Social Protection for Poverty and Vulnerability - FES

Transcript Social Protection for Poverty and Vulnerability - FES

Social Protection and Public Policy in Botswana

Tebogo B. Seleka Happy K. Siphambe Khaufelo R. Lekobane David Mmopelwa

Presentation Outline

 Introduction  SP and Wider Development Policy  Poverty and Vulnerability Assessment  Program Effectiveness and Delivery Issues  Graduation, Coordination and Related Issues  Disincentive Effects  Way Forward 2

Introduction

    Botswana has experienced impressive GDP growth since independence.

It is now classified as a middle income economy.

However the country does not do well in terms of other development indicators: Unemployment (particularly amongst the youth.

Income poverty is high for a middle income economy.

Income inequality is amongst the highest in the world.

The income redistribution goal has become important.

Social justice objective.

Compassionate, just and caring nation pillar.

SP and Wider Development Policy

  

interventions are ‘actions to: Assist individual, households, and communities to better manage

risk

Provide support to the critical

poor

(World Bank, 2000).

is a system that aims to address 2009).

vulnerabilities

that put society at the risk of poverty or disasters (Gentilini,

refers: “

policies and practices

and promote the livelihoods and welfare of people who have lost out or stand

intended to

protect

to lose out in the processes of

economic and social change and development

, people whom these processes

bypass

, or people who are

vulnerable to the effects of disasters and other shocks

” (Marcus and Wilkinson,2002). 4

   People more vulnerable to poverty include : D

isabled people; Orphans; HIV infected; Elderly; Ethnic minorities,; IDPs; Households headed by widows and deserted women; Households Headed by children

(Hoogeveen (2007).

SP programs are part of a broader development policy and are not in themselves adequate to address poverty and vulnerability.

Contribution of SP programmes

: Reduce poverty and inequality directly They contribute to capita accumulation (promoting investment in education and productive assets) They are used to manage risk Allow government to implement beneficial reforms.

Poverty and Vulnerability Assessment

Social Risk Management Strategies and Arrangements (Examples) SRM Strategy SRM Arrangement

Risk Reduction/ Prevention Risk Mitigation

Portfolio Insurance

Informal

         Less risky production Migration Proper feeding and weaning practices Multiple jobs Investment in human, physical and real assets.

Investment in social capital (rituals, reciprocal gift-giving)  Marriage/family Community arrangements Share tenancy

Market-based

  In-service training Financial market literacy Investment in multiple financial assets 

Public

  Labor standards Good macroeconomic policies  AIDS and other disease prevention   Disability, accident and other personal insurance Crop, fire insurance   Protection of property rights (especially for women) Support for extending financial markets to the poor Mandated/provided insurance for unemployment, old age, disability, survivorship, sickness.

Risk Coping

   Selling of real assets Borrowing from neighbours Intra-community   transfers/charity Sending children to work Dissaving in human capital Source: Holzmann (2001); Hoogeveen et. al. (2005).

  Selling of financial assets Borrowing from Banks    Transfers/Social assistance Subsidies Public works 6

Vulnerable Groups -Based on Poverty Profiles

       Rural Dwellers Agricultural Households.

Households with Many Dependents Households with Low Educational Attainments Children-Headed Households Elderly-Headed Households Orphans.

Risk Assessment: types of risk

        (i) Natural, (ii) Health, (iii) Lifecycle, (iv) Social, (v) Economic, (vi) Environmental and (vii) Political risks. Health Risks – malnutrition, HIV/AIDs, Natural risks – drought, floods, heavy rainfall, strong winds, animal and crop diseases.

Economic risks – unemployment, inflation.

Lifecycle risks – disability, old age, death.

Social risks – illiteracy, crime.

Environmental risk – pollution, deforestation, land degradation Political risk – political unrest 8

Publicly Provided SP instruments

 2.

    Risk prevention program Prevention of Mother to Child Treatment (PMTCT) Programme Risk mitigation programs Drought Monitoring and Response Botswana Public Officers Pension Fund (BPOPF) Minimum Wage Gratuity and Severance 9

          Risk coping instruments Destitute Persons Programme, Government Pensions Programmes Supplementary Feeding Programmes Orphan Care Programme Community Home Based Care Programme Remote Area Development Programme Ipelegeng.

