Presentation of preliminary results of
ERD 2010
“Social protection as an integral part
of development policy”
Johannesburg, 11th October 2010
Giorgia Giovannetti
Robert Schuman Centre for Advanced Studies, European
University Institute, and University of Florence
The European Report on Development
(ERD): a one year process
International Conference on “Experiences and lessons from
social protection programmes across the developing world: what
role for the EU?” Paris; 17-18 June 2010
International Conference on “Promoting Resilience through
Social Protection in Sub-Saharan Africa”. Dakar; 27-30 June 2010
International Workshop on “The ERD 2010 zero draft report
presentation” Florence, 17 September 2010
Second consultative activity organized by the DG Dev to
discuss the consolidated Draft Report, Brussels; November 4 2010
Also: Internal multidisciplinary brainstorming, jointly
organized with Max Weber Programme at EUI, Florence, May 5-7
Over 20 commissioned papers
Drafting team: A. de Haan, S. Dercon, S. Klasen, L. Prados,
R. Sabates Wheeler, T. Verdier, P. Vennesson
What conceptualization of social protection
fits better to the goal of the ERD2010?
• Working definition:
Social protection is a specific set of public
actions addressing the vulnerability of
people’s life via:
social insurance (offering protection against
risk and adversity throughout life),
social assistance (offering payments to
support and enable the poor), and
social inclusion efforts (enhancing the
capability of the marginalised to access
social insurance and assistance).
In the background: some facts
•
Forms of social protection (SP) exists in almost
every SSA country; SP has deep roots in Africa.
•
In the last decade, SSA countries have made
progress in their SP agenda (Africa Union).
•
SP in SSA follows different models depending on
nature of institutions, level of economic development
and specific country features (e.g. demographics).
•
SP helps enhancing productivity and Growth,
decreasing conflicts, reaching MDGs (evidence)
•
Countries with effective SP tend to be more resilient
to shocks (crises). For countries with less SP (or programs
not fully implemented), negative impacts tend to be longer
term and domestic consumption dampened. Importance of a
long run horizon (not only safety nets)
Moving from Short to long term policy
responses:
• Short term measures - even if focused on increasing social
expenditure - do not allow graduation out of structural
weaknesses.
• A longer term perspective is needed. SP is more than an
instrumental response to vulnerability.
• SP can leverage state building, reduce inequality, build
resilient livelihoods, bolster growth, promote social justice.
• But obstacles….
Major obstacles for moving from short term
to long term SP policies (in SSA)
 Low domestic borrowing and resource mobilization
 Identification of the Fiscal Space
 Re-prioritization of public sector spending: For example, prioritizing
social sectors over military spending.
 Macroeconomic policy framework for social and economic
recovery not “accommodating” (crises, deficits…)
 Need for external financing in transition phases (grants,
concessional borrowing, or debt relief) (Predictability)
 European Commission grant budget support; IMF’s rapid credit facility; World
Bank’s economic recovery loans; ADB’s countercyclical support facility…
Learning from around the world (also SSA):
experiences to support policy recommendations
– We evaluated programs through three main criteria: (I)
Preconditions (Fiscal sustainability, Administrative
capacity, Political commitment); (II) Impact; and (III)
Externalities;
– There are more options available for pro-active social
protection in African countries (even low-income ones)
than previously thought (cash transfers, public works
programs, supporting –through regulation and reinsurance- the
build-up of microcredit and microinsurance schemes);
– Case studies show that social protection programs are
feasible and sustainable and can have large poverty impacts
with relatively few disincentive effects.
