Impact of Social and Economic Policies - Coursework Example

Global social policy – poverty Name Subject & Code Instructor Institution Date of submission What roles do the key stakeholders play in influencing global policies on poverty reduction in the 21st century? Introduction The significance of social policy is rooted in its special focus on social instead of economic interventions as a key determinant of development (Moser, 1995). Social policy has minimal focus on economic and infrastructure factors, including investing in technology to promote industrial growth and more on improving a country’s social and political structure based on which policies are made to determine development (Barusch 2008). Similar to how economic policy encourages pursuit of economic development goals, social policy also encourages countries to pursue social development goals (Deacon 1997; Kaasch 2013). Indeed, as Moser (1995) observes, whereas economic policy prioritises proficient allocation of economic resources to increase productivity, social policy on the other hand prioritises restructuring the society and social institutions to encourage efficient involvement of varied social groups in the development process. To attain the social development goals, social policy places emphasis on poverty reduction, societal cohesion, and increased employment (Deacons & Stubbs 2013). The context of poverty in the world In the faces of extraordinary social and economic advances globally since the end of the Second World War, poverty prevalence across some parts of the world has increasingly materialised into a fundamental concern that the world still has to contend with today (Sanal & Zare, 2015). While a recent study by the World Bank showed that countries from across the globe had made significant milestones in its Millennium Development Goal of cutting the 1990 poverty rate target by 20 percent in 2010, the high global population currently lives in utter poverty remains disappointingly high. In 2013, the World Bank estimates revealed that as a minimum, some 10.7 percent of people in the world live on less than US$1.90 a day. This indicates a sharp fall from the 35 percent approximated amount of 1990 (Leary, 2016). Clearly put, close to 767 million people in 2013 had to thrive on less than $1.90 a day, showing a decline from the 2012 amount of 881 million and 1990 amount of 1.85 billion. Despite this, the sluggish economic growth in many parts of the world is still an indicator that the 2030 target of attaining best possible poverty eradication may be unattainable. Other indications show that some 50 percent of the poverty-ridden populations live in Sub-Saharan Africa (Leary, 2016; Adato et al. 2004). Latin America is also considered to have elevated levels of unrelenting poverty with more 57 million people estimated to be living in abject poverty. As of 2008, of more than130 million people in the region, some 25 % were found to be living on less than $2 per day (Pengelly 2008). A significant implication of this is that there should be intensified efforts to end severe poverty. Relevant social policy approaches In the process of incorporating non-utilitarian aspects of welfare and the combined behaviours of socio-economic groups, social policy indicates that the society and social relationships may not necessarily be brought into perspective (Mabbett & Bolderson 1999). Overall, differentiating between Holistic and Sectoral perspectives of social policy can be crucial in helping put social policy in its true context. The sectoral approach is rooted in the idea that certain dimensions of human activity may be secluded to be treated separately, and thereby distinguishing areas like social services housing and health for individual professional application. Afterwards, the social policies are associated with social sector policies (Prescott 1997). Based on its goal of promoting human welfare, it would mean providing community, family, or individual services, including education and health services (Norton et al 2001; Bradshaw 2006). On the other hand, the holistic approach to social policy seeks to address the more extensive concerns whereupon sectoral issues are based on. It seeks to ensure a realisation of social objectives consistent with fairness, equity, and prosperity in the society (Norton et al. 2001). Examples include encouraging equitable distribution of wealth, ensuring that a country’s population increases its participation in societal integration, improving lifestyles, and tackling climate change (Bigsten & Levin 2001; Gough 2013). The participation of various actors in poverty reduction policy reforms can be explained using the theory of Offe's Paradox, which argues that it is difficult for capitalism to coexist with welfare state, which can also not survive without capitalism. In which case, capitalism lacks a capacity to regenerate itself only through market-mediated or profit-oriented exchange, as it is also contingent on extra-economic mechanisms to resolve social inequities and poverty reduction (Kaasch and Martens, 2015). Main actors in this area of policy In the 21st century, several stakeholders work to influence policies on poverty reduction, as well as to build the capacity of the poorer nations across the globe to engage in pro-poor trade activities (UNDP 2003). These include international institutions, bilateral development agencies, civil society organisations, academic and research institutions and policy think tanks, and lastly, multilateral development banks (MDBs), bilateral official donors. International institutions As an international institution, the World Bank is by large the foremost actor across the globe, including in Latin America, in instituting policy reduction policies. At the global level, the World Bank’s Poverty Reduction & Economic Management (PREM) Department has engaged both sectoral approach and holistic social policy approaches to eliminate poverty (Pengelly 2008). PREM has spearheaded pieces of research on effective policy reduction strategies that can be implemented into policy reform strategies under the