CO: Programmatic Labor Reform and Social Structural Adjustment Loan

closed

Closed

The Second Programmatic Labor Reform and Social Structural Adjustment Loan Project will support the Government's objectives, i.e., to: a) increase employment; b) raise human capital formation; and, c) strengthen social protection. These objectives will be achieved by supporting reform of the Government's labor regulations, and improved training schemes; by enforcing legislation, amending the regulations on the decentralization of education and health services, while introducing incentives to enhance, and measure quality. In addition, an integrated, and more efficient social protection system will be developed, and, institutions for regular impact evaluation, and public oversight of social protection programs will be established. The project will specifically focus on: greater labor demand via employer incentives, and reductions in legal barriers to employment; increased coverage, efficiency, and targeting of social protection programs; quality and coverage improvements in the education sector; and, impact evaluation and social oversight of major social programs. Notwithstanding, several risks were identified: the overall political context, namely the internal conflict, and violence associated with illegal drug activity, the fiscal pressures, external economic and political shocks, opposition by special interest groups, the financial viability of the health reform, and, the sustainability of reforms that incur costs in the short-run. However, throughout the reform process, several actions are being undertaken to mitigate these risks, that is, both the Bank and the Inter-American Development Bank (IDB) loans, studies, and technical assistance support the health sector reform, and, provide further support via projects, technical assistance, and studies to measure the impacts of social programs, promote the result for better program design and management, and disseminate findings to the public to strengthen the citizen's support of the reform program.

FY17 - Education,FY17 - Health,FY17 - Social Protection

World Bank Group

Project

Government, Education