Year: 2016
Working paper number: 389
Author: Seekings, Jeremy
Unit: CSSR General
Abstract:
The 'affordability' of new or expanded social protection programmes depends on more than an assessment of the fiscal costs or the poverty-reducing or developmental benefits. Diverse international organisations have showed that programmes costing less than or about 1 percent of GDP have substantial benefits, and most low-income countries have the 'fiscal space' for such programmes (including through increased taxation). These international organisations have generally failed to convince national policy-making elites to raise and to allocate scarce domestic resources to social protection programmes. The result is an 'affordability gap' between what is advocated for African countries and what those countries' governments are willing to spend. This paper examines four cases of contestation over the 'affordability' of social protection reforms in Africa: Botswana, South Africa, Zambia and the semi- autonomous territory of Zanzibar. In all four cases political elites resisted or rejected proposals for expensive reforms. In practice, the most expensive reforms that were approved were ones costing only 0.4 to 0.5 percent of GDP. The governments of Zambia and Botswana generally resisted even expenditures of this magnitude. The cost ceiling for reforms is far below the estimates of international organisations, reflecting political, normative and ideological factors.
Publication file: WP 389 Seekings.pdf
Working paper number: 389
Author: Seekings, Jeremy
Unit: CSSR General
Abstract:
The 'affordability' of new or expanded social protection programmes depends on more than an assessment of the fiscal costs or the poverty-reducing or developmental benefits. Diverse international organisations have showed that programmes costing less than or about 1 percent of GDP have substantial benefits, and most low-income countries have the 'fiscal space' for such programmes (including through increased taxation). These international organisations have generally failed to convince national policy-making elites to raise and to allocate scarce domestic resources to social protection programmes. The result is an 'affordability gap' between what is advocated for African countries and what those countries' governments are willing to spend. This paper examines four cases of contestation over the 'affordability' of social protection reforms in Africa: Botswana, South Africa, Zambia and the semi- autonomous territory of Zanzibar. In all four cases political elites resisted or rejected proposals for expensive reforms. In practice, the most expensive reforms that were approved were ones costing only 0.4 to 0.5 percent of GDP. The governments of Zambia and Botswana generally resisted even expenditures of this magnitude. The cost ceiling for reforms is far below the estimates of international organisations, reflecting political, normative and ideological factors.
Publication file: WP 389 Seekings.pdf