Under what circumstances does social policy change? There are some significant international institutions which have been established to assist in international and regional development such as the World Bank, International Monetary Fund (IMF), Asian Development Bank (ADB), etc. especially, to help the poor or developing countries both financially and socially. Social policies in the World Bank have evolved into three conceptually and operationally separate agenda: ‘social welfare, social protection and social development’ Hall, A (2007). According to Deacon, B (2007) states that at the lower level of organization inside the World Bank (IBRD and IDA), the sectors of interests to us changed significantly in 1996. Before then existed the three departments: environment, education and social policy. Most of the social policy questions were addressed by the education and social policy department, which focused on labor-intensive growth, investment in education and health, and pension reform backed up by a then ill-defined ‘safety net’ for the poor. For instance, Deacon, B (2007) describes that in 1996, a major reform gave rise to five ‘networks’ such as Finance, Environmentally and Socially Sustainable Development (ESSD), Private Sector and Infrastructure (FPSI), Poverty Reduction and Economic Management (PREM), Human Development Network (HD) and Operational Core Services (OCS) to alleviate the poverty in the poor and developing countries and to enhance economic and social development.
In addition, Deancon, B (2007) states that these reforms included ‘macroeconomic policy adjustments’ – fiscal, monetary and exchange rate policy and a variety of other measures as well, from privatization to trade liberation and financial sector reform. Furthermore, (IMF, 1995: 1) shows ‘macroeconomic stability’, a marked based environment for trade and investment, good government through a transparent legal framework and institutions, and participatory development through active participation of all groups in society and social policies, including social safety nets to protect the poor in the period of cost effective social expenditures, economic reform, and employment making labor market policies.
In addition, Deancon, B (2007) states that these reforms included ‘macroeconomic policy adjustments’ – fiscal, monetary and exchange rate policy and a variety of other measures as well, from privatization to trade liberation and financial sector reform. Furthermore, (IMF, 1995: 1) shows ‘macroeconomic stability’, a marked based environment for trade and investment, good government through a transparent legal framework and institutions, and participatory development through active participation of all groups in society and social policies, including social safety nets to protect the poor in the period of cost effective social expenditures, economic reform, and employment making labor market policies.
Not only the international institutions but also local institutions, communities and local government play a key role in enhancing economic and social development. The bank establishes policy of the Structural Adjustment Participatory Review with INGO and local NGO involvement which focused on structural adjustment policies in several countries, it concluded that ‘structural adjustment policies’ have contributed to the further impoverishment of marginalization of populations while improving economic inequity (World Bank, 2002a). For example, Oxfam has an interest in being involved in attempts to reach the poorest of the poor. They were also designed to ‘stimulate participatory development initiatives’ by offering small scale-financing to NGOs, community, small firms and entrepreneurs (Fumo et al., 2000: 9). Women with entrepreneurial skills have often been beneficiaries of these (Subbarao and Bonnergee, 1997). However, they were subsequently criticized (Fumo et al., 2000: 25; Hall and Midgeley, 2004: 274) on four counts: they often did not reach the poor but instead proactive NGOs; they were not mainstreamed into government anti-poverty policy; they became substitutes for government expenditure so that if a social fund was active in health provision the equivalent government budget line might be cut; and they were not linked to funding sources that were sustainable in the long term. However, the prime motivating force for its creation was the belief at the height of the neoliberal ascendancy of the 1990s, which increased global trade was, along with the ‘liberalization of capital flows’, the key to increased world prosperity. It was seen as a force to drive down both tariff barriers and non tariff barriers to international trade (Hall, A 2007).
In summary, the economic and social policy reforms within the international institutions, local government, institutions and communities are the key driver of change in social policy for enhancing economic and social development of the poor and developing countries. Even if a greater measure of conceptual and operational integration and collaboration were possible in theory among the diverse arms of ‘social policy’ within the bank, there remains a major practical obstacle to social policy mainstreaming in the organization.
In summary, the economic and social policy reforms within the international institutions, local government, institutions and communities are the key driver of change in social policy for enhancing economic and social development of the poor and developing countries. Even if a greater measure of conceptual and operational integration and collaboration were possible in theory among the diverse arms of ‘social policy’ within the bank, there remains a major practical obstacle to social policy mainstreaming in the organization.
(Writer: Bong Angkeara)
