About Social Grants
Many developing countries of the world face challenges like poverty and unemployment. It is the responsibility of the government of these countries to provide the needed social assistance or social grants through schemes and programs to ensure adequate supply of cash. This capital is then utilized in the welfare of children, fulfilling the basic needs and providing healthcare for the aged population and caring for people with disabilities. Though, due to high unemployment rates and absence of wager jobs, the funds are often short. This shortage magnifies the situation. Despite the steps taken by the governments of these countries facing these issues, no economic development in the country’s economy is observed and issues like poverty and unemployment keep accelerating.
The Importance of Social Grants
An increase in the funds available under social grants can facilitate the disposal of the needed help to such societies. Social grants have a significant impact on the household income of the poorest people. This additional help in the form of social grants aids in achieving human development by enabling the state administration to offer better education and healthcare facilities.
Social grants need to be targeted at people who require them the most, for instance, the older people with health issues, people of different age groups with disabilities, children and people who need immediate financial support. It is the task of the state administration to have a proper working model to ensure equal distribution of the funds.
Social grants need to be distributed into the following sections:
- Support for children
- Grant for people with disabilities
- Support for people with dependency
- Older person grant
- Aid for foster children
- Grant for war veterans
- Social distress relief funds
- Epidemic relief funds
The relief funds need to be made available for the permanent residents and refugees as well.
Advantages of Social Grants
Social grants come with a number of advantages for the organizations investing in them. A few are discussed here:
No reimbursement is required
The most significant benefit of these grants is that these are never required to be repaid. Funds provided under the social grants from the government or any organization can be utilized whenever required. It is the kind of financial support that doesn’t have to be recompensed. Otherwise, financial helps like loans and borrowed money will always be expected to be paid back, in most of the cases, with interest.
Enhanced credibility for organizations
In recent years, a new hybrid category of financing social impact organisations has come to being which invests in providing social grants for both profit motivation and to make a social impact. Large private organizations offer grants to associations working in a particular area of the society. Such organisations offer grants to groups that are start-ups or are working as social entrepreneurs. By taking such steps, these large private companies earn an upright position and esteemed status. They, thus, become authorized to apply for more funding in future resulting in enhanced credibility.
Importance of awareness for social grants
Social funds can be procured from the state government as well as social help groups. For example, the SASSA SRD grant is one of the largest government grants offered in South Africa. There are so many such unions that provide financial help in their areas in different sectors like food availability, healthcare, education and even by providing jobs. A huge part of government relief funds and funds by non-government help organizations is utilized in providing the needed help to people living under the poverty line. This proves how advantageous these grants can be for improving the conditions of the under-privileged part of the society.
With increased awareness regarding investing in social grants, higher funds can be raised. There is a huge part of the society in the developing countries which is completely dependent on social grants. If the required funds are not provided by the respective source, even the basic household needs of the under-privileged people are not met. Often there is scarcity of funds or other reasons behind the improper cash flow such as inappropriate distribution of cash and unjust utilization of the funds.
It is high time that authoritative people take the responsibility of generating more funds and regulating the cash flow in areas where it is actually required. There should be an improved delivery mechanism to ensure the use of social grants more effectively. Steps like holding public campaigns to educate the people of their entitlements will enhance general awareness among people as well. Moreover, it will become easier for the government as well as the social welfare organizations to monitor the righteous use of the funds.