Social Protection and PrSocial Protection and Proposed WB Response in Bangladeshoposed WB Response in Bangladesh

8/12/2019 Social Protection and PrSocial Protection and Proposed WB Response in Bangladeshoposed WB Response in Bangladesh

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Social Protection inSocial Protection inBangladeshBangladesh

Proposed World BankProposed World Bank

ResponseResponse


2/18

Need for a new approach to SocialNeed for a new approach to Social

Protection in BangladeshProtection in BangladeshBangladeshBangladeshs rapid economic growth ands rapid economic growth and

social change has created new socialsocial change has created new socialprotection challenges while old onesprotection challenges while old onesremain.remain.

New challenges are driven by rapidNew challenges are driven by rapid

urbanization and breakdown of familyurbanization and breakdown of familysystem.system.

Much of the existing safety net is ruralMuch of the existing safety net is ruralfocused and there is an urgent need tofocused and there is an urgent need to

address the needs of the urban poor andaddress the needs of the urban poor andexcluded groups such as the disabledexcluded groups such as the disabledand street children.and street children.


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Current Safety Net groups are reasonable well targetedCurrent Safety Net groups are reasonable well targeted

though there are both inclusion and exclusion errorsthough there are both inclusion and exclusion errors

1001000.290.290.720.720.980.981.291.291.731.731.791.79Total TargetedTotal Targeted

1001000.260.260.660.661.041.041.241.241.811.811.961.96Other TargetedOther Targeted

1001000.360.360.740.740.910.911.101.101.891.891.801.80VGFVGF

1001000.360.360.740.740.910.911.101.101.891.891.801.80Test ReliefTest Relief

1001000.270.270.730.730.960.961.461.461.591.591.611.61VGDVGD

TotalTotal

TopTop

QuintileQuintile

4th4th

QuintileQuintile

3rd3rd

QuintileQuintile

2nd2nd

QuintileQuintile

LowestLowest

QuintileQuintile

LowestLowest

10%10%

Targeting Effectiveness Measured as Ratio of Recipients to groupTargeting Effectiveness Measured as Ratio of Recipients to group size by Income Group (2005size by Income Group (2005--06)06)


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Selection Criteria Viewed bySelection Criteria Viewed by

Recipients in Bangladesh 2005Recipients in Bangladesh 2005--0606

100.0100.013.413.47.77.78.78.770.270.2TotalTotal

100.0100.08.68.62.82.86.36.382.382.3TargetedTargeted

100.0100.021.221.215.715.712.712.750.450.4NonNon--TargetedTargeted

TotalTotalOthersOthersDisabled/ OtherDisabled/ Other

Divorced/Divorced/

WidowsWidowsPoor/ LandlessPoor/ Landless

Reason of inclusion in targeted programs in percent 2005Reason of inclusion in targeted programs in percent 2005

--0606


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Estimates of Leakage from the VGD, VGF and FFE

[10%25%]285,973

[27,192,

72,710]

49,951FFE

[30%65%]149,138

[44,251,

97,267]

70,760VGF

[34%59%]216,675

[72,894,

127,061]

99,978VGD

Survey estimate

as

% of totalprogram

allocation

(confidence

intervals)

Program Off-

take

for FY 1999-2000

(metric tons)

95%

Confidence

Interval forestimate

2000 HIES-

based

surveyestimates

(metric tons)

Program


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Comparative Losses from Different Programs

0.021.220.78A+B(ii)

0.020.340.17A+B(i)

Total Losses.

0.000.980.61B(ii)at least three targeting criteria

0.000.110.00B(i)at least one targeting criteria

B. Losses due to beneficiaries not meeting

0.020.230.17A. Losses due to delivery of amount less thanstipulated and other unauthorized expenses (per

taka)

RMPPESPVGDLeakage


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What the Data ShowsWhat the Data Shows

Bangladesh targeting criteria is goodBangladesh targeting criteria is good

at targeting the poorestat targeting the poorest

Bangladesh programs are perceivedBangladesh programs are perceived

by the beneficiaries as helpfulby the beneficiaries as helpfulspecially the poorestspecially the poorest


