Minimum Income Programs, intensified services and ... · Minimum income programs, intensified...

Minimum income programs, intensified services and productive inclusion: Recent experiences Ulrich Hoerning (World Bank SP&L) 4th February 2015 – Riga (Latvia)

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Minimum Income Programs, intensified services and productive inclusion:

Recent experiences beyond Europe

Ulrich Hoerning Global Practice for “Social Protection and Labor” Riga, 4th February 2015

EMCO/SPC Conference “Inclusive labour markets in the EU: the role of improved job quality and

enhanced inclusion” – Riga: 04/05 February 2015


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The welfare state … the wider context for social safety net delivery

Opening of the Olympics London 2012 … NHS.


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… with many innovations happening outside of EC / OECD countries (in vastly different contexts, though)

Opening of the Olympics Rio 2016 … Bolsa Familia?

http://en.wikipedia.org/wiki/2016_Summer_Olympics

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://bolsafamilia.net/&ei=18OTVMiFN8LLsATkloHoDA&bvm=bv.82001339,d.cWc&psig=AFQjCNHgS4Ur7GyqwMT4_KP0Uw4_OeAIYQ&ust=1419056454189062


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Minimum income programs, intensified services and productive inclusion: recent experiences

Minimum income programs, and then ….?

Intensified services for the extreme poor

“Productive inclusion” a.k.a.* “activation”

Points for further discussion

* a.k.a. – also known as


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The vast majority of low income countries now provide some form of social safety net program …

92.9

72.9

62.7

51.4 57.2 56.7

0

10

20

30

40

50

60

70

80

90

100

LIC Lower MIC Upper MIC

In-kindCash

Source: State of Social Safety Nets, World Bank 2014 Notes on GNI / capita (2013): LIC (Low Income Countries): <$1035, Lower MIC (Middle Income Countries): <$4085, Upper MIC: <$12615

Share of Countries Offering Safety Nets (%) Largest SSN Programs Program Million

Beneficiaries

MGNREGA (India) 193

School Feeding (India) 114

Di Bao (China) 75

Bolsa Familia (Brazil) 58

School Feeding (Brazil)

47


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Food consumption in

Sri Lanka

Food consumption in

Bangladesh

Calorie intake

in Ecuador

Anemia in

Uganda

60 perc. points

23 perc. points

21 perc. points

20 perc. points

Source: World Bank 2014: The State of Social Safety Nets

… social safety nets have demonstrated impacts – on poverty, education, hunger, nutrition …


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… but the programs often remain inadequate to fully address poverty challenge.

Millions of beneficiaries

Source: State of Social Safety Nets, World Bank 2014

% Population below national poverty line

% P

opul

atio

n co

vere

d by

flag

ship

S

ocia

l Saf

ety

Net

Poverty and Safety Net Coverage (2013 or latest)


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Social safety nets are now built on stronger institutions in many countries (focus LAC)

Source: World Bank / GIZ Workshop on “Productive Inclusion”, November 2014, Lima (Peru)

Consolidation of Conditional Cash Transfers (CCTs) Significant coverage, geographic targeting and individual Proxy-Means-Test. System Tools: Beneficiary Registries (Cadastro Unico). Positive impacts on poverty, and utilization of social services.

Expansion of Non Contributory Pensions Exploited CCT beneficiary rosters and targeting instruments. Significantly reduced the pension coverage gaps for older adults.

Establishment of Ministries of Social Development Responsible for social policy „articulation“ and program coordination. Most MSD‘s have mandate to promote citizens economic rights, including the right to social

security (broader) and the right to an adequate standard of living.


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Now, second generation innovations transform flagship Social Safety Net programs …


[Brasil Sem Misera, Chile Solidario, Uruguay Cercanias]

Productive inclusion and linkage to (self-) employment and training

[Chile employment programs, CGAP-Graduation, …]

Evolution of Flagship Social Safety Net Programs

Building on internationally established best practices in registries, targeting, benefit design, conditionalities, communication, payment

systems, monitoring and evaluation, error-and-fraud -prevention, etc. …

1

2


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At the same time in EU 2008 2013, many countries with increase of relative poverty


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… and a growing employment crisis (OECD-wide)

-14.5%

-10.8%

-3.5%

4.1%

8.9%

28.6%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Men Women Men Women Men Women

Youth (aged 15-24) Prime-age (aged 25-54) Older persons (aged 55-64)

Percentage change in employment/population ratio by detailed socio-demographic groups from 2000 to 2012

OECD average

Source: OECD Employment Outlook 2013


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Potential for dialogue and learning especially with Middle-Income Countries


1

Productive inclusion and linkage to (self-) employment and training

2 Employment promotion and skill development in high-informality contexts

Important role of self-organization / cooperatives

…

Outreach to marginalized and the extreme poor

Stringent and standardized social work protocols

Coordination and prioritization of social services

…


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“Productive inclusion” a.k.a. “activation”



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Intensified services for the extreme poor: 2 examples

Examples What’s happening? Why relevant?

