New Delhi: As climate change and economic uncertainties intensify, robust social protection systems are becoming a necessity, not a choice, warns the Social Outlook 2024 report by the Economic and Social Commission for Asia and the Pacific (ESCAP). The report highlights a dire need to close financing gaps to safeguard vulnerable populations and build resilience.
The Asia-Pacific region currently spends only 8.2% of its GDP on social protection, significantly below the global average of 12.9%. ESCAP cautions that without increased investment, rising poverty driven by climate change, digital disparities, and aging populations could become unavoidable.
Social protection is more than a safety net; it’s an investment that stabilizes economies during crises. This was evident during the COVID-19 pandemic when unemployment benefits and cash assistance programs kept economies afloat by supporting demand and incomes.
To fund these critical systems, ESCAP recommends measures such as progressive tax reforms, expanding social insurance schemes, and reallocating subsidies from fossil fuels to social protection. Innovative tools like green and social bonds are also highlighted as promising avenues for financing initiatives that address both social and climate challenges.
“Social protection is an economic stabilizer and a lifeline for those most affected by crises,” the report emphasizes. Governments must act decisively to build resilient systems, leveraging both traditional and innovative financing to ensure inclusive and sustainable development.
The call for stronger political will and public support echoes across the region as ESCAP urges nations to treat social protection as a public good, critical for economic stability and climate resilience.