Minimum Income Programs, intensified services and ... · Minimum income programs, intensified...
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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
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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The welfare state … the wider context for social safety net delivery
Opening of the Olympics London 2012 … NHS.
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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… with many innovations happening outside of EC / OECD countries (in vastly different contexts, though)
Opening of the Olympics Rio 2016 … Bolsa Familia?
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
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
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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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
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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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 …
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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… 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)
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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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.
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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Now, second generation innovations transform flagship Social Safety Net programs …
Intensified services for the extreme poor
[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. …
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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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At the same time in EU 2008 2013, many countries with increase of relative poverty
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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… 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
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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Potential for dialogue and learning especially with Middle-Income Countries
Intensified services for the extreme poor
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
…
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
Minimum income programs, and then ….?
Intensified services for the extreme poor
“Productive inclusion” a.k.a. “activation”
Points for further discussion
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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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
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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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.
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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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
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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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
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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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
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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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
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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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
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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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)
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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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
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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1b Uruguay’s Cercanía: work plan with family as central tool to operationalize social rights
Source: MIDES Uruguay / Workshop with MDS Brazil, September 2014
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
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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1b Uruguay’s Cercanía: 18-month intervention time in 3 phases with low-caseload social worker
Source: MIDES Uruguay / Workshop with MDS Brazil, September 2014
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
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
Minimum income programs, and then ….?
Intensified services for the extreme poor
“Productive inclusion” a.k.a. “activation”
Points for further discussion
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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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 ….
Source: World Bank / GIZ Workshop on “Productive Inclusion”, November 2014, Lima (Peru)
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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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
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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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)
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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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
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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FDS modules package
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Indonesia: Family development sessions as core offering for graduation and productive inclusion
2a
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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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
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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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
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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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
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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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
Source: World Bank / GIZ Workshop on “Productive Inclusion”, November 2014, Lima (Peru)
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
Minimum income programs, and then ….?
Intensified services for the extreme poor
“Productive inclusion” a.k.a. “activation”
Points for further discussion
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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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
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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… 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?
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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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
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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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
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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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
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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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
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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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
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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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