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Gabriele KöhlerRegional Advisor, Social Policy, UNICEF Regional Office for South Asia
Marta CaliConsultant, UNICEF Regional Office for South Asia
Mariana StirbuSocial Policy Project Officer, UNICEF Regional Office for South Asia
Social Protection in South Asia: A Review
ii SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
This is a desk review. It has been prepared to facilitate the exchange of knowledge and tostimulate discussion.
It was prepared under the overall guidance of and encouragement from Daniel Toole, RegionalDirector, UNICEF Regional Office South Asia. The authors are indebted to AniruddhaBonnerjee, Michael Cichon, Gaspar Fajth, Naila Kabeer, Yuba Raj Khatiwada, Isabel Ortiz,Santosh Mehrotra, Anjali Pradhan, Ashwani Saith, and Beth Verhey, as well as many otherexperts in Governments, UNICEF Offices, and academic institutions, for insights, ideas andcomments shared during many interactions. The text was edited by Matthew Zalichin andresearch support was provided by Anoop Singh Gurung.
The views expressed are those of the authors, and not necessarily those of UNICEF. Thedesignations in this publication do not imply an opinion on legal status of any country or territory,or of its authorities, or the delimitation of frontiers.
Acknowledgements
© United Nations Children’s Fund (UNICEF)Regional Office for South Asia (ROSA), July 2009
PHOTO CREDITS:Cover photo: UNICEF/2009/Brian
For further information, please contact:UNICEF Regional Office for South Asia (ROSA)PO Box 5815, Lekhnath MargKathmandu, NepalE-mail: [email protected]
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW iii
The Millennium Development Goal agenda, adopted in 2002 with a vision to improve keyoutcomes in poverty, hunger, health, education, the environment, and gender equality, aremilestones in that they represent a global consensus on development priorities. It is alsoincreasingly clear that policymakers and the international community must work not just towardsreaching the MDGs, but towards achieving them with equity.
This fact is, in part, a reflection of the increasingly dynamic and multi-dimensional view ofpoverty that goes beyond income to encompass issues of vulnerability, social exclusion anddisparities, and the inter-generational transmission of poverty. The latter issue, in particular,has made child poverty more visible, as researchers and policymakers alike recognise thatchildren are the most vulnerable in any society. In South Asia, children comprise almost halfthe population. If their needs are not met in early childhood, the effects can be irreversible. Inaddition, the situations of the poor, and of poor children, are becoming more precarious – theglobal economic crisis and rising food prices have raised the numbers of poor in South Asiato an estimated 400 million in 2009, just a few years before the 2015 deadline for reachingthe MDGs.
New insights on poverty and vulnerability are triggering significant changes in governmentpolicy in South Asia. As a result, social protection interventions are emerging as a key policyelement across the region. Social Protection in South Asia: A Review describes the mostsignificant programmes in place in each of the eight South Asian countries. It maps out thesocial protection agenda, as well as programme aims, design, scale and coverage. It highlightssome of the innovations, and summarises information from formal evaluations as available.
This Review is intended primarily for policymakers in South Asia, offering an accessibleoverview of regional experiences and practices. Academics, civil society groups and the UNfamily contributing to the evolving debates around re-defining social protection and assessingthe performance of existing programmes will also find the study of interest.
The UNICEF Regional Office South Asia (ROSA) feels this Review will contribute to childrights and development in South Asia, since transformative social protection can help achievethe goals spelt out compellingly in the Convention on the Rights of the Child, adopted 20years ago. We hope that the study will help to inform the important national, regional andglobal debates currently in progress in South Asia. We hope it will contribute to the globalagenda of reaching the MDGs with equity. And most importantly, we hope it will help to putchildren at the heart of social protection.
Daniel TooleRegional DirectorUNICEF Regional Office for South Asia (ROSA)
Preface
iv SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
ADB Asian Development BankAPL Above the Poverty LineAPWDW Programme for Widows and Destitute Women, BangladeshBEHTRUWC Basic Education for Hard to Reach Urban Working Children, BangladeshBISP Benazir Income Support ProgramBoishka Bhata old-age allowance, BangladeshBPL Below the Poverty LineBRAC Bangladesh Rural Advancement CommitteeCAG Comptroller and Auditor GeneralCCT Conditional Cash TransferCDC Community Development CouncilCERID Research Centre for Educational Innovation and Development, NepalCFPR Challenging the Frontiers of Poverty Reduction, Bangladeshchars flood-prone riverine areas of BangladeshCIDA Canadian International Development AgencyCLP Chars Livelihoods Programme, BangladeshCPRC Chronic Poverty Research CentreCSP Civil Service Pension, MaldivesCSPS Civil Service Pension Scheme, Sri LankaDalit ‘Oppressed’; the term used by the so-called lowest castes to refer to themselvesDDC District Development Committee, NepalDFID Department for International Development (United Kingdom)DOE Department of Education, NepalDSMC District School Management CommitteeEAS Employment Assurance Scheme, IndiaEC European CommunityEFA Education for AllEGF Employment Guarantee Fund, IndiaEGS Employment Guarantee Scheme, IndiaEOAB Employee Old Age Benefits, PakistanEOBI Employees Old Age Benefits InstitutionEPF Employees’ Provident Fund, Sri LankaEPFO Employees’ Provident Fund Organisation, Sri LankaESIS Employees’ State Insurance Scheme, IndiaESSI Employees Social Security Institution, PakistanFAO Food and Agriculture Organization of the United NationsFEWS Famine Early Warning SystemFFW Food for Work, AfghanistanFP Family PlanningFSESP Female Secondary Education Stipend Project, BangladeshFSP Food Support ProgrammeFSSAP Female Secondary School Assistance Programme, BangladeshFWP Food for Work Programme, India
Acronyms and Local Terms
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW v
GDP Gross Domestic ProductGER Gross Enrolment RateGNI Gross National IncomeGPF Government Provident Fund, Maldivesgrama niladharis social workers (Sri Lanka)guzara subsistence allowance (Pakistan)haor-baor wetlands/water bodies (Bangladesh)HDI Human Development IndexHSMI Human Settlement and Management Institute, IndiaIAY Indira Awas Yojana (Indira Shelter Scheme), IndiaICDSS Integrated Child Development Service Scheme, IndiaICESCR International Covenant on Economic, Social and Cultural RightsIDP Internally Displaced PersonIDPM Institute for Development Policy and Management, University of ManchesterIFPRI International Food Policy Research Institute, RomeILO International Labour OrganizationIMR Infant Mortality RateIOM International Organization for MigrationIRDP Integrated Rural Development Programme, IndiaIUD Intrauterine DeviceJRY Jawahar Rojgar Yojana (Jawahar Employment Scheme), Indiakuchi nomad (Afghanistan)LHW Lady Health Worker, PakistanLHWP Lady Health Worker Programme, PakistanLSGA Local Self-governance Act, Nepalmadrasha Islamic religious schoolMC/PM Minimum Conditions and Performance MeasuresMDG Millennium Development GoalMHEESS Ministry of Higher Education, Employment and Social Security, MaldivesMLD Ministry of Local Development, NepalMOLSAMD Ministry of Labor, Social Affairs, Martyrs and Disabled, Afghanistanmonga a seasonal food deprivation in the north-western part of BangladeshMOSWSE Ministry of Social Welfare and Special Education, PakistanMWS Million Wells Scheme, IndiaNCAER National Council of Applied Economic Research, IndiaNEEPRA National Emergency Employment Programme for Rural Access, AfghanistanNER Net enrolment ratioNGO Non-governmental OrganisationNOAPS National Old-Age Pension Scheme, IndiaNORAD Norwegian Aid AgencyNOVIB Dutch Organisation for International Development CooperationNREGS National Rural Employment Guarantee Scheme, IndiaNREP National Rural Employment Programme, India
vi SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
NSP National Solidarity Programme, AfghanistanNSPS National Social Protection Strategy, PakistanOAAS Old-age Allowance Scheme, BangladeshOECD Organization for Economic Cooperation and Developmentpanchayat local council (India)PBM Pakistan Bait-ul-MalPDS Public Distribution System, IndiaPESP Primary Education Stipend Programme, BangladeshPKSF Palli Karma Sahayak Foundation, BangladeshPRIME Programmed Initiative for the Eradication of MongaPRSP Poverty Reduction Strategy PaperPSES Pakistan Socio-economic SurveyPTR Poverty-targeting RateREGP Rural Employee Guarantee Programme, IndiaROSA UNICEF Regional Office for South AsiaSamurdhi ‘Prosperity’; a national alleviation programme in Sri LankaSES Socio-economic SecuritySGRY Sampoorna Grameen Rozgar Yojana (All Rural Employment Scheme), IndiaSJSRY Swarna Jayanti Shahari Rojgar Yojana (Golden Jubilee Urban Employment
Scheme), IndiaSLC School Leaving Certificate, NepalSMC School Management CommitteeSP Social ProtectionSPCOV Social Protection CoverageSPEXP Social Protection ExpenditureSPIMP Social Protection ImpactTerai the lowland area of southern Nepalthana police station and administrative unit (Bangladesh)TPDS Targeted Public Distribution SystemUDHR Universal Declaration on Human Rightsunion the lowest administrative unit in Bangladeshupazila the primary focus of local administration in BangladeshUSEP Urban Self-Employment Programme, IndiaUSWSS Unorganized Sector Workers’ Social Security, IndiaUWEP Urban Wage Employment Programme, IndiaVDC Village Development Committee, NepalVGD Vulnerable Group DevelopmentWB World BankWFP World Food ProgrammeWPPF Worker Profit Participation Fund, PakistanWWF Worker Welfare Fund, Pakistanzakat charity to the poor
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW vii
PART 1: Regional overview and findings
Introduction: Scope and objectives ................................................................ 2Some reflections on poverty discourse and the scope of social protection ............................................................................................... 2
MDGs, social exclusion and social protection ........................................................................ 3
Social protection, migration and displacement ........................................................................ 4
Multidimensional and dynamic nature of poverty ..................................................................... 4
Poverty, vulnerability and children ........................................................................................... 4
Concepts of social protection .......................................................................... 5Definitions .............................................................................................................................. 5
Comprehensive social protection – socio-economic security ..................................................6
Key findings and observations on social protection in South Asia ............ 10Country initiatives in social protection ................................................................................... 10
Commonalities across countries .......................................................................................... 13
Innovations in social protection in South Asia ....................................................................... 14
Some shortcomings of social protection schemes ................................................................ 15
Financial and other measures of effort and outcomes ................................ 16Conclusions: A mixed picture on social protection in South Asia .............. 19
PART 2: Country Profiles
Afghanistan...................................................................................................... 24Bangladesh...................................................................................................... 30Bhutan.............................................................................................................. 42India .................................................................................................................. 44Maldives ........................................................................................................... 56Nepal ................................................................................................................ 60Pakistan ........................................................................................................... 68Sri Lanka .......................................................................................................... 75
Table of Contents
viii SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
FiguresFigure 1: Schematic representation of social protection .................................................. 5
Figure 2: Prevalence of underweight (moderate and severe 2000 – 2006) ........................ 8
Figure 3: Under-five mortality rate (2000 – 2007) ............................................................. 9
Figure 4: Allocation of social expenditure (mean 2000 – 2007) ...................................... 17
Figure 5: Average allocation of social sector expenditures as % of GDP 2000 - 20007 .. 17
Figure 6: Per capita expenditures on social sector (mean 2000 – 2007) ....................... 18
BoxesBox 1: Definitions of social protection ............................................................................. 5
Box 2: Current human development situation in South Asia ............................................ 8
Box 3: Fiscal space for social protection ...................................................................... 18
TablesTable 1: Social protection in South Asia: some commonalities ..................................... 13
Table 2: Social protection expenditures in South Asia: Three calculations..................... 16
Table 3: Definition of summary SP indicators ................................................................ 19
Table 4: Social protection ranking in South Asia ........................................................... 19
Table 5: Social Protection programmes in South Asia ................................................... 21
Table 6: Social Protection in Afghanistan ...................................................................... 28
Table 7: Social Protection in Bangladesh ...................................................................... 38
Table 8: Social Protection in India ................................................................................. 53
Table 9: Social Protection in Maldives ........................................................................... 59
Table 10: Social Protection in Nepal ............................................................................. 66
Table 11: Social Protection in Pakistan ......................................................................... 73
Table 12: Social Protection in Sri Lanka ....................................................................... 78
2 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Introduction: Scope and objectives
All eight South Asian countries1 provide some form ofsocial protection to their citizens, and most arecurrently reviewing or upgrading their programmes andpolicies. This partly reflects policymakers’ heightenedinterest in new approaches, policy instruments andtools to address poverty. Most recently, interest insocial protection has intensified in light of the foodprice crisis and the global recession, which since 2008have increased vulnerability and poverty in the region.2
This Review presents the findings of a desk study onsocial protection interventions in South Asia. Itsprimary purpose is to provide an overview of existinggovernment policies, schemes and programmes insocial protection and to display country and regionaltrends and issues relevant to expanding socialprotection. It assesses the extent to which SouthAsian countries are engaged in efforts to buildintegrated, comprehensive and inclusive socialprotection systems, and examines whether socialprotection as currently delivered addresses the needsof the entire population – especially of the poor, thosewho are systemically excluded, and the vulnerable.The Review could therefore inform national-level andregional discussions on approaches, policies andprogrammes and help shape future policy choices. Itis also a database for policymakers and researchers,to be updated periodically.