Integrated Framework for Trade Related Assistance to Least Developed Countries (LDCs). According to Norton et al. (2001), the World Bank has encouraged the development of social protection approaches through lending, which grew swiftly globally during the 1990s to $3bn in 1998 after it was established in 1996. Berghman (2005) identifies social protection as a crucial social policy strategy for developing countries. Among the basic World Bank loans and projects associated with poverty reduction are situated in Central America. In 2008 for instance, the World Bank had a portfolio of about $60 million that was targeted at increasing the Latin American countries supply-side capacities and developing their infrastructural capacities in the global economy (Pengelly 2008). In Honduras for instance, an ‘Indigenous Peoples Plan’ was part of the World Bank project. However, the World Bank has been blamed for not consulting sufficiently with the representatives of the poor countries, civil societies, and indigenous communities. The UK Department For International Development (DFID) has made significant efforts to fill the gap, as it provides a trust fund grant in the hope of increasing stakeholders’ participation in designing and implementing country and regional-specific policy reforms. In Latin America for instance, it has attained this through its initiative called the Latin American Markets & International Trade (LAMIT) Programme. The International Finance Corporation (IFC) has also served strategic social policy reform roles, including promoting sustainable private-sector investment in underdeveloped nations to alleviate poverty. In the Caribbean and Latin America for instance, the IFC Office for Advisory Services offers vast consulting opportunities to developing countries to promote business development by enhancing business-enabling environment. It has been widely used in Bolivia, where it supports a small-scale Indigenous Enterprise Development Project to reduced poverty among the indigenous populations in the country (Eberlei 2007). The United Nations Conference on Trade & Development (UNCTAD) has also played significant roles in enabling poverty reduction policy reforms. It has aimed to achieve this by maximizing the potential of underdeveloped and developed nations to provide education and skills, housing, and health services. It also enables them to engage in trade and investment opportunities, specifically by fronting for policies that can integrate them into the global economy equitably (United Nations 2013). It has partnered regularly with UNCTAD regularly partnered with Economic Commission for Latin America and the Caribbean (ECLAC) to engage stakeholders on training and policy studies on trade and investment in Chile and Brazil. Bilateral development agencies Bilateral development agencies have also been at the forefront of promoting global social policies on poverty reduction (Farnsworth & Zoe 2015). It maintains a large portfolio of policy reform programmes on national and regional scales. In Africa and Latin America, the USAID had dominated as a leading actor in reducing poverty levels by improving access to healthcare, providing safe housing, and providing education and training on poverty reduction. It has also enhanced the capacity of developing countries to engage in trade (Gough 2013b). In Latin America for instance, the Broad Based Economic Growth Team has supported and coordinated USAID missions to build the capacity of the developing countries in the region to engage in international trade. In Peru, USAID’s initiative called the Gender & Trade Expansion (GATE) of 2004 to 2009 encouraged the adoption of gender-equitable policies to ensure that trade-related efforts took consideration of women and the poor and encouraged them to leverage the global opportunities (Pengelly 2008). The European Commission (EC) also dominates as a leading bilateral donor of development assistance to developing nations by encouraging policies on trade and development. The EC maintains poverty reduction initiatives with Central America, the Andean region and the South American Common Market (MERCOSUR). In 2007 for instance, the European Union (EU) negotiated successfully an Association Agreement with the Andean region. The Agreement, for the 2007–2010, was envisioned as a comprehensive agreement that embraces political dialogue, trade, and cooperation. It sought to encourage poverty reduction, and reduction of income inequality (OECD 2012). Civil society organisations Civil society organisations also play a fundamental role in encouraging the creation and adoption of policy agendas intended to reduce poverty. They take part in international and regional advocacy, policy dialogues as well as communicate initiatives related to poverty reduction. An example of civil society is the Regoverning Markets, which is initiative funded by the USAID, CIDA, IDRC, and DFID. Regoverning Markets is active in Latin America and provides assistance to the governments and the public sector on how to adopt poverty reduction initiatives, including involvement in agri-business activities. The International Centre for Trade and Sustainable Development (ICTSD) also seeks to influence global trade systems in developing countries to engage in sustainable development initiatives that can reduce poverty through an empowerment of stakeholders to engage trade policies through dialogue and building their research capacities. The ICTSD is generally considered as a dependable source of information and analysis on trade-policy making. The Oxfam International also carries out advocacy and policy analysis on issues to do with poverty reduction, development agenda, and involvement in trade. In Latin America, it pursues a number of community development initiatives. It invites governments, transnational organisations and international institutions to adjust their policies to encourage equitable distribution of wealth, and that a country’s population increases its participation in societal integration, improving lifestyles, and tackling climate change. Academic and research institutions