OPTIONS AND RECOMMENDATIONS FOR REFORM

# Natonal Social Protection Policy

Zambia has a strong tradition of mutual support based on family and community ties. Although this has been disrupted by the consequences of the economic crisis, inter- and intra-family transfers are still relatively important in alleviating hardship and maintaining living standards. Any public social protection system should seek to complement and strengthen these family and community ties rather than replace them. A recent World Bank Poverty Assessment<sup>4</sup> has concluded that 69 percent of all Zambians live in households with expenditures per adult below a poverty line based on nutritional and other basic needs, and 55 percent do not have sufficient income to meet their basic nutritional needs. While poverty is both more prevalent and more severe in rural areas there has been a dramatic increase in urban poverty - only 4 percent in 1975 but now approximately 50 percent. Similarly there has been a decline in social indicators with a downturn since 1985 in primary school enrollment rates, increased infant and child mortality, and increased levels of malnourishment among children.

The state has a basic obligation to adopt policies aimed at alleviating poverty and improving living standards. Given the narrow tax base and high levels of evasion tax revenues are insufficient to meet social protection needs. Inevitably, these scarce resources must be targeted at the poorest and, in general, at meeting basic needs for health, education, housing, sanitation, clean water, and for improving services and infrastructure which will provide opportunities for income generating activities.

But there is also need for social protection of workers who are temporarily or permanently deprived of their earnings through sickness, injury or retirement. Here, income related benefits are required. There are two possible sources for social protection in this respect - either employers as part of the conditions of service or some form of social security scheme. Zambia has already established the basis for a social security system with the ZNPF and the pension schemes for public sector employees. Many employers have established supplementary pension schemes or entered into collective agreements with their workers and many individuals have taken some initiative to protect themselves. Thus in Zambia there is the basis of a private tier of social protection directed at the specific needs of individuals or occupational groups financed by employers and individuals.

The need for policy cohesion and coordination between the various players - both public and private - implies a corresponding need for a high-level broad based body, answerable perhaps to the President or to the Minister responsible for Planning and Development. It would be undesirable to create a new bureaucratic infrastructure in the form of an umbrella authority since this might entail significant administrative expenditure. But a standing committee made up of senior representatives of each of the institutions, the social partners and private sector schemes chaired by an appointee of the President might be capable of providing the necessary level of coordination and supervision without constituting another layer of bureaucracy.

> 4 World Bank 1994a

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