The Review also attempts to assess whether eachcountry’s social protection interventions are part of alarger, overarching national strategy. To the extentinformation is available, it examines the level ofcoordination among government agencies andprogrammes; the adequacy and predictability ofbudgetary allocations; the proposed versus actualcoverage of beneficiaries; and delivery mechanismsin place to ensure beneficiaries are reached. It alsoreports on existing mechanisms to monitor outcomes,especially poverty reduction outcomes.
The social protection programmes reviewed wereselected on the basis of their scale, poverty-reductionfocus, inclusiveness and impact. The Review focuseson non-contributory social assistance interventionsthat are government-funded or initiated, with or withoutdonors’ support. Formal-sector contributory socialinsurance is included, however, to allow gauging thescope of social protection in each country rather thanfor a systematic analysis. The Review does notconsider services related to social protection, and islimited to social protection transfers in cash and kind.
Finally, this Review offers ideas on the furtherdevelopment of social protection in South Asia, usingthe notion of socio-economic security as a normativeorientation. Part I is an overview of the findings andPart II presents a set of Country Profiles.
Some reflections on povertydiscourse and the scope of socialprotection
The discourse on wellbeing and poverty has changedover the past two decades. The MillenniumDevelopment Goal (MDG) agenda gave renewedattention to poverty alleviation, and midway to the MDGdeadline of 2015, divergent patterns in MDGachievement due to social exclusion are increasinglyclear. Thus, a case is being made for reaching theMDGs ‘with equity’. Social protection needs relatedto migration and emergency situations have alsocome to the fore.3 Perhaps the most fundamentalchanges, however, are the move to a multidimensionalunderstanding of poverty; a recognition of its dynamics;and the new awareness of age-specific vulnerabilities,notably child poverty. Moreover, poverty is no longerunderstood simply as an absence of wellbeing, butrather as violation of a fundamental human right, sothat the right to social protection becomes part of anoverarching agenda for human dignity.
1 Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka2 UNICEF Regional Office for South Asia, A Matter of Magnitude. The Impact of theEconomic Crisis on Women and Children in
South Asia. Kathmandu, 2009. Also see Aniruddha Bonnerjee et al, Hunger and the Economic Crisis. Findings from South Asia,2009 forthcoming.
3 N. Kabeer, A. Sharma, C. Upendranadh, Social Security in South Asia: Issues and perspectives. Draft for discussion, November2008; United Nations Department of Economics and Social Affairs (DESA), National Development Strategies. Policy Notes. NewYork: United Nations, 2008
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 3
MDGs, social exclusion and socialprotectionSocial protection coverage does not feature in theoriginal MDG agenda, which has been the mainreference point for assessing progress in socialdevelopment, and for policymaking and advocacy,since its unanimous adoption by the UN GeneralAssembly in 2002. In the context of the slow progresson the MDGs and the acknowledged role of socialprotection in reducing poverty and facilitating andmultiplying the returns from social investments, socialprotection is increasingly seen as a mechanism thatcan underpin the objectives of MDG 1 on poverty,employment and hunger, and facilitate achieving theobjectives of MDGs 2-7 by enabling and empoweringfamilies to use their rights to education, health, waterand sanitation, and shelter. Particular forms of socialprotection have become popular: the conditional cashtransfers pioneered in Latin America and Africa areseen to have improved outcomes in the health andeducation MDG indicators, along with contributing toreductions in poverty rates and gaps, and have led toincreased policymaker interest in various forms ofsocial transfers and social protection.
Despite expectations and predictions, economicgrowth – which in South Asia exceeded eight per centannually over the past decade – has not resulted inequitable, sustained reduction of hunger and poverty;instead, income inequalities have widened rather thannarrowed, and the poverty gaps remain large, pointingto increasing disparities even among the poorthemselves. Thus, there is a need to find policies thatachieve the MDGs equitably and ensure socialinclusion.
Across South Asia, even in countries that are on trackto achieving the MDGs, achievements vary amonggroups, depending on gender, ethnicity, caste,language, ability, place of residence or other factors.4
Individuals and groups face social exclusion on thebasis of their ascribed identities or the circumstancesof their birth. Usually a numerical minority is subjectedto exclusion by a dominant community. Socialexclusion deprives individuals and communities ofpolitical voice and representation, of equitable accessto social services, and of access to assets and
predictable livelihoods and decent work. Across SouthAsia – and across the globe – economically andsocially excluded groups live with gaps in health,education, access to essential social services,adequate shelter, and generally see their rightsunfulfilled. Social exclusion is often coupled withvulnerability, which compounds the effects of eitheridiosyncratic or systematic shocks for these groups.For instance, for a poor Dalit family that migrated insearch of income sources following the death of anadult breadwinner, vulnerability and insecurity resultnot merely from the loss of the breadwinner, but fromexperiencing constant discrimination, lack of legalidentity, lack of titled assets, and not being aware of orin a position to exercise their social rights andentitlements.
Although all national constitutions in South Asia arebased on principles of equality and human rights, andmost have outlawed discrimination and put instrumentsfor affirmative action into place, inequality remains.Social protection can be used to address socialexclusion, primarily by addressing income and assetpoverty which disproportionately affect sociallyexcluded groups, and possibly through particularmeasures to enable the excluded to claim their rights.Social protection can address structural inequalitiesby enabling not just formal but also substantiverealisation of rights, through which opportunities couldeffectively translate into outcomes for the rights-holders.Social protection interventions can be used as toolsfor affirmative action, and provisions need to be factoredinto universal social protection to focus transfers andservices on vulnerable groups and areas. Possibleapproaches include universal categorical transfers, suchas a child benefit or an old-age pension, calibrated toadjust the level of benefit by the degree of deprivation inthe region concerned, and to accompany the interventionwith massive campaigns for public information and forbehaviour change. Some countries in South Asia alsospecifically target social protection measures todisadvantaged groups.
To address the shortcomings in MDG progress, socialprotection interventions need to become systemic,organised and predictable, and to address socio-economic disparities and inequalities.
4 UNICEF Regional Office for South Asia, Stylized Facts about Child Poverty and Disparities in South Asia and Some PolicyImplications: A Discussion Note. Kathmandu, 2009 (forthcoming)
4 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Social protection, migration anddisplacementHumanitarian crises and natural disasters areincreasing, and conflicts becoming more protracted –notably in developing countries. Internal and cross-border displaced and refugee groups are conservativelyestimated at 67 million worldwide. Moreover, migrationin search of work, much of it distress-driven, isbecoming a way of life, with an estimated 200 millionofficial trans-boundary migrants recorded globally. 5
By conservative estimates, at least 21 million SouthAsian migrants work abroad. Of these, over eightmillion work within the region itself, followed by sixmillion working in high-income non-OECD countries,five million in high-income OECD countries, and twomillion in the Middle East and North America.6 If intra-country and informal sector migrants were recognised,the numbers would be multiples of these. Whetherthere is a single migrant from a household or the entirefamily migrates, social and psychological stressesare part and parcel of the experience.
Migrants from developing countries are generally noteligible to receive social protection or other familyservices in the host country, and usually do not earnhealth insurance or old-age pension entitlements,leaving them especially vulnerable. Migrant families –either migrating with the main breadwinner or leftbehind – often face heightened vulnerability and risks,especially if they are low-skilled migrants who earnlittle. Given the scope and the scale of the problem,social protection for this group is an urgent policyissue, and shows the interface of lack of decent workopportunities and of social protection in homecountries that drive low-income migration in the firstplace, and the gap in international, regional andnational provisions for migrants.
Multidimensional and dynamic natureof povertyConventionally, incomes have been seen as the mainsource of wellbeing, and income poverty has beencast as a proxy for shortfalls in material wellbeing.However, since the advent of the human developmentparadigm and its operationalisation in the MDGs,income has been seen as an imperfect proxy for thevarious dimensions that make up even material
wellbeing. At the very minimum, these include securityin access to and utilisation of food, nutrition, health,education, water, sanitation, shelter, as well asphysical safety.
The conventional measures of income poverty andaccess to social services are static, capturingsituations at a point in time. They do not factor invulnerability to fluctuations in income or wellbeing thatreflect exposure to various sources of risk. Staticmeasures of income poverty as well as the framing ofvulnerability in terms of ‘shock’ episodes fail to capturethe chronic and systemic nature of insecurity.
Individuals and families move in and out of povertyfrequently, and low-income groups are under constantfear and anxiety. Vulnerability and insecurity implyrisks associated with individual circumstances andcharacteristics, or the environment. Those close tothe poverty line are vulnerable to becoming poor, andthose in the greatest poverty are the least likely to beable to acquire assets.
This multidimensional and dynamic character ofpoverty points to a need to broaden the povertyeradication agenda.
Poverty, vulnerability and childrenChildren are the most vulnerable group in society, asthey do not generally have voice when they are veryyoung, and are not necessarily heard when they dohave a voice. In the broad sense, they rely primarilyon family to have their rights realised. Childrencomprise the largest proportion of the population inmost developing countries, with the youngestpopulations often in the poorest countries. Across theglobe, children are over-represented among the poor,and the impact of age-based discrimination iscompounded for children from marginalisedcommunities, who are additionally excluded due togender, ethnicity, disability or other factors. Becauseof income poverty, systemic lack of assets, andvolatile access to health and education, children frompoor households face a high risk of remainingvulnerable and poor into adulthood and in turn creatinglow-income and vulnerable families, perpetuating thecycle of chronic poverty and deprivation.
5 26 million persons are conflict-driven IDPs, and 25 million persons are natural disaster-driven IDPs. IOM, www.iom.int6 B. Khadria, Migration and Social Policy in Asia, UN Research Institute for Social Development: 2008, based on World Bank data
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 5
South Asia’s 613 million children comprise 39 per centof the population; 175 million of them are under agefive; and an estimated 300 million children are “poor”– deprived of at least two basic rights.7
Child rights are fundamental, and neglect of children’srights to nutrition, health, education and care can haveirreversible effects. Therefore children should beprioritised in any social protection programme. Child-sensitive social protection8 could follow a set ofprinciples such as:• addressing the age- and gender-specific risks and
vulnerabilities of children,• intervening as early as possible where children
are at risk, to prevent irreversible impairment orharm,
• recognising that families raising children needsupport to ensure equal opportunity for childrenand to ease the childcare – work dichotomy forparents and caregivers,
• making special provision to reach the mostvulnerable and excluded children, including thosewithout parental care, as well as children who aremarginalised within their families or communitiesdue to their g ender, disability, ethnicity or otherfactors.
Ultimately, child-sensitive social protection wouldmitigate the effects of poverty on families, strengthenfamilies in their childcare roles, and enhance accessto basic services for the poorest and marginalised, aswell as be responsive to children who are at risk byvirtue of living outside a family environment, or whosuffer from abuse and discrimination at home.
Figure 1: Schematic representation of social protection
Box 1: Definitions of social protection
The International Labour Organisation (ILO) views social protection in a broad sense as covering all safeguardsor guarantees against reduction or loss of income in cases of illness, old age, unemployment or otherhardship, and including family and ethnic solidarity. This includes protection instruments based on collectiveor individual savings, private insurance, social insurance, mutual benefit societies, formal sector socialsecurity, etc. It generally distinguishes between social security and social assistance. The former arecontributory systems through which participants acquire rights to transfers to cover situations of ill-health,accident or disability, unemployment and old age. Social assistance refers to transfers not based on priorcontributions but instead financed from the general tax system, to assist low income and vulnerablegroups. That is the definition followed in this Review.9
7 UNICEF Regional Office for South Asia, Stylized Facts about Child Poverty and Disparities in South Asia and Some PolicyImplications: A discussion note. Kathmandu, 2009 (forthcoming)
8 UNICEF, Child-Sensitive Social Protection. An interagency draft. New York, July 20089 International Labour Organisation, http://www.ilo.org/global/About_the_ILO/Mainpillars/Socialprotection/lang—en/index.htm
SOCIAL PROTECTION
Social insurance Social assistance
Contributory orsavings based
Tax-financed
Addresses old age,unemployment,accident, illness,disability, loss ofbreadwinner offormally employed,salaried or wage-earning persons
Addresses acute orchronic poverty, oldage, child or othervulnerabilities, effectsof emergencies suchas displacement,loss of home,incomes, assets
Concepts of social protection
DefinitionsFigure 1 presents a schema of social protection, andBox 1 shows a number of definitions. This Review isconcerned with social protection as both the policyframework to address poverty and vulnerability, andas the set of instruments encompassing socialinsurance and social assistance transfers that SouthAsian governments have put in place. Generally, onlyprogrammes involving transfers in cash or kind areincluded.
Source: UNICEF ROSA based on ILO
6 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Comprehensive social protection – socio-economic securityWellbeing is about achieving a dignified life, whichrequires material wellbeing, social inclusion, voice andparticipation, and empowerment – a notion bestcaptured as socio-economic security. This notion canencapsulate the many levels and dimensions ofpoverty laid out above.
