Child-centred social protection 15 July 2009 Michael Samson [email protected] Economic Policy Research Institute UNICEF/ IDS Course on Social Protection Overview Why child-centred? – UNICEF – the socio-economic returns The instruments – Fee waivers for services – Cash transfers Conditionality? Expanding the concept of child-centred social protection What does social protection do? Focus area 1. Young child survival and development: poverty reduction, nutrition, health Focus area 2. Basic education and gender equality: school attendance, particularly for girls Focus area 3. HIV/AIDS and children: support for caregivers and AIDS-affected households Focus area 4. Child protection from violence, exploitation and abuse: reduced child labour Focus area 5. Policy advocacy and partnerships for children’s rights Biological transmission mechanisms of social protection Binocular vision ‘Sensitive periods’ in early Central auditory system brain development Habitual ways of responding Language Emotional control Symbol Peer social skills Relative quantity High Low 0 1 2 3 Years 4 5 6 7 High rates of return on social transfers result from their tendency in many countries to provide pre-school children with vital resources Pre-school Intervention Brain Growth Schooling Job Training Human Capital Rates of Return Pre-school Post-School School Age Heckman & Carneiro (2003) and Handa (2007) Vocabulary scores by SES quartiles in 36 to 72 month old children Ecuador age (months) Source: Paxson and Schady (2005) reported in Handa (2007) .8 .9 1 South Africa KIDS 1993-1998 Panel: Prior malnutrition affects school enrolment .7 95% enrolment .4 .5 .6 70% enrolment -5.00 -4.00 -3.00 -2.00 -1.00 0.00 1.00 Height for age z-score 1993 2.00 3.00 Height-for-age Z-scores in 1993 Fig. 2: Lowess estimates of ever enrolled and nutritional status Source: Handa (2007) 4.00 Social services Many child-centred social protection interventions will be covered next week But how do cash transfers relate to social service delivery? Cash transfers + fees for most vital services (health, education, water) = inefficiency School fee abolition is affordable and has significant impacts on the poor On average primary school fees account for no more than 5% of the total cost per child – this cost is widely affordable for governments. School attendance of the poor is very sensitive to even low fees. The benefit to waiving fees outweighs the cost. Evidence from Africa demonstrates a substantial impact on primary school enrolment from abolishing school fees (SOURCE: UNESCO, UKWP2006) Recent evidence from Kenya’s Joint Poverty Assessment corroborates this Age Abolishing school fees only one part of social protection strategy Getting children admitted is not the only challenge to reaching Universal Primary Education (UPE). Other key challenges to achieving UPE include: – Enrolling the last 10-15% of children, largely in rural areas. This challenge is compounded by the rapid increase in HIV/AIDS orphans. – Reducing the drop-out rate – Improving learning outcomes These challenges require that school fee abolition is accompanied by other social protection measures such as cash transfers and school feeding programmes for marginalised children Impact of social cash transfers Empowerment Upliftment Health, education Access to markets (nutrition) Most cash transfers buy predominantly food Use of Cash Transfer by Program 80% 70% 60% 50% 40% 30% 20% 10% 0% Food SOURCE: IFPRI Education Health South Africa OAP Kenya Cash Transfer for OVC Namibia Old-Age Pension (urban) Malaw i FACT Other Zambia SCTS Mozambique INAS (urban) Malaw i DECT Savings & Investment …and other health outcomes Change (percentage points) 70 60 50 Honduras 40 Mexico 30 Nicaragua 20 Colombia 10 0 -10 -20 Health visits SOURCE: IFPRI Illness Growth monitoring Stunting …and significant educational impacts (particularly in cases where initial enrolment is low) SOURCE: IFPRI, EPRI, UNICEF Group exercise (for this afternoon) In groups, each person discusses for a country they select: – First, do we have the information necessary to answer these questions? If not, what kind of information would be required to answer each question? – Second, what kind of child-centred social protection programme do we want to implement? – Should it be targeted? If so, how? – Should it be “conditional”? If so, on what and how? – How does the programme fit into the larger social protection picture? What complementary programmes are necessary? Institutional and policy context How do you design a child-centred social transfer programme? Programme selection involves answering key questions: Political priorities •Targeting? Who benefits? ? Social protection ? Human capital development ? Priority groups 1 ? Vulnerable groups: older people, disabled, children ? Poor households more broadly 3 Poverty profile •Who benefits? •Transfer size? Decisions to define instruments 2 How much money is available ? for social transfers? ? Domestic resources ? Donor funds Institutional factors ? Existing programmes ? Government capacity ? Fiscal position 4 What size of transfer is provided? 