Social Safety Net Reform: PATH UPDATE

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EXPERT GROUP MEETING:
Social Integration
UN/DESA, 2-4 November 2009
Promotion of Inclusive Poverty Eradication and
Productive Employment and
Decent Work Policies to advance Social Integration
Presentation by
Faith Innerarity
Outline of Presentation
Situational Analysis
– Jamaica at a Glance
– Poverty and Unemployment
Policy Responses
– Poverty Eradication
– Employment Creation and Decent Work Agenda
– Expanding Education, Training and Employment
Opportunities for Young People
– Community Development Initiatives
Conclusion and Recommendations – Way Forward
Jamaica at a Glance *
Population 2,682,100
Population Growth Rate 0.5% ; Life Expectancy at Birth 72.4%; Adult Literacy (15 and older) 86.0%
Total Labour Force: 1,261,300
Employed: 1,136,900
Unemployed: 124,500; Unemployment Rate: 9.9%
Male/female unemployment: Male: 6.2%; Female14.5%
Real GDP (JA$M): 249,645
GDP Per Capita: US$4,147
Real GDP Growth Rate: 0.7% ; Debt/GDP 108.2%
Population below Poverty Line 9.9 %
*2007 Statistics
Fig. 1
Table 1: Incidence of Poverty by Geographical Area in Jamaica
Area
1989
1990
1991
1992
1993
1994
1995
1996
1997
KMA
15.5
13.3
28.8
18.8
16.7
13.8
15.0
17.2
9.3
22.0
25.7
31.4
29.9
22.9
20.0
22.8
22.0
14.8
40.7
37.5
57.2
42.2
29.6
28.8
37.0
32.8
27.4
30.5
28.4
44.6
33.9
24.4
22.8
27.5
26.1
Area
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
KMA
8.6
10.6
9.9
7.6
10.4
9.5
14.4
-
-
-
O/Towns
13.4
12.1
16.6
13.3
18.7
15.8
7.8
-
-
-
Rural
19.5
22.0
25.1
13.3
25.1
24.2
22.1
-
-
-
Islandwide 15.9
17.0
18.7
24.1
19.7
19.1
16.9
14.8
14.3
9.9
O/Towns
Rural
Islandwide
19.9
TABLE 3: Unemployed By Major Demographic Groups 2006-2007
('000)
2006
2007
ANNUAL
AVERAGE
RATE
(%)
ANNUAL
AVERAGE
TOTAL
129.4
10.3
124.5
Youth (14-24 yrs)
49.9
23.6
51.3
Adults (25 yrs and over)
79.5
7.6
73.2
MALE
48.8
7
43.1
Youth (14-24 yrs)
20.7
17.4
20.3
Adults (25 yrs and over)
28.1
4.9
22.7
FEMALE
80.6
14.5
81.4
Youth (14-24 yrs)
29.2
31.6
31.0
Adults (25 yrs and over)
51.4
11.1
50.5
Poverty Eradication Programme
Reform of the Social Safety Net which
commenced in 2001 represents central
component of Poverty Eradication
Programme
Design of a conditional cash transfer
programme to ensure:
– Better targeting of the poor
– Linking of benefits to human capital
investment in education and health
PATH TARGET GROUPS and BENEFICIARIES
Targeted
Categories
NO.
Registered
Beneficiaries
%
NO.
%
Children 0-17 years
168,000
Pregnant /Lactating
11,000
Women
Elderly
33,000
Persons with
19,000
Disabilities (18-59 yrs)
71
5
173,495
783
75
Negligible
14
8
51,583
5,015
21
2
Destitute (18-59 years)
2
4,476
2
Total
5,000
236,000
100
231,446
100
@#
PATH Beneficiary Target Groups
236,000
8%
2%
14%
Children0-17
Pregnant &lactating
Elderly (> 60yrs)
5%
Persons with Disabilities
Adult poor (18-59 yrs.)
71%
Programme Outcome: Targeting
From the standpoint of redistribution and
coverage of the poorest and most
vulnerable PATH has been fairly
successful in terms of its targeting
mechanism.
However, concerns in terms of errors of
inclusion and exclusion have had to be
addressed.