In earlier poverty discourse, income poverty was notseen as linked to the control of assets andentitlements that determine a household’s overalleconomic situation. However, it is the lack of productiveassets that causes individuals and households to fallinto and remain in poverty. In rural economies crucialproductive assets include land, access to irrigation,housing, livestock, implements and equipment, seedstocks, financial assets, and working capital; in urbansettings they include a means of livelihood from
For the Asian Development Bank (ADB), social protection consists of policies and programmes designedto reduce poverty and vulnerability by promoting efficient labour markets, diminishing people’s exposureto risks, enhancing their capacity to protect themselves against hazards and interruption/loss of income.It defines five main areas of social protection: labour market policies and programmes, social insurance,social assistance and welfare service programmes, micro-and area-based schemes, and child protection.10
UNICEF defines social protection as a “set of transfers and services that help individuals and householdsconfront risk and adversity (including emergencies), and ensure a minimum standard of dignity andwellbeing throughout the lifecycle”. UNICEF agrees that the concept of social protection needs to bemade child sensitive and focus on systemically protecting and ensuring the rights of all children andwomen, achieving gender equality, and reducing child poverty. 11
The World Bank defines social protection as public interventions oriented to human capital and socialrisk management to (i) help individuals, households, and communities better manage risk; and (ii) providesupport to the incapacitated poor.12 This is the definition applied in the World Bank’s Social ProtectionStrategy Paper, its Comprehensive Development Framework, and the Poverty Reduction Strategy Papers(PRSPs).
10 Asian Development Bank, http://www.adb.org/Documents/Books/Social-Protection/default.asp11 See conference papers from “Social Protection Initiatives for Children, Women, and Families: An analysis of recent experiences”,
UNICEF Division of Policy and Practice, and the New School for Graduate Research, New York, October 200612 World Bank. 1999. Social Risk Management: Intellectual underpinnings of the social protection strategy. Washington, DC.
Holzmann, R., and Jorgensen, S. 2000. Social Risk Management: A new conceptual framework for social protection. Washington,DC; World Bank. 2000. Social Protection Sector Strategy. Washington, DC.
13 Sources of risk are generally discussed in terms of idiosyncratic and co-variate ‘shocks’. Idiosyncratic risks are specific toparticular individuals or households: the loss of a job or an asset, dowry or funeral demands, illness in the family, death of abreadwinner. Co-variate risks affect large numbers of individuals and households simultaneously: war and conflict, naturaldisasters, price rises in essential foods, financial crises at national and global levels.
14 On socio-economic security, see Ashwani Saith, Towards Universalizing Socio-economic Security Strategic Elements of aPolicy Framework. Indian Journal of Human Development, Vol. 2 Number 1. January 2009. www.ihdindia.org Also see N. Kabeer,“Mainstreaming gender in social protection for the informal economy”, New Gender Mainstreaming Series on DevelopmentIssues, Commonwealth Secretariat, 2008, p.4 and N. Kabeer, G. Köhler, Extending and Deepening Social Protection in SouthAsia: Towards a strategy of socio-economic security for all. Policy Note. UNICEF ROSA. Mimeo. November 2008
employment or self-employment based on access toland and housing, implements and equipment,licences, and financial assets and capital. Mostimportantly, these include not just the physicalpossession of these assets but the legally guaranteedownership title. Often the poor – whether in rural,peri-urban, or urban areas – do not own the assetsthat they use and are at risk of eviction from land orother resources they may have acquired in an untitledfashion. The use of such assets can be lost due toidiosyncratic or systemic risks, so that householdsand individuals fall into poverty.13
Social protection needs to be a response to thismultidimensional and more dynamic definition ofpoverty laid out above – encompassing risk,vulnerability, and exclusion. This Review thereforeproposes a notion of socio-economic security14 as anormative principle for social protection strategies,
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 7
because socio-economic security spans povertyalleviation, social inclusion, socio-political cohesion,and rights. In this vein, social protection would includeinterventions related to food and incomes, as well asaccess to services in health, education, water andsanitation and shelter, along with enabling politicalvoice and participation. It encompasses a special effortfor the very young, as especially vulnerable.
While the role of social protection in poverty alleviationis implicitly understood, its orientation to socialinclusion, socio-political cohesion, or dignity remainssomewhat fuzzy. The framework of socio-economicsecurity refers to an approach that covers all areas ofvulnerability, and implicitly would ensure a basicminimum standard of protection. Beyond this, theconcept also incorporates an underlying principle ofsocial protection as a guarantee for all, irrespective ofincome or social status. If all people have the sameentitlements, a universal guarantee can contribute tosocio-political cohesion (regardless of whethereveryone chooses to benefit) while still paying specialattention to the circumstances of the poor andmarginalised. Within a ‘blanket’ social protectionmechanism of universal guarantees, the deprived,marginalised and excluded require special attention;ensuring that these groups are able to access theirrights might necessitate special, complementaryefforts. Socio-economic security is thus a broader anddeeper concept than conventional approaches to socialprotection that are built on a notion of ‘safety nets’ asex-post coping strategies or risk management.
Deficits in relation to voice and dignity can be addressedby facilitating access to essential income, assets andservices through legislation, as well as executive andadministrative provisions. They are addressed, inother words, through the predictability, quality andinclusiveness of provisions; the degree to whichprovisions meet differentiated needs; and the easewith which rights and benefits can be claimed. Dignityand voice are particularly challenging variables toinvestigate; proxies would be affirmative action, rightto information, or citizens’ monitoring processes.
To the extent that socio-economic insecurityundermines the efforts of poor and marginalised groups
to earn their living with dignity, to realise their fullhuman potential, and to invest in their own and theirchildren’s future, social protection is a necessity forpro-poor economic growth. To the extent that itenables them to exercise their voice and influencethe collective decision-making processes of theircommunities, it is essential for their rights as citizens.
This would suggest an objective that social protectioninterventions guarantee the ability to achieve adequatelevels of wellbeing to everyone over the entire courseof one’s life, and most importantly, in early childhood.‘Ability’ would be defined broadly to also refer to thecircumstances created by the state for people to beable to exercise their right to social protection. Socialprotection could be defined as the broad range ofinterventions through which governments and otherdevelopment actors seek to contribute to the goal ofsocio-economic security.
Social protection then becomes a means to addressincome poverty by providing income, capital andassets to address the intergenerational transmissionof poverty. It also serves as a means to ensurewellbeing more generally by enabling access to socialservices. By addressing vulnerability and risk thataffect the whole population, it serves to promoterights. This reinforces the case for conceptualisingsocial protection around the creation of socio-economic security.
In the context of South Asia, it is important toexamine social protection interventions that addressaccess to income as well as assets, to socialservices and emergency support. Income deficits canbe addressed through direct food or cash transfersor more fundamentally by enhancing income-earningopportunities. Asset deficits can be addressedthrough cash transfers/loans for the purchase ofassets, or through direct asset transfers (e.g., ofhousing, land, livestock, and seeds). In the case ofsocial service deficits, one may assess whetherexisting services in health, education, water andsanitation, protection from violence, and other areasaddress the needs of excluded groups.15 This isultimately how the intergenerational transmission ofpoverty can be brought to a halt.
15 This Review is not exhaustive, however, both because of the sheer number of schemes underway in South Asia, and alsobecause the approach has omitted some forms of social protection, such as access to credit and livelihood-supportingassets.
8 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Box 2: Current human development situation in South Asia
Of the 1.6 billion people in South Asia, 615 million (39 per cent) are under 18 and 175 million (11 per cent)under 5 years of age. At least 20 million are migrants. Almost 600 million persons fall below the $1.25/person/day poverty line and over one billion are under the $2/person/day poverty line.16 Over 300 million (54per cent) of the region’s children are in absolute poverty, as measured by deprivation of at least two basicservices, and 81 per cent are severely deprived of at least one basic need.17
16 UNICEF Regional Office for South Asia, A Matter of Magnitude. The Impact of the Economic Crisis on Women and Children inSouth Asia. Kathmandu, 2009.
17 Source: Townsend Centre for International Policy Research, http://www.bristol.ac.uk/poverty/child%20poverty.html. D.Gordon; S. Nandy; C. Pantazis; S. Pemberton; P. Townsend The Distribution of Child Poverty in the Developing World; Reportto UNICEF by Center for International Poverty Research, University of Bristol, July 2003; available at www.bris.ac.uk/poverty/Child%20poverty_files/Child%20Poverty%20Report%20Unicef.pdf
Figure 2: Prevalence of underweight (moderate and severe, 2000-2006)
Poverty and deprivation manifest in poor development outcomes. For instance, levels of child malnutrition(MDG 1) are the world’s highest: 45 per cent of all children in South Asia are underweight, with almost halfof them living in three countries – India, Bangladesh and Pakistan. Almost half the under-five child populationin Bangladesh, Nepal and India suffers from malnutrition. Despite their rising per capita incomes, malnutritionaffects 19 per cent and 30 per cent of the under-five child population in Bhutan and Maldives, respectively.
Moreover, malnutrition particularly affects the poor income groups, who spend 60-70 per cent of theirhousehold income on food. Often poverty and deprivation result in child death (MDG 4). Child morbidityand mortality are highest among poor groups, who lack adequate and predictable income support and
g ( ),(Percentage of children under five years old whose weight for age is less than minus two standard deviations from the median for
the international reference population ages 0-59 months
Source: UNICEF ROSE, South Asia Info database, 2008
< 30
31 - 40
41 - 50
> 50
Missing Value
Note:Data refers to the most recent year available during the period specified.
The boundaries and the names shown and the designations used on these maps do not imply official endorsement or acceptance by the United Nations.
The dotted line represents approximately the Line of Control in Jammu and Kashmir agreed upon by India and Pakistan. The final status of Jammu and Kashmir has not yet been agreed upon by the parties.
Percent
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 9
18 UNICEF Regional Office for South Asia, A Matter of Magnitude. The Impact of the Economic Crisis on Women and Children inSouth Asia. Kathmandu, 2009.
19 OPSCEN Note, The global food and financial crisis, January 2009, UNICEF, NY20 UNICEF Afghanistan Country Office, 2009. Annual Report 2008. Kabul: UNICEF21 UNICEF Nepal Country Office, 2009. Annual Report 2008. Kathmandu: UNICEF22 World Food Programme Nepal, http://www.reliefweb.int/rw/rwb.nsf/db900sid/MCOT-7LLE5J?OpenDocument
Between 2008 and 2009, global price hikes of essential foodstuffs increased South Asia’s poor and food-insecure population by an estimated 100 million persons.18 UNICEF data indicate that the already veryhigh levels of malnutrition in most countries of the region are increasing as a consequence of reducedemployment, decreasing real wages and incomes, and therefore reduced purchasing power.19 In low-income households, this can translate into inadequate food intake, given the high percentage of thehousehold budget typically devoted to buying food. In Afghanistan, for example, where food prices increased30-50 per cent in 2008 over an 80-100 per cent increase in 2007, 45 per cent of the population is estimatedto be food insecure.20 UNICEF estimates that during 2008, levels of severe wasting in children are likely tohave increased. In Nepal, for example, as the cost of rice and rice products rose by 28 per cent duringJuly-September 2008, the number of severely food-insecure people increased 50 per cent from the previousquarter.21 An estimated additional 4 million people became food insecure, resulting in a total of 12.5 millionpeople at high risk of food insecurity.22
Figure 3: Under-five mortality rate (2000-2007)
(The probability of dying between birth and the fifth birthday )Deaths per 1,000 live births for the five-year preceding the survey.
Source: UNICEF ROSE, South Asia Info database, 2008
Deaths per 1000 live births< 7576 - 100101 - 150>150Missing Value
Note:Data refers to the most recent year available during the period specified.
The boundaries and the names shown and the designations used on these maps do not imply official endorsement or acceptance by the United Nations.
The dotted line represents approximately the Line of Control in Jammu and Kashmir agreed upon by India and Pakistan. The final status of Jammu and Kashmir has not yet been agreed upon by the parties.
protection. The world’s largest absolute number of newborn deaths occurs in South Asia, with Indiacontributing a quarter of the world total, and South Asia accounts for 32 per cent of worldwide deathsamong children under five. But there has been progress: in 1990, 1 in every 8 South Asian children diedbefore age five; by 2006, the ratio had decreased to 1 in 12.
10 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Key findings and observations onsocial protection in South Asia
Country initiatives in social protectionIn Afghanistan, the social protection system in thesense of social insurance and social assistance hasbeen in place since the early 1990s. Afghanistan hasseveral workfare programmes (e.g., cash for work –National Solidarity Program and National EmergencyEmployment Program for Rural Access; and Food forWork Program), combining a number of innovativeelements. For instance, the National SolidarityProgram aims to empower communities in decision-making, inclusive local governance, ruralreconstruction and poverty alleviation by providing themwith grants for development projects selected byCommunity Development Councils.
The National Social Protection Strategy adopted in2008 – designed to consolidate the different socialprotection programmes under one umbrella policy –has a strong focus on the poorest and particular specialcategories. It has established a number of deprivationand poverty categories based on location andremoteness, occupational categories, etc. Given thehigh levels of poverty in the country, this approachcovers a large section of the population in the short tomedium term. Additional ad hoc social assistance isoffered by donors such as FAO and WFP in light ofthe exacerbated food and nutrition insecurity.
Existing cash transfer schemes target orphans, thedisabled, martyrs’ families and retired civil servants,and channel assistance through pensions, publicworks, skills development and microfinance. Theapproach is driven by the need to respond to the effectsof civil strife. Although over 40 per cent of the populationlives in poverty, social protection arrangements arepatchy and have reached only a minority of those inneed. Issues of social exclusion are defined more bycategories resulting from recent conflicts than seenin their historical context. Over time this targetingapproach will need to move towards providing universalguarantees against vulnerabilities and shocks.
