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Dear Colleagues, 
 
As we close out 2021, we are reflecting upon the year and the progress we have made collectively amidst uncertainty. Despite immense hurdles and global challenges, we have also witnessed the astonishing creativity, collaboration, and innovation of colleagues around the world to respond urgently to those the pandemic has pushed furthest behind. 

This last 2021 edition of our CoP Snapshot highlights some of the key achievements and innovative practices featuring UNDP’s work on poverty and inequality in 2021 at the regional and at the country level. It also surfaces critical insights on regional emerging trends, priorities, and opportunities for the year ahead.

In 2022, the Community of Practice on Poverty and Inequality will strive to develop new opportunities for co-ownership and co-creation to further nurture knowledge curation and showcase best practices from the field. This includes the publication and promotion of blogs authored by our CoP members - see for instance a recent blog on 'Aid for Trade' and its impact on green and inclusive growth in central Asia here. Stay tuned for more opportunities for engagement in the coming months!

To share your views or ask how this community can support you in the next year, send us a message at cop-poverty@undp.org.
 
 Best wishes for a happy and healthy holiday season and bright 2022 ahead,
 
 Ricardo, Samantha, Mansour, and Nathalie
Featured Events and Publications
AFRICA - FEB 2021
Informality and Social Protection in African Countries: A Forward-looking Assessment of Contributory Schemes 

The COVID-19 pandemic has exposed the vulnerabilities of the lives and livelihoods of millions of informal economy workers across the globe. Without access to social protection that provides the necessary cushioning against household level and covariate shocks, informal workers and their families have limited means to cope with the pandemic's economic, social, and health impacts. This UNDP report, produced in partnership with ILO, shows how some African governments are exploring innovative ways to extend social insurance coverage to workers in the informal economy and the challenges that lie ahead. The report was released at a virtual side event during the UN 59th Session of the Commission for Social Development – CSocD59. It is available for download in English and French. Check out the report  Watch the launch event.

ARAB STATES - NOV 2021
Ministerial Forum on the Future of Social Protection in the Arab Region 

UNDP continued to work closely with partners to advance inclusive and shock-responsive social protection in the region, including with ILO and UNICEF under the UN Regional Issue-Based Coalition on Social Protection. On 30 November, the Coalition organized a high-level Ministerial Forum, which brought together high-level representatives from 20 countries in the region, representatives of employers and workers organizations, civil society, and experts to discuss the future of social protection in the region, with a focus on four critical areas: Coverage, Shock-responsiveness, Financing, and Governance. Dr. Khalida Bouzar, ASG and Director of the UNDP Regional Bureau for Arab States, moderated the session on Financing, with the participation of Ministers and the World Bank. The session underscored expanding the social protection financing base, including through progressive tax and contribution-based mechanisms, rationalizing public spending, and leveraging alternative means of financing. For more details, see the Ministerial Forum Declaration and the commitments made by participants to advance social protection reforms post-COVID-19. Read the Declaration.

ASIA AND THE PACIFIC - DEC 2021
Afghanistan: Socio-Economic Outlook 2021-2022: Averting a Basic Needs Crisis 

The UNDP Afghanistan: Socio-Economic Outlook 2021-2022 examined the likely socio-economic impact of the sudden stop in external financial support. Already the poorest country in Asia, Afghanistan's annual per capita income declined from US$650 in 2012 to US$508 in 2020 and is expected to drop precipitously over the next years. By mid-2022, 90 percent of the population may be affected by poverty, while an estimated US$2 billion would be needed to lift people in extreme poverty up to the poverty line. Moreover, restrictions on women's employment could reduce GDP by an additional 3 to 5 percentage points. The report calls for mobilizing all available local resources, including female aid workers whose deployment is severely restricted in most provinces, alerting that failing to invest in women and girls' education will have serious socio-economic consequences for years to come. It also underscores social protection as key to meeting immediate basic needs and setting the foundation for future economic and social development. Explore the Report.