CHILE: “Chile Solidario” approach

Strongly structured and well resourced program to overcome multi-dimensional poverty of the extreme poor. Focus on family unit to achieve 53 targets. Central role of social worker and psycho-social counseling. Coordination of local services key element.

Long established and well-researched program approach in OECD-level institutional capacity setting.

URUGUAY: Cercanías program

Program to strengthen family / household capabilities of the extreme poor. Eight areas of “social rights” translated into 31 concrete targets for household.

Similar program to “Chile Solidario”, but more recent and overall shorter intervention time with family.

1

1a

1b


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CHS becomes a coordination mechanism to organize service delivery to support extreme poor families to overcome their social and economic condition.

CHS is a management model, based on the articulation of institutional and local networks, to provide social protection to extreme poor families.

COMPREHENSIVE Intervention Strategy – CROSS SECTORAL Management Model

1a Chile Solidario (CHS) is not a social program or a social benefit.


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Accesibility Timeliness

Quality Local provision

Services

Institutional arrangements that

facilitate the beneficiaries entry

to the system (single entry

point)

Permanent adjustments to the contents of

social services and benefits (service

standards)

Institutional networks close to

beneficiaries. (Municipalities

and Local Networks)

Mechanisms to ensure effectiveness of the institutions to

meet the beneficiaries

demands (guarantees)

Key attributes of CHS’ Management Model

1a


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Participation Conmitment

Monitoring – follow up

Guaranteed cash transfers or subsidies

Protection Grant- 24m

Psychosocial Support

Preferential access to social promotion programs

Individuals and families in

extreme poverty

Individuals and families are

covered by the National Social

Protection System and use it.

Exit Grant – 36 m

Subsidy to pay ID card (citizen identification)

Non contributory Child Allowance

Non contributory Social Pension

Clean water consumption subsidy

School retention subsidy

Chile Solidario: Guaranteed Social Protection for 5 years and promotion of service access

1a


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In the follow up phase: preferent access to social servicies and guaranteed cash transfers are operating. Families bond with the social network spontaneously.

In the psychosocial support phase: a

family counselor works with the family (in

their homes) making an assessment,

defining priorities and making contracts to

achieve the 53 minimum conditions.

Family Counselor

Family

Social services network

Personal identification

Education

Health

Family dynamics

Housing conditions

Employment

Income

Chile Solidario: Intervention strategy based on psycho-social support model

1a


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Families in extreme poverty

Programa Puente (Bridge)

Seniors living alone

Programa Vínculos (Links)

Homeless

Programa Calle (Street)

Children with parents in prision

Programa Caminos (Opening roads)

ENTRY PROGRAMS TO CHILE SOLIDARIO

Chile Solidario: Different entry points for different life situations

1a


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Information

Terri-torial

Budget

Technical

Conditional Cash Transfers to service institutions

Interagency coordination

Annual work plans – transfer

management system

Integrated Social Information System –

Unified Registry of Beneficiaries

Chile Solidario: Program management dimensions and tools

1a


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Human capital formation: Increased enrollment in pre-school, higher adult literacy, more frequent visits to health clinics, more awareness of public programs (at local level), more likely to proactively look for help from local institutions.

Employment: Findings on direct employment effects mixed, more likely to be involved in labor and training programs, rural households: significant gains in employment, total income, labor income and poverty status (poverty rates 20% lower compared to non-participants), urban households: gains in labor income for young families, significant gains in female LFP (second earner)

1a

Chile Solidario program effects (summary)


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Cercanías aims to go the last stretch towards reaching the poor in Uruguay, a country with relatively good welfare outcomes (7% poverty vs. 27% in LAC (2011))

Cercanías reaches 11000 individuals in 2000 families and is implemented as an interagency program under leadership of Ministry for Social Development (MIDES). Outreach performed by local “Family Action Teams” of social workers.

