The "social security" of people is indispensable for sustainable development. Especially in times of growing insecurity, it serves to stabilize the situation in countries and societies. Health, unemployment and pension insurance as well as cash transfers in emergency situations give people more security. They increase resilience in the event of economic and political upheavals and natural disasters. In addition, through their redistributive effect, "social security systems" can help to avoid excessive economic disparities, which are often the central cause of crises and conflicts.
Globalisation has contributed to the fact that crises and shocks, whether economical, ecological or political in nature, have drastically increased in frequency and destructive power. Developing countries are particularly affected by this trend. How can we prevent them from destroying hard-won development progress? One approach is adaptive social protection systems that can handle crisis response. The current issue of Development in Brief describes the types of challenges social protection systems are facing and how they need to be further developed to meet these challenges.
KfW Development Bank supports the development and expansion of sustainably fundable social protection systems in its partner countries on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) and various clients. We work together with our partners to develop country-specific solutions and innovative concepts.
In rich countries it is quite common to insure oneself against substantial risks like illness, unemployment, natural disaster or crop failure due to drought. In developing countries insurance solutions are also on the rise. However, for the most poor and vulnerable it is hard to gain access to insurances. Their ability to pay for insurances is limited and they often live in areas, which are hard to access for insurance companies.
The lasted issue of our Development I Brief series describes innovative approaches for overcoming the mentioned difficulties. Thereby poor households may be able to insure themselves against typical risks and enhance resilience.
This paper discusses the policy options available to developing countries commited to offering universal pension coverage and maximising the incomes of older people. It presents a basic model of a pension system comprising up to three tiers that can be adapted to the circumstances of all countries.
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Digitalisation has revolutionised the everyday lives of many people: information can be called up in seconds and messages sent internationally at high speed. Even in developing countries, there appears to be significant potential for using these technologies. However, what is access to information and communication technology lin in these countries?
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