World Bank advises government to invest more in social protection

The World Bank senior economist social protection, Ms Ramya Sundaram said Uganda needs to expand social protection to support investments in human capital and to protect against shocks, focus social protection programmes on improving both resilience and economic opportunity. AFP PHOTO 

In Summary

• The Government of Uganda spent 0.14 per cent of GDP (FY17/18) on the ...
  two programs, less than Kenya and Rwanda at 0.4 per cent and 0.3 percent of GDP, respectively.
• The World Bank said the coverage and spending on these types of initiatives in Uganda is not optimal, based on regional and global comparisons. There is therefore a strong case to be made to expand these programmes, and to consider how to reach different vulnerable groups.

By MARTIN LUTHER OKETCH

The World Bank has advised Ugandan government to do more investment in human capital development, saying it is important to invest in children and youth to raise living standards.

Presenting the fourteenth Uganda Economic Update report themed, “Strengthening Social Protection Investments to Reduce Vulnerability and Promote Inclusive Growth”, at Kisawa health centre, on Thursday, the World Bank senior economist social protection, Ms Ramya Sundaram said Uganda needs to expand social protection to support investments in human capital and to protect against shocks, focus social protection programmes on improving both resilience and economic opportunity.

“Almost half of Uganda’s population is younger than 15 years of age… …and the population is expected to be above 80 million between 2040 and 2050. Uganda needs to urgently invest in human capital to improve productivity and living standards. In this environment, social protection has a role to play to ensure growth is inclusive,” she said.

Ms Ramya said there is need to prioritize social protection expansion to the most vulnerable people and areas to improve their standards of living.

He explained that social protection plays a great role in supporting households to invest in human capital through better nutrition and education for children, for building resilience against shocks such as droughts, mitigating risks to allow households to make long-term investment.

Income inequality affects economies and societies, with growing evidence that excessive inequality may be bad for growth. There are also concerns that inequality may dampen educational opportunities and social mobility.