The informal sector and social protection

In recent years, there has been growing interest to extend social protection coverage to people working in the informal economy. Informal economy workers constitute substantial workforce in most countries and form a base for most economies. However, they are largely excluded from formal social protection coverage. Reasons for exclusion include inadequate legal coverage, lack of compliance and adequate monitoring mechanisms, lack of knowledge about social protection, high contribution rates, unattractive benefit package and mistrust. There are a range of policy options and modes of delivery that can be used to extend coverage. Coverage for informal economy workers in social protection is important. Contributions, benefit package and vesting period should all be tailored to attract people in the informal economy, according to each country setting, in order to protect people from social and economic risks.publishedVersionPeer reviewe

Case study M : Extension of the contributory pension scheme to small-scale farmers in Zambia

Zambia embarked on an ambitious plan to extend pension schemes to informal economy workers, including small scale farmers, who are traditionally excluded from pension schemes. The extension of coverage is aided by enactment of statutory instrument that enables design of a scheme with peculiar financing such as reduced contribution rates, and benefit package including short-term benefits such as maternity benefits, family funeral grant, and access to credit. Administratively a mixed approach of public-private model has been embraced through partnerships between the National Pension Scheme Authority (NAPSA) and informal economy worker associations, and the private sector. This chapter presents considerations for the implementation of pension schemes to small scale farmers.publishedVersionPeer reviewe

Implementing a Public Policy to Extend Social Security to Informal Economy Workers in Zambia

This article analyses the strengths and bottlenecks of institutional capacity between social security institutions implementing the reform in Zambia, which focuses to provide social security to small-scale dairy farmers, a group of informal economy workers. Zambia’s informal economy workers absorb over 80 per cent of the labour force. This is a qualitative study of institutional capacity in the extension of social security. Twenty-one interviews were conducted with participants from Farmers’ Cooperatives (MCC), National Pension Scheme Authority (NAPSA), and Dairy Association of Zambia (DAZ). We selected participants through a purposive sampling technique. We reflected on data using a Consolidated Framework for Implementation Research (CFIR) built on thematic analysis. Analysis suggests that the institutions of the partnership are committed towards extending social security to informal economy workers. There was low involvement of local NAPSA officers in the project design and their role during implementation of the pension extension was unclear. This contributed to a lack of trust by some non-NAPSA members towards social security institutions. Knowledge and beliefs about the capabilities of implementers were essential in the activities for implementing the public policy on the extension of social security. However, there are several implementation lacunas concerning the process, its overarching infrastructure, and adequate human resources. There is a critical need to address gaps in process and procedures, equipment and materials, infrastructure, human resource, trust, and knowledge of context for the extension of social security to informal economy workers in Zambia. This could make the new public policy scheme more attainable.Peer reviewe

Social Protection in Africa : A focus on gender equality and external shocks

Social protection is a human right and a key intervention in protecting against poverty and enabling sustainable growth. As new social protection instruments are designed for new challenges, such as external shocks (climate events, natural disasters, pandemics, wars/conflicts, displacement), there is a need to understand programmes better, and to consider gender implications. This scoping review aimed to review knowledge regarding how social protection is implemented to address gender equality and external shock in Africa and what should be considered in the expansion of these programmes. We searched five academic databases and grey literature on studies on social protection and gender equality or external shocks (climate events; natural disasters; pandemics; wars; conflicts; displacement). We conducted 12 interviews with 14 experts from international organisations, and analysed data using thematic content analysis. We reviewed 140 full-text articles. Few articles described both external shocks and gender. Studies suggested social protection could have beneficial effects for empowerment and the wellbeing of women and girls, but also during external shocks. However, many gaps in services were identified, and social protection needs to be embedded in a functioning system that can also provide complementary services. We found few evaluations of social protection during external shocks. Our interviews confirmed review findings and indicated both gaps and promising approaches in African region. Overall, the findings highlighted the importance of approaching gender equality, external shocks, and disability together, and strengthening core programmes and services. Page 47 was updated on 15 June 2022 and this version replaces the previous one published on 29 April 2022.This report is commissioned as part of UniPID Development Policy Studies (UniPID DPS), funded by the Ministry for Foreign Affairs of Finland (MFA) and managed by the Finnish University Partnership for International Development (UniPID). UniPID is a network of Finnish universities established to strengthen universities’ global responsibility and collaboration with partners from the Global South, in support of sustainable development. The UniPID DPS instrument strengthens knowledge-based development policy by identifying the most suitable available researchers to respond to the timely knowledge needs of the MFA and by facilitating a framework for dialogue between researchers and ministry officials. The content of this report does not reflect the official opinion of the Ministry for Foreign Affairs of Finland. The responsibility for the information and views expressed in the report lies entirely with the authors