting: one in five people in developing countries is still living in extreme poverty. The slowing rate of poverty reduction that can be observed in Indonesia, Mexico, and Peru is also a matter of concern. To achieve the newly adopted Sustainable Development Goal (SDG) #1, which aims to end extreme poverty for all people everywhere by 2030, innovation in social policy and social protection systems must take place. One of the operational challenges of CCT programmes is the lack of a predetermined strategy that promotes a sustainable and resilient exit out of poverty for the target population.
Policy makers and practitioners working in the field of social protection therefore increasingly recognise that social protection policies and programmes need to evolve from providing income support towards an integrated social protection system with heavy emphasis on human capital development and access to opportunities. This can be achieved by linking social protection measures with other interventions that successfully draw the target population into productive economic activities, through what are aptly referred to as ‘productive inclusion’ measures. Across different policy sectors, the role of social protection schemes needs to be emphasised, by using elements of social protection systems – such as targeting mechanisms and distribution channels at local level –
as a platform for the integrated delivery of services for the poor.