School Fees Exemption Agricultural support programmes (LIMID/ISPAAD) ART Programme 10

Risk Assessment

Vulnerable Group

Remote/Rural area dwellers Women headed households Families with many dependents Widow headed households Households with low education/skills Children headed households Elderly headed households Orphans Subsistence agriculture households Households with paraffin /wood as a source of fuel for cooking Infants and children aged below 5 years Disabled individuals Street Children Youth

Type of Risk

Unemployment; Illiteracy Unemployment Low income Unemployment; Low income Malnutrition; HIV/AIDS; Unemployment; Low wages Unemployment; Malnutrition; Low income Low income Low income; Lack of assets Droughts; Animal and Crop diseases; Floods.

High prices; Low income

Existing Programme

RADP Ipelegeng Ipelegeng Ipelegeng Ipelegeng PSFP; School fee exemption; ART; Supplementary feeding Orphan care programme OAP; DPP Orphan care programme ISPAAD; LIMID; Early Warning DPP Malnutrition; HIV/AIDS; Illness; Mortality Disability Malnutrition; Illness; Substance abuse Unemployment; Substance abuse; Unplanned pregnancies; HIV/AIDS & other STIs PMTCT; VGFP; Immunization DPP No SP programme Ipelegeng; National internship programme (NIP) 11

Program Effectiveness and Delivery Issues

Program coverage and Targeting      Coverage and targeting are said to be good for the

orphan care

and

OAP

schemes.

estitute programme –

some needy families in the villages who are not covered by the programme. Not all

needy students

are registered in the programme. Criteria for enrolment into CHBC exclude some eligible individuals – based on destitute program guidelines The

RADP

reaches most of the eligible individuals. 13

Program Delivery Issues   

Delayed and Incomplete Delivery of Benefits

(uniform and private clothing, food packages, cash payments, psycho-social support, rehabilitation, housing assistance for the destitute).

Poor Quality Packages/Service

(poor service in public offices, removal of beneficiaries from the list, long queues at payment points without required facilities – toilets, provision of cheaper and lower quality products, poor food preparation at schools).

Abuse, Fraud and other Unfair Practices

(abuse of food coupon by holders and shops, inflation of prices by shops using coupons including price discrimination practices, selling food on credit to coupon holders, political interference by councillors or parliamentarians) 14



Poverty impacts of programs

Traditional coping strategies Poorer households are more likely to benefit from the programs.

Social safety nets accounted for a higher proportion of household income for poorer households.

Programmes reduced the poverty incidence by 10 percentage points (2002/03).

Programmes which better targeted the poor were Clinic Rations, RADS package, Needy Students, Destitute and Drought Relief. OAP, WW II Veterans Pension, Orphan Care, CHBC and School meals had low targeting ratios for the poor.

 Asset transfer and input subsidy programs

ISPAAD

is expected to have reduced food insecurity and poverty because of increases in output in the subsistence economy. However crop yields remain low. Program sustainability is questionable. Tractor owners stand to gain more than farmers.

Given that

LIMID

is targeted at resource poor farmers/individuals and that it has assisted many people, it should have contributed to poverty reduction.

Graduation, Coordination and related issues

    Too many implementing public agencies. Graduation from SP programs to economic program unclear due to lack of coordination.

Skills Development essential for graduation (eg Ipelegeng

)

Ipelegeng sometimes preferred over other SP programs (eg leather works), 17

Disincentive Effects

 Welfare Dependency argument.

 Literature mixed (work disincentives vs investment  In Botswana evidence of work disincentives in agriculture found.

 Ipelegeng may be preferred due to favorable wages.

Way Forward

 Place programs under one roof to improve coordination.

 Consider program synergies to promote graduation (eg a combination of asset and cash transfers to help rebuild productive capacity and sustainability).  Consider cash transfers in place of food transfers to promote investment and minimize work disincentive effects.

Thank You 20