The primary objective of social protection schemes is to empower vulnerable members of society, enable them to overcome poverty, and access decent employment in the labor market.
As of 2020, according to data from the International Labour Organization, 47% of the global population was covered by at least one social security benefit. A significant majority of these beneficiaries resided in the continents of America and Europe. This is not surprising, as history has shown that establishing robust national social security systems is a long-term process. Such comprehensive and sustainable development demands time and strategic, citizen-centered political steps.
Why should I be interested in this topic?
Poverty persists as one of the most pressing challenges in Georgia. Against this backdrop, the number of individuals categorized as socially vulnerable continues to rise within the country. As per data from the first quarter of 2023, 17.4% of the country's population receives social allowance. Therefore, a comprehensive analysis of the social assistance system serves as a tool to evaluate the efficiency of this program.
Our comment
The country's social welfare system has significant flaws and is far from perfect. Consequently, it falls short in mitigating poverty among the socially vulnerable, a fact underscored by statistics.
It is crucial to ensure that when providing different services, accessibility is not solely determined by scores. Moreover, the current evaluation system requires significant improvement, as long-term experience has revealed that the existing system frequently excludes individuals in urgent need of assistance from social protection.
International practices and approaches
In 2012, the United Nations endorsed the concept of a “Social Protection Floor”, aiming to ensure that all members of society, particularly vulnerable groups, have equitable access to social protection. This framework primarily revolves around two key components:
- A basic set of essential social rights and transfers, in cash and in kind, and
- The supply of an essential level of goods and social services such as health, education, food, and housing.
Across the globe, various methodologies and approaches are employed to determine beneficiary groups and assess the extent of social support. Presented below are several commonly used methods:
- The means test - is a method focused on the assessment of an individual's or a family's financial resources and income level, with the primary objective of identifying those in most acute need of assistance. It is a tool employed by governments and social welfare agencies to determine eligibility for essential social benefits, encompassing cash transfers, complimentary meals, subsidized housing, and healthcare coverage.
- Categorical Assistance - certain programs allocate benefits to specific demographic categories or groups, including the elderly, disabled individuals, and single parents, without considering their income levels. This approach relies on demographic characteristics rather than financial means. In such cases, the method commonly known as the means test is not employed.
- Conditional Cash Transfers - in this approach, governments provide financial support to families or individuals contingent upon meeting specific requirements or conditions. These conditions typically entail actions aimed at fostering human capital development, such as ensuring the recipient's obligation to facilitate their children's school attendance, scheduling regular medical visits, or adopting preventive health measures. The primary objective of this approach is to incentivize behaviors that improve the well-being and future opportunities of aid recipients, especially in disadvantaged or vulnerable communities.
- Universal Basic Income (UBI) - this social welfare concept entails providing a monetary allowance to all citizens or residents of a country, irrespective of their income, employment status, or demographic factors. In contrast to need-based programs, which target individuals based on specific income levels or requirements, UBI offers a simple solution: regular and consistent cash support for everyone within a designated geographic area.
A general critique of the systems
Targeted social assistance systems frequently overlook individuals or households who may require assistance but do not meet specific criteria, resulting in their social exclusion and exacerbating prevailing inequality.
With regard to the means test, stringent restrictions can prove ineffective, often attributed to the ownership of immovable or movable properties. Additionally, this approach is an administratively burdensome process that requires more bureaucracy. Consequently, this can result in the inefficient delivery of benefits and substantial delays in assistance. Furthermore, there is a possibility of inaccurately assessing the type of assistance required by beneficiaries, or receiving such an assessment/score due to owing property, that might leave them without essential support. This system is currently implemented in Georgia.
The current system in Georgia
Targeted social assistance in Georgia, as defined under the law, constitutes a poverty alleviation program that provides financial aid to economically vulnerable families. Families qualify for this assistance if they are registered in the relevant database and their rating score falls below the threshold set by law. The evaluation, conducted through the Poverty Measurement Test (PMT), is employed to assess the poverty level, taking into consideration factors like consumption expenditure, socio-demographic location, and income.
