The financial and economic crises have had a severe impact on the European Union, where 84 million people currently live at risk of poverty. In this context, 2010 was designated the European Year for Combating Poverty and Social Exclusion and has contributed to shedding light on a reality which is often underestimated or misunderstood in one of the richest regions in the world.
Unenviable as the situation of these Europeans is, at least in the EU, citizens have well‐developed solidarity systems to fall back on. Social protection systems have been one of Europe's strengths in facing the crisis and shielded so many from the very worst effects of the downturn. Social protection is so much a part of our daily lives that it can sometimes seem almost invisible. Despite undoubted imperfections, Europeans are secure in the knowledge that, if they lose their jobs or fall sick, they are not alone and will receive the necessary help and backing to help them find their feet again.
In some other parts of the world, people are not so fortunate. Although sub‐Saharan Africa has a number of social protection systems in place, especially informal ones, they are woefully underequipped to deal with the colossal challenges at hand, especially in times of economic instability and multiple crises.
This means that unemployment and ill health often lead to extreme poverty and destitution. To illustrate, one projection estimates that the 2007‐2008 crisis led to 30 million more Africans living under the extreme poverty line of $1.25 per day. Looking to the future, before the current economic and financial crisis, sub‐Saharan Africa had been expected to reduce its poverty rate to 35.9% by 2015, the deadline for the Millennium Development Goals. But this has been revised upwards to 38%, which implies that 20 million fewer Africans will be lifted out of poverty.
So, what can be done to improve the situation? The second edition of the European Report on Development (ERD) is exploring what role social protection can play in reducing poverty and vulnerability and promoting inclusive development and social cohesion in Africa. It is also examining what the EU can do to help through its development policy. Naturally, despite its benefits, social protection comes at a price. The ERD is also examining the cost and feasibility of such programmes and mechanisms in Africa and how they can be implemented in a sustainable manner.
The report will be released on 7 December 2010 during the European Development Days in Brussels.
More information on the ERD initiative can be found on our website
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