""Household Risk Management and Social Protection in Chile" is part
of the World Bank Country Study series. These reports are published
with the approval of the subject government to communicate the
results of the Bank's work on the economic and related conditions
of member countries to governments and to the development
community.
"Household Risk Management and Social Protection in Chile" takes
a critical look at the country's social protection ?system? ?
broadly defined to include policy interventions, public
institutions, and the regulation of private institutions that lower
the welfare costs of adverse shocks to income from job loss and
extended unemployment, health episodes, old age, and life-time
poverty ? to determine if a system exists or simply a set of
loosely coordinated programs.The study also assesses whether
households are provided with appropriate tools to mitigate risks to
their income, identifying gaps in coverage and where instruments
are missing. As well, the study provides the Government with a set
of guidelines, grounded in a conceptual framework, that if
carefully applied, could increase the effectiveness of social
protection.
The author of the study finds that Chile succeeds in providing
households with the instruments that they need to mitigate shocks
to income. The institutions Chile has put in place to help
households lower losses from these shocks ? from the new
unemployment insurance system, the retirement security system and
the mixed health insurance system ? are generally appropriately
designed to match the nature of the risks they are intended to
cover. Yet, while still in a minority, too many Chilean households
? even among the non poor ? do not have access to the
sophisticated, state of the art social protection institutions that
are in place.
World Bank Country Studies are available individually or by
subscription, both in print and online."
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