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What the Data Does Not ShowWhat the Data Does Not Show Programs are very rural focused but thePrograms are very rural focused but the

country is getting rapidly urbanized withcountry is getting rapidly urbanized withincreasing proportion of the poor living inincreasing proportion of the poor living inurban areasurban areas

Programs have significant administrativePrograms have significant administrative

leakagesleakages Too many programs run by too manyToo many programs run by too many

Government departments and thus a largeGovernment departments and thus a largeadministrative overhead which can beadministrative overhead which can be

reduced and used to provide benefitsreduced and used to provide benefits Too many layers of decision making inToo many layers of decision making in

selection of beneficiariesselection of beneficiaries


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Illustration of New Urban PovertyIllustration of New Urban Poverty

and Vulnerability Challengeand Vulnerability ChallengeBangladesh 2005 - Percent enrolled by quintile and region

40.0

45.0

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

rural

urban

metropolitan

rural 57.1 67.0 77.4

urban 60.6 71.9 85.5

metropolitan 42.9 57.8 80.5

Low est 40% Middle 20% Highest 40%


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Conditional Cash TransfersConditional Cash Transfers Where possible, useful to link free transfers toWhere possible, useful to link free transfers to

behavioral change from recipients: for example,behavioral change from recipients: for example,transfers could be conditional upon children intransfers could be conditional upon children inthe family attending the school, or gettingthe family attending the school, or gettingvaccinated etc. Known asvaccinated etc. Known asconditional cashconditional cashtransferstransfers, highly successful in Mexico, Brazil,, highly successful in Mexico, Brazil,Turkey, Kenya and being started in severalTurkey, Kenya and being started in severalcountries. Bangladesh scholarships are partiallycountries. Bangladesh scholarships are partiallyCCTsCCTs..

ThisThisconditionconditionalso makes it the right of thealso makes it the right of thehousehold to receive the cash transfer not a gifthousehold to receive the cash transfer not a giftfrom an all knowing state.from an all knowing state.

The condition also helps develop human capitalThe condition also helps develop human capital

providing a way out of poverty for the futureproviding a way out of poverty for the futuregenerations.generations.


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Challenges for the ProjectChallenges for the Project Rationalize programs by using the one playerRationalize programs by using the one player

that gets involved in all programs i.e. unionthat gets involved in all programs i.e. unionparishads.parishads.

Build on BangladeshBuild on Bangladeshs massive micros massive micro--financefinancenetwork to provide social protection for those justnetwork to provide social protection for those justabove the poorestabove the poorest e.g. Grameen Bank alreadye.g. Grameen Bank already

provides pensions and insurance (life and healthprovides pensions and insurance (life and healthto over 6.5 million members). Almost 18 millionto over 6.5 million members). Almost 18 millionhouseholds can be reached.households can be reached.

Start addressing the needs of the urban poorStart addressing the needs of the urban poorthrough programs likethrough programs like CCTsCCTs..

Help those left outHelp those left out such as the disabled orsuch as the disabled orstreet childrenstreet children become productive members ofbecome productive members ofsociety.society.


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Addressing the Urban PovertyAddressing the Urban Poverty

ChallengeChallenge

In an ironic reversal of history,In an ironic reversal of history,

enrollment rates in metro areas forenrollment rates in metro areas forthe poorest quintiles are worse thanthe poorest quintiles are worse than

rural areasrural areas this represents boththis represents both

past successes in rural areas andpast successes in rural areas and

new challenges in urban areas.new challenges in urban areas.

New approaches to urban safety netsNew approaches to urban safety netsand safety ladders are neededand safety ladders are needed


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World Bank is currently preparing twoWorld Bank is currently preparing two

projectsprojects

First ProjectFirst Project National Social Protection ProjectNational Social Protection Projectwhich supports: (1) rationalization of rural safetywhich supports: (1) rationalization of rural safetynets in cooperation with unionnets in cooperation with union parishadsparishads; (2); (2)start addressing urban poverty throughstart addressing urban poverty throughconditional cash transfers in four cities aroundconditional cash transfers in four cities aroundDhakaDhaka NarayanganjNarayanganj,, TongiTongi,, GazipurGazipur andand SavarSavar;;

(3) support(3) support MFIsMFIs through PKSF to providethrough PKSF to provideinsurance and pension products.; and (4) provideinsurance and pension products.; and (4) provideearly childhood development (ECD) for the urbanearly childhood development (ECD) for the urbanpoor.poor.

