Social Protection Momentum in Bangladesh 03 November 2013 Shashwatee Biplob -Senior Program Manager Development Cooperation, Australian High Commission Issues constraining Outcome: • Number of programs • Size of Transfers • Leakages and corruption • Duplication • Exclusion/ Inclusion Errors • Sector Governance • Evidence of Impact Key Issues: • Coverage / adequacy …… impact • Food ….. cash • Poverty targeting ….. social categorical/ life cycle • GoB…… CSOs Poverty Rate: 1991-2010 • Poverty rate has been halved from 1991 to 2010 • Still the rate is high 31.5%, around 47 million people 70 60 50 40 National Rural 30 Urban 20 10 0 1991-92 1995-96 2000 2005 2010 10000 How different are the lives of the people below and above the poverty line??? 4000 6000 8000 Difference in level of per capita consumption of the 3rd and 8th decile is not great BNPL X 2 2000 BNPL X 1.5 BNPL X 1.2 0 BNPL 0 .2 .4 .6 cumulative percentage .8 1 Life-cycle risks: Scope of Social Protection Reform: “It shall be a fundamental responsibility of the state to attain……..the right to social security, that is to say to public assistance in cases of undeserved want arising from unemployment, illness or disablement, or suffered by widows or orphans or in old age, or in other such cases.” - Article 15, Constitution of Bangladesh • Sixth Five Year Plan (2011): Increase spending to 3% of GDP by 2015 • Government has resolved to develop a National Social Protection Strategy (NSPS) by February 2014. Current Social Protections: 9 0.14 8 0.12 7 0.10 6 5 0.08 4 0.06 3 0.04 2 0.02 1 0 0.00 Number of recipients Cost Cost (% of GDP) Number of recipients (millions) Spending vs. Coverage: National Social Protection Strategy Development: • Led by a 12 member inter-ministerial committee, Cabinet Secretary as Chair, GED as Secretariat • SP Study tour to South Africa and Lesotho • A consortium of South Asian Network on Economic Modelling (SANEM) and the Policy Research Institute (PRI) was contracted to help in drafting the NSPS. • At sectoral level, Inter-Ministerial Committee (22) and a Monitoring Sub-Committee (8) are linked to NSPS • GoB/ DPs: Local Consultative Group on Poverty and SP sub group National Social Protection Strategy Development: 10 background research papers: 1. Poverty, Vulnerability and Inequality in Bangladesh 2. Building a social protection system to address urban poverty in Bangladesh 3. Social Protection Strategy to address social and gender-based exclusion, including disability, high-risk groups and minority; 4. Social Protection financing and affordability 5. Social Protection Strategies to address idiosyncratic and covariate risks and socks, including seasonal poverty, econo9mic recession and natural disaster; 6. Taking stock and moving forward: enhancing labour strategies for Bangladesh's vulnerable groups 7. State of governance within social protection sector in Bangladesh 8. Building a social protection system to address the demographic challenges faced by Bangladesh 9. International best practice in Social Protection: implications for Bangladesh 10. Review of Bangladesh Social Protection Sector National Social Protection Strategy Development: • Zero draft of 8 papers have already been shared with DPs and got feedback • A visioning workshop for SP was held on 27 October, Sunday – DPs, CSOs and GoB attended • Possible options for reform, approaches, micro and macro level impact on poverty, affordability/ fiscal space Percentage reduction in poverty gap for households with over-65s: Tk.450 Tk.600 30% Universal Tk.800 Tk.1000 0 10 20 30 Percentage reduction in poverty gap 40 50 Percentage reduction in poverty gap for households with 0-4 years at various transfer levels: Tk.150 Tk.300 10% 30% Universal Tk.500 0 5 10 15 20 Percentage reduction in poverty gap 25 30 Universal Old Age and Child Grant Combined impact: Next Course of Actions: • Finalizing the 10 background papers • Zero draft of NSPS by 31st October 2013 • Comments will be sought from different ministries/ divisions, experts, CSOs, think tanks, DPs. • Regional (Nov.) and National (Nov. & Dec.) dialogues will be held • SP sub committee meeting on the revised draft • Central Monitoring committee Meeting to Finalise the draft • Process for approval by the competent authority. THANKS