Informal Social Protection and Poverty

296 Pages·2022·9.039 MB·English

by  Zahid Mumtaz

Zahid Mumtaz
Informal
Social
Protection
and Poverty
Informal Social Protection and Poverty
Zahid Mumtaz
Informal Social Protection
and Poverty
Zahid Mumtaz
Crawford School of Public Policy
Australian National University
Canberra, ACT, Australia
ISBN 978-981-19-6473-2 ISBN 978-981-19-6474-9 (eBook)
https://doi.org/10.1007/978-981-19-6474-9
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature
Singapore Pte Ltd. 2022
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse
of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and
transmission or information storage and retrieval, electronic adaptation, computer software, or by similar
or dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors, and the editors are safe to assume that the advice and information in this book
are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or
the editors give a warranty, expressed or implied, with respect to the material contained herein or for any
errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional
claims in published maps and institutional affiliations.
This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd.
The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721,
Singapore
Contents
1 Introduction ................................................... 1
References ..................................................... 7
2 Theoretical Framework, Literature Review, and Contributions ..... 11
2.1 Introduction .............................................. 11
2.2 Theoretical Framework ..................................... 12
2.3 Literature Review ......................................... 25
2.3.1 Overview of the Literature on Welfare Regimes
in Developing Countries ............................. 25
2.3.2 The Role of Community in Providing Welfare ........... 37
2.3.3 Contributions of the Study ........................... 39
References ..................................................... 40
3 Conceptualizing Informal Social Protection: A Framework
to Compare Formal and Informal Social Protection ............... 45
3.1 Introduction .............................................. 45
3.2 Methodology ............................................. 46
3.3 Social Protection .......................................... 48
3.4 Overview and Findings from Literature on Informal Social
Protection ................................................ 52
3.5 Synthesizing the Literature; Defining and Reconceptualizing
Informal Social Protection .................................. 54
3.6 Informal Assistance—Sources and Definitions ................. 55
3.6.1 Family (Immediate and Extended) ..................... 55
3.6.2 Religious Institutions ................................ 56
3.6.3 NGOs (National and International) .................... 57
3.7 Informal Insurance—Sources and Definition .................. 58
3.7.1 Family (Immediate and Extended) ..................... 58
3.7.2 Neighborhoods, Friends, and Village Communities ...... 59
3.7.3 Religious Organizations .............................. 60
v
vi Contents
3.8 Informal Labor Market Measures—Sources and Definitions ..... 61
3.8.1 NGOs (Local and International) ....................... 61
3.8.2 Religious Organizations .............................. 61
3.9 Limitations ............................................... 62
3.10 Conclusion ............................................... 66
3.11 Putting the Conceptualization into Operation and Devising
a Survey Instrument for Data Collection ...................... 67
References ..................................................... 67
4 Research Design, Methodology, and Data Collection ............... 73
4.1 Introduction—Exploratory Research Design ................... 73
4.2 Data Source Identification—Justification of Sample ............ 75
4.3 Data Collection and Methodology ........................... 75
4.4 Ethical Concerns, Quality of the Data, and Bias Reduction ...... 80
4.5 Conclusion ............................................... 82
References ..................................................... 82
5 Madrassas as a Provider of Informal Social Protection
in Pakistan .................................................... 85
5.1 Introduction .............................................. 85
5.2 Secondary Data ........................................... 87
5.3 Madrassas in the Early Islamic Period ........................ 88
5.3.1 Origins ............................................ 88
5.3.2 Organization of the Madrassa ......................... 88
5.3.3 Method of Instruction and Contributions ............... 89
5.4 Madrassas in the Indian Sub-Continent Before Colonization ..... 90
5.5 Impact of Colonization on Madrassas in India ................. 91
5.6 Madrassa Development in Pakistan .......................... 93
5.7 Results and Discussion ..................................... 96
5.8 Conclusion ............................................... 103
References ..................................................... 103
6 Comparing Formal and Informal Social Protection: Exploring
the Usefulness of Informal Social Protection in Pakistan ........... 109
6.1 Introduction .............................................. 109
