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HARNESSING THE
FUTURE:
A LONG-TERM PERSPECTIVE ON SOCIAL PROTECTION
DEVELOPMENT IN EAST AFRICA
Alexander Pick, OECD Development Centre
Food Crisis Prevention Network,
13 December 2016
• Social protection at the heart of Africa’s development strategy
(Agenda 2063)
• As of today, there has been a major expansion of social
protection although large gaps in coverage remain
• Looking forward, several emerging trends are likely to bring
additional threats to human well-being and confront Africa’s
vision for social protection
• Identifying possible futures and exploring new paths for
action is essential for tackling today’s social protection
challenges and preparing for those of tomorrow
13-Dec-
2016
2
Background
• What will be the demographic, environmental, social and
economic trends over the next 50 years in East Africa?
• How will these trends affect the evolving needs and
conditions for social protection in the region?
• How can countries in the region adapt to these
challenges while achieving Africa’s vision for social
protection?
• How can social protection influence key trends?
13-Dec-
2016
3
Key questions
• UN projections for population growth
– Up to 2100, most reliable over 30-40 years
– Reliant on census data
– Includes international migration
• UN projections for urbanisation
– Up to 2050
– Beware definitional problems
• Health projections
• Climate models
13-Dec-
2016
4
Building a long-term projection – Demographic
and environmental trends
• Estimate long-term productivity growth
• Project gross national income, reflecting productivity and
population growth
• A projection is not a forecast but a means of seeing how key
variables interact within a coherent and plausible framework
13-Dec-
2016
5
Building a long-term projection –
Economic and social trends
Project long-term
poverty rates
assuming current
level of inequality
Project structural change
and implications for
structure of employment
13-Dec-
2016
6
Rapid population growth
2015 2065
13-Dec-
2016
7
Rapid urbanisation with rural
dominance
12/20/2016 8
Strong prospects for economic growth
Average annual and per capita
GDP growth, 2015-2065
12/20/2016 9
Slow structural change, persistent rural
and informal employment
Employment by sector of new labour force
entrants, 2015-2065
Composition of output,
2000, 2010 & 2065
13-Dec-
2016
10
Poverty eradication will remain a
daunting challenge
Seven grand challenges for social protection in East
Africa:
1. Solving the last mile problem
2. Promoting social insurance in a context of high
informality
3. Confronting the employment challenge
4. Rapid urbanisation
5. Climate change
6. Increasing financing for social protection
7. Harnessing the demographic dividend
13-Dec-
2016
11
The way forward
THANK YOU
Alexander PICK
Fiscal Economist, Social Protection Team
OECD Development Centre
alexander.pick@oecd.org
+33 1 45 24 87 27

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Harnessing the future: A long-term perspective on social protection development in East Africa

  • 1. HARNESSING THE FUTURE: A LONG-TERM PERSPECTIVE ON SOCIAL PROTECTION DEVELOPMENT IN EAST AFRICA Alexander Pick, OECD Development Centre Food Crisis Prevention Network, 13 December 2016
  • 2. • Social protection at the heart of Africa’s development strategy (Agenda 2063) • As of today, there has been a major expansion of social protection although large gaps in coverage remain • Looking forward, several emerging trends are likely to bring additional threats to human well-being and confront Africa’s vision for social protection • Identifying possible futures and exploring new paths for action is essential for tackling today’s social protection challenges and preparing for those of tomorrow 13-Dec- 2016 2 Background
  • 3. • What will be the demographic, environmental, social and economic trends over the next 50 years in East Africa? • How will these trends affect the evolving needs and conditions for social protection in the region? • How can countries in the region adapt to these challenges while achieving Africa’s vision for social protection? • How can social protection influence key trends? 13-Dec- 2016 3 Key questions
  • 4. • UN projections for population growth – Up to 2100, most reliable over 30-40 years – Reliant on census data – Includes international migration • UN projections for urbanisation – Up to 2050 – Beware definitional problems • Health projections • Climate models 13-Dec- 2016 4 Building a long-term projection – Demographic and environmental trends
  • 5. • Estimate long-term productivity growth • Project gross national income, reflecting productivity and population growth • A projection is not a forecast but a means of seeing how key variables interact within a coherent and plausible framework 13-Dec- 2016 5 Building a long-term projection – Economic and social trends Project long-term poverty rates assuming current level of inequality Project structural change and implications for structure of employment
  • 8. 12/20/2016 8 Strong prospects for economic growth Average annual and per capita GDP growth, 2015-2065
  • 9. 12/20/2016 9 Slow structural change, persistent rural and informal employment Employment by sector of new labour force entrants, 2015-2065 Composition of output, 2000, 2010 & 2065
  • 10. 13-Dec- 2016 10 Poverty eradication will remain a daunting challenge
  • 11. Seven grand challenges for social protection in East Africa: 1. Solving the last mile problem 2. Promoting social insurance in a context of high informality 3. Confronting the employment challenge 4. Rapid urbanisation 5. Climate change 6. Increasing financing for social protection 7. Harnessing the demographic dividend 13-Dec- 2016 11 The way forward
  • 12. THANK YOU Alexander PICK Fiscal Economist, Social Protection Team OECD Development Centre alexander.pick@oecd.org +33 1 45 24 87 27