EUROPE AND CIS - MAR 2021
COVID-19 and the countries of South Caucasus, Western CIS and Ukraine: Implications for Business Support, Employment and Social Protection Policies and Programming for Sustainability

This study provides an in-depth analysis of the socio-economic impact of COVID-19 across countries in the Eastern Europe and South Caucasus region, with a focus on Micro, Small and Medium-Sized Enterprises (MSMEs) while zooming into the worst affected sectors, including Tourism and Hotels, Restaurants and Caterings (HORECA) sectors. In addition, the report analyzes the vulnerability of households caused by the interconnected impact of high levels of informality, low quality of jobs, and high reliance on remittances. The report outlines three transformative pathways for a COVID-19 recovery: 1) Combine job growth with greener economies; 2) Build resilient infrastructure and develop innovative energy policies; 3) Implement social protection mechanisms to shield vulnerable people against future economic shocks and climate-related and demographic shifts. Access the Study.

LATIN AMERICA AND THE CARIBBEAN - MAR 2021
The Changing Picture of Inequality in Latin America 

This paper provides an outstanding portrait of what happened with inequality over the last 30 years in one of the world's most unequal regions. The study covers the observed trends and the main drivers of inequality, including the role performed by earnings and cash transfers in the inequality decrease of the 2000s. It also analyses how wage gaps (between high and lower-skilled, urban and rural, male and female workers) behaved over the period and the comparative capacity of fiscal policies to reduce inequality. The vast differences in education quality, the gaps in house ownership, the deceleration of female labor force participation, and stagnation in conditional gender wage gap are sources of concern for a region that experienced improvements in the 2000s – yet that have been insufficient and have slowed down in the last years.  Check out the paper here.

Innovative Practices and Solutions

'Next Practices': Innovations in the COVID-19 Social Protection responses and beyond
 
The COVID-19 crisis has reminded us of the pressing need for innovative practices to quickly and effectively deliver social protection (SP) to those usually excluded from benefits, such as informal-sector workers, refugees, and migrants. This report –  jointly produced by the Inclusive Growth cluster of the UNDP Bureau for Policy and Programme Support (BPPS) and the International Policy Centre for Inclusive Growth (IPC-IG) – provides an overview of SP measures implemented in the global South in response to the COVID-19, using a shock-responsive framework. It highlights the factors that enabled ‘inclusive innovation,’ focusing on the levers of success and drawing lessons for the future — the ‘next practices'. In addition, the report draws attention to innovative solutions to reach out to traditionally excluded populations (LNOB groups), especially in times of crisis. Based on this analysis, the report puts forward key recommendations for a durable expansion of SP systems to help countries achieve Sustainable Development Goal (SDG) target 1.3. Check out the report.

Bringing systems thinking to the Inclusive Growth Portfolio of projects in Liberia 

Faced with multiple development challenges that thwart the untapped potential of natural resources to promote green and inclusive growth in Liberia, UNDP Liberia initiated a review and redesign of its Inclusive Growth portfolio by seeking to apply a systems approach. This involved new conceptualizing, engaging partners, and integrating projects aimed at sustaining and improving production from natural resources with initiatives seeking to increase the growth in (private sector) value addition and inclusion (especially the youth and women in the informal economy). The systems approach spurred a change in mindsets and the way of working, unearthing the need for better integration of the portfolio at three levels: 1) integration of thematic areas, for example, ensuring that initiatives to improve production fosters the participation of youth and women in the informal economy; 2) integration across systems, for example, linking systems that generate natural resource products with systems that add value; 3) integration across the portfolio, for example, linking integrated area development projects with efforts to create an enabling macro-environments. Want to learn more about this initiative? Get in touch with the Africa team.