Distribution of Households Receiving
Benefits by Quintile
Programme
Poorest
Quintile
Quintile 2
Quintile 3
Quintile 4
Quintile
5
Food Stamp
36%
26%
20%
12%
6%
School Fee Assistance
20%
21%
25%
23%
11%
Public Assistance
60%
17%
14%
5%
4%
Poor Relief
35%
23%
22%
15%
4%
SESP
24%
32%
20%
16%
7%
JADEP
9%
19%
42%
13%
17%
PATH
58%
22%
14%
5%
1%
PATH Beneficiaries by Quintiles and Area
Quintile
KMA
Other
Towns
Rural
All Island
Cumulative
1
2
3
4
5
Below Poverty
Line
76
7
16
1
0
78
60
22
13
5
0
65
57
22
15
5
1
57
58
22
14
5
1
59
58
79
94
99
100
n/a
PATH Beneficiaries
Household Characteristics
Household Characteristic
PATH
Beneficiaries
(PATH
2003)
Poor Jamaicans (SLC
2002)
All
Jamaica
(SLC 2002)
Household Size
1
2
3-5
6 and over
9
7
35
49
13
13
37
36
23
19
41
18
Presence of children
85
Presence of Elderly
41
32
44
Head of Household worked previous 12 months
57
64
72
Main material of outer walls
Wood
Block and steel
Other
46
37
17
41
41
18
29
54
17
9
14
38
Uses Pit toilet
80
70
47
Has electricity
Own:
TV
Washing Machine
Car
64
67
85
55
1
1
52
1
2
74
10
13
Has indoor tap/pipe
Source: PATH Participant Survey 2003, JSLC 2002
67
57
Programme Outcome: Targeting
Beneficiary Identification System (BIS) has had
to be reviewed to address, among other issues,
the disproportionate selection of households
from urban centres including the Kingston
Metropolitan area.
This is linked to the complexity of having a single
poverty measurement instrument that can
adequately capture the distinguishing features of
rural versus urban poverty.
Distribution of PATH Beneficiaries
Compared with Distribution of Poor and Share in Total Population
By Parish
Percentage
Parish
Percentage
PATH
Beneficiaries in
Parish Oct. 2006
Percentage
Jamaica’s Poor
in Parish (SLC
2002)
Parish Share in Total
Population *
Kingston & St. Andrew
7.97
20.9
24.8
St. Thomas
5.06
5.1
3.5
Portland
5.11
5.0
3.1
St. Mary
7.39
5.9
4.3
St. Ann
8.48
12
6.4
Trelawny
3.87
4.4
2.8
St. James
5.54
4.5
6.8
Hanover
5.12
1.8
2.6
Westmoreland
7.63
5.1
5.4
St. Elizabeth
10.54
5.8
5.6
Manchester
9.12
8.9
7.1
Clarendon
12.97
12.6
9.2
St. Catherine
11.13
5.8
18.4
100
100
100
Total
*Based on Population Census 2001
Health and Education Outcome
PATH has resulted in increased
school attendance.
There has been an increase in
the use preventative health care
services. Health care visits for
children 0-6 years increased by
38%.
Supply Challenges
In respect of PATH compliance requirements a
number of supply side difficulties have been
encountered in relation to the physical and
human capabilities of health facilities and
schools.
Specific concerns include the need to expand
primary health care capacity at the community
level and increase secondary school places for
the 15-17 years age group for which a gap still
exist.
Beneficiary Support Programmes
In terms of the beneficiary households, the high
cost of transportation, especially in rural areas
has impacted negatively on affordability of
schooling. Special measures are therefore
required to address this issue.
Availability of subsidised lunches found to be
critical for attendance and in this regard, the
School Feeding Programme needs to be
strengthened.
Coverage Gaps
Incidence of poverty 14.8% in 2005
Poverty Line 2005
– Individual J$63,717
– Family of five J$240,816
Estimated 394,000 persons are below the
poverty line
PATH covers 236,000
Approximately 158,000 persons below the
poverty line are not covered by PATH
These are mainly the working poor
Working Poor
“ The working poor are individuals engage
in either paid or self employment who
belong to households with an adult
equivalent per capita household
expenditure (or income) that falls below a
specified poverty line” (Labour Market and
Poverty Studies Unit, University of the
West Indies, Trinidad and Tobago)
Working Poor: Results of ILO Study
Males dominate the working poor
The working poor are clustered in the 25 to 44
age group
The working poor have lower levels of education
The working poor are employed in a variety of sectors,
but most are found in agriculture, community and social
services, construction and wholesale/retail sales.
