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HOUSEHOLD BUDGET SURVEY EVALUATION
Research Report
Baku, January 27, 2010Ambassador Hotel
PROJECT OVERVIEW
PRECURSORS• State Program on Poverty Reduction & Sustainable Development (2008-2015)• CSOs given the opportunity to monitor the implementation of welfare programs
GOALS & OBJECTIVES• Assess infrastructure and quality of public services to meet basic human needs
o Analyze current spending levels and structure o Evaluate family spending needs
• Provide recommendations on the Household Budget Survey methodology o Develop more accurate poverty measureso Identify inconsistencies in minimum subsistence level estimates
• Develop recommendations to increase access to public serviceso Focus on access to education, health and social protectiono Address regional differences
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METHODOLOGY
SURVEY:• A combination of random, systematic
and stratified sampling• Representative sample
o 5,754 women & 5,986 meno 1,550 urban & 1,450 rural households
ADVOCACY:• Public dialogue
o Questionnaires drafted in discussion with government agencies, CSOs and other stakeholders
• Resource complementarity o Complements ERC initiative with
UNICEF
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Survey of 3,000
households
Budget
analysis
Bench-markin
g
RESEARCH APPROACH:
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SURVEY RESULTS IN BRIEF
Over 2007-2009 public services spending increased by nearly 90% to 3.2 billion AZN
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Dimension Component Observation Outcome
Education Spending by resource cost
79% absorbed by salaries
Low long-term investment in human capital
Health Spending by function
Hospitals (high) vs. primary care (low)
↑ health costs for the population
Social protection
Minimum subsistence level
↑ prices and informal payments
Benefits do not meet spending needs
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Education; 44%
Social protec-tion; 35%
Health; 16%Other expenses; 5%
ACCESS TO EDUCATION
Spending on education 3.1% of GDP vs. 5% in the EU• 1,600 new schools established over the past 5 years
CONCERNS
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• Quality of secondary educationo 23% of students failed their high school
graduation examo Over 60% could not pass general
university admission testo Azerbaijan doing poorly in
international education rankings
12%
15%
23%
36%
No preschools in the area
Preschool is too far away
Child in care of another person
Other reasons
• Access to preschool educationo 93% of respondents do not send
their kids to preschool because:
HEALTH SERVICES
Health spending $65 per capita vs. $100 internationally recommended• 90% of respondents are satisfied with the quality of health services
CONCERNS
• Informal payments• Rising costs of transportation to medical facilities• Rising costs of hospitalization
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16%
8%
55%
21%Couldn't find it
Pharmacy is too far
Can't afford it
Other reasons
Reasons for not buying the necessary medication
Many resort to self- and home-treatment
SOCIAL PROTECTION
Social protection spending 2.9% of GDP vs. 8% in OECD countries• Official poverty level constituted 13.2%
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3%
44%
37%
16%
Totally agreePartly agreePartly disagreeTotally disagree
I am satisfied with the economic level of my household
CONCERNS• Perceived poverty is higher than official rate (regional differences)• Nearly 50% believe their children live in below average conditions• 59% would not consider having another child even with additional resources
REGIONAL DIFFERENCES
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Monthly targeted social assistance by region Source: State Statistical Committee
CONCLUSIONS
Budgeting• Public services spending structure is not optimal• Bulk of spending absorbed by direct payments not long-term investments
Infrastructure and quality of public services• Poor access to preschool education• Declining quality of secondary education
Poverty level• Informal payments and price fluctuations affect minimum subsistence level• Social benefits do not cover minimum subsistence level for children
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RECOMMENDATIONS
Methodology improvements• Adopt relative poverty as a measure of poverty in Azerbaijan• Calculate poverty on the basis of household consumption levels
Poverty Reduction• Develop tailored poverty alleviation programs for individual regions• Broaden the health insurance program and increase access to health services• Increase the autonomy of health care providers• Conduct an evaluation of secondary schools and increase their autonomy• Eliminate informal payments for health services and education
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THANK YOU
ECONOMIC RESEARCH CENTERBaku, Azerbaijan AZ1065Jafar Jabbarli 44, Caspian Plaza 3, floor 9Phone: (+99412) 437 32 30Fax: (+99412) 437 32 40E-mail: [email protected]; [email protected] www.erc-az.org
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