and policy think tanks Globally, academic and research institutions and policy think tanks are active participants in global policymaking on poverty reduction strategies. They have taken predominant roles in encouraging the use of trade to reduce poverty in developing countries. In Latin America for instance, the Institute for the Integration of Latin America and the Caribbean (INTAL), which is a creation of the Argentinean government and the IADB provides technical aid to the government and institutions, organising conferences on policy reforms and engage in research work. The Latin American Centre for Competitiveness and Sustainable Development (CLADS) also serves important functions like promoting reforms in public policies, and participation in civil society actions. It also involves itself in rural development policy-making, encouraging the adoption of free trade agreements, promoting small and medium enterprises competitiveness and adoption of digital technology to encourage community development. The Latin American Trade Network (LATN) also provides policy related research on trade and poverty reduction concerns for policymakers in Latin America, although it also takes part in other diverse issues like policy training initiatives and advisory work. Multilateral development banks (MDBs), bilateral official donors According to Brainard et al. (2016), during the 20th century, efforts to combat poverty were chiefly the obligation of multilateral development banks (MDBs), bilateral official donors, and the recipient governments. In the 21st century, this appears not to be the case thus far. There is an increased awareness of the lethargy of the official agencies to face up to the complex challenges of poverty. The MDBs and bilateral donors primarily contend with the governments of the poorer nations, which have showed some tendencies of being a hindrance to poverty reduction because of corruption. Since they have appeared to be indebted to their relevant electorates, the MDBs and bilateral donors are constrained because of politics and are therefore unable to bring to bear the discretion intended to attain poverty reduction goals. Furthermore, private flows to the poorer nations, which vary from corporate partnerships to philanthropy, are currently estimated to be double the amount of public flows (Stubbs 2003). Due to their extensive financial resources and trade networks, multilateral development banks (MDBs) and bilateral official donors have made attempts to infuse poverty reduction ventures in developing countries through holistic and sectoral policy approaches to encourage health services, social services, equitable distribution of wealth, and that a country’s population increases its participation in societal integration, improving lifestyles, and tackling climate change. An example includes the Bill and Melinda Gates Foundation, and its network of philanthropic organizations, which was established in 2000. By 2008, it had committed an estimated US$11 billion in grants with focus on improving global public health and engagement in development initiatives targeted at reducing poverty. A different approach is also taken by an African Philanthropist called Mo Ibrahim, who owns extensive telecommunication enterprise across Africa. He seeks to improve leadership abilities and personal resourcefulness of African leaders to encourage them to adopt social policies. In his approach, he uses his resources to strengthen African public leadership through the provision of incentives to African leaders to advance their people’s welfare while in office through the “Mo Ibrahim Prize for Achievement in African Leadership.” The award recognizes former African presidents who showed excellent governance by granting them US$5 million prize over a period of 10 years and $200,000 each year throughout their lives. Conclusion Despite ongoing exceptional social and economic advances in the world today, poverty still prevails across some parts of the world. Fortunately, in the 21st century, several actors have come together to influence policies on poverty reduction, as well as to build the capacity of the poorer nations across the globe to engage in pro-poor trade activities. The main actors in this regard include international institutions, bilateral development agencies, civil society organisations, academic and research institutions and policy think tanks, and lastly, multilateral development banks (MDBs), bilateral official donors. They have engaged both sectoral approach and holistic approach by promoting human welfare through the provision of community, family, or individual services, including education and health services. They have also engaged the holistic approach to social policy to address the more extensive concerns upon which sectoral issues are based on. They seek to ensure a realization of social objectives consistent with fairness, equity, and prosperity in the society. Examples include situations where the World Bank, EC and IFC encourage equitable distribution of wealth, ensuring that a country’s population increases its participation in societal integration, improving lifestyles, and tackling climate change. Reference List Adato, M, Ahmed, A & Lund, F 2004, “Linking safety nets, social protection, and poverty reduction — Directions for Africa,” International Food Policy Research Institute, viewed 15 Jan 2016, http://wiego.org/sites/wiego.org/files/publications/files/Adato_Ahmed_Lund_Linking_safetynets_SP_poverty_reduction.pdf Barusch, A 2008, Foundations of Social Policy: Social Justice in Human Perspective, Cengage Learning, New York Berghman, J 2005, Social Protection, Globalised, Leuven University Press, Bigsten, A & Levin, J 2001, “Growth, income distribution, and poverty: A Review,” Paper for WIDER Development Conference on Growth and Poverty Helsinki 25-26 may, 2001 Bradshaw, T 2006, “Theories of Poverty and Anti-Poverty Programs in Community Development,” RPRC Working Paper No. 06-05 February, 2006 Brainard, L, Desai, R, Graham, C et Al 2016, Global poverty: new actors, new approaches, viewed 15 Jan 2016, Read More

