Social protection, challenges and prerequisites: a study of prime minister’s employment program in Nepal

Abstract

Abstract: Social security programs are integral to realize the constitution’s goal of achieving inclusive economic development, equity and democracy-based socialism in Nepal. The major political parties have shown a strong commitment towards social security and protection. The programs have seen gradual expansion over the years and have seen good share in total government expenditure. This is a step in the right direction to ensure social security and protection of the people. However, inadequate human resources, planning and coordination have constrained its effectiveness. In long run, the sustainability of social security programs, for example, the old age pensions, depends on the Social Security Fund’s ability to make productive investments and its ability to adjust to changing demographic parameters. Policymakers need to learn from the experience of other countries including the OECD where population ageing due to the demographic shift has posed increased pressure on public finance. In those countries, the long-run sustainability of the pension system is at the center of policy debates. In Nepal, in recent past, new initiatives have been taken to ensure and include a larger population in social security. For instance, politically ambitious Prime Minister’s Employment Program can be viewed among one of them. In this study, while discussing various aspects of social security measures, an attempt is made to explore what is desired for policy improvement in overall social protection policy of Nepal while taking a case of newly introduced PM employment program.