## IMF Engagement on Social Safety Net Issues in Surveillance and Program Work

_Technical Notes and Manuals, October 3, 2022_

## Source details

**Canonical URL:** [IMF Engagement on Social Safety Net Issues in Surveillance and Program Work](https://www.imf.org/en/publications/tnm/issues/2022/10/03/imf-engagement-on-social-safety-net-issues-in-surveillance-and-program-work-524087)

## Other formats

- [Markdown version](/en/publications/tnm/issues/2022/10/03/imf-engagement-on-social-safety-net-issues-in-surveillance-and-program-work-524087/index.md)
- [Structured JSON version](/en/publications/tnm/issues/2022/10/03/imf-engagement-on-social-safety-net-issues-in-surveillance-and-program-work-524087/index.json)
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## Bibliographic details
- Published: October 3, 2022
- Series: Technical Notes and Manuals
- DOI: https://doi.org/10.5089/9798400222504.005

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### Summary and Purpose
- The technical note discusses:
  - the different channels through which SSN spending may become macro-critical;
  - how to assess the importance of these channels; and
  - the types of policy responses that are appropriate and the trade-offs involved in choosing among them.
- Emphasizes the complementary role of labor market programs (for example, unemployment benefits and active labor market programs) in assessing SSN spending.
- Highlights the importance of early engagement and coordination with development partners with expertise on social safety nets and with different stakeholders when formulating policy advice.
- States that IMF engagement on social safety net (SSN) issues is likely to expand as member countries respond to growing challenges in the economic and fiscal landscape.
- Notes that SSNs play a crucial role in protecting households from poverty, promoting inclusive growth, and maintaining social stability.

### Channels through which SSN spending may become macro-critical
- SSN spending can become macro-critical through multiple channels (as described in the note); the document provides a framework for identifying these channels and their implications for surveillance and program work.
- The note treats SSN spending alongside labor market programs to facilitate a more comprehensive assessment.

### Assessment framework and analytical focus
- The technical note outlines how to assess the importance of macro-critical channels for SSN spending, providing guidance for surveillance and program engagement.
- Analytical focus includes:
  - spending adequacy;
  - spending efficiency;
  - fiscal sustainability; and
  - distributional outcomes (for example, benefit incidence and Benefit-cost ratio).

### Policy responses and trade-offs
- The note discusses types of policy responses that are appropriate when SSN spending is macro-critical and the trade-offs involved in choosing among them.
- Policy considerations include:
  - balancing fiscal sustainability with protection of vulnerable households;
  - sequencing and targeting of SSN expansions or retrenchments; and
  - complementarity with labor market programs such as unemployment benefits and active labor market programs.

### Coordination and operational guidance
- Emphasizes early engagement and coordination with development partners that have expertise on social safety nets.
- Recommends coordination with different stakeholders when formulating policy advice to ensure comprehensive and context-sensitive SSN strategies.

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## Content in this bundle

- **IMF Engagement on Social Safety Net Issues in Surveillance and Program Work**
  - [IMF Engagement on Social Safety Net Issues in Surveillance and Program Work (Markdown version)](/-/media/files/publications/tnm/2022/english/tnmea2022007.pdf.md){rel="alternate" type="text/markdown"}
  - [IMF Engagement on Social Safety Net Issues in Surveillance and Program Work (PDF)](/-/media/files/publications/tnm/2022/english/tnmea2022007.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/tnm/issues/2022/10/03/imf-engagement-on-social-safety-net-issues-in-surveillance-and-program-work-524087_