The working poor work fewer hours than their
non-poor counterparts
In Jamaica 34% of the working poor are in
agriculture.
Distribution of NIS Pensioners
(March 2007)
Population
cohort
Number
NIS
Total in
Population Pensioner
s
Percentage
NIS
Pensioners
60-64
71,300
9,482
13.3
65-69
62,200
14,495
23.3
70-74
50,900
17,146
33.7
75and over 94,600
37,065
39.2
Total
78,188
28.0
279,000
DECENT WORK AGENDA
Principles and
Rights at Work
Equality of
Opportunity for
Women and
Men
Enhancing
Social
Protection
Tripartism and
Social Dialogue
Policy Responses
Ratification of ILO Conventions on core labour
standards including “Minimum Age of
Employment’’ and the “Elimination of the Worst
Forms of Child Labour”.
CARICOM Single Market and Economy (CSME)
and focus on the establishment of a “social floor”
Introduction of CARICOM Reciprocal Social
Security agreement
Strong commitment to tripartism
Challenges: Productive Employment
and Decent Work Agenda
Increasing size and complexity of the informal
sector, including a-typical and non-standard
forms of employment relationships in formal
establishment
High levels of youth unemployment
Gender inequalities in the labour market
Need for active labour market policies
Discrimination against persons with disabilities
Complex range of labour migration issues
Options for Expanded
Opportunities for Vulnerable
Welfare to work initiative focusing on
persons in the economically active agegroup in PATH beneficiary and other poor
households.
Young school leavers – focus on school to
work transition process with link to
Jamaica Youth Employment Network
(JYEN) and other initiatives.
Social pension
Welfare to Work
Training and job placement for members
of beneficiary household in economically
active age groups
Promotion of entrepreneurial activities
through revamped rehabilitation grant
programme
Community based interventions
Provision of range of referral services
School to Work Transition
Support for PATH beneficiaries beyond age 17
(8,000- 10,000 PATH School Leavers annually)
 Assistance for further education (Government
guarantee of Students Loans)
 Stipend for skills training/apprenticeship
 Provision of Job placement services
 Promotion of Entrepreneurship (grants or soft loans
for income generating projects)
 Training centre for Young persons with disabilities in
Western Jamaica
School to Work Transition
At risk youth targeted:
Youths in rural areas and inner-city
communities
Youths with disabilities
HIV/AIDS victims
Community
Development
Initiatives
Human and
Social Capital
Investment
Economic
Enablement
Provision of
Basic Social
Services
Lorenzo Smith, a youth of the Grants Pen Inner-city
Community now has a better chance in life. He
worked temporarily at the Mega Mart Super Store
and is now involved in a Human Employment and
Resource Training (HEART ) programme
Community Development
Economic Enablement
Andre Fairclough is now seen as a
positive role model in his family and
community as he engages in the
working world.
Security and Justice
Police and residents join
forces to fight crime
High Achievers
“Inner-City Student Boasts Highest
Test Score on National Exam”
“Deaf student soars”
Deepening Democracy
“Launch of 2008
Democracy SurveyLongitudinal report
provides insights on
views in the public
domain” , Daily
Gleaner February
2009
Prime Minister the Hon. Bruce Golding delivers the keynote
address at the launch of the National Integrity Action Forum.
Seated are Dr. Karen Hilliard, USAID/Jamaica Mission Director,
and Prof. Trevor Munroe of the Centre for Leadership and
Governance at UWI, Mona
WAY FORWARD
Integration of economic and social policies,
Enterprise development taking into account the rural
sector
Training and skills enhancement,
Expanding coverage and effectiveness of social
protection systems
Strengthening of the institutional capacity to promote
social dialogue and the regulatory framework for
enforcement of core labour standards.
Strengthened partnerships and collaboration at the
international level
Way Forward
Direct and special focus on the causes of
youth unemployment and best practices to
eliminate this problem
Mainstreaming of gender, age (life cycle
vulnerability) and disability in all
employment policies and poverty
eradication strategies
Geographically differentiated strategies
for rural and urban areas.
The END
Thank You
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