Nevertheless, Afghanistan’s achievements are notminor given that the lack of security on the groundmakes it impossible to guarantee delivery of socialprotection services nationwide.
Bangladesh has a long history of social protection,having put its first pensions in place in the 1970s. Ithas a universal pension programme for civil servants,and a means-tested social pension for persons belowthe poverty line, separately for men and women. Thelatter has been shown to be highly pro-poor, with alarge segment of the beneficiaries representing thelowest income quintile. Bangladesh is also well-knownfor its expansive system of microcredit, a form ofprivate- or NGO-based social protection not coveredin this Review. Some of its many sector-based cashtransfers have been regarded as pioneering efforts inthe region, especially in the education area. Theprimary and secondary school stipends given to girlstudents have proven successful in addressing girls’education and protection, by contributing to delayingthe age of marriage and reducing violence against girls.
Historically, the government has financed acombination of cash and in-kind programmes andrelied heavily on workfare. A recent innovation in thissense is the guaranteed public employment schemewhich the government adopted in 2009. Socialassistance to the urban population includesgovernment-initiated learning centres through theBasic Education for Hard to Reach Urban WorkingChildren programme.
Among the region’s eight countries, the Bangladeshgovernment is unique in focussing on addressing thestructural issues of inequality in access to incomesources and assets, which corresponds to theconcept of socio-economic security laid out above. Anumber of programmes seek to build the asset baseof the poor, along with their human capital, such asthe Challenging the Frontiers of Poverty Reductionprogramme and the Chars Livelihoods Programme.These programmes are designed to improve thelivelihoods, food and asset security of the poor,although coverage levels remain low. Innovationsaround subsidies include a price subsidy on cerealgrains for women garment and tea workers that ispart of the government’s larger response to rising foodprices in the 2008-2009 budget.
However, there is no overarching framework for thenumerous overlapping schemes, and some groups,such as the urban poor, have traditionally beenneglected. The present PRSP is a first attempt at a
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 11
more systematic approach to social protection. Itincludes a chapter in which social protection isdiscussed, and programmes are grouped accordingto categories of beneficiaries served and risks covered.
Bhutan’s widely available free education and healthservices are seen as part of the social securitymechanism, and the government has showncommitment to universal coverage in the traditionalsocial sectors. Pensions for civil servants, armedforces, and private-sector employees are part of theformal social security mechanism. A reform of thepension system is underway. Bhutan has microcreditfinance programmes that reach significant proportionsof the poor, but there are no specific social assistanceinterventions such as anti-poverty programmes orsafety nets.
In the absence of a formal social protection systemand safety nets, the Bhutanese rely on traditionalstrategies such as inter-household transfers in cashor kind, family support, migration, and borrowing, withthe government stepping in cases of sudden disasterslike floods.
India has some of South Asia’s longest-running socialprotection programmes. Its social security systemsdates from independence, its first poverty alleviationscheme was implemented in the 1960s, and old-agepensions were introduced as a constitutional right in1995 (albeit restricted to those below a minimum levelof subsistence). There is a strong commitment tosocial inclusion. India has recorded a number ofachievements in social protection. It has moved froma top-down approach to social protection characterisedby lack of people’s participation to new approacheson social mobilisation, participation, involvement ofcivil society, and the right to information, andguaranteed employment for the rural poor. India’scomprehensive system of social protection covers thegamut from individual transfers (old-age, maternity,disability) to family social transfers and housingprogrammes.
India has child grants, albeit at the level of individualstates, such as a variety of girl child grants. Indiaalso has long experience with labour-intensive publicworks, beginning with the Employment GuaranteeScheme of Maharashtra, which started in the 1960s
and shaped the 2005 National Rural EmploymentGuarantee Act. The latter also creates assets, althoughdoing so remains a highly debated aspect due toconcerns regarding sustainability, ownership, andmaintenance. In parallel, a system of quotas forscheduled castes, scheduled tribes, freed bondedlabour, and for women’s representation is in place.Several social assistance schemes specifically targetsocially excluded groups. The country has one of thelargest public food distribution systems in South Asia.The Government is currently in the process ofredefining the ‘below poverty line’ categories ofbeneficiaries and is looking at a more systematicapproach to social protection, partially in response tocritiques around low expenditure and coverage, andheightening inequalities. Last but not least, India hasexperimented with various financing options, includinggeneral taxes, dedicated taxes/surcharges calledcesses, and mixed funding.
Despite this long history, coverage remains low.However, efforts are underway in the non-government(NGO) and government sectors to address gaps insocial security coverage and the needs of householdsin the informal sector. For example, the UnorganisedWorkers’ Social Security (USWSS) bill is currentlybefore Parliament, which aims to cover all below-the-poverty-line adults in the informal sector, a vastconstituency.
In the Maldives, formal social security exists forgovernment employees and is widely used; it coverspensions for government employees, along with somehealthcare security. Social assistance was introducedonly in the 2000s, with programmes like the AbsolutePoverty Scheme, which include strict eligibility criteria.There are also a number of sectoral programmes, suchas vouchers allowing poor families to obtain textbooks,school uniforms, etc. When necessary, thegovernment also responds with temporary assistanceprogrammes, as in the wake of the 2004 tsunami.Social assistance is delivered by various ministriesdepending on the area of assistance. Until recently,the majority of the population was not covered by anysocial protection scheme. The Government of Maldiveshas recently adopted a law to introduce a basic ‘socialpension’ for all citizens, and is working on a bill tointroduce universal social insurance.23 Discussionsare also underway regarding a minimum package of
23 World Bank Project Information Document, Maldives Pension and Social Protection Administration Project, 12 May 2009
12 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
social protection appropriate to a middle-incomecountry.24
In Nepal, social protection was introduced as aconcept and a right in the 1990s. Prior to that time,charity provisions for the poor were an obligation ofelites or religious organisations during the monarchyand the panchayat period. Employees in the formalsector, government and large businesses are coveredby social insurance. The new, republican system isexpanding social protection interventions andconsidering developing a systemic approach to socialprotection. It has introduced new schemes for thehistorically disadvantaged, and improved some of theearlier ones (old-age pension, widow, disabilityallowance, Dalit stipends, girl stipends programmes,etc.) in the 2008-2009 fiscal budget. Coverage andbenefit levels are also being enhanced. The governmentand donors are devoting greater attention to the socialprotection agenda. Discussions are underwayregarding developing a strategy document to guidesystematic social protection reform.
Since 1995, Nepal’s old-age allowance has stood asa universal social protection intervention. It is non-contributory, with all citizens over age 70 entitledregardless of income, and in that respect can be seenas one of the pioneers in social protection design anddelivery in the region.
Recently Nepal established a system of grants to coverexpectant mothers’ transportation expenses to healthfacilities or of ensuring that home deliveries areattended by health workers. Nepal also boasts anumber of unique elements in its transfer programmes,such as the block grants for districts and villagedevelopment committees that are disbursed basedon a set of poverty and human development criteriaand utilised for social and physical infrastructure andemployment programmes, through which peoplebenefit directly through cash transfers or through themultiplier effects of the schemes. Along with Indiaand Bangladesh, Nepal has introduced employmentschemes such as the One Family, One Employmentprogramme for the Karnali Zone, under which the stateprovides a guarantee of employment.
Pakistan has a broad approach to social protection.It includes social security programmes for thegovernment and formal sector, along with large socialassistance guarantees for individuals and households.A National Social Protection Strategy was approvedin July 2007. Its social assistance system issignificantly decentralised, with many state-levelschemes run independently by the provinces.Traditional Islamic charitable institutions have beeninvoked through the Zakat Disbursement (based onprivate, voluntary contributions but administered bythe government). The Bait-ul-Mal programme is agovernment-led social assistance programme.Interesting provincial-level pilot approaches include theChild Support Programme, implemented as aconditional cash transfer programme for the pooresthouseholds. The issue of increasing socialdevelopment and social protection spending figuredprominently in the parties’ manifestos at the 2008elections. A new programme – the Benazir IncomeSupport Programme (BISP) –was introduced in 2008,with the first disbursements taking place in early 2009.The programme plans to systematise socialassistance over the long term by bringing severalprogrammes together under one umbrella. As currentlydesigned, the BISP is targeted at households belowa certain minimum income and delivered to an adultfemale household member. Public works programmesare not as large scale of those in some other countries,but include the People Works Programme Phase-II(PWP-II).
Pakistan’s social protection expenditures aretraditionally low and programmes tend to befragmented and inadequate in coverage and reach.Many locations are not covered by any scheme, whilelocations tend to feature several programmes.
Sri Lanka, together with India, has one of the longest-running social protection programmes in South Asia,dating since independence, and its philosophy has astrong focus on key elements of social protection. SriLanka has been more successful than most SouthAsian countries in sustainably financing and deliveringsocial protection policies.25
24 See Ministry of Finance and Treasury, Government of the Maldives, and UNICEF - Maldives, Reaching the MDGs with Equity.March 2009
25 A. Barrientos and D. Hulme. Social Protection for the Poor and Poorest in Developing Countries: Reflections on a quietrevolution. Brooks World Poverty Institute Working Paper No. 30
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 13
Social security coverage in Sri Lanka is extensive,with a pension for public sector employees (around28 per cent of the working-age population) andschemes providing income support and health careto the elderly, surviving widows, and the disabled, thusachieving high coverage for formal economy workersand some for informal. The country’s aging population,a unique demography for the region at the moment,has engendered concern around income security inold age, and the government is consideringuniversalising the old-age pension. Sri Lanka has anumber of large social assistance programmes, suchas the Samurdhi income transfer to the poor,introduced in 1995 and one of the largest povertyalleviation programmes in the region; it is currentlyunder reform. The existing schemes show some gapsin coverage (both in terms of benefit level and eligiblepopulation actually covered), as well as in the value ofthe benefit vis-à-vis the poverty line, given the country’s
lower-middle-income status. Somewhat incontradiction to the perception of Sri Lanka as a goodperformer in the region, analysts have questioned theefficiency of the current system as well as its povertyreduction impact. 26
Commonalities across countriesAll countries in South Asia have established somecomponents of social protection, even if socialprotection is not yet a broadly-based notion in thesense of an entitlement that people claim as citizens.The region has a long history of formal-sector socialinsurance. Several countries have adopted universalentitlements to some forms of social assistance.Bangladesh, India, Maldives, and Nepal have socialpensions, and the latter two are universal. The ruralemployment guarantee schemes in India, Bangladeshand Nepal establish a right to minimum number ofdays of employment.27
26 Under the Samurdhi programme in Sri Lanka, the entitlement is lost upon change of residence and requires reapplication.See an empirical evaluation of Samurdhi Programme by Elena Glinskaya, http://siteresources.worldbank.org/INTDECINEQ/Resources/SamrurdhiJune042003.pdf
27 In Bangladesh, the entitlement applies only to specific geographic locations, and universally applied in that location.
Table 1: Social Protection in South Asia: some commonalities
Source: UNICEF ROSA 2009
Social Security
General social assistance
Poverty-related:(universalor meanstested)
Sickness,umemployment,old age,health,insurance (e.g.public service,formal sector)
Childbenefit (e.g.girl childgrants)
Sectoral social assistance - transfers in cash & kind
Formal sector
Health-relatedtransfers(e.g.maternitybenefits)
Education-relatedtransfers(e.g. schoolmeals,stipends)
Employment-relatedtransfers(e.g. publicworksschemes)
Transfersto copewithshocks,conflict andnaturaldisasters
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
√√√√√√√√
Social Assistance
√√√√√√√√
√
√√
√
√
√√√
√√√√√√√
√√
√
√√√
√√
√√√√√
Country Emergencytransfers
14 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Formal, contributory social security is available in alleight countries for government civil service, staff inpublic sector enterprises and large-scale privateenterprises when applicable. This is in the form of aguaranteed pension, and other coverage such as healthcoverage for this group. Such formal social security,however, excludes the vast majority of people in SouthAsia, who are not connected to government or formalemployment. In India, for example, 85 per cent of theadult population works in the informal sector.28
No government in the region has as yet established afull-fledged, comprehensive and interlinked socialprotection system per se. Therefore, in most instances,households and individuals in South Asia primarily relyon informal social protection networks of family,community, women’s groups, or savings cooperativessuch as rotating chit funds29 and informal credit markets.
Nevertheless, the situation continues to evolve, withmany government-based social protection instrumentscoming on stream over the past decade or so.30 Infact, the South Asian region has a long history offormal-sector social security, and there is also a setof non-contributory social assistance-type transferstaking many different forms (Table 1). Historically,many of these schemes have their roots in theindependence and post-war Welfarist tradition, and insome cases in the British-influenced publicadministrative service.
Social assistance in the form of in-cash or in-kindtransfers not based on prior direct contributions takesmany forms. It includes social pensions for peopleliving below the poverty line; a few child grants; andsector-specific transfers such as education stipends,health-related benefits, and food transfers. Six of theeight countries have some form of employment-generating public works programmes providing eithercash or food in return for work. These have traditionallybeen offered as a last resort to those stricken byabsolute poverty (often seasonally reinforced), andhave been a widespread policy tool in India,Bangladesh, Nepal and Pakistan. There are also a
number of ad hoc or programme-based emergencytransfers to cope with conflict and natural disasters,and even housing loans.
