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WHAT CAN BE DONE
household level, meaning that women and vulnerable groups, such as the
elderly, can be undermined in the process.
Despite this, in recent decades smaller, targeted, means-tested benefits have
become increasingly favoured, particularly by the World Bank and the IMF. This
is based on the much more limited role for government envisioned by market
fundamentalists and the view that universal benefits are unaffordable for many
countries. It also fits with the ever more widespread perception that welfare
benefits inhibit work and that the focus should be on individuals having to
stand on their own feet and not be stifled by the ‘nanny state’. 473
Linking the provision of benefits to particular conditions or behaviours,
such as getting children immunized or sending them to school, is becoming
increasingly popular. However, there is no evidence that this works, and, as
with poverty targeting, it requires significant administration and a system of
sanctions that must be enforced. 474 Implicit in the approach is the judgement
that firstly poor people will not make the right choices, and secondly that they
can be persuaded to make behavioural changes with money.
All countries should be working towards permanent universal social protection
systems, which reduce vulnerability and increase resilience to shocks.
Mechanisms that can scale-up rapidly at times of crisis, when a basic level
of protection is not enough, should also be further pursued. A good interim
path would be to guarantee social protection to categories of people; for
example, providing benefits to all mothers or all people over a certain age.
This would reduce debate and the stigma attached to means-testing to
identify who is most needy.
Many developing countries now have levels of income that are on par with
those in Europe when universal schemes were introduced there, challenging
the idea that these benefits are unaffordable. Multiple studies have also
shown that basic levels of social protection are affordable across the
developing world. 475
Things are already changing. Over the past two decades, middle-income
countries have expanded social security on a massive scale. China has nearly
achieved universal coverage of old-age pensions, while India has instituted
an employment guarantee for its rural population, benefiting hundreds of
millions of people. 476 One study found that social protection was responsible
for a quarter of the reduction in Brazil’s Gini coefficient. 477
The time has certainly come for all countries to broaden social protection
as a critical tool for reducing inequality, and to ensure the most vulnerable
are not left behind.
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