Building Resilience: Why Social Protection Must Reach the World’s Poorest Now

The State of Social Protection Report 2025 reveals that two billion people in low- and middle-income countries remain unprotected or under-covered by social protection systems. It calls for urgent reforms, increased investment, and adaptive, inclusive policies to ensure resilience and equity in a rapidly changing world.

Research by the World Bank’s Social Protection and Jobs Global Practice, in collaboration with the ASPIRE research team, delivers a powerful and urgent message. Drawing on detailed individual and household-level data, the report reveals that two billion people across low- and middle-income countries (LICs and MICs) are either completely unprotected or receive such minimal benefits that they remain deeply vulnerable. In a global landscape increasingly shaped by conflict, climate shocks, economic turbulence, and demographic transitions, this massive gap in social protection threatens inclusive growth, resilience, and stability.

Even after decades of development efforts, social protection systems comprising social assistance, social insurance, and labor market programs remain insufficient and unevenly distributed. LICs, in particular, lag far behind: up to 98% of the extreme poor in these nations receive no social protection at all. Middle-income countries fare better, but still fall short of inclusive coverage. In total, 1.6 billion people in LICs and MICs receive no protection whatsoever, while another 400 million people, many of them extremely poor, are inadequately covered, receiving less than 20% of the national poverty line in benefit value.

A Data-Driven Look at Who Is Left Behind

One of the report’s major contributions lies in its use of the ASPIRE database, which compiles harmonized household survey data to allow for a person-level understanding of social protection reach. This goes beyond traditional administrative reporting, which often reflects only enrollment numbers without showing how much support is actually being delivered or whether it reaches those most in need. The ASPIRE-based analysis shows clear patterns of exclusion, particularly among informal workers, women, people in fragile contexts, and individuals with disabilities.

Gender disparities are especially concerning. While women are more likely than men to receive transfers, the amounts they receive are significantly smaller, exacerbating financial dependency and limiting economic empowerment. The report also finds that social protection systems tend to be weakest in areas where vulnerability is highest. Informal workers who make up the majority of the workforce in many LICs are especially likely to be left out entirely. Similarly, displaced populations and those in conflict-affected regions remain underprotected, despite their acute needs.

A System Unprepared for Shocks

Perhaps most alarmingly, the report highlights the inability of current systems to respond swiftly and effectively to large-scale shocks. The COVID-19 pandemic served as a global stress test, revealing the vast disparity between countries with robust, pre-existing systems and those with minimal infrastructure. Those with broad, digitalized systems were able to scale up responses quickly, while others struggled to reach even a fraction of their vulnerable populations in time.

To address this, the report emphasizes the need for adaptive, shock-responsive systems that can be activated at speed. This includes investing in digital ID systems, social registries, and payment platforms that can deliver benefits quickly and transparently. Yet, such investments remain rare in LICs, which on average spend less than 2% of GDP on social protection. The report advocates for smarter, more targeted spending and suggests one of the most effective paths to new funding: reallocation of inefficient subsidies. For instance, fossil fuel subsidies, which disproportionately benefit wealthier households, could be redirected to support targeted cash transfers and safety nets that serve the poor.

Unlocking Potential Through Jobs and Pensions

Social protection isn’t just about safety nets, it’s also a tool for economic empowerment. Labor market programs, however, remain significantly underfunded and underutilized, accounting for less than 5% of total social protection spending. Yet, programs such as job training, entrepreneurship support, and wage subsidies are critical for equipping workers, especially young people, women, and informal workers, with the skills and resources needed for economic participation. The report stresses the importance of integrating income support with active labor policies to create a more inclusive and resilient workforce.

Pensions also receive detailed attention. In many MICs, population aging is accelerating, putting pressure on existing pension systems. At the same time, in LICs, pension coverage remains extremely limited, especially among informal and rural workers. Reform is needed on both fronts: for MICs, to ensure fiscal sustainability without undermining adequacy, and for LICs, to expand access through contributory or social pension models that are inclusive by design.

A Call to Action: Invest, Reform, and Collaborate

Throughout the report, the message is consistent: progress is possible, but it requires political commitment, financial investment, and smart reform. The path forward is not one-size-fits-all. Each country must tailor its approach based on its demographics, fiscal capacity, and institutional readiness. However, a few elements are universally critical, such as the need for digital systems, integrated registries, and a lifecycle approach that includes children, working-age adults, and the elderly.

International cooperation is also essential, especially in supporting LICs that face resource and capacity constraints. The report urges development partners and donors to step up, not only with funding but with technical assistance to build systems that can scale and evolve. Without such action, the promise of a safety net for two billion people will remain unfulfilled.

The report stands as a wake-up call and a roadmap. In today’s turbulent world, social protection is no longer a luxury; it is a necessity. It is the foundation for resilience, dignity, and shared prosperity. If the world fails to act, it risks deepening inequality and instability. But if governments, institutions, and global partners rise to the challenge, a more inclusive future is still within reach.