Challenges of Scaling Up in Zambia

Policy DialogueSouth Africa11 to 14 Oct 2010

Outline

IntroductionIntroduction Why Scale UpWhy Scale Up DecisionDecision Inst Constraints- Consolidation Opportunities for ConsolidationOpportunities for Consolidation ConclusionConclusion

Introduction

Cash transfers as an alternative to in-kind in ZambiaSocial cash transfer scheme was officially launched in Kalomo district in May 2004At present the scheme covers 5 districts

Kalomo,Chipata, Kazungula, Monze & KateteWith a total of 12 300 beneficiaries.We have just gone to 3 districts( Kalabo,

Shangombo and Kaputa).

Why Scale Up ? Growing number of HH have no adult

breadwinners. Some HH heads are aged, too sick too young. About 10 % of HH in Zambia have no labour. Extreme poverty at 51 %. High child poverty

Impressive results- nutrition and health, education, livelihoods,

These HH need regular & continuous social assistance to survive and educate their children.

Decision- Reaching the Poorest Govt wants to SP programmes that lift

the poor the most. Ministry not going ahead with universal

pensions- leaves out poor/includes rich. Favours the inclusive model targeting

poor and incapacitated households. Gone for child grants in selected districts

with high Under 5 mortality and extreme poverty ( 200 <5 mortality and 87 extreme poverty)

Target Poor Households

Decision- Longterm Sustainability Securing adequate and long term Securing adequate and long term

funding to the social protection sect is a funding to the social protection sect is a key element.key element.

Finding fiscal space has been thorny as Finding fiscal space has been thorny as govt focus is on infrastructure ― spur govt focus is on infrastructure ― spur economic growth --- trickle down economic growth --- trickle down benefits to the poor. benefits to the poor.

Cash transfers are affordable but money needs to be (re) allocated

– Need robust local evidence to show the economic multiplier effects in order to enhance technical will at the Ministry of Finance.

Inst Constraints-Implementation Capacity

Human ResourcesLack of experience and motivation, high

staff turnover and limited training opportunities pose challenges

In conclusion, capacity building efforts and broader reform efforts are necessary

Equipment

Some offices do not have adequate office tools.

No vehicles

Limited Country Infrastructure

Cash transfers must be delivered on time and need support infrastructure in place.

In Kalabo and Shangombo there is no bank- nearest bank is 200 Km away.

Roads cut off in rainy season- use boat. Limited cell phone connectivity- no m-

banking. Very few shops which can handle voucher

system.

Inst Constraints- Policy Intrusion

Some Potential funders want to promote their own strategies over our preferences.

Some programmes not aligned to national poverty strategy.

Result in protracted negotiations and loss of funding.

Inst Constraints-(Mis) Perception and Legislation

Social Protection mis understood to be a cost with negative returns.

SP is not anchored on legislation and thus is viewed as a welfare, charity.

No social contract between the state and citizens.

Opportunities to Consolidation of SP Programmes

Realisation that no one SP strategy is a panacea to poverty.

Choose strategies with Max impact on the poor.

Strategies that are more visible have political buy in.

Reach point of political irreversibility allow funding to be available.

Conclusion

Social protection is an essential component Social protection is an essential component and pre-requisite for poverty reduction and and pre-requisite for poverty reduction and economic development. There is need for economic development. There is need for adequate support for it to be successful and adequate support for it to be successful and adequateadequate

Who will care for the weak? Who will care for the weak?