Jordan’s Path to Social Protection: Taking it All the Way

Jordan Should Take Social Protection All the Way

The Necessity of Robust Social Protection Programs

In recent years, governments around the world have increasingly recognized the necessity of robust social protection programs, and Jordan is no exception. In 2019, the Jordanian government introduced the Unified Cash Transfer Program to supplement existing contributory schemes in the formal labor market. The program aimed to support the working poor, many of whom work in the informal economy, by providing monthly cash transfers. However, with a sharp increase in poverty, it is clear that the program’s limited scope and targeting algorithm have failed to capture the economic complexity of people’s lives.

Limitations of the Program and the Poverty Line

The Unified Cash Transfer Program relies on a database that collects data from over 30 government agencies to select beneficiaries. While this approach may seem advanced and accurate, it ultimately falls short in effectively identifying those in need. Human Rights Watch research into Jordan‘s program revealed errors, discriminatory policies, and stereotypes about poverty that undermine the selection process. The use of poverty indicators to rank and select beneficiaries inherently fails to capture the full economic complexity of people’s lives and excludes many who are experiencing severe economic hardship.

Furthermore, the poverty line itself, used as a measure to determine eligibility for the program, is an imperfect marker of poverty. It does not fully capture the number of people who are unable to realize their economic, social, and cultural rights. The current targeting approach only serves to fuel social tension and widespread perceptions of unfairness, making it clear that Jordan needs to reevaluate its approach to social protection.

The Need for a Universal Social Protection System

Instead of relying on a targeted approach that leaves many people deprived of their right to social security, the Jordanian government and the World Bank should consider moving toward a universal social protection system. Such a system would enable all individuals to realize their rights, including social security, throughout their lives.

A universal social protection system has several advantages. First, it ensures that no one falls through the cracks and that everyone has access to basic social security. Second, it removes the stigma associated with being a recipient of targeted assistance, as everyone would be entitled to the same benefits. Third, it simplifies the administration of social protection programs, reducing the complexity and potential for errors in the selection process. Finally, a universal approach to social protection promotes social cohesion and solidarity, reinforcing the social contract between citizens and the state.

The Role of the World Bank

The World Bank, as a key supporter of the Unified Cash Transfer Program, needs to reassess its approach to social protection in Jordan. While the bank’s support has undoubtedly contributed to poverty reduction efforts in the country, the limitations of the current program highlight the need for a shift towards a universal system. The World Bank should prioritize the development and implementation of policies that promote a truly inclusive and comprehensive social protection system.

Conclusion

Jordan‘s emphasis on social protection is commendable, and its efforts to target cash transfers using data-driven approaches are innovative. However, the limitations of the Unified Cash Transfer Program expose the flaws of relying solely on targeting algorithms. It is essential for Jordan to recognize the importance of a universal social protection system that ensures all individuals can access their economic, social, and cultural rights. By adopting a universal approach, Jordan can strengthen its social contract and build economic resilience for the benefit of its citizens.

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