Role of NGOs in the Delivery of Social Security

THE ROLE OF NGOs IN THE DELIVERY OF SOCIAL SECURITY

ELIAS E.M. BARUTIPLANNING & INVESTMENTS MANAGER

LAPF – TANZANIA

The 33The 33rdrd Global Conference of ICSW Global Conference of ICSW3030thth June – 4 June – 4thth July 2008, Tours - France July 2008, Tours - France

eb/ICSW 2008 eb/ICSW 2008 22

Fig. 1: The Role Of NGOs


AGENDAAGENDA

Introduction.

The Delivery System of Social Security in Tanzania

The Role of NGOs in the Delivery of Social Security

Conclusion and recommendations


1.01.0 INTRODUCTIONINTRODUCTION Tanzania has an estimated population of 38.5 million,

of which only 20.67 million is active labour force.

The delivery System of Social Security in Tanzania cover only 5% of the active labour force.

This limited coverage call for adopting new approaches and involving other parties i.e., NGOs.


2.02.0 THE DELIVERY SYSTEM OF SOCIAL THE DELIVERY SYSTEM OF SOCIAL SECURITY IN TANZANIASECURITY IN TANZANIA

2.1 The Social Security Set upThe Social Security Set up The social security set up in Tanzania is in accordance

to ILO framework of three tier system.

That is, it comprises social assistance programmes, mandatory contributory and supplementary schemes.

The system is classified into formal SSIs and Traditional Social Security Arrangements.


2.22.2 The Formal SSIsThe Formal SSIs

There are seven formal SSIs providing social security, of which six are in the mainland and one in the isles. These are:-– National Social Security Fund (NSSF),– Parastatal Pension Fund (PPF), – Public Service Pensions Fund (PSPF), – the Local Authorities Pensions Fund (LAPF), – Government Employees Provident Fund (GEPF)– National Health Insurance Fund (NHIF) and – Zanzibar Social Security Fund (ZSSF).


Table 1 :Table 1 :The Profile of Formal SSIs as at June 2007 The Profile of Formal SSIs as at June 2007

S/N DESCRIPTION NSSF PSPF PPF LAPF GEPF ZSSF

1. Establishment 1964 1999 1978 1944 1942 1998

2. Membership 404,664 223,260 184,000 56,479 30,080 43,670

3. Asset base (Bn-TZS) 585.90 494.10 350.00 179.20 41.40 26.40

4. Market Share (%) 43.0 23.7 19.5 6.0 3.2 4.6

5. Benefits offered* 7 4 3 4 1 1

*According to ILO standards


2.32.3 The Traditional Social Security ArrangementsThe Traditional Social Security Arrangements

These TSSAs include ROSCAs, SACCOS, ABS and NGOs as indicated in Table 2 below.

Table 2: Delivery of Social Security in Dar es Salaam (1995) Type of Scheme Coverage in %age ROSCAs (UPATU) 13.2 SACCOs 0.8 NGO protection 1.4 None 84.6 Source: 1995 Dar es Salaam Informal Sector Survey Data (adopted from Kamuzora – n.d.)


3.03.0 THE ROLE OF NGOs IN THE DELIVERY THE ROLE OF NGOs IN THE DELIVERY OF SOCIAL SECURITYOF SOCIAL SECURITY

The number of NGOs in Tanzania have increased from 25 in the early 1980s to more than 10,000 to dates.

Most NGOs focuses on poverty alleviation, human rights, education, environmental, gender and religion issues.

The benefits offered by these NGOs differ greatly from conventional benefits offered by SSIs.


3.13.1 Capacity BuildingCapacity Building

NGOs can play an active role in the implementation of capacity building programmes.

The programmes can focus both potential and existing members of social security institutions.

This approach if well implemented is likely to kick start the other approaches.


3.23.2 Micro FinancingMicro Financing

NGOs have made a significant contribution in delivery of loan facility.

Organizations involved in the delivery of micro financing include SACCOS.

The MCIs/MFIs are also making contribution in the delivery of loan facility.


Fig. 1: Mwongozo youth group in Dar Es Salaam.


3.33.3 Micro Health Insurance. Micro Health Insurance. (1)

The provision of health insurance is through four models:

The partner – Agent Model The Full-Service Model The Mutual Model The Provider Model


3.33.3 Micro Health Insurance. Micro Health Insurance. (2)

The role of NGOs in the delivery of social security in Tanzania is illustrated by:

UMASIDA-which uses the Mutual Model.

- Premium is TZS 1,500 pm

- Benefits offered include: MCH, VCT, ENT etc

Community Health Funds (CHFs) have also made a significant contribution in social security development


Fig. 2: Way forward- Joint effortsFig. 2: Way forward- Joint efforts

Storming

NormingPerforming

Forming


4.04.0 CONCLUSION & RECOMMENDATIONSCONCLUSION & RECOMMENDATIONS

4.1 CONCLUSION

• The delivery system of social security has not made a significant impact to the majority;

• SSIs alone can not effectively deliver social security and extend coverage; and

• Thus, there is a need to bring on board the mainstream other players such as NGOs.


Fig. 3: Can NGOs be Assisted to Support other Institutions?


4.24.2 RecommendationsRecommendations

It is recommended that:

• NGOs should be integrated in the mainstream of Tanzanian Social Security System;

• There are three main approaches which are recommended for improving the delivery and extension of social security.


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Role of NGOs in the Delivery of Social Security