Operational Issues in Implementing Safety Nets Presentation by Qaiser Khan, Lead Economist, AFTHD. Thursday March 10,2011

Transcription

1 Operational Issues in Implementing Safety Nets Presentation by Qaiser Khan, Lead Economist, AFTHD Thursday March 10,2011

2 What are the key operational issues in Social Safety Nets in general Identification of Appropriate Program to suit country conditions and problems to be addressed criteria (in case of CCTs assessing the supply side of co-responsibilities). Definition of target group and eligibility. Level of benefits and activation graduation issues to make sure people can graduate to work. Defining payment systems and modalities. Appeals process and case management. Linkage to other programs to allow complementarities and prevent double dipping. Controlling Fraud, Error and Corruption plus other leakages. Monitoring and evaluating the program. For those in the World Bank, appropriate instruments to support a program and implementation modalities.

3 Diagnostic and Program Objectives Explore the extent of the problem to addressed. e.g. are you trying to address consumption poverty or lack of access to basic health services or poor school attainment or perhaps a combination. Assess logistic issues such as location of target population and possible payment modalities. Supply side of co-responsibilities for CCTs (are there enough school places or access to health or nutrition services). Assess the country s institutional capacity and programscapacity of ministries agencies and whether alternate institutions are needed.

4 Definition of target group and eligibility Would you target all households in an area or just poor households. If you target poor households, what targeting approach will you use whether it is geographic targeting, means testing, proxy means test, categorical targeting, or community targeting or perhaps a combination. The following six slides are taken from Francisco Ayala s presentation to the long SSN course and illustrate targeting and conditionalities very well.

5 Eligibility Criteria for Households Who should be targeted? POOR HOUSEHOLDS All members Vulnerable members HIV Orphans Disabled Chronically ill Children and youth between 0 to 18 years of age 5

6 Some examples of CATEGORICAL Eligibility Criteria Laos Poor households with pregnant or lactating women and children under 3 years of age. Pakistán Nigeria Poor households with children going to school between 5 to 12 years All girls between 9 and 17 years of age living in rural areas and attending in the eligible schools ready to be admitted in 5 th, 6 th or 7 th grade. Perú Households classified as extremely poor, which are located within areas of influence of supply of education and / or health, that have at least one member goal. Health: children between 0 to 5 years Education: children between 5 to 14 years In all cases members who belong to poor or extremely poor households 6

7 Targeting and Selection System: Instruments Poverty maps, HIV prevalence maps, disaster zones, areas of influence around schools and health facilities, and others Validation Validation of lists by committees, government agencies, NGOs, etc (inclusion & exclusion errors) Geographic Household Targeting Selection Proxy Means Test (PMT), local community identification, local community improved system (HH income estimated by proxies) Ranking Selection of special eligible households: Vulnerable members (OVC, orphans, children, etc) and ranking (using scores, special HH characteristics) 7

8 Type of targeting system applied Nigeria Perú Tanzania Nepal Survey Verification with PMT + Community Validation + Ranking Geographic Targeting + Individual Targeting (SISFOH) + Continuous Targeting Community Based Targeting + Verification with PMT and categorical variables Community based targeting already done + Verification with PMT

9 Deciding Co-responsibilities / Incentives Attendance (Conditions) Outcome related (Incentives) Education Attendance Enrollment Performance Passing grade Health Checkups Growth performance Nutritional & anemia Performance levels Training Awareness Sessions Courses: Passing 9

10 Frequency for Conditionalities Frequency: Monthly, Bi-Monthly, Other Aspects to consider in the decision: To achieve short / long term results High frequency to achieve quick results For technical/operational reasons Most conditions should be verified at the same time According to paymentcycle (bimonthly in most countries) For health reasons Pregnantwomenand infants follow recommended frequency Tradition According to school terms 10

11 NO CONDITIONS, INCENTIVES Attend antenatal clinic Deliver with assistance of professionals Growth Performance Four times Once off Once per year Pregnant Women and children under two years 11

12 Level of benefits and activation graduation issues to make sure people can graduate to work. Level of benefits depend on the program objectives and sometimes can be quite low. Evidence in most developing countries is that programs do not cause work disincentives but one way to assure this is to set the level of benefit low enough. The disincentives findings come from OECD countries where there is a double whammy caused by benefit withdrawal and marginal taxes on earned income. These can be addressed at the margin by gradually withdrawing benefits or using negative marginal taxes. Activation and graduation policies can be built in by requiring job search activities and providing incentives for this.

13 Designing Payment Systems (pictures courtesy Francisco) Cell Phone Cash Delivered at home Post Offices Pos Machines Magnetic Cards Checks Savings Accounts

14 Identification and Enrolment Process Once the targeting system is decided on, identification of beneficiaries can be done by census, selected canvassing, advertising and requesting self-enrolment or a combination. An effective appeals process enables exclusion errors to be reduced and program management needs to be used to reduce inclusion errors. The next two slides illustrate the appeals process and program management. Once selection is done verification, biometric data collection and issuance of program cards need to be done at the same time. This prevents ineligible people receiving program cards using other peoples identification.

15 Appeals Process can reduce exclusion Errors HOUSEHOLD/COMMUNITY COMMITTEE APPEALS: Create a mechanism by which non-beneficiaries can appeal the eligibility status (Appeals Form) UPDATES: A tool for updating information of the beneficiaries (Updates Form) CLAIMS: Design a mechanism of claims concerning payments(claims Form) COMPLAINT: Allow beneficiaries to file complaints concerning quality of service provision, and other aspects of the Programme (Complaint Form) Information submitted by the Beneficiary is entered into the MIS Find Solution (data analysis, verification with school, home visit, verification with payment agency, etc..)» Response 15

16 Good System Management can reduce inclusion errors PROGRAM CCT-MIS WILL GENERATE ALERTS TARGETING INCONSISTENCY: Inconsistency between MIS PMT Result and Community Validation NON COMPLIANCE: Family failed to comply with co-responsibility NON PAYMENT COLLECTION: Family failed to collect the payment NON REMITTANCE OF FORMS BY SCHOOL: School does not provide information on time Solution (data analysis, home visits, referrals, school visit, visit to payment agency, etc..) NON REMITTANCE OF RECONCILIATION REPORT BY PAYMENT AGENCY: Payment Agency does not provide reconciliation report on time 16

17 Linkage to other programs SSN programs can be linked to other programs such as active labor market programs. Use of a common register or a common targeting system can be used for all programs in the country to assure consistency. Double dipping can also be prevented by using common targeting and case management systems.

18 Fraud, error, Emil went over this in his presentation which draws on OECD examples. The good news for low income countries is that new ICT can help reduce this a lot by use of biometrics registration and payment systems. India example NREGA in Andhra Pradesh which combines biometric IDs, with smart portable ATMs which can read biometrics for payments. Basically, ICT offers the opportunity for SSN programs to reduce fraud and error.

19 Monitoring and Evaluation Monitoring is a key element in success. Evaluation is also needed to assure best use of scarce resources. Best practices include setting up a baseline very early and also taking advantage of panel surveys (where they exist to isolate country wide trends from program effects. Evaluations also help to buy political support for a program.

20 World Bank Operational Issues The new results based financing (P4R) will make it easier for us to support safety nets. A key prerequisite for this will be to build in systems that can use ICT to reduce error and fraud. It is generally preferable that we finance government based programs. In the past this was only possible with DPLs now the new instrument will also allow us to do this.