What is Social Protection?
Historical Background
Key Points
15 points- 1.
Social protection includes social insurance, which are contributory schemes. Think of your parents or grandparents who worked in government jobs. They would have contributed a portion of their salary towards a pension fund. After retirement, they receive a monthly pension. This is social insurance in action. It protects them from income loss in old age.
- 2.
It also includes social assistance, which are non-contributory schemes. These are typically funded by the government and targeted at the poorest and most vulnerable. For example, the Public Distribution System (PDS) in India provides subsidized food grains to eligible households. This helps ensure food security for those who cannot afford to buy food at market prices.
- 3.
A key aspect of social protection is risk management. This involves helping people cope with unexpected shocks, such as job loss, illness, or natural disasters. For example, crop insurance schemes help farmers protect themselves against losses due to drought or floods. This prevents them from falling into poverty when such events occur.
- 4.
Social protection aims to promote human capital development. This means investing in education, health, and nutrition to improve people's long-term prospects. For example, conditional cash transfer programs like the Janani Suraksha Yojana (JSY) provide financial incentives to pregnant women to encourage them to seek antenatal care and deliver their babies in hospitals. This improves maternal and child health outcomes.
- 5.
The Universal Basic Income (UBI) is a radical form of social protection. It proposes providing a regular, unconditional cash payment to all citizens, regardless of their income or employment status. While UBI has been tested in some countries, it remains a controversial idea due to concerns about its cost and potential impact on work incentives.
- 6.
Social protection differs from charity. Charity is often ad hoc and based on individual generosity, while social protection is a systematic and institutionalized approach to addressing poverty and vulnerability. Social protection is a right, not a favor.
- 7.
One challenge in implementing social protection programs is targeting efficiency. It's difficult to ensure that benefits reach the intended beneficiaries without leakage or exclusion errors. For example, some studies have shown that a significant portion of PDS benefits in India are captured by ineligible households.
- 8.
Social protection can have a significant impact on economic growth. By reducing poverty and inequality, it can boost aggregate demand and create a more stable and inclusive economy. It also helps to build a more productive workforce by improving health and education outcomes.
- 9.
India's social protection system is characterized by a mix of central and state government programs. The central government typically sets the overall policy framework and provides funding, while state governments are responsible for implementation. This can lead to variations in the coverage and quality of social protection across different states.
- 10.
UPSC specifically tests your understanding of the different types of social protection programs, their objectives, and their impact on poverty and inequality. You should be able to critically evaluate the effectiveness of these programs and suggest ways to improve them. They also test your knowledge of the relevant constitutional provisions and legal frameworks.
- 11.
The National Food Security Act (NFSA) of 2013 is a landmark legislation that provides legal entitlement to subsidized food grains for up to 75% of the rural population and 50% of the urban population. This ensures food security for a large section of the population.
- 12.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) guarantees 100 days of wage employment to rural households. This provides a safety net for rural households and helps to reduce poverty and distress migration.
- 13.
The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to provide universal access to banking services. This helps to promote financial inclusion and enables people to access social protection benefits more easily.
- 14.
The Atal Pension Yojana (APY) is a pension scheme targeted at workers in the unorganized sector. This provides a safety net for workers who do not have access to formal pension schemes.
- 15.
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) provides income support to small and marginal farmers. This helps to reduce their vulnerability to income shocks and improve their livelihoods.
Visual Insights
Components of Social Protection
Mind map illustrating the key components of social protection, including social insurance, social assistance, and labor market interventions.
Social Protection
- ●Social Insurance
- ●Social Assistance
- ●Labor Market Interventions
Recent Developments
10 developmentsIn 2020, the COVID-19 pandemic highlighted the importance of social protection systems, leading to increased government spending on social assistance programs to support vulnerable populations.
In 2021, the government launched the e-Shram portal, a national database of unorganized workers, to facilitate the delivery of social security benefits to this sector.
In 2022, the Supreme Court directed the government to ensure the effective implementation of social security schemes for unorganized workers.
In 2023, the government increased the budget allocation for social protection programs, reflecting its commitment to reducing poverty and inequality.
In 2024, discussions are ongoing regarding the potential introduction of a universal basic income (UBI) scheme in India, although no concrete decisions have been made yet.
The periodic labor force surveys (PLFS) by the National Statistical Office (NSO) provide data on employment and unemployment, which are used to inform social protection policies. The latest PLFS data shows a decline in the unemployment rate, but also highlights the challenges of informal employment and low wages.
Several state governments have introduced their own social protection schemes, such as the Rythu Bandhu scheme in Telangana, which provides income support to farmers. These schemes demonstrate the growing recognition of the importance of social protection at the sub-national level.
The World Bank and other international organizations are providing technical and financial assistance to India to strengthen its social protection system. This includes support for improving the design and implementation of social protection programs, as well as for building the capacity of government officials.
The ongoing debate on labor law reforms in India includes discussions on the need to provide adequate social security benefits to workers in the formal and informal sectors. The government is considering various options, such as expanding the coverage of existing social security schemes and introducing new schemes.
The NITI Aayog has been advocating for a more integrated and coordinated approach to social protection, with a focus on using technology to improve the delivery of benefits and reduce leakage.