Sub Saharan Africa: Examples social cash
transfer programs with government support
Old age
pensions
Child grants
Pov/community
based targeting
General/national
plans
Lesotho
(80,000)
Namibia
(108,000)
Malawi (24,000 hhs
and scaling up)
South Africa
(4 million)
South Africa
(8 million)
Zambia
Ethiopia
(8,000 hhs; scale up to (PNSP 1.6 million
22,000)
hhs; BOLSA 8000)
Namibia
(115,000)
Zambia (will scale up Zimbabwe
to 33,000 hhs)
(2,800 hhs in pilot)
Botswana
(91,000)
OVC /community
based targeting
Swaziland
(60,000)
Zambia
(4,500 hhs in
pilot)
Rwanda (25,000 hhs
and scaling up)
Pilots on
the way
Tanzania
(2,000 hhs in pilot)
Madagascar
(10,000 hhs planned)
Kenya OVC (70,000
hhs; scaling up to
125,000)
Kenya Hunger
(scaling up to 60,000
hhs)
Angola
(pilot under
discussion)
Lesotho
(1,000 hhs in pilot;
scale up to 10,000)
Mozambique
(170,000 hhs)
Uganda
(pilot approved)
Two questionnaires for a bottom-up approach
The Sub Saharan Africa
Questionnaire (SSAQ)
The EU questionnaire (EUQ)
sent to EU practitioners managing
Five sections – open and closeended questions
Who: EC, GDC, DFID circulated
the
questionnaire
to
their
representatives. As for BE, ES, IE,
LU, NL we contacted the people in
the field directly. Practitioners
from
9
EU
donors
(COM,
Germany,
UK,
Ireland,
Luxembourg,
France,
Spain,
Belgium, The Netherlands) have
participated in the initiative.
circulated to African
stakeholders and experts in
social protection (government,
civil society, academia,
international institutions etc)
How: Questionnaire
participants by e-mail
sent
to
Snowball sampling:
interviewed persons were asked
to nominate other experts to
create a network: i) Networking
ii) New ideas iii) Updated
information iii) Dissemination
Total
date
respondents:
50
to
their
donors’
social
portfolio in the field
protection
Where: The questionnaires cover
11 SSA countries (Burkina Faso,
DRC, Ethiopia, Ghana, Kenya,
Lesotho, Mozambique, Rwanda,
Senegal, Tanzania, Zambia) as
well as 6 non-SSA (Afghanistan,
Cambodia,
India,
Indonesia,
Nepal, Vietnam).
SSA Questionnaire:
“External donor programs suffer from a lack of follow-up once they have
been funded (e.g no capacity building, lack of long term financing)”
50.0
41.9
45.0
40.0
35.0
30.0
25.8
25.0
19.4
20.0
15.0
10.0
12.9
5.0
.0
Disagree
Neither Disagree or Agree
Agree
Strongly Agree
An overwhelming majority (67.7%) agrees or strongly agrees that donor
programmes suffer from lack of follow-up, notably long-term financing. Lack of
sustainability is considered the “most harmful” aspect of donor intervention,
before lack of ownership .
Government commitment: We have asked respondents to identify the
main constraints to the improvement of social protection in SSA. Their
answers provide an interesting starting point for discussion.
In your opinion, is the gove r nm e nt com m itte d e nough (politically, financially) to
im pr oving s ocial pr ote ction?
60.0
50.0
54.8
40.0
35.5
30.0
20.0
10.0
9.7
.0
Y es, although social protection
coverage and systems still need to
be improved
No, because it lacks political w ill
No, because it lacks f unds
WITHOUT SENEGAL
60.0
50.0
40.0
30.0
20.0
10.0
.0
56.3
37.5
6.3
Yes, although social protection
coverage and systems still need to
be improved
No, because it lacks political will
No, because it lacks funds
Effectiveness of SP measures
In your opinion, which type of social protection measures are the most effective?
Other
6,0
Unconditional Cash Transf ers (UCTs)
16,0
Conditional Cash Transf ers (CCTs)
15,0
School f eeding
18,0
Public works
13,0
Community-driven schemes (traditional solidarities, informal
networks etc.)
13,0
Social pensions
19,0
0,0
5,0
10,0
15,0
20,0
Social Protection should be an integral
part of EU development policy
• Beyond description and analysis (e.g. 15 SSA have SP
in Constitution), ERD aims at understanding the
links and interplays between SP and development
• SP involves specific policies and is a good way to build
up long-term relationships between donors and
recipients, to generate mutual trust.
• We want to understand if and how can EU play a role
and be effective, whether it can help to identify
priorities and policy measures and to fill the gap
between programs and implementation
Implementing Social Protection has
also indirect effects….
• Because in every country some form of SP exist (if
not at the government level, at village or community
level), it is important to align donors development
policies with existing domestic SP policies;
• The indirect effect is to build partnership on specific
grounds.
• The mutual learning experience can empower
SSA countries
• The commitment to long term SP policies can
enhance the credibility of donors
ERD focuses on the EU role, argues that SP should
be an integral element of EU development policy
• Aims: Set perspective to EU’s development policy.