6.2 Social Protection in Pakistan ................................ 110
6.3 Results and Discussion ..................................... 120
6.3.1 Socio-Economic Conditions and Risks and Shocks
Faced by the Surveyed Households .................... 120
6.3.2 Formal and Informal Assistance ....................... 125
6.3.3 Formal and Informal Insurance ....................... 127
6.3.4 Formal and Informal Labor Markets ................... 131
6.3.5 The Overall Usefulness of Formal and Informal
Social Protection .................................... 133
Contents vii
6.4 Limitations, Conclusions, Policy Implications, and Scope
of Future Research ........................................ 134
References ..................................................... 138
7 Machine Learning-Based Approach for Exploring
the Household Survey Data ...................................... 141
7.1 Introduction .............................................. 141
7.2 Use of Machine Learning in Public Policy—An Overview
of the Literature ........................................... 143
7.3 Reasons for Using the K-means Clustering Technique
to Explore the Collected Household Survey Data ............... 145
7.3.1 K-means Clustering ................................. 146
7.4 Results ................................................... 147
7.4.1 Description of Clusters .............................. 147
7.4.2 Household Characteristics of Clusters .................. 151
7.4.3 Assets ............................................. 160
7.4.4 Risks and Shocks ................................... 169
7.4.5 Formal Social Protection Received by the Households
Through Various Sources ............................ 178
7.4.6 Informal Social Protection Received
by the Households Through Various Sources ............ 182
7.5 Conclusion ............................................... 193
References ..................................................... 199
8 Determining Multiple Welfare Regimes in Pakistan ................ 201
8.1 Introduction .............................................. 201
8.2 Applying Global Welfare Regime Model to Pakistan’s
Context .................................................. 203
8.3 Results and Discussion ..................................... 208
8.3.1 Cluster1—Potential Welfare State Regime .............. 208
8.3.2 Cluster2—More Effective Informal Security Regime ..... 214
8.3.3 Cluster0—Less Effective Informal Security Regime ...... 215
8.3.4 Cluster3—Insecurity Regime ......................... 217
8.3.5 The Richest in Pakistan .............................. 219
8.4 Limitations, Conclusions, and Implications .................... 220
References ..................................................... 222
9 Conclusions, Implications, and Avenues of Future Research ........ 225
9.1 Conclusions .............................................. 225
9.2 Implications .............................................. 227
9.2.1 Does Informal Social Protection Produce
Extremism? A Case for Formal Social Protection ........ 227
9.2.2 A Strong and a Weak State Within One Country ......... 230
9.2.3 Taxing the Rich—A System of Redistribution ........... 230
9.2.4 Better Data and Evidence in Policy-Making ............. 232
9.2.5 Reforming the Madrassas—Options and Possibilities ..... 233
viii Contents
9.3 Avenues of Future Research ................................ 234
References ..................................................... 235
Annexure A: Participant Information Sheet .......................... 239
Annexure B ....................................................... 243
Annexure C: Survey Questionnaire for the Households ................ 247
Annexure D: Survey Questionnaire for the Head of Madrassa ......... 271
Annexure E ....................................................... 273
Annexure F ....................................................... 289
Annexure G: Semi Structured Interview Questionnaire ............... 291
Annexure H ....................................................... 293
Annexure I ....................................................... 295
Abbreviations
ADB Asian development bank
AI Artificial intelligence
BISP Benazir income support program
DBSCAN Density-based spatial clustering of applications with noise
DFID Department for international development
FAO Food and agriculture organization
GDP Gross domestic product
GNI Gross national income
GoP Government of Pakistan
GTZ German technical cooperation
HDI Human development index
ILO International labour organization
IRM Institutional responsibility matrix
ML Machine learning
MPI Multidimensional poverty index
NAP National action plan
NGO Non-governmental organization
OECD Organization for economic cooperation and development
PBS Pakistan bureau of statistics
ROSCA Rotating savings and credit association
UML Unsupervised machine learning
UNDP United Nations development programme
UNICEF United Nations children’s fund
UNRISD United Nations research institute for social development
VAT Value-Added Tax
WFP World food programme
ix
List of Figures
Fig. 2.1 Theoretical framework of informal security and insecurity
regimes ................................................ 23
Fig. 3.1 Components of informal social protection ................... 55
xi