Social Protection and Conditional Cash Transfers

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					                  Social Protection and
                Conditional Cash Transfers
         David E. Bloom
         Ajay Mahal
         Larry Rosenberg
         Jaypee Sevilla

         Harvard School of Public Health
         July 23, 2009

         ADB Regional Workshop
         “Social Assistance and Conditional
         Cash Transfers”

Disclaimer: The views expressed in this paper/presentation are the views of
the author and do not necessarily reflect the views or policies of the Asian
Development Bank (ADB), or its Board of Governors, or the governments
they represent. ADB does not guarantee the accuracy of the data included in
this paper and accepts no responsibility for any consequence of their use.
Terminology used may not necessarily be consistent with ADB official terms.



                                         ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
               Main messages
• CCTs are a potentially powerful
  instrument of Social Protection.
• Capturing that potential requires
  that the design and
  implementation of CCTs be
  embedded within the broader
  society-wide exercise of priority
  setting involving all social
  protection policy options.


               ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
Definition of “social protection”
Social protection consists of policies and
programs designed to reduce poverty and
vulnerability by promoting efficient labor
markets, diminishing people's exposure to
risks, and enhancing their capacity to
protect themselves against hazards and
interruption/loss of income.
           (http://www.adb.org/SocialProtection/default.asp)



         ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
Alternative definitions: World Bank and ILO

 World Bank: public policies that assist individuals,
  households, and communities in better managing risks
  and that support the critically vulnerable.
   (Social Protection and Labor at the World Bank, 2000-2008, p. 1)


 ILO: the set of public measures that a society provides for
   its members to protect them against economic and social
   distress that would be caused by the absence or a
   substantial reduction of income from work as a result of
   various contingencies (sickness, maternity, employment
   injury, unemployment, invalidity, old age, and death of
   the breadwinner); the provision of health care; and the
   provision of benefits for families with children.
   (ILO. 2000. World Labour Report: Income security and social protection in a changing
   world. p. 29.)

                     ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
    Five components of social protection


•   Labor Markets
•   Social Insurance
•   Social Assistance and Welfare
•   Micro- and Area-Based Programs
•   Child Protection



            ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
Evolving views of social protection

• Not just consumption, but investment

• Not just “picking up the pieces”, but
  integral to growth




            ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
Social Protection & Strategy 2020
 Social Protection is explicitly recognized in the ADB’s
 Strategy 2020, particularly its agenda of inclusive
 economic growth.

 “The region must promote greater
 access to opportunities by expanding
 human capacities, especially for the
 disadvantaged, through investments in
 education, health, and basic social
 protections. It must also improve the
 poor’s access to markets and basic
 productive assets by putting in place
 sound policies and institutions. Finally,
 social safety nets must be
 strengthened to prevent extreme
 deprivation.” (pp. 11-12)



                  ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
ADB’s Level 1 Outcomes and MDGs
• Overlap between Level 1 Outcomes used by ADB to
  evaluate social protection programs and the UN
  Millennium Development Goals include:
   – Population living on < $1 per day
   – Prevalence of undernourishment
   – Primary school completion rate
   – Under-5 mortality rate
   – Maternal mortality rate
   – Gender Enrollment Parity in primary, secondary, and
     tertiary schooling



               ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
        Social Protection
  and the global economic crisis

“Governments must help prevent millions of the
 vulnerable from sliding into poverty. Attention to
 social protection and investments to stimulate
 internal demand and reduce this vulnerability is
 imperative during the economic slowdown.”
(ADB: The global economic crisis: Challenges for developing Asia and the ADB
response, p. 16)




                  ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
 Conditional Cash Transfers
CCTs: cash
transfers made to
poor households
conditioned on
parental
investments in the
education and
health of their
children.


          ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
  Countries with CCTs in 2008
Latin America: Mexico, Guatemala, El Salvador,
  Costa Rica, Panama, Ecuador, Peru, Chile,
  Bolivia, Brazil, Paraguay, Argentina, Dominican
  Republic, Jamaica, Honduras, Nicaragua
Africa: Burkina Faso, Nigeria, Kenya,
Eurasia: Turkey
Middle East: Yemen
Asia: Pakistan, Bangladesh, India, Cambodia,
  Philippines, Indonesia
                             (World Bank. 2009. Conditional Cash Transfers)

            ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
         Strengths of CCTs
• Poverty reduction and human capital
  accumulation
• Primary beneficiaries are young children
• Conditionality promotes social contract
  and mitigates sense of dependency
• Strong Monitoring and Evaluation



           ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
    CCTs are not a panacea with
     respect to social protection
•   CCTs don’t reach all vulnerable populations.
•   CCTs not especially good at social insurance
•   The conditionality, targeting, and behavioral
    focus of CCTs is ill-suited to many aspects of
    social protection
•   Some vulnerabilities require political-legal-
    cultural reform rather than redistribution of
    resources.

             ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
Relative priority of CCT within SP
  1. Demand for SP: empirical measurement of all SP
     needs and vulnerabilities within a population
  2. Supply of SP: assessment of existing SP activities
     of government and non-government actors
  3. Unmet need: This is the demand for SP that is not
     adequately met by existing SP activities
  4. Compare the net benefits (i.e. benefits minus costs)
     of all potential new SP initiatives, including but not
     limited to CCTs. Give higher priority to those with
     more attractive net benefits.


              ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
       Social Protection Audit
• Measure the nature and
  strength of the demand for
  Social Protection
• Take stock of the supply of
  Social Protection activities
• Calculate and report the
  unmet need for Social
  Protection



             ADB Regional Workshop: Social Assistance and Conditional Cash Transfers
                     Thomas Hobbes
                            (1588-1679)

Life in the state of
nature is “solitary, poor,
nasty, brutish, and
short.”
(Leviathan, 1660)




                    ADB Regional Workshop: Social Assistance and Conditional Cash Transfers