Digital Landscape Assessment – Advancing Digital Transformation in the Arab Region

UNDP has seen increasing demand for support from countries in the Arab region on digital transformation, further amplified due to the impacts of the current COVID-19 pandemic. To respond to these demands, UNDP (under the leadership of the Inclusive Growth Team), in partnership with Estonia’s e-Governance Academy, has developed a Digital Landscape Assessment (DLA) tool to support countries to assess their digital landscape within the framework of the SDGs. The main objective of the tool is to help countries mainstream digital transformation into their development planning frameworks, including sector strategies, and advance implementation efforts. The tool has been applied in the State of Palestine and Jordan and is currently being used in Iraq and Kuwait. In the State of Palestine, the extensive assessment was conducted in consultation with 19 entities, including Ministries, Universities, and the private sector, and is expected to inform its next national development plan and digital roadmap. Read the State of Palestine DLA Report.


Asia Pacific Economist Network 
The RBAP Economist Network was a key investment to the thought leadership on the strategic direction of development pathways in the Asia-Pacific region. Comprised of more than 25 Country Office Economists, the Network contributed to CO-led thought leadership, including through (i) preparation of National Human Development Reports and COVID-19 Socio-Economic Impact Assessments to inform evidence-based advocacy with Governments and development partners on the long-term impact and investment needs on inequality; (ii) Collaboration with regional bodies for knowledge creation and dissemination (e.g., through the ESCAP-ADB-UNDP SDG partnership and the drafting of a background paper on inequality for the 6th ASEAN-China-UNDP Symposium); (iii) initiation of multi-country papers on selected topics of LDC graduation, social protection, debt sustainability, and employment growth; and (iv) monthly newsletters that facilitated exchange between COs around thought leadership initiatives. Reach out to the RBAP Economist Network to learn more

Promoting urban and spatial planning with an SDG lens in Serbia

Sustainable urban and spatial planning is key to achieving the SDGs. In summer 2021, UNDP Serbia, with support from the Istanbul Regional Hub, engaged in assessing six urban project proposals for the Belgrade (Serbia) Concert Hall from an SDGs perspective. The difficulty was that no guideline or framework existed for such a task. Thus, in a three-week time, the team successfully developed, tested, and applied a new methodology for assessing all six architectural proposals from an SDG lens, illuminating their strong and weak points. The proposed methodology was developed based on the Rapid Integrated Assessment (RIA) tool and complimented by SDG Complexity Analysis. Want to learn more about this project? Reach out to focal points in UNDP Serbia here and the Istanbul Regional Hub here and here. 


Building a Social Cohesion Index for Latin America and the Caribbean

Led by UNDP Regional Office for Latin America and the Caribbean with the support of the Spanish Agency for International Development Cooperation (AECID), this project aimed at promoting multidimensional approaches to public policies to foster social cohesion both as a means and as an end to achieve the 2030 Agenda. Based on case studies from Bolivia, Mexico, the Dominican Republic, Chile, and Honduras, the project proposes an innovative Social Cohesion Index as a starting point for measuring social cohesion in Latin America. The index is composed of three dimensions: social inclusion, governance, and belonging. The measure allows comparison between countries in the region in terms of relative achievements towards desirable thresholds in the indicators that make up the dimensions.  Based on the Index, UNDP developed a theory of change and proposed a comprehensive policy strategy, or "Policy Combo," to promote social cohesion across the SDGs. The results of the initiative are presented in three publications, complementary to each other, and developed in consultation with a broad base of national, international, and regional actors. Learn more.