The UK Department For International Development (DFID) has made significant efforts to fill the gap, as it provides a trust fund grant in the hope of increasing stakeholders’ participation in designing and implementing country and regional-specific policy reforms. In Latin America for instance, it has attained this through its initiative called the Latin American Markets & International Trade (LAMIT) Programme. The International Finance Corporation (IFC) has also served strategic social policy reform roles, including promoting sustainable private-sector investment in underdeveloped nations to alleviate poverty.

In the Caribbean and Latin America for instance, the IFC Office for Advisory Services offers vast consulting opportunities to developing countries to promote business development by enhancing business-enabling environment. It has been widely used in Bolivia, where it supports a small-scale Indigenous Enterprise Development Project to reduced poverty among the indigenous populations in the country (Eberlei 2007). The United Nations Conference on Trade & Development (UNCTAD) has also played significant roles in enabling poverty reduction policy reforms.

It has aimed to achieve this by maximizing the potential of underdeveloped and developed nations to provide education and skills, housing, and health services. It also enables them to engage in trade and investment opportunities, specifically by fronting for policies that can integrate them into the global economy equitably (United Nations 2013). It has partnered regularly with UNCTAD regularly partnered with Economic Commission for Latin America and the Caribbean (ECLAC) to engage stakeholders on training and policy studies on trade and investment in Chile and Brazil.

Bilateral development agencies Bilateral development agencies have also been at the forefront of promoting global social policies on poverty reduction (Farnsworth & Zoe 2015). It maintains a large portfolio of policy reform programmes on national and regional scales. In Africa and Latin America, the USAID had dominated as a leading actor in reducing poverty levels by improving access to healthcare, providing safe housing, and providing education and training on poverty reduction. It has also enhanced the capacity of developing countries to engage in trade (Gough 2013b).

In Latin America for instance, the Broad Based Economic Growth Team has supported and coordinated USAID missions to build the capacity of the developing countries in the region to engage in international trade. In Peru, USAID’s initiative called the Gender & Trade Expansion (GATE) of 2004 to 2009 encouraged the adoption of gender-equitable policies to ensure that trade-related efforts took consideration of women and the poor and encouraged them to leverage the global opportunities (Pengelly 2008).

The European Commission (EC) also dominates as a leading bilateral donor of development assistance to developing nations by encouraging policies on trade and development. The EC maintains poverty reduction initiatives with Central America, the Andean region and the South American Common Market (MERCOSUR). In 2007 for instance, the European Union (EU) negotiated successfully an Association Agreement with the Andean region. The Agreement, for the 2007–2010, was envisioned as a comprehensive agreement that embraces political dialogue, trade, and cooperation.

It sought to encourage poverty reduction, and reduction of income inequality (OECD 2012). Civil society organisations Civil society organisations also play a fundamental role in encouraging the creation and adoption of policy agendas intended to reduce poverty. They take part in international and regional advocacy, policy dialogues as well as communicate initiatives related to poverty reduction. An example of civil society is the Regoverning Markets, which is initiative funded by the USAID, CIDA, IDRC, and DFID.

Regoverning Markets is active in Latin America and provides assistance to the governments and the public sector on how to adopt poverty reduction initiatives, including involvement in agri-business activities.

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