In the social assistance system implemented in Georgia, the process of determining eligibility for social allowances involves multiple stages:
- Initially, a representative of the family submits an application to the Social Service Agency to request subsistence allowance, officially enrolling in the system's database.
- Subsequently, the agent collects and documents the information, enters it into a computer program and cross-checks it against relevant databases.
- Based on this data, the family is assigned a rating score, that ultimately determines their eligibility for the allowance.
The subsistence allowance is determined according to the number of family members, ranging from 30 to 60 GEL for adult members, with an additional support of 200 GEL allocated for individuals under 16 years of age.
Furthermore, the social assistance system in the country offers different forms of assistance to beneficiaries at municipal and central levels. One example of this assistance includes direct financial support, provided either as one-time or regular disbursements by both central and municipal governments. Indirect financial support, encompassing a range of subsidies, is also provided by the central and/or municipal authorities. Additionally, the assistance encompasses access to different types of services.
What are the challenges?
The primary critique of Georgia's system revolves around the inadequacy and incompleteness of the existing packages and benefits provided by the state to its citizens, both at the central and municipal levels. These individuals find themselves trapped in persistent poverty as the minimal financial aid offered fails to empower those with status to achieve economic stability. The deficiency in the system was underscored in the 2016 report by the State Audit Service, which highlighted the absence of a strategic document aimed at reducing the number of beneficiaries and effectively addressing the issue of poverty within the country.
Besides, the current method of assessing poverty has been criticized over the years, primarily due to the algorithm used in score calculation, which frequently overlooks families living in severe poverty. For instance, the homeless are a notable example of a group excluded from the system, unable to obtain a status of the socially vulnerable, as they lack a permanent residence where an agent can conduct property assessments.
Another important issue is that access to different benefits is determined solely by evaluation scores. For instance, an individual or family may receive only cash benefits, without access to vital services such as education and healthcare. With the minimum allowance provided, meeting even the most basic needs is unattainable.
Moreover, the procedure for disbursing social benefits is inherently time-consuming, which can be particularly distressing for individuals urgently requiring immediate assistance. If a family or individual decides to appeal their assigned rating score, this process adds at least another month to the waiting period. This delay can exacerbate their already challenging circumstances, or as access to other essential services is contingent upon these scores, they may not be able to utilize a healthcare package or any other service in time.
Municipal assistance programs are also problematic as the accessibility of various services varies among municipalities due to their respective budgets. This unequal opportunity exacerbates disparities among vulnerable groups, where a beneficiary residing in Tbilisi may enjoy a more extensive range of services compared to someone in another region.
In summary
The primary objective of the social protection system is to assist individuals enduring chronic poverty in resolving their social challenges. The social protection system must ensure a significant reduction in poverty levels among the most vulnerable, providing them with a subsistence minimum, stability, and empowering them to reintegrate into the labor market successfully.
Therefore,
The state needs to adopt a holistic perspective on the importance of social protection schemes, fostering strong coordination between central and local levels. This collaborative effort is essential to prevent vulnerable segments of society from being excluded from social protection initiatives. Achieving this objective demands both legislative reforms and practical implementation. Such steps may entail:
- The assessment system utilized for calculating the rating score of applicants seeking subsistence allowance necessitates to be refined and made more comprehensive, thereby preventing the exclusion of the most vulnerable groups from the system.
- Establishing effective collaboration between central and municipal governments is crucial for the appropriate allocation of resources. Moreover, it is essential that the services provided are systematic and effective.
- The lengthy waiting period for disbursing the assistance currently spanning approximately 3-4 months, should be reduced as it is particularly burdensome for beneficiaries in urgent need of immediate aid.
- A strategic plan should be developed that would be aimed at providing socially vulnerable individuals with tailored assistance, enabling them to overcome poverty and achieve sustainable stability.
The article was prepared with the support of Friedrich-Ebert-Stiftung. The views expressed in this publication are not necessarily those of the Friedrich-Ebert Stiftung. Commercial use of all media published by the Friedrich-Ebert-Stiftung (FES) is not permitted without the written consent of the FES.
