Stronger Social Protection and Labor Systems in Central America for a Resilient and Inclusive Recovery

This report presents an overview of the challenges of SPL systems before and in the aftermath of COVID-19, with the main objective to lay the base for directions for policy reforms. The next section presents an overview of the long-standing challenges of the SPL systems in the sub-re gion, how these challenges helped or constrained its capacity to mitigate the impacts of the COVID-19 pandemic, and the emerging challenges for SPL systems in the aftermath. It also documents the broader impacts of the COVID-19 pandemic on households and workers and summarizes the SPL responses deployed by countries across the sub-region. The third and final section presents directions for policy reform drawing on global knowledge. While the response to the pandemic was very partic ular to that situation – programs were rolled-out fast, in some countries were large-scale, and tended toward flat benefits given the lack of time to develop a more differentiated design – future efforts to strengthen SP through sustainable programs can build on the experience gained.