The Focal point for this is Ministry of LocalThe Focal point for this is Ministry of Local

Government, Rural Development andGovernment, Rural Development andCooperatives. Implementation will be throughCooperatives. Implementation will be throughmunicipalities andmunicipalities and UPsUPs..


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Second project focuses on inclusion of theSecond project focuses on inclusion of the

People with Disabilities and Child ProtectionPeople with Disabilities and Child Protection

The second project has threeThe second project has three

components: (1) restructuring thecomponents: (1) restructuring theDisability Foundation to be anDisability Foundation to be an

independent body like PKSF and SDFindependent body like PKSF and SDF

and using it to finance services forand using it to finance services for

the disabled as well to promote; (2)the disabled as well to promote; (2)

services for child protection; and (3)services for child protection; and (3)capacity building for Ministry ofcapacity building for Ministry of

Social Welfare.Social Welfare.


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National Social Protection ProjectNational Social Protection ProjectObjective:Objective: Expand access to social assistanceExpand access to social assistance

programs and insurance products for selectedprograms and insurance products for selected

beneficiaries in rural and urban areas throughbeneficiaries in rural and urban areas throughdecentralized mechanism.decentralized mechanism.

Comp. 1:Comp. 1: Strengthening Social Safety Netsthrough Local Governments urban and rural;

Comp. 2: Expanding early childhood development(ECD) for poor children;

Comp. 3:Comp. 3: Increasing access to insurance andpension products for informal sector workers

through microfinance institutions; Comp. 4: Strengthening the institutional capacity

of MoLG to manage, monitor and evaluate safetynet programs


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Comp. 1: Strengthening Rural andComp. 1: Strengthening Rural and

Urban Safety NetsUrban Safety Nets

Targeting mechanism combines community/Targeting mechanism combines community/

ward identification, PMT selection, andward identification, PMT selection, andcommunity/UP validation (to minimize errors ofcommunity/UP validation (to minimize errors of

inclusion and exclusion)inclusion and exclusion)

Target three groups of extremely poor people:Target three groups of extremely poor people:

(i)(i) HH with children 6HH with children 6--13:13: CondCond. Cash. Cash TransfTransf.;.;

(ii)(ii) Female headed HH and HH with no healthyFemale headed HH and HH with no healthy

men: Cash Transfermen: Cash Transfer

(iii)(iii) Other extremely poor HH: Cash for WorkOther extremely poor HH: Cash for Work Issues: education access in urban slums,Issues: education access in urban slums,

management capacity ofmanagement capacity of UPsUPs, etc., etc.


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Comp. 2: ECD urbanComp. 2: ECD urbanThrough municipal governments, provide aThrough municipal governments, provide a

network of ECD services for children 0network of ECD services for children 0--5 in5 inurban slums (before preurban slums (before pre--primary).primary).

Community based system of EarlyCommunity based system of EarlyLearning Centers, daycare, homeLearning Centers, daycare, home--basedbasedservices, parenting, etc.services, parenting, etc.

Priority access for children from SafetyPriority access for children from SafetyNet families (comp. 1)Net families (comp. 1)

Pilot inPilot in Narayanganj/TongiNarayanganj/Tongi, involvement of, involvement ofBRAC University, Plan.BRAC University, Plan.


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Comp. 3:Comp. 3: MicroinsuranceMicroinsuranceSupport existingSupport existing MFIsMFIs, through PKSF, to develop, through PKSF, to develop

financially sustainable insurance products forfinancially sustainable insurance products fortheir members;their members;

(i)(i) Develop regulations for insurance schemes;Develop regulations for insurance schemes;

(ii)(ii) Improve capacity ofImprove capacity of MFIsMFIs to manage insurance;to manage insurance;

(iii)(iii) Strengthen data collection and riskStrengthen data collection and risk

management;management;

(iv)(iv) Adapt record keeping and information systems.Adapt record keeping and information systems.

Documents

Social Protection and PrSocial Protection and Proposed WB Response in Bangladeshoposed WB Response in Bangladesh