Countries in South Asia have seen substantial reductions in poverty over recent decades, yet a significant portion of households remains impoverished. Recent shocks such as the COVID-19 pandemic, economic crises, and climate-related disasters are estimated to have pushed millions more into poverty, severely affecting vulnerable groups like women, youth, and children. These impacts are further amplified by megatrends such as demographic shifts and technological disruptions, which if managed well, can present significant opportunities for the region.
The report "Rethinking Social Protection in South Asia: Toward Progressive Universalism" assesses whether South Asia is prepared to help its citizens cope with these shocks and capitalize on emerging opportunities. The report notes that while there has been progress in social protection delivery over past decades, many countries still lack comprehensive strategies. The region's social assistance expenditure relative to GDP is among the lowest globally, with programs covering a small share of the poor and providing inadequate assistance levels. Significant public resources are spent on poorly targeted benefits like energy subsidies and public sector pensions that benefit a small segment of the population.
Social protection systems in South Asia also lack robustness and adaptability to deliver support post-shocks. Additionally, the region allocates a negligible budget share to labor market programs aimed at improving worker employability and connecting them to productive employment. This is critical given that between 2000 and 2020, approximately 386 million people entered the working-age population in South Asia while only 81 million jobs were created. Many workers remain trapped in informal and low-productivity jobs that hinder economic mobility.
To address these challenges effectively amidst fragile fiscal conditions and suboptimal governance structures, the report advocates for progressive universalism—a phased approach starting with the poor and economically vulnerable while paying particular attention to children, youth, and women. This strategy aims at cost-effective high-impact solutions moving towards universal social protection systems that ensure access for all whenever needed.
Given that a large majority of people work informally in South Asia, progressive universalism must address their specific needs. To achieve this goal, the report recommends a four-pillar framework:
1. **Equity**: Reducing poverty and inequality by promoting equality of opportunity, investing in human capital, and addressing exclusion.
2. **Resilience**: Providing insurance against life-cycle risks and building capacity to manage shocks.
3. **Opportunity**: Promoting increased access to productive work for all, especially women and youth.
4. **Social Protection Systems and Financing**: Developing robust adaptive delivery systems underpinned by integrated strategies/policies along with expanded public financing for social protection.