1b Uruguay’s Cercanías program targets the poorest households in the country

Source: MIDES Uruguay / Workshop with MDS Brazil, September 2014


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1b Uruguay’s Cercanía: work plan with family as central tool to operationalize social rights


Definition of the working plan. The family engagement model is focuses on 31 targets that refer to basic quality of life conditions which are the expression of social rights. # Right to … Number of targets A Family life and child care 7 B Identity 1 C Life and health 9 D Education 6 E Food and nutrition 1 F Employment and social protection 4 G Dignified housing 2 H Access to recreation and culture 1


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1b Uruguay’s Cercanía: 18-month intervention time in 3 phases with low-caseload social worker


Work process with families in three phases – weekly meetings with family, 10 families per social worker / outreach staff

All process steps monitored in registry and Management Information System

Phase 1: Analysis of the family situation

and establishment of work plan

Phase 2: Implementation of

the work plan

Phase 3: Closing of the approach,

graduation and follow-up


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Limits of poverty reduction in rural areas (extreme poverty) :

o Additional reduction in extreme poverty is very costly.

o Access to productive factors identified as constraints.

Youth “graduated” from CCTs don’t find opportunities:

o Oportunidades (Mx): Geographic labor mobility as a response.

o Investments in health and education require complementary interventions in employability.

Critical role of local actors and services

o For provision of (social) services

o For employment and job growth promotion / productive investments

Why “productive inclusion” matters ….



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Productive Inclusion: 3 examples

Examples What’s happening? Why relevant? INDONESIA: Support for program graduation

Graduation offering for households at the end of eligibility of transfer program.

Example for more general family support offering, including employment and financial inclusion topics.

CHILE (again): Focalized Employment programs

Chile Solidario beneficiaries are offered three types of employment, self-employment and productive capital programs.

Alignment of employment program to the base program cycle of psycho-social support to families / households.

COLOMBIA: Employ-ment support centers

Piloting of employment and training centers in marginalized / conflict-affected areas.

Emerging (parallel) systems of training and employment mediation in Colombia in anticipation of peace and reconciliation process.

2

2a

2b

2c


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Very Poor

Elig

ible

No Yes

Yes

No Graduation Graduation

Graduation Transition

Starting 2014, on the fifth year of membership in the CCT, beneficiaries are reviewed through Recertification - reassessment the socio-economic status and eligibility. To ensure CCT beneficiaries will not have a welfare reduction or avoid the revolving door effect, several options for graduation strategies are developed. It is based on their on-going CCT eligibility and current socio economic status Graduation and Transition

Receive assistance for another 3 years of empowerment through Family Development Sessions (FDS) and other complementarity programs

No longer receive assistance, but can get complementarity program (if still poor)

Indonesia: Graduation out of CCT program

2a

Source: “DESIGNING & IMPLEMENTING PRODUCTIVE INCLUSION INDONESIA’S CCT EXPERIENCE”, in: World Bank / GIZ Workshop on “Productive Inclusion”, November 2014, Lima (Peru)


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Start 3rd month 6th month 24th month 36th month

MARKET ANALYSIS

TARGETING

INCOME SUPPORT

SAVING

TRAINING

ASSET TRANSFER

COACHING

Sustainable Livelihood Extreme Poverty

Sour

ce: G

radu

atio

n m

odel

, CGA

P

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Indonesia: Components of the graduation approach / modeled after CGAP-Graduation methodology

2a


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FDS modules package

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Indonesia: Family development sessions as core offering for graduation and productive inclusion

2a


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Recono-cimiento Familiar

Visión Familiar

Construcción del Plan de Acción Movilización familiar Proyecció

n y Cierre

Elaboración del Plan Laboral Implementación del Plan Laboral

Cierre y valora-ción del

Plan Laboral

24 mths.

“Puente” program for marginalized families within Chile Solidario

Apoyo Psicosocial

Apoyo Sociolaboral

Reconocimiento familiar Gestión de CM

Definición metas

familiares

Seguimiento metas familiares

Consolidación y proyección

24 mths.