The genesis of these social protection elementsvaries considerably. Most countries have a ‘buildingblocks’ approach to social protection, with subsetsof social protection as stand-alone interventions. Inthe past, governments have rarely made concertedefforts to categorise the interventions by programmeand type of support provided and to bring all schemesunder a common umbrella – to use the ‘buildingblocks’ to build a system. However, this is nowbeginning to change. This is the case in Afghanistan,Bangladesh, India and Pakistan, where the countrieshave applied a particular logic and criteria in theirefforts to reorganise their social protectionprogrammes.
Many social transfers are long-term, establishedprogrammes; others are ad hoc responses toimmediate needs and demands, of which somereflect political opportunism as opposed to a strategicapproach to providing social protection as a right.Some schemes are localised, while others arenational in outreach. In terms of design, some socialprotection programmes are subject to means testsor proxy means tests; others use geographical orcategorical targeting. Among the categorical targetingprogrammes, some are universal for an age group orgender, such as the old-age pensions in Bangladesh,India, Maldives and Nepal or the girls’ secondaryschool stipends in Bangladesh. Most are conditionalon action by the recipient, usually related to working,to school enrolment, or to utilising a health-carefacility.
Innovations in social protection in SouthAsiaRecent social protection initiatives and innovationsin South Asia include:• Introducing a systemic approach to social
protection in Afghanistan, Bangladesh, Maldives,Nepal and Pakistan, with an effort to combine
28 N. Kabeer, A. Sharma, C Upendranadh, Social Security in South Asia: Issues and perspectives. Draft for discussion,November 2008
29 Chit funds are based on money pooled by a group of people, and auctioned at the end of a specified period, rotating amongthe group members.
30 A. Barrientos and D. Hulme. Social Protection for the Poor and Poorest in Developing Countries: Reflections on a quietrevolution. Brooks World Poverty Institute Working Paper No. 30; N. Kabeer, A. Sharma, C. Upendranadh, Social Security inSouth Asia: Issues and perspectives. Draft for discussion, November 2008
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 15
31 Under the NREGS, rural inhabitants have a right to demand a public works scheme in their area and to demand work on it; ifwork is not available, they are entitled to a cash transfer as compensation (equivalent to employment benefits).
32 Maharashtra State has a long history of social assistance in the form of employment schemes, and the south-Indian states ofKerala, Karnataka, Tamil Nadu and Andhra Pradesh feature a wide range of schemes, ranging from mid-day meals forschoolchildren and the rural poor to old-age pensions, which are seen to be more effective than those in the northern andnorth-eastern states.
and streamline existing disparate schemes andprogrammes into a unified system;
• Introducing social protection for the informal sectorin India through the Bill for the Social Security ofthe Unorganised Sector Workers UnorganisedSector Workers’ Social Security (USWSS) bill,which seeks to incorporate informal urban workersinto a basic social insurance scheme;
• Bangladesh’s Challenging the Frontiers of PovertyReduction (CFPR) programme, which addressesthe assets base of the poorest and then is relatedto the socio-economic security concept;
• The universal old-age social pensions in Nepaland most recently in the Maldives create aclaimable entitlement to support in old age byvirtue of being a citizen;
• Altering the nature of public works-basedemployment towards making it a right, giving ittransformative power for rural livelihoods, throughthe National Rural Employment GuaranteeScheme (NREGS) introduced in India in 2007.31
The entitlement is for 100 days of paid work or asocial transfer. This innovation has been replicatedin Bangladesh and Nepal, and is underconsideration in Pakistan.
A number of innovative targeting approaches andmethods that have potential to avoid stigma,discrimination and reduce social divides are also inplace. One such approach is geographical targeting,as applied to the employment-guarantee schemes inthe Karnali zone in Nepal, which cover six districts(most being low HDI, high food deficit and loweremployment districts), or the cluster-based targetingin urban areas in India.
Some shortcomings of social protectionschemesAcross the region, social protection interventions sharea set of similar shortcomings:• Many programmes remain piecemeal and ad hoc.
The various causes and manifestations of socio-economic insecurity are not addressed, andprogrammes often overlap. The co-existence ofmany different programmes of varying scale,
scope, eligibility and duration generates highadministrative and transaction costs for both thegovernment and programme beneficiaries, andincreases the risk of underserved groups not beingaware of their entitlements and how to claim them.Some groups are served by overlappingprogrammes, while others fall between the cracksand are not eligible for any form of social protectiontransfer. Existing programmes do not offer aninclusive, holistic, and systemic approach tosocio-economic insecurity. They could, however,be considered building blocks for social protectionsystems and need to be valorised in this sense.
• Many initiatives are inspired by politicalopportunities, or are donor-driven. This createsan ad hoc, disparate set of programmes that donot cohere.
• There is a lack of objective, transparent andcoherent criteria to establish and communicateeligibility and targeting for the individual socialprotection schemes. Many of the programmesreviewed lack equity considerations in targeting.
• Because of their unsystematic nature, the fiscalsustainability of individual programmes is at risk.This is especially the case in smaller, more aid-dependent countries, where donors havesubstantial influence.
• Across South Asia, government agencies appearto have devoted limited resources and builtinsufficient capacity for social protection policyanalysis, delivery monitoring, or impact evaluation.This lack of systematic monitoring and evaluationmakes it difficult for governments or externalevaluators to assess the impact and effectivenessof their programmes regarding actual coverage andreach, impact on excluded groups, or – even moreelusive – their transformative power and contributionto human dignity.
• There is great variation within individual countries.Delivery and implementation are highly uneven.For instance, in India and Pakistan there aresignificant inter-state differences amongprogrammes available, and in many countries, thequality or reliability of delivery varies greatlydepending on administrative capacity.32
16 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
n.a.
5.3 (2008)
1.4 (2008)
4.0 (2008)
1.5 (2008)
2.3 (2008)
2 (2002-2003)
5.7 (2008)
2
0.23
2
1
2
1
n.a.
3
0.7 (2008-2009)
1.1 (2006)
n.a.
4.4 (2004)
n.a.
n.a.
1.4 (2004-2005)
3 (2004)
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
Financial and other measures of effortand outcomes
Social protection interventions also need to be gaugedin terms of the financial effort made. Ideally, this wouldcomprise comprehensive data on all private, informal,or cooperative arrangements, as well as on thecontributory social insurance and the tax-funded socialassistance expenditures.33 Such a data set remainsto be developed.
Several sources of information on expenditures forsocial protection in South Asia exist, with variousfindings. One is the approach to examining fiscalbudgets, undertaken by UNICEF’s Regional Office forSouth Asia, to arrive at an approximation of governmentexpenditures devoted to social protection. It finds that,for South Asia in general, services for health,education, social protection, and community
Table 2: Social protection expenditures in South Asia: Three calculations
Share of GDP% WB
Share of GDP% ADB
Share of GDP% UNICEF ROSA
Source: World Bank 2006, ADB 2008 and UNICEF ROSA fiscal budget database
infrastructure averaged 31 per cent of the governments’total expenditures over the 2000-2007 period. Withinthe social services budget, the share of expenditureson social security and social assistance programmes,such as various transfers and public works schemes,averaged 21 per cent for the period.34
As a share of GDP, however, fiscal budgets are smallin most South Asian countries. Despite itscomparatively high share of fiscal budgets, therefore,social protection expenditure as a share of GDP isonly an estimated 1 per cent across the region (2000-2007), with Sri Lanka having the highest share at 3per cent; Afghanistan, Bhutan and Maldives at 2 percent; and the other countries a fraction of 1 per cent(see Figures 4 and 5). One-year data gleaned fromcountry-level sources are in a similar range (see Table2). This compares with up to 12.5 per cent of GDP inOECD countries.
33 UN Department of Economic and Social Affairs (DESA), World Economic and Social Survey 2008:Overcoming economic insecurity. United Nations, New York 2008
34 This is for seven countries, excluding Pakistan for which data are not available.
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 17
5%
27%
17%
52%
10%
7%
25%
59%
15%
15%
26%
44%
23%
45%
8%
24%
32%
9%
21%
38%46%
30%40%
19%
21%
15%
14%30% 21%
25%
10%19%
100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
AFG INDBGO BTN AVGMDV NPL LKA
Housing & Comm. AffairsEducation Health Social Sec. & Welfare
Source:UNICEF ROSA, South Asia Fiscal Budget database, 2008
Housing & Community AffairsEducation Health Social Security & Welfare
AFG IN
D
BG
O
BTN AV
G
MD
V
NPL
LKA
25%
23%
20%
15%
13%
10%
8%
5%
3%
0%
% G
DP
OECD
Source:
UNICEF ROSA, South Asia Fiscal Budget data base, 2008
2%0%
1%
4%0%
0%1%
2%
2%
2%
3%
5%
0%1%0%
1%
8%
2%
5%
8% 1%1%
1%
3%
1%
3%
2%
2%
2%
1%
2%
3%
Figure 4: Allocation of Social Expenditure (Mean 2000-2007)
Figure 5: Average allocation of Social Sector Expenditures as % GDP (2000-2007)
18 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
In per capita terms, government spending on socialprotection in South Asia averaged $19 per person inthe 2000-2007 period: $62 in the Maldives, $34 in SriLanka, $21 in Bhutan, $7 in India, and less than $5 inAfghanistan, Bangladesh and Nepal (see Figure 6).The Maldives’s relatively high payments reflectcommitments made to the civil service as well as the
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Box 3: Fiscal space for social protection
The argument can be made that there is fiscal space to increase government expenditure on social protection
to allow for a more systemic approach and for universal coverage of at least basic social protection. This couldbe initiated through reviewing existing expenditures to explore whether resources can be freed up from areassuch as defence, or inefficient payments. With only 1 per cent of GDP devoted to social protection, and with tax
rates at less than 10 per cent across most of South Asia, a case needs to be put forward for increasing taxationas a share of GDP. This would increase government capacity to deliver public goods and services; to meet thescale of social protection needed in light of South Asia’s poverty and social exclusion; and to introduce the
notion of a social compact with an element of income redistribution built into its design, to address theincreasing income polarisation. In this regard, some South Asian countries are experimenting with a socialprotection cess, a dedicated tax introduced exclusively to finance social protection.35
country’s middle-income status and larger percentageof formal-sector employment. Bangladesh’s low per-capita level is related to the country’s deep relianceon microcredit and on the NGO sector (including forsocial protection), as many donors transfer funds forsocial development, including social protection,through NGOs rather than through the government.
Figure 6: Per Capita Expenditures on Social Sector (Mean vlaues 2000-2007$)
35 See Kabeer, Sharma, Upendranath, op. cit.
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 19
The efficacy of social protection interventions doesnot necessarily hinge on expenditure; the quality ofthe programmes, their coverage, reach and deliverymechanisms are equally crucial. A second approachto measuring effort and outcomes, the ADB socialprotection index, is therefore of interest. Thismethodology assesses social protection by a set offour indicators: expenditure on social protection as ashare of gross domestic product (GDP), coverage interms of reaching priority groups, distributional effectsin terms of a poverty-targeting indicator, and impactin terms of per capita social protection expenditureon the poor in relation to the poverty line. Theseindicators are defined in Table 3. From this, the ADBanalysis builds a social protection index and rankscountries in terms of the quality of their socialprotection interventions.
This methodology comes to a ranking on coverageand impact, and suggests that Sri Lanka performsabove average, the Maldives ranks average, and theremaining South Asian countries rank below average.The Asian Development Bank’s numerical scores onsocial protection are presented in Table 4 below.
A third approach to measuring effort comes fromevaluations undertaken by governments and bydonors. The methodologies are not necessarilycomparable across countries, but as a way of showingassessments available findings of such evaluationshave been referred to in the Overview and in the CountryProfiles.
Table 3: Definition of summary social protection indicators of the Asian Development Bank
Source: Asian Development Bank, Social Protection Index for Committed Poverty Reduction, 2008.http://www.adb.org/Documents/Books/Social-Protection/default.asp
Country ScoreAfghanistan n.a.Bangladesh .34Bhutan .17
India .47Maldives .30Nepal .19
Pakistan .07Sri Lanka .47Comparator: Japan .96
Table 4: Social protection ranking in South Asia
Source: Asian Development Bank (ADBI, Scaling Up of the SocialProtection Index for Committed Poverty Reduction. Manila 2007.http://www.adb.org/Documents/Reports/Consultant/39261-REG/default.asp accessed November 2008.
Conclusions: A mixed picture onsocial protection in South Asia
All governments in the region recognise the importanceof social protection as a tool for reducing poverty, allgovernments have sets of interventions in place, andmany are in the process of scaling up social protectionto a more systemic level; a few are even casting socialprotection in the framework of a rights-based approach.
The number and scale of the programmes can beinterpreted as reflecting South Asia’s welfare stateapproach, inherited in some cases from the early post-colonial era. They are also a testimony to governmentrecognition of the scale of the poverty challenge.Conversely, the diversity of the schemes reflects the
Component
Social Protection Expenditure(SPEXP)
Social Protection Coverage(SPCOV)
Poverty-Targeting Rate (PTR)
Social Protection Impact(SPIMP)
Description
SP expeniture as % of GDP
Combination of coverage rates of 7priority target groups
Poor SP beneficiaries as % of poorpopulation
Per capita SP expenditure on the pooras % of current poverty line
Comment
Actual expenditures, allows for cross-country comparisons
Using the narrow reference populationand a combination of unweighted andweighted means
Indicates coverage but not size of thebenefit
Similar methodology to PTR but noneed to allow for overlaps
20 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
without claimable support. Overlapping forms of social,economic and political disadvantage mean that manysections of South Asia’s poorer population must meettheir subsistence needs through patron-clientrelationships or through casual, poorly paid and oftendemeaning forms of work in the informal economy.They are denied basic capabilities, including thecapacity for exercising control over their own lives andthe ability to plan for the future. They cannot easilyaddress their children’s requirements for socialprotection, which means that the poverty cyclepersists from one generation to the next. They arealso denied dignity within their communities as wellas voice and influence in collective forums of decision-making.
