“Fatshimetry”: the challenge of universal social protection for low- and middle-income countries is a critical imperative for ensuring the well-being of populations in these regions. The International Labor Organization (ILO) estimates that an additional $1.4 trillion is required to achieve universal social protection, highlighting the significant financial challenge ahead, especially for low-income countries.
At a New York press conference, ILO public finance economist Umberto Cattaneo emphasized the importance of closing the financing gap to reach universal social protection. He pointed out that this gap amounts to 3.3% of GDP for all low- and middle-income countries and a staggering 52.3% for low-income countries, underscoring stark inequalities in social protection.
Regional disparities are also evident, with Africa facing the most substantial challenge, requiring funding equivalent to 17.6% of regional GDP annually. Further, low- and middle-income countries in the Arab States and Latin America and the Caribbean also face significant gaps of 11.4% and 2.7% of GDP, respectively.
Confronting the funding gap necessitates increased mobilization of domestic resources, particularly through progressive taxation and social security contributions, as highlighted by Umberto Cattaneo. Additionally, tripling development aid for low-income countries, with a specific focus on social protection, is deemed essential.
Universal social protection is a fundamental goal outlined in the United Nations Sustainable Development Goals, particularly in combating poverty. With 4.1 billion people globally lacking social protection, the challenge is substantial. Currently, only 29% of the world’s population has adequate social security coverage, leaving 55% without any coverage.
Ensuring universal social protection in low- and middle-income countries is crucial for reducing inequalities and fostering overall well-being. Mobilizing sufficient financial resources and strengthening social security systems are imperative to provide every individual with the needed protection. Investing in social protection translates to investing in a more inclusive and sustainable future for all.
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