Chile: Linkage of employment support programs with Chile Solidario cycle

2b


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Economic autonomy of

participants / beneficiaires

Entrepreneurship education, financing of business start-up

investments and business plan development

Chile: Objectives of the employment programs

2b

Development of competences for employability, support for

active job search, labor intermediation services


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Orientación ocupacional y vocacional

Ruta emprende

Ruta desarrolla

Gestión de mercados Desarrollo de proveedores

Recursos y microcrédito

Gestión de oportunidades laborales

Colocación laboral

Seguimiento

Referenciación(servicios habilitantes/

complementarios

Empleabilidad

Emprendimiento y desarrollo empresarial

Procesos de enrutamiento

Orientación ocupacional

Sensibilización y

caracterización sociolaboral

Habilidades socioemocionales

18.113

6.743

11.370

Colombia: Employment and Entrepreneurship Centers

2c


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Learning points from “productive inclusion” programs in Middle-income countries

Institutional coordination / political mandate

Inter-service and inter-agency approach requires “robust” political and administrative mandate.

Political mandate often devolves from initial anchoring with Center of Government.

IT systems as coordination devices

Operational IT and Management Information Systems often act as convening and supporting tool for the coordinating mandate

Incentives via results-based financing

Coordinating agency must have mandate and funds to incentivize / partially re-imburse other providers of public services for incremental cost for beneficiaries



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General observations on Minimum Income Programs and Productive Inclusion projects …

More than simple “graduation” from a program., needs to be part of

overall social protection and jobs policies.

Initial combination of income transfer with work income (phase out of

base benefit vs. informal income)

Linkage to skills and workforce development important & involvement

and ownership of employers often lacking.

Cooperatives and other membership-based organizations can help.

Centrality of case managers / social workers for mobilization of the

extreme poor – gradual up-skilling of semi-professional outreach staff


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… and continuation (?) of the Europe / Latin America dialogue on social protection systems.

Eurosocial Program of DG International

Cooperation and Development

https://ec.europa.eu/europeaid/regions/latin-

america/eurosocial_en

Workshop on new approaches to

homelessness (Bergamo, Oct. 2014)

Conference with LAC / EC dialogue on

social protection (Naples, Nov 2014)

… continuation?

https://ec.europa.eu/europeaid/regions/latin-america/eurosocial_en

https://ec.europa.eu/europeaid/regions/latin-america/eurosocial_en


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World Bank Group Social Protection and Labor Global Practice Ulrich Hoerning Senior Social Protection Economist 1818 H Street N.W. Washington, DC 20433, USA [email protected] Tel: +1 202 473 4972 Mob: +1 202 766 5329

Thank you!

Annex: World Bank Group Profile


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Renewed World Bank Group Goals (2013)

End extreme poverty: the percentage of people living with less than US$ 1.25 a day to fall to 3 percent by 2030

Promote shared prosperity: foster income growth of the bottom 40 percent of the population in every country

Sustainability, an overarching theme Achieving these goals require promoting environmental, social, and fiscal sustainability


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World Bank – History Snapshot & Today

1944 Foundation at Bretton Woods Conference 50’s Europe, Japan Reconstruction 60’s Rural Development 70’s Health, Education 80’s Fiscal, Structural Adjustment 90’s Social 2000’s Governance, Anti-Corruption today End poverty, promote shared prosperity 12,000 staff 120 Country Offices 170 Nationalities US13.4 billion subscribed capital = US$500 billion financing and free access to technical expertise $52 billion/46 donors: 17th IDA replenishment


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World Bank Group

Borrows $ by selling bonds

Lending to Middle-Income Countries @ cost of borrowing

and Bank spread Up to 30y. with 5y grace

Donors, IBRD, IFC and Repayments

Grants to Low-Income Countries @ 0%

Up to 40y 10y grace

The World Bank Private Sector Investment and Insurance


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World Bank – Ownership and Leadership

188 Member Countries (= Board of Governors)

Board of Directors (25) President: Jim Yong

Kim M.D. Ph.D. Management and Staff

US 15.10%

Japan 8.43%

China 5.54%

Germany 4.47%

France 3.99%

UK 3.99%

Russia 2.36%

Saudi Arabia 2.36%

Rest of the World 53%

Ownership Leadership


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World Bank – Organization from 1 July 2014

Gender Climate Jobs Public/Private

Partnerships, Fragility, Conflict and

Violence

Global Practices Cross-Cutting Solution Areas

Geographic Regions

Agriculture Environment & Natural

Resources Health, Nutrition &

Population Social Protection & Labor Urban, Rural, & Social Education

Finance & Markets Poverty, Macro & Fiscal Trade Water Energy & Extractives Governance Transport & ICT

AFR – Africa EAP – East Asia Pacific ECA – Europe & Central Asia

LAC – Latin America & Caribbean MENA – Middle-East & North Africa SAR – South Asia

Minimum Income Programs, intensified services and ... · Minimum income programs, intensified...

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