Social protection schemes and interventions thereforeneed to be scaled up, and made systemic, visible,transparent and inclusive. As a next step, a more in-depth analysis of the manifestations and underlyingcauses of socio-economic insecurity is needed. If, in
the process of scaling up social protection, socio-economic insecurity is addressed holistically, thiswould suggest social protection systems thatguarantee that social protection not only addressespoverty, vulnerabilities and social exclusion but alsoprotects from loss of assets and enhances the politicalvoice and influence of citizens. It would suggest adirection towards universalised social protection as ahuman right; and to ensuring that all are aware of theirentitlements, have a say in social protection design,and are in a position to claim their rights.
Last but not least, social protection systems in SouthAsia need to respond not only to the dynamics ofpoverty and vulnerability but also to age-specificity.The large and growing young population implies thatgovernments must develop their capacities so thatthey can become productive and empowered adults.Socio-economic security is the right of every child,and since they are the most vulnerable, their rightshave priority.
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 21
Tabl
e 5:
SO
CIAL
PRO
TECT
ION
PRO
GRA
MM
ES IN
SO
UTH
ASIA
Sic
knes
s an
d m
ater
nity
bene
fits;
dis
abili
tybe
nefit
s; u
nem
ploy
men
tbe
nefit
s; O
ld-a
geA
llow
ance
Sch
eme;
Pro
gram
me
for
Wid
ows
and
Des
titut
e W
omen
;B
oish
ka B
hata
soc
ial
pens
ion
Nat
iona
l Pen
sion
and
Pro
vide
nt F
und
Pla
n;gr
atui
ty s
chem
e; g
roup
insu
ranc
e sc
hem
es;
fune
ral
bene
fit
Em
ploy
ees'
Pen
sion
Sch
eme;
Em
ploy
ees'
Sta
te I
nsur
ance
Sch
eme;
Nat
iona
l Old
-Age
Pen
sion
Sch
eme
(NO
AP
S)
Lada
li La
kshm
iYo
jana
: M
adhy
aP
rade
sh; G
irl C
hild
Pro
tect
ion
Sch
eme:
Tam
il N
adu
Old
-Age
Allo
wan
ceS
chem
e (O
AA
S)
Nat
iona
l Old
-Age
Pen
sion
Sch
eme
(NO
AP
S)
Nat
iona
lM
ater
nity
Ben
efit
Sch
eme;
Nat
iona
lF
amily
Ben
efit
Sch
eme;
Inte
grat
ed C
hild
Dev
elop
men
tS
ervi
ce S
chem
e
Ban
glad
esh
Fem
ale
Sec
onda
ry S
choo
lA
ssis
tanc
e P
rogr
am;
Prim
ary
Edu
catio
nS
tipen
d P
rogr
amm
e
Gra
nt o
f F
inan
cial
Ass
ista
nce
to t
heP
oor
Par
ents
Hav
ing
One
Girl
Chi
ld W
hoIs
Stu
dyin
g 8t
h to
10th
; G
rant
of
Ret
entio
n S
chol
ar-
ship
to
S.C
. G
irlS
tude
nts:
Pud
uche
rry
Nat
iona
l S
olid
arity
Pro
gram
(NS
P);
Nat
iona
lE
mer
genc
yE
mpl
oym
ent
Pro
gram
me
for
Rur
al A
cces
s;F
ood
for
Wor
kP
rogr
am
100-
Day
Em
ploy
men
tG
ener
atio
nP
rogr
amm
e
Em
ploy
men
tG
uara
ntee
Sch
eme,
Mah
aras
htra
Sta
te;
Nat
iona
lR
ural
Em
ploy
-m
ent G
uara
ntee
Sch
eme;
Sw
arna
Jaya
nti
Sha
hari
Roj
gar
Yoja
na(S
JSR
Y);
Sam
poor
naG
ram
een
Roz
gar
Yoja
na (
SG
RY
)
Cas
h tr
ansf
ers
tom
arty
rs'
fam
ilies
PK
SF
Pro
gram
med
Initi
ativ
e fo
r th
eE
radi
catio
n of
Mon
ga(P
RIM
E);
Vul
nera
ble
Gro
up D
evel
opm
ent
Pro
gram
me
(VG
D);
Foo
d fo
r W
ork
- Cha
lleng
ing
the
Fro
ntie
rs o
f P
over
tyR
educ
tion
Pro
gram
me
(CF
PR
); 2
Cha
rsLi
velih
oods
Pro
gram
me
(CLP
)
Jaw
ahar
Roj
gar Y
ohan
a(J
RY
); t
arge
ted
publ
icdi
strib
utio
n sy
stem
Afg
han
ista
n
Ban
gla
des
h
Bh
uta
n
Ind
ia
SO
CIA
L IN
SU
RA
NC
ES
OC
IAL
AS
SIS
TAN
CE
Gro
up a
nd S
ecto
r-sp
ecifi
c A
ssis
tanc
eIn
com
e an
d E
mp
loym
ent r
elat
edA
ssis
tanc
eE
mer
genc
y Tr
ansf
ers
Soc
ial I
nsur
ance
Ch
ild B
enef
its
Soc
ial p
ensi
onH
ealth
-rel
ated
(e.g
., M
ater
nity
Ben
efits
)E
du
catio
n-r
elat
ed(S
cho
ol M
eals
, Stip
end
s)E
mpl
oym
ent-
rela
ted
( e.g
., P
ub
lic W
ork
s)
Pov
erty
alle
viat
ion,
Inco
me
Su
pp
ort
:C
ash
/Fo
od
Tra
nsf
ers
Sho
ck-r
elat
ed T
rans
fers
(e.g
., C
on
flic
t; N
atu
ral
Dis
atse
r)
22 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Mal
div
es
Nep
al
Pak
ista
n
Sri
Lan
ka
SO
CIA
L IN
SU
RA
NC
ES
OC
IAL
AS
SIS
TAN
CE
Gro
up a
nd S
ecto
r-sp
ecifi
c A
ssis
tanc
eIn
com
e an
d E
mp
loym
ent r
elat
edA
ssis
tanc
eE
mer
genc
y Tr
ansf
ers
Soc
ial I
nsur
ance
Ch
ild B
enef
its
Soc
ial p
ensi
onH
ealth
-rel
ated
(e.g
., M
ater
nity
Ben
efits
)E
du
catio
n-r
elat
ed(S
cho
ol M
eals
, Stip
end
s)E
mpl
oym
ent-
rela
ted
( e.g
., P
ub
lic W
ork
s)P
over
ty a
llevi
atio
n,In
com
e S
up
po
rt:
Cas
h/F
oo
d T
ran
sfer
s
Sho
ck-r
elat
ed T
rans
fers
(e.g
., C
on
flic
t; N
atu
ral
Dis
atse
r)
Chi
ld S
uppo
rtP
rogr
amm
e
Mal
dive
s B
asic
Pen
sion
Old
-Age
Allo
wan
ce
Ass
ista
nce
for
heal
th c
are
inM
aldi
ves
or a
broa
d
Mat
erni
ty S
chem
e
Vou
cher
s to
def
ray
text
book
cos
ts,
one
unifo
rm,
shoe
s, a
ndso
cks
for
low
inco
me
fam
ilies
.
Stip
ends
for
Dal
itan
d gi
rl st
uden
ts
Taw
ana
Pak
ista
na
One
Fam
ily,
One
Em
ploy
men
t
Abs
olut
e P
over
tyS
chem
e
DD
C b
lock
gra
nts;
VD
C b
lock
gra
nts;
top
-up
gra
nts
to V
DC
s
Zak
at D
isbu
rsem
ent;
Pak
ista
n B
ait-
ul-M
al;
Ben
azir
Inco
me
Sup
port
Pro
gram
-C
ash
tran
sfer
s to
the
disa
bled
;as
sist
ance
for
ID
Ps
-S
amur
dhi i
ncom
etr
ansf
er t
o th
e po
or
Sub
sist
ence
allo
wan
ces
tofa
mili
es o
f th
ose
mar
tyre
d or
hand
icap
ped
as a
resu
lt of
con
flict
;S
ubsi
stan
ceal
low
ance
to th
eP
eopl
e's
Libe
ratio
nar
my
(ex-
com
bata
nts
allo
wan
ce)
Em
erge
ncy
assi
stan
ce t
ope
ople
affe
cted
by n
atur
aldi
sast
ers
such
as
drou
ght
and
flood
s
Civ
il S
ervi
ce P
ensi
on;
Gov
ernm
ent
Pro
vide
ntF
und
Pro
vide
nt f
und;
Gra
tuity
; O
ld-a
geal
low
ance
; S
urvi
vor
allo
wan
ce;
Dis
abili
tyca
sh g
rant
Wor
ker
Wel
fare
Fun
d,W
orke
r P
rofit
Par
ticip
a-tio
n F
und,
Em
ploy
eeS
ocia
l S
ecur
ityIn
stiti
tions
, E
duca
tion
Ces
s F
und,
Em
ploy
eeO
ld A
ge B
enef
its.
Old
Age
Inco
me
Sup
port
; E
mpl
oyee
sP
rovi
dent
Fun
d; C
ivil
Ser
vice
Pen
sion
Sch
eme;
Vol
unta
rysc
hem
es f
or i
nfor
mal
sect
or w
orke
rs;
Dis
abili
ty a
nd s
urvi
vor
insu
ranc
e; U
nem
ploy
-m
ent
sche
mes
24 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
AFGHANISTAN
General background
Historically, various forms of social protection haveexisted in Afghanistan through community andpatronage systems. Social insurance was introducedin the early 1990s to provide contributory old-age,disability and survivor pensions; sickness andmaternity benefits; and workers’ compensations inthe formal sector. In 2002, the then-transitionalGovernment of Afghanistan expressed a commitmentto make state-led social policy a key element of theoverall reconstruction programme and to promotesocial protection while designing its overall socialpolicy. Until then social protection had been deliveredby donor and humanitarian agencies; therefore thechallenge was to make it an integral and permanentfeature of the national economy.1
Current social protection interventions cover thefollowing groups: martyrs’ families, people with war-related disability, orphans and children enrolled inkindergartens, victims of natural disaster, pensioners,unemployed. The main public arrangements include
support to martyrs’ families and the disabled; astrategy for children at risk; and the Action Plan onDisability—approved but not yet implemented by theMinistry of Labor, Social Affairs, Martyrs and Disabled(MOLSAMD). Cash for work is the most commonlyused approach due to the large number ofunemployed, especially among returnees. Moreover,since 2002, over one million returnees have benefitedfrom a rural housing programme implementedthroughout the country. A land allocation schemewas launched in 2005 to address the needs oflandless returnees and IDPs by providing land forhousing. The WFP’s High Food Price MitigationIntervention programme aims to help 5 million peoplecope with rising food prices and drought between2008 and the harvest of 2009. Finally, the FamineEarly Warning System (FEWS) network monitorsfood prices and crop levels on a regular basisthroughout the country, to anticipate upcoming foodshortages.2 By 2006, 2.5 million people had benefitedfrom public social protection arrangements, through
* Source: projection 2008-09; source: Ministry of Finance of the Afghanistan Government; http://www.budgetmof.gov.af/units/Budget_Policy_Coord_Reporting/Fact_Sheet/Factsheet_1387.pdf); UNICEF ROSA, South Asia Fiscal Budget database, 2008
1 From Humanitarian Assistance to Social Protection. Paper Prepared for the Afghanistan Support Group Oslo Meeting. 17-18December 2002. Ministry of Rural Rehabilitation and Development. The Transitional Government of the Islamic Republic ofAfghanistan.
2 Afghanistan National Development Strategy 2008-2013, posted at www.ands.gov.af/ands
Total Population26,088,000 (source: UNICEF ROSA, 2006)
Estimated Social Protection Expenditures as a % of GDP:0.7% (Government of Afghanistan); 2.0% (UNICEF ROSA)*
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 25
pensions, public works, skills development ormicrofinance.3
Recent trends
The recently approved National Social ProtectionStrategy4 will provide a framework to reform andstreamline existing programmes. The strategy isrooted in the country’s constitution and addressesthe issue of consumption inequality based ongeographic location; it highlights the disadvantagesof the rural and nomadic population, those living inremote areas, people living in larger households, andwomen.5 It is an important step towards recognisingthe need to address socio-economic vulnerability andexclusion. It could be made more comprehensive, forinstance by including minorities and those excludedbased on political affiliation, ethnic or linguisticidentities. Moreover, the strategy is drafted from awelfarist approach, rather than from a rights-basedone. The challenge for the social protection strategywill be to effectively reach the poorest in the short runwhile covering the whole population in the mediumterm, all at acceptable cost.6 Given that over 40 percent of the population is below the poverty linemeasured as the cost of basic needs, this strategywould need to cover almost half of Afghanistan’spopulation.7
Recommendations and observations
Despite these achievements, the majority of Afghanpoor do not benefit from sufficient public assistance.The report of the Afghanistan Independent HumanRights Commission highlights that protection ofpersons with disabilities and families of martyrs islargely limited to providing social pensions. Socialservices for children have been limited to establishingshelters: as of January 2008, there were three
children’s shelters in Kabul and four in other cities,with each shelter accommodating 20 children. Despiteconstitutional provisions for support to the elderly, illor women without caretakers, no protectionmechanisms have been developed and implementationof the law remains sporadic. The main constraintsand challenges include fiscal limitations; largeobligations towards war survivors; lack of capacity andpoverty vulnerability analysis; complex coordinationmechanisms between Government, NGOs, anddonors; dominance of informal risk-managementarrangements; an inefficient monitoring framework; andmost importantly, security.8 Social protection relieslargely on donor resources.