• Review what EU donors actually do (EU main donor).
Suggest that development policies and social
protection policies now dealt with separately (not only
at the EU level) should be integrated in a
comprehensive framework.
• Single out challenges that can/should be tackled at EU
level.
• Show both “capabilities” and “expectations” in order
to assess the “gap”.
• Provide adequate policy recommendations for EU
Summarizing: a role for international
donors (EU) in supporting SSA countries to
upscale social protection
• Why? For some SSA countries to only rely on their
(limited) domestic resources can be a barrier to
scaling up SP and achieving higher resilience
• How to intervene, given that social protection is
under state sovereignty?
• In the framework of political dialogue, it is crucial that
the EU (and its member states) promote nationalinstead of donor-driven initiatives, to ensure
ownership and sustainability
THANKS!
Universal benefits for vulnerable groups:
Social pensions in Lesotho
• (a) Reaches defined group and (b) is universal
• Cash delivery subcontracted to the post office: minimizes
delivery costs, post offices are familiar and “safe”
• Preconditions: the program rose entirely from the domestic
political agenda, is financed out of domestic resources; no
technical or financial support from external actors; high age
qualification was chosen to make it affordable. In 2005-2006,
126 million of Maloti (US$21 million), i.e 2.7% of the
government expenditure;
• Impact: 90% of household were living below the poverty line
compared before, 70% after the introduction of the program.
Also the effect on the average poverty gap was substantial as it
decreased from 135 Maloti per month to 90 Maloti (Bello et al.,
2007).
Emerging Contributions-based SP for better Health:
National Health Insurance Scheme in Ghana
• It solves (a) health risk = a key problem and (b)it is a
functioning contributions based system: NHIS is included in
national budget for health; is financed from V.A.T. originating
taxation (70-75%); formal sector contribution (20-25%) and
informal sector premia (5%). Regulated by the NHI Coucil at the
central level, which manages the NHI Fund.
• Preconditions: Operationalized at regional and district level.
Commitment very high. NHIS has originated from the National
Health Insurance Act that passed into law in 2003. One of the
pillars of the Social Protection Strategy of the Government,
which includes also an education grant and a conditional cash
transfer (LEAP) program.
• Impact: could contribute to address horizontal inequality with
equal contribution across country and risk pooling among
districts.
Targeted Rural Support at a Large Scale:
PSNP in Ethiopia
• (a) it offers targeted support to needy rural population with
productive aim (b) it shows large scale is possible (4830,000 2005; 7574,530-2009) in Africa PSNP budget equals 1.2% of
GDP; Government expected to provide 8.4% of total PSNP
cost, the rest donors. Threat to sustainability from food price
inflation eroding wages.
• Preconditions: Timeliness of payment improved significantly
2006-2009 (food & cash wages). Cash payment transfers
enhanced as computer-based system (PASS) addressed
bottlenecks; strong will to move away from emergency relief to
predictable support, to reduce chronic poverty and protect
assets; political preference for cash payment; PSNP has
covered 8 most food-insured regions.
• Impact: good overall, moderate on asset accumulation, strong
in terms of livestock assets.
Reaching Children when Vulnerable: School
feeding in Kenya
• (a) targets potentially vulnerable population (b) with plausible
productive consequences (better human capital formation)
According to the Boston Consulting group, cost of a school
meal,11 KES per student per day in 2008, 12.4 KES in 2009.
85 % of this cost in food procurement, storage, transportation
15% is for administrative costs (WFP, 2010).
• Preconditions: The program is managed by the Ministry of
Education but very strong and effective cooperation between
the Ministry & the WFP.
• Impact: Not measured yet but, according to some impact
analyses made on previous programs held in Kenya, school
meals allow households to save between 4 and 9 % of the
annual household income for feeding their children.
Developing Social Protection Plans: Vision
2020 Umurenge (VUP) in Rwanda
•
•
•
Included because it offers a comprehensive SP strategy
Precommitment: $ 72 per capita each year. $ 44 million
during the pilot phase; High levels of subsidiarity and bottomup approach; Political commitmente Strong. VUP is a
component of the PRSP of Rwanda for the fiscal period
2008/12
Impact: Positive impacts observed in the form of increased
consumption; spending on human capital; asset accumulation
and financial services (impact evaluation is a component of
the programme)