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Protecting livelihoods – Linking agricultural insurance and social protection













​FAO. 2021. Protecting livelihoods – Linking agricultural insurance and social protection. Rome.




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    As the quality of climate risk information and scientific forecasting has continued to improve, the imperative to act in advance of an imminent shock in order to protect people, assets and livelihoods has also gained notable attention and increasing investment. Recognizing this opportunity, some governments, and development and humanitarian partners are trying to gain a better understanding of the potential of social protection to deliver support ahead of a forecasted shock, including exploring options to systematically integrate anticipatory action approaches within existing national social protection systems. As such, this document discusses the conceptual and practical linkages between these two topics alongside presenting four country case studies, thereby contributing to the literature on how social protection and anticipatory action can protect agricultural livelihoods.
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    Agricultural workers are exposed to many risks during their life cycle and are particularly vulnerable to covariate risks, such as droughts, armed conflict and pandemics. Despite the great potential of social protection policies to protect this segment of the population, agricultural workers are commonly excluded from social protection systems—especially from contributory schemes—due to legal, programme design, financial, administrative, institutional, participation, and information barriers. This paper analyses the availability of social insurance schemes for agricultural workers in the Near East and North Africa (NENA) region, including many types of insurance: old age, disability and survivors’, sickness and maternity, work injury, and unemployment, as well as family and child allowances. In addition, we analyse agricultural insurance schemes, as they play a critical role in protecting agricultural producers from the catastrophic impact of covariate risks. We examine the barriers for agricultural workers to participate in contributory schemes, highlighting good practices being adopted in NENA countries to address them. This paper thus aims to help fill a gap in the literature regarding the role of contributory schemes for agricultural workers. Most importantly, it aims to highlight paths towards more comprehensive social protection systems, capable of addressing the pressing challenges in NENA countries, such as inequities between rural and urban populations, lack of rural development, and insufficient protection for rural families.
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    FAO recognizes that those living in rural areas whose livelihoods depend heavily on natural resources, are disproportionately affected by climate risks because of their great likelihood of living in high-risk geographical locations as well as their high vulnerability to, and limited capacity to cope with, climate hazards due to low incomes, lack of savings, weaker social networks, low asset bases and heavy reliance on agriculture and natural resources. Protecting poor and vulnerable small scale producers from the negative impacts of climate risks is an imperative in order to reach FAO’s strategic objectives and achieve Sustainable development goal one and two. Managing Climate risks through social protection sheds light on social protection as an effective investment to safeguard the livelihood of small scale producers and strengthen their essential role in ensuring food security across the globe.

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