Summary of programmes
I. Social InsuranceAfghanistan’s Ministry of Finance overseescontributory schemes covering old-age, disability andsurvivors, and sickness and maternity benefits foremployed persons in the private sector, cooperatives,social organisations, joint enterprises, andgovernment. The old-age pension is for people aged60 and older with 25 years of contribution or 55 with20 years of contribution. The benefit’s value is up to100 per cent of salary.
II. Cash TransfersDirect Cash TransfersDescription: Cash transfers targeted to families ofconflict victims and individuals with war and land-mine-related disabilities
Value of benefit: According to the National SocialProtection Strategy, the benefit ranges from US$ 33to US$ 10 per month, depending on the number of aconflict victim’s family members and the level ofdisability (no means test). However, the 2008 Report
3 Afghanistan Social Protection Strategy, part of the National Development Strategy (ANDS) (2007). Chapter IV, Current State ofthe Social Protection Sector in Afghanistan, p. 11
4 Ibid.5 The right of Afghan citizens to social security and protection from vulnerability is protected by Article 07 of the Constitution of
Afghanistan which observes the UDHR. The latter in turn emphasizes that individuals and families have the right to areasonable standard of health and wellbeing, including food, clothing, housing, medical care and necessary social services,and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood incircumstances beyond their control. Article 9 of the ICESCR recognises the right of everyone to social security and socialinsurance.
6 William Byrd “Afghanistan State Building-Sustaining Growth and Reducing Poverty”, World Bank, (2005)7 Report of the UNICEF Regional Policy Makers’ Symposium on Social Protection in South Asia, Dhaka April 2008.
Kathmandu: ROSA8 Ibid.
26 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
programme in 2003 to develop Afghan communities’ability to identify, plan and manage their developmentprojects. NSP aims at empowering communities totake decisions and manage resources during thewhole project cycle.
Implementing agency: Ministry of Public Worksand Ministry of Rural Rehabilitation and Developmentis responsible but lacks the capacity to implement itand relies on NGOs.
Delivery mechanism: NSP provides block granttransfers to bank accounts established by the CDCs.Portions of the block grant are released forprocurement and phased implementation of approvedsubprojects.
Value of the benefit: Block grants are calculatedat US$ 200 per family with an average grant of US$27,000 and maximum US$ 60,000 per community.The programme’s ultimate goal is to lay the foundationfor inclusive local governance, rural reconstruction,and poverty alleviation.
Cost and coverage: The NSP budget, from thebeginning of the programme until the end of Phase IIin mid-2010, is US$ 929 million (multi-donor funding).It will benefit 7,500 communities throughoutAfghanistan’s 34 provinces in local reconstruction anddevelopment.
Evaluations: In 2006, a World Bank mid-term reviewfound implementation progress “highly satisfactory”.A review by the University of York concluded that theNSP was a “central policy instrument for Afghan statebuilding and development”. The most importantachievement in this regard has been creation of amechanism for governance and decision making atthe local level. However, the security situation hasslowed the implementation of the programme.Dependence on external financial resources and thechallenge of ensuring appropriate service delivery atthe community level have been the majorshortcomings. Another evaluation of the programmewas being conducted at the time of writing.12
9 US$ 1.00 = 50 Afghanis10 Report of the Afghanistan Independent Human Rights Commission, Economic and Social Rights Report, Afghanistan III.
December 2008, p. 2911 Ibid.12 Information on the study is available at http://web.mit.edu/cfotini/www/NSP-IE. For further reference on the programme:
www.nspafghanistan.org
of the Afghanistan Independent Human RightsCommission states that “a person without a familyreceives 400 AFS (US$ 8)9 per month, while a personwith a family receives 500 AFS (US$ 10) per month.This does not allow persons with disabilities to liveabove the absolute minimum standard of US$ 1 aday and is insufficient in its ability to ensure anadequate standard of living”.10
Implementing Agency: Ministry of Labor, SocialAffairs, Martyrs and Disabled (MOLSAMD)
Targeting: Categorical
Delivery mechanism: The benefit is paid quarterlythrough banks usually situated in the provincialcapitals.
Geographic coverage: Nationwide
Cost and coverage: US$ 20 million annually. In2007, there were 68,043 households whose head ofhousehold had been killed during the years of conflictor who had a disability registered with MOLSAMD toreceive a monthly benefit.11
Evaluations: Misuses due to weak institutionalcapacity in monitoring eligibility for cash transfers,corruption of provincial courts, and falsedocumentation have been reported. Becausebeneficiaries must travel to banks to receive theirbenefits, which are deposited directly, thetransportation costs of those living in remote areascan exceed their benefits, which lowers the socialprotection effect since the poverty in remote areas isthe highest.
III. Cash For WorkNational Solidarity Program (NSP)Description: Block grantThe National Solidarity Program is a community-driven initiative that creates directly electedCommunity Development Councils (CDCs) anddisburses grants for development projects proposedby the CDCs. The Government introduced the
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 27
National Emergency Employment Programmefor Rural AccessDescription: Launched in 2002 with pilot roadmaintenance and rehabilitation projects, the NationalEmergency Employment Programme for Rural Access(NEEPRA) aims to provide particularly vulnerable ruralgroups with a social safety net based on cash forwork. The programme helps supply jobs in roadimprovement, which will in turn increase rural accessto services. The main beneficiaries of the project arethe rural poor who receive access to basic servicesand rural employment.
Implementing agency: Ministry of Public Works andMinistry of Rural Rehabilitation and Development. TheGovernment lacks the capacity to implement it andrelies on NGOs.13
Targeting: Self-targeting
Geography: Afghanistan’s 34 provinces
Cost: US$ 137 million, of which US$ 25 million by theGovernment of Afghanistan and the remainder by theWB and ILO.
Evaluations: The World Bank’s rating for theprogramme was “satisfactory”. Implementationchallenges and related lessons learnt are linked to
the volatile security situation and the frequent rotationof staff both at the national and donor levels. Around9,350 km of rural roads have been built through thisprogramme in 293 districts of Afghanistan’s 34provinces, as well as eight airfields. Approximately3,000 ex-combatants and rural poor have completedtheir work-based training in road construction and craftscombined with vocational training. Over 13 millionlabour-days have been generated since inception ofthe programme.14
IV. Food TransfersFood for Work Program (FFW)Description: FFW schemes provide food to Afghanswhile building or repairing community assets,including roads, bridges, schools, reservoirs andirrigation systems. Projects are agreed upon betweenthe Government and local communities.
Coverage: 2 million people worked under the schemein the first six months of 2008.
Evaluations: Participation is very limited among themost vulnerable (kuchis, nomads), but there are moreparticipants from urban areas. Participation rateamong the poor is higher than among the non-poor,but the latter receive higher wages. The scheme isnot active in the poorest provinces, probably becausethe possibility of participating is not well known.15
13 HPG Background Paper: C. A. Hofmann, “Cash transfer programmes in Afghanistan: A desk review of current policy andpractice”. June 2005
14 “World Bank provides further support to Afghanistan’s national rural access program.” Press release 13 December 2007.www.reliefweb.int/rw/RWB.NSF/db900sid/LSGZ-79VDL2?OpenDocument
15 See the Afghanistan Social Protection Strategy.
28 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Cat
egor
ical
. N
om
eans
-tes
ted.
Pai
d qu
arte
rlyth
roug
h th
e ba
nks
usua
lly s
ituat
ed i
nth
e pr
ovin
cial
capi
tals
.
Tra
nsfe
rs t
o a
bank
acc
ount
esta
blis
hed
by t
heC
om
mu
nity
Dev
elop
men
tC
ente
rs.
Por
tions
of b
lock
gra
nt a
rere
leas
ed f
orpr
ocur
emen
t and
phas
edim
plem
enta
tion
ofth
e ap
prov
ed s
ub-
proj
ects
.
Sel
f-ta
rget
ing
Old
-ag
e, d
isab
ility
and
su
rviv
ors
(as
wel
l as
sick
nes
s an
dm
ater
nit
y b
enef
its)
.C
ontr
ibut
ory
bene
fits
for
empl
oyed
per
sons
in p
rivat
e se
ctor
,co
oper
ativ
es,
soci
alor
gani
satio
ns, j
oint
ente
rpris
es, a
ndgo
vern
men
t.
Cas
h t
ran
sfer
s to
mar
tyrs
' fam
ilies
.Ta
rget
ed.
Nat
ion
al S
olid
arit
yP
rog
ram
(N
SP
).C
omm
unity
blo
ckgr
ants
.
Nat
ion
al E
mer
gen
cyE
mp
loym
ent
Pro
gra
mm
e f
or
Ru
ral A
cces
s. S
elf-
targ
etin
g an
dw
ides
prea
d so
cial
safe
ty n
et b
ased
on
cash
-for
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k. T
hepr
ogra
mm
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lps
supp
ly jo
bs in
roa
dim
prov
emen
t w
hich
will
in tu
rn in
crea
seru
ral a
cces
s to
serv
ice
s.
Peo
ple
aged
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r w
ith 2
5 ye
ars
ofco
ntrib
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n or
55
with
20 y
ears
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ribut
ion.
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mar
tyrs
and
indi
vidu
als
with
onl
yw
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nd la
nd m
ines
rela
ted
disa
bilit
ies.
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tbe
nefic
iarie
s 22
4,85
0co
nfli
ct v
ictim
sfa
mili
es;
87,7
17di
sabl
ed)
All
rura
l com
mun
ities
in A
fgha
nist
an.
Ext
rem
ely
vuln
erab
leru
ral g
roup
s
SO
CIA
LIN
SU
RA
NC
E
CA
SH
TR
AN
SF
ER
S
CA
SH
FO
RW
OR
K
US
$ 10
to
33,
depe
ndin
g on
the
num
ber
of a
ma
rtyr
s’ f
am
ilym
embe
rs a
nd th
ele
vel
of d
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ility
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cula
ted
atU
S$
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per
fam
ily w
ith a
nav
erag
e gr
ant
ofU
S$
27,0
00 a
ndm
axim
um U
S$
60,0
00 p
erco
mm
un
ity.
n.a.
n.a.
Afg
hani
stan
’s 3
4pr
ovin
ces
inlo
cal
reco
nstr
uctio
nan
dde
velo
pmen
t.
Afg
hani
stan
’s 3
4pr
ovin
ces
n.a.
7,50
0co
mm
uniti
es
n.a.
MO
LSA
MD
Min
istr
y of
Pub
licW
orks
and
Min
istr
y of
Rur
alR
ehab
ilita
tion.
The
gov
ernm
ent
lack
s th
eca
paci
ty t
oim
plem
ent
it an
dre
lies
on N
GO
s.
Min
istr
y of
Pub
licW
orks
and
Min
istr
y of
Rur
alR
ehab
ilita
tion.
The
gov
ernm
ent
lack
s th
eca
paci
ty t
oim
plem
ent
it an
dre
lies
on N
GO
s.
US
$20
mill
ion
annu
ally
.
As
ofN
ovem
ber
2007
, bl
ock
gran
tdi
sbur
sem
ents
tota
ling
US
$40
0 m
illio
nha
ve b
een
mad
e,fin
anci
ng16
,031
CD
Cs
with
30,
626
subp
roje
cts.
US
$ 13
7 m
illio
nof
whi
ch U
S$
25 m
illio
n by
the
Gov
ernm
ent
ofA
fgha
nist
an
Afg
hani
stan
Con
stitu
tion:
Art
icle
s 53
, C
h2;
Art
icle
54,
Ch.
2;as
wel
l as
Afg
hani
stan
Com
pact
Ben
chm
arks
.
Tabl
e 6:
AFG
HANI
STAN
Soci
al p
rote
ctio
n pr
ogra
mm
es
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
an
dD
escr
ipti
on
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/
Del
iver
ym
ech
anis
m
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 29
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
FO
OD
TR
AN
SF
ER
SF
oo
d f
or
Wo
rkP
rog
ram
. F
FW
sche
mes
pro
vide
food
to
Afg
hans
whi
lebu
ildin
g or
repa
iring
com
mun
ity a
sset
s,in
clud
ing
road
s,br
idge
s, s
choo
ls,
rese
rvoi
rs a
ndirr
igat
ion
syst
ems.
Pro
ject
s ar
e ag
reed
upon
bet
wee
n th
eG
over
nmen
t an
d lo
cal
com
mun
ities
.
Foo
d in
secu
repo
pula
tion.
(T
he 2
005
Nat
iona
l Ris
k an
dV
ulne
rabi
lity
Ass
essm
ent
foun
dth
at s
ome
6.6
mill
ion
Afg
hans
do
not
mee
tth
eir
min
imum
foo
dre
quire
men
ts.