5 What kind of programme? Unconditional programme? – Social pension? • South Africa model? • Lesotho model? – Household grant? • Kalomo? • Mchinji? Conditional cash transfers? – Unconditional programme + conditionality – Mexico or Brazil? Kenya, Pakistan or Zambia? Public works programme? Micro-finance, school feeding, inputs? Identification of the beneficiary We often define social transfer programmes in terms of the beneficiary – – – – social pension (older people) child benefit (children) food subsidy (hungry people) geographically located people (poverty and vote mapping) The political and policy context for beneficiary identification The role of the poverty profile Institutional factors and existing programmes Burkina Faso Burundi Cameroon Cote d'voire Ethiopia Older people & children Gambia Elderly and children Ghana Only older people Elderly persons Guinea No elderly persons Households with older people and children are on average poorer than other household types in most African countries No older people Kenya Madagascar Malaw i Mozambique Nigeria Uganda Zambia AVERAGE 0 10 20 30 40 50 depth of poverty (poverty gap %) 60 SOURCE: Kakwani and Subbarao (2005) Poverty rate (in percent of the population in each group) and change (in percentage points) Tanzania: the potential impact of a social pension and a child benefit 57.8 60 52.5 50 44.3 44.1 40.8 40 30 27.1 28.8 28.0 43.2 42.6 38.1 37.9 25.9 37.7 37.3 28.5 28.4 27.6 31.8 22.0 18.9 20 15.2 10 0 -10 -10.5 -14.7 SOURCE: ILO Old age pension and child benefits (orphans 0-14, others 6-14) -25.9 Change in poverty rate Living in hh without ablebodied member -24.0 Living in hh with children and elderly Working-age men (15-64) Working-age women (15-64) Boys (0-14) Girls (0-14) All individuals Actual poverty rate -22.5 -15.3 Living in hh with elderly (65+) -23.7 -30 Living in hh with children (0-14) -12.0 Elderly men (65+) -16.3 -15.3 Elderly women (65+) -20 -13.7 Secondary Beneficiaries of Social Pension Income in Namibia Others 6% Spouse 9% Children 25% Grandchildren 55% Parents 5% SOURCE: Devereux (2007) Public works programmes Public works programmes are conditional cash transfers — where the conditionality is work Key considerations High wages almost always make it difficult to target the poor, but low wages don’t necessarily make it easier – …and low wages erode the social protection To transfer one dollar to a household costs between $2.50 and $5.00 The best programmes combine four elements: – High labour intensity – Substantial pro-poor value-added from the project – Effective targeting of poor households – Workers employed in a way that does not erode their ability to fulfill their other obligations Conditional cash transfers: where are they found? Source: Kathy Lindert (2005) Social transfer programmes can include any of five possible elements Unconditional social transfers Conditional cash transfers Income (poverty reduction) Yes Yes Improved service delivery Maybe Maybe Developmental awareness Maybe Maybe Monitoring Maybe Maybe Penalties No Yes Element: NO Are there backlogs in delivering social services? YES YES Does government have strong administrative capacity? NO NO Do the poor face bottlenecks in accessing social services? LOW Is the unemployment rate relatively high or low? YES HIGH UNconditional conditional What factors affect the choice of conditional versus unconditional transfers? Are conditionalities necessary? Evidence Philosophical underpinnings Risks – compromise the poverty reduction objective – deprive the poor of freedom to choose appropriate services — and to freely make decisions to improve household welfare – can be expensive, inflexible, and inefficient — in the worst of cases, screen out the poorest Conclusions Social protection must be child-centred A variety of appropriate instruments are essential—rarely does one intervention work optimally on its own Cash transfers are a historically under-utilised instrument that can promote developmental outcomes A broad conception of child-centred social protection can help to break the chains of the inter-generational transmission of poverty
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