Promoting an Integral Social Protection System

This note reviews the challenges in Mexico s social protection system and possible options to achieve an integral and effective system that is more than the sum of its parts. Mexico s social protection system includes contributory social security s...

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2013/04/17568246/promoting-integral-social-protection-system
http://hdl.handle.net/10986/16576
Description
Summary:This note reviews the challenges in Mexico s social protection system and possible options to achieve an integral and effective system that is more than the sum of its parts. Mexico s social protection system includes contributory social security schemes, social assistance programs, and labor market programs. The contributory social security schemes offer pensions and health insurance to formal sector workers to protect against income shocks and help smooth consumption over the life cycle. The recent noncontributory Social Protection System in Health (SPSH) provides health insurance to people not covered by formal schemes. To prevent poverty and promote greater human development, Mexico has several social assistance interventions, including Oportunidades, a conditional cash transfer program for the chronically poor, and 70 y Mas, a noncontributory old-age income-support program. Finally, the social protection system also includes several labor market interventions that promote employability, facilitate job matching, and protect workers against economic shocks. This note reviews the progress achieved so far by Mexico s social protection system and its remaining challenges to achieve an integrated system that provides effective protection to all Mexicans from income shocks, that helps them smooth consumption over the life cycle and promotes greater human development.