Trends, Priorities, and Opportunities for 2022
Global. Poverty eradication will remain at the core of UNDP’s work. In particular, the Inclusive Growth (IG) portfolio is being aligned with Signature Solution 1 of UNDP’s Strategic Plan 2022-2025, which commits empowering 100 million poor, marginalized, and excluded populations to escape persistent multidimensional poverty and vulnerabilities by 2025. Priority thematic areas for the year ahead include: (i) Developing and extending Social Protection mechanisms to low-income informal workers; (ii) Promoting financial inclusion of low-income individuals and small businesses, focusing on youth and women; (iii) Enhancing productivity and resilience of informal enterprises; (iv) Supporting national counterparts to integrate the future of work issues into national strategies; and (v) Investing in data and analytics, including capacity building. Emphasis will be put on delivering integrated programmatic support that is systems-based, cuts across signature solutions, and harnesses the power of innovation and digitalization.
Africa. The tremendous challenges, underlying fragilities and inequities exposed by the pandemic in Africa have firmly brought about this defining moment and opportunity for governments to make bold decisions towards a recovery that is more inclusive, resilient, sustainable, and prosperous. One of the most prominent policy decisions confronting governments for the year ahead is the role of the informal economy (IE) actors in recovery efforts. To amplify the voices of these actors in Africa's recovery, the UNDP/ILO task team on the IE will host a policy dialogue titled "Informal Economy in Africa - Which way forward" (Feb 2022 - Nairobi, Kenya). In addition, a key priority for 2022 is to better understand the dynamics of poverty, inequalities, and vulnerabilities and how they are linked to social cohesion. The development of local MPIs will serve such a purpose and will help identify policy recommendations to address/prevent conflict in high-risk localities.
Arab States. In light of the region's structural fragilities exacerbated during the pandemic, the year ahead is expected to consolidate the work initiated in 2021. 2022 will also serve to expand these activities and go beyond the urgent support provided to Country Offices and other teams on COVID-19 responses with an eye to a medium-term horizon. Some key priority areas and opportunities, both programmatically and in terms of policy dialogue, include MSME support, women and youth economic empowerment, social protection, poverty, and green growth. During 2022, the region will co-lead the preparation of the second Arab Multidimensional Poverty Report, the release of the Arab Human Development Report, and the launch of the Social Expenditure Monitor report during the Arab Regional Forum for Sustainable Development. Next year will also witness a consolidation of partnerships in the region, including with FAO and ILO.
Asia and the Pacific. Thought leadership will be a crucial priority for the year ahead. A compendium of 12 policy briefs authored by leading experts and to be published by the Cambridge University Press will inform the flagship publication – 2022 Regional Human Development Report for Asia Pacific Region – that will address a range of development issues accentuated by COVID-19, emerging shifts to be accelerated and adjusted, including human security, macroeconomic stability, fiscal sustainability, social protection, employment and productivity, digitalization, low carbon growth, LDC graduation and MIC trap. The Economist Network will drive and contribute to the cross-country thought leadership and exchange that will inform global policy dialogues such as the 5th UN Conference on LDCs. 
Europe and Central Asia. COVID-19 has illuminated the profound development challenges of the Central Asia economies, caused by the low level of diversification, the overreliance on commodities, migrant labour, dual labour markets, and inefficient social protection systems. The outlook remains highly uncertain given the continuation of the pandemic, unequal vaccine access, tightened external financing conditions, and limited potentials for local economies to generate robust recovery. A key milestone in 2022 is the Regional SDG Summit, which will provide a platform to discuss bold actions required to bolster structural transformations, particularly green and inclusive transitions. Top regional events in 2022 include the launch of the UNECE–UNDP Toolkit for measuring social exclusion/inclusion, the High-level European Regional Disability Summit, and the publication of the Informal employment in ECIS region report.
Latin America and the Caribbean. The Covid 19 pandemic triggered a strong and fast reaction of many countries in Latin America and the Caribbean, which took advantage of existing social protection programs and institutions to reach the poorest and the 'missing middle' during this unprecedented crisis. Despite this reaction, poverty rates and inequality are expected to increase, fiscal conditions deteriorate, and there is a question mark on how strong economic recovery will be in the near future. Prospects are dubious. It is time for measures to structurally improve social protection systems in the Region. Based on the solid analytical framework given by the LAC Regional Human Development Report 2021, the priority for the next years will be working with Country Offices and National Governments to strengthen social protection systems, increasing their coverage, adequacy, resilience and capacity to promote faster and more inclusive economic growth.
Your CoP team would love to hear from you! Contact us at cop-poverty@undp.org to send feedback or share content and events to be featured in our CoP Communications.
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