Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

After family, community and school, the labor market is a major locus of social contact and integration.  Participation in the work force is not only a source of income and social insurance, but of social interaction, peer respect and a sense of self-worth. 

The BiH labor market participation rate in 2018 was 54.2% and has declined gradually for the past decade.  It is now by a small margin, the lowest in the region. 

The purpose of social insurance and social assistance is to ensure that members of society, who are not or no longer capable of supporting themselves for reasons of age, disability, unemployment, care responsibilities or other reasons, are able to continue to live with dignity – as defined by Sen – in their community.  In practical terms, this is understood to be by providing such persons with support of at least 60% of the prevailing median income together with access to the educational, health, employment and social services available to other members of society.

A second, and no less important, economic function of social protection is to support the economy of the communities in which such individuals and their families live by maintaining the level of effective demand for goods and services. 

While social insurance system in BiH has performed relatively well in protecting the insured population from old age or disability related poverty, many of those in the system are underinsured due to systematic under-reporting of income and replacement rates are in the lower range of comparable countries and significantly below the EU average.

Unemployment benefits are accessible to only a small minority of the unemployed and the income replacement rate is too low to maintain the recipients out of poverty.

In addition, the significant share of the labor force in informal employment – estimated as approximately 25% - is excluded from the pension, disability and unemployment insurance systems, although informal workers may register with the Public Employment Service to obtain subsidized health insurance coverage.

The Centers for Social Work are the entry point to access the care, counseling, and benefits to which the socially vulnerable, people with disabilities, the uninsured or vulnerable elderly, and other members of society in need of social care and support are legally entitled in both Entities and BD.  Studies involving beneficiaries and the family members of beneficiaries have all found a high level of satisfaction with the efforts of CSW staff.  At the same time, the authors cited in this report enumerate the many gaps in CSW’s ability to respond to client needs, including rigid eligibility requirements and onerous means-testing documentation, and offer a catalog of constructive suggestions for reform.  (See Annex 6).  Even more problematic is the systematic underfunding and understaffing of CSWs, which results in the bulk of staff time being absorbed by benefit management, preventing social workers from doing the out-reach, home visits, follow-up and counseling which should be the focus of their work.  While a few CSWs have been able to employ dedicated benefit counselors, others do not even have the staff or budgets to be able to conduct home-visits.  International COVID response funds are to be distributed through existing channels, which will place even more stress on the system. 

Social assistance funding in BiH is chronically under-resourced and sometimes inaccessible, with wide inequality of access across cantons and municipalities in FBiH.  The inadequate benefit amounts are almost completely ineffective at reducing the level of poverty risk for those who do receive them. 

As part of their pandemic response programs, in addition to support to the health care system and economic assistance, both the EU and the World Bank are providing funding for social assistance through the existing social protection systems. The World Bank Emergency Covid-19 Project includes a second component of “targeted and time-bound cash transfers to vulnerable households that have been adversely affected by the economic impact of the COVID-19 pandemic, and (b) social services to socially vulnerable and elderly individuals who need protection and care,” while the bulk of the EU emergency assistance funding is reserved for social and economic recovery.