Inad
ditio
n, a
roun
d40
0,00
0 pe
ople
eac
hye
ar a
re s
erio
usly
affe
cted
by
natu
ral
disa
ster
s, s
uch
asdr
ough
ts,
flood
s,ea
rthq
uake
s an
dex
trem
e w
eath
erco
nditi
ons.
)
WF
P A
sses
smen
t(V
AM
) The
200
5 &
2007
-200
8 N
atio
nal
Ris
ks a
ndV
ulne
rabi
lity
Ass
essm
ent
(NR
VA
) of
the
Min
istr
y of
Rur
alR
ehab
ilita
tion
and
Dev
elop
men
tas
sess
men
ts h
ave
also
con
trib
uted
to
the
targ
etin
g of
bene
ficia
ries.
n.a
.F
ood
inse
cure
area
s, b
ased
on
WF
P-
Gov
ernm
ent
asse
ssm
ent
Bet
wee
nJa
nuar
y an
dJu
ne 2
008,
2m
illio
n pe
ople
wor
ked
unde
rth
e sc
hem
e.
Min
istr
y of
Pub
lic W
orks
and
Min
istr
y of
Rur
alR
ehab
ilita
tion.
n.a.
30 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
General background
In Bangladesh the social protection system comprisessocial insurance and social assistance, as well asmany microfinance initiatives. Social protection is oneof the pillars of Bangladesh’s poverty reductionstrategy. The primary form of social protection is socialassistance, especially in the area of education wherethe Government has significantly increasedexpenditures over the last decade, as well as foodassistance and public works. The country has anextensive tradition of social safety nets, especiallyfood and in-kind transfers, of which relevant examplesare the Vulnerable Group Development Programme(VGD), ongoing since 1987, and the Food for WorkProgramme. Cash assistance is provided to helpfamilies enrol their children in school, to the elderly ordestitute women, and to other marginalised groups.A major income-generating programme is Challengingthe Frontiers of Poverty Reduction (CFPR).
Pensions have been in place since the 1970s, and anational policy to systematically guide Governmentaction in this area was introduced in 2006. TheGovernment provides two old-age pension schemes:
a contributory one for civil servants and a means-tested, non-contributory pension for older people (theold-age allowance).
Recent trends
The Government has been expanding cash transferprogrammes, including old age pensions, widowallowances and disability allowances. In 2007-2008there has been a 33 per cent
increase in expenditure on safety net programmesover the previous year’s budget, as well as increasesin coverage and in the amounts of transfers. As partof the its efforts to deal with the food crisis, theGovernment of Bangladesh has stressed theimportance of providing citizens with social protectionso that living standards would not deteriorate further.In its 2009 budget, the Government allocated over US$600 million in additional funds for food-based safetynet programmes, including US$ 300 million in the new100-Day Employment Generation Programme. It hasplanned to widen and deepen the social assistance
* UNICEF ROSA, South Asia Fiscal Budget database, 2008. The WB’s 2006 calculation includes all public interventions orientedto human capital and social risk management. The ADB’s 2008 calculation includes programmes to reduce poverty andvulnerability, including microcredit schemes.
BANGLADESH
Total Population155,991,000 (source: UNICEF ROSA, 2006)
Estimated Social Protection Expenditures as a % of GDP:0.23% (UNICEF ROSA), 1.1% (WB), or 5.3% (ADB)*
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 31
programmes by increasing the total number ofbeneficiaries and the rates of subventions. TheGovernment has also increased the budget for womenand child welfare and introduced an Allowance forLactating Mothers (Tk 216 million)16 as a new pilotprogramme.17
Recommendations and observations
Budget increases should be accompanied by effortsto improve targeting mechanisms, expand coverageand enhance inclusiveness of the programmes toensure that the most vulnerable benefit from them.The CFPR provides a good example of a programmedesign that effectively reaches the poorest and providesthem with assets to help them move out of povertyand vulnerability.18
Social insurance is regulated by the 2006 labour law,but coverage is minimal; it includes cash sicknessbenefits for some employees in the formal sector,some cash maternity benefits and medical benefits.To date, programmes have been implemented in theabsence of an overarching framework, and with mixedresults in terms of their impact on poverty alleviationand vulnerability reduction. Most studies agree thatthere are too many programmes in Bangladesh runby too many Government departments (including theMinistry of Social Welfare, the Ministry of Food andDisaster Management, the Ministry of Women andChildren’s Affairs), and thus large administrativeoverhead as well as many layers of decision making.Targeting failure and leakages have been observed,but often go undetected because of inadequatemonitoring. There is no universal and unconditionalprogramme, and limited coverage of urban andexcluded groups such as the disabled and streetchildren.
A 2006 World Bank study19 reviewed a range of safetynet programmes aimed at the different risk groups inBangladesh – the poor (the majority of the population),children, working-age adults, the elderly, the disabled,
widows, and other marginalised groups. The studyhighlights that over the last decade social protectionexpenditures have been fairly low and declining.Moreover, the number of people covered represents onlya fraction of those in need: social assistanceprogrammes like cash transfers, food transfers andpensions cover less than 10 per cent of the poor, andwhile it is difficult to compute the number of beneficiariesin any given year, it is estimated that these programmesreach only 4 to 5 million people.20 The ADB concludesthat coverage for the six key target groups ranges from22 per cent for the poor to between 10 and 12 per centfor children, the elderly, and the unemployed orunderemployed; 1.4 per cent for the sick and 0.2 percent for the disabled.21
Summary of programmes
I. Social insurance22
• Sickness benefit: The benefit is equal to 50 percent of wages for factory workers and 100 per centof wages for workers in shops, establishments,and large factories.
• Maternity benefit: A cash benefit, depending onthe level of the insured’s wages, is paid for sixweeks before and six weeks after childbirth.
• Workers’ medical benefits: A medical allowanceof Tk 100 per month is paid to workers whoseemployers do not provide medical facilities.
• Disability benefits and unemployment benefitsare small at present, but may be expanded.
Expenditures: Tk 64.89 million in 2002-2003 (lastavailable data)Administrative organisation: Ministry of Labor andManpower, Public Health Service
II. Social AssistanceOld-age Allowance Scheme (OAAS)Programme for Widows and Destitute Women(APWDW)Boishka Bhata social pension for low-incomehouseholds
16 US$ 1.00 = 69 Takas17 An Ordinary Citizen, Bdoza.wordpress.com/2008/06/23/Bangladesh-budget2008-09and-social-safety-net/18 A review conducted by David Hulme and Karen Moore (Brooks World Poverty Institute Working Paper No.01/2007) highlights
how the programme has improved the economic and social condition of the beneficiaries.19 Social Safety Nets in Bangladesh: An assessment, Bangladesh Development Series – Paper No. 9. The World Bank Office,
Dhaka, January 2006. Available online at www.worldbank.org.bd/bds20 Ibid. p. 1421 S. Ahmed and A. Rahman, Social Protection Index for Committed Poverty Reduction, chapter on Bangladesh, p. 622 http://www.ssa.gov/policy/docs/progdesc/ssptw/2006-2007/asia/bangladesh.html
32 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Description: OAAS targets the ten oldest and poorestmembers in each ward in each union (lowestadministrative unit). APWDW targets the five poorestwomen in each ward. Boishka Bhata is a noncontributory social pension for low-income householdsintroduced in 1998.23
Implementing agency: Social Welfare Directorateunder the Ministry of Social Welfare
Targeting: Categorical: low-income citizens aged 62and older, and destitute women. Funds distributed bylocal branches of the Government Sonali Bank (Tk180, paid quarterly). The Boishka Bhata monthlybenefit is 250 Taka and is directed to the 20 oldestand poorest people in each rural district.24
Coverage: 403,000 OAAS beneficiaries; 201,555APWDW beneficiaries
Cost: 0.03 per cent of GDP (combined cost). TheGovernment has recently increased the number ofwidowed, deserted and destitute women who willreceive an allowance and the value of the benefit (fromTk 220 to 250, approximately US$ 3.65). Theprogramme will cost US$ 39 million.
Evaluations: Research shows that the old-ageallowance is spent on basic needs such as food,healthcare and income-generating activities. In acountry where food insecurity is a worry to olderpeople, the allowance is a welcome source of incomeduring times of hardship.25 Analysis of household datafrom the 2000 Bangladesh Demographic and HealthSurvey indicates that 6.4 percent of households inthe lowest wealth quintile claimed benefits, 6.0 percent from the next, 2.5 per cent from the third, 0.8 percent from the fourth, and 0.2 per cent from the richest
quintile. There is a clear concentration of beneficiaryhouseholds in the lowest wealth quintiles.26
III. Cash for WorkProgrammed Initiative for the Eradication ofMonga (PRIME)Description: The programme was launched in 2006as an effort to eradicate monga, a seasonal fooddeprivation in the north-western part of Bangladesh.The programme benefits the poorest householdsthrough giving them seed money and linking them to‘protection nets’ whenever possible. Someinterventions under this programme are year-round andothers are time specific:i. cash for work for one monga season;ii. emergency credit;iii. consumption loans;iv. remittances services and specially designed
flexible credit support throughout the year;v. beneficiaries copying skills and resources for the
future.
Implementing agency: Palli Karma SahayakFoundation (PKSF), a microfinance (microcredit andcapacity building) umbrella organisation for 192 NGOsinvolved in micro-crediting
Geographic coverage: Northern Bangladesh
Evaluations: An evaluation conducted in 2007 inLalmonirhat upazila showed a considerable increasein the number who had three meals a day duringmonga after participating in the scheme. The cashflow substantially improved household welfare both inthe short- and in the long-term, by helping householdsavoid resorting to coping mechanisms that increasetheir future vulnerability, such as selling their assetsduring seasonal shocks.27
23 US Social Security Administration (SSA), Office of Retirement and Disability Policy. Social Security Programs Throughout theWorld: Asia and the Pacific, 2008. pp 51-52http://www.ssa.gov/policy/docs/progdesc/ssptw/2008-2009/asia/bangladesh.html
24 HelpAge International, 2009. Social Pensions in Bangladesh. Available at http://www.helpage.org/Researchandpolicy/PensionWatch/Bangladesh
25 See “Social Safety Nets in Bangladesh: An assessment”. Bangladesh Development Series – Paper No. 9. The World BankOffice, Dhaka, January 2006. Available online at www.worldbank.org.bd/bds. “The old-age assistance programme for thepoor elderly in Bangladesh”, Bangladesh Institute for Development Studies, May 2008. “Social Assistance Programme forDestitute Women in Bangladesh”, Bangladesh Institute for Development Studies, February 2008. A. Barrientos, Cash transfersfor older people to reduce poverty and inequality (2006), posted at: siteresources.worldbank.org/INTWDR2006/Resources/.../Cash_transfers_for_Older_People_Reduce_Poverty_and_Inequality.pdf –
26 Barrientos & Smith, Social Assistance in Low Income Countries, Version 1, March 2005. IDPM and CPRC, The University ofManchester, p.12
27 For further reference see R. Faridi and M.A. Baqui Khalily, “Impact of Prime Interventions at the Household Level” posted onwww.org.bd/sem_monga/document/summary/surhad.pdf
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 33
IV. Education-related TransfersBangladesh Female Secondary SchoolAssistance Program (FSSAP)Description: Cash grant, book allowances andexamination fee; tuition fees for all 5.2 million girls insecondary schools
The programme’s objectives are:i. to increase secondary school enrolment of girls
through continuing financial assistance;ii. to organise teacher education and training to
improve secondary education;iii. to create mass awareness about girls’ education
and engender social acceptance for it;iv. to provide special facilities for girls’ education in
inaccessible and disadvantaged areas;v. to make the environment of institutions safe,
healthy and attractive for girls by providing waterand sanitation facilities through increasedcommunity participation;
vi. to enhance the efficiency of project humanresources through training to ensure smooth andtimely implementation of programmes;
vii. to develop effective management system forsecondary education at the upazila level.
Implementing agency: Ministry of Education,Directorate of Secondary and Higher Education
Targeting: Categorical. All unmarried girls ofsecondary school age studying in recognisedsecondary level institutions (approximately 5.2 milliongirls). Beneficiaries must attend school for at leastthree fourths of the days in the school year, maintainacademic performance above a set minimum, andremain unmarried.
Geographic coverage: Nationwide. All secondaryschools & madrashas of 283 upazilas and allmadrashas of 19 upazilas of NORAD assisted FemaleSecondary Education Stipend Project (FSESP); 119selected upazilas of 61 districts of Bangladesh.
Value of benefit: Stipend between Tk 300 and 720,plus free tuition, book allowance, examination fees
Costs and coverage: US$ 40 million; over 4 millionbeneficiaries annually
Delivery mechanism: The stipend is transferred viathe commercial banking system to individual bankaccounts held in each girl’s name. Rural girls’ tuitionand examination fees are transferred directly toschools.
Evaluations: The programme has broken ground inaddressing girls’ access to education, and isrecognised worldwide as a pioneering undertaking. Asa result, the Government expanded the programmenationwide, and is now focusing on how to reacheconomically and geographically disadvantaged girls,as well as poor boys.• Female enrolment, as a percentage of total
enrolments, increased from 33 per cent in 1991to 48 per cent in 1997 and about 56 per cent in2005.
• Secondary School Certificate pass rates for girlsin the project area increased from 39 per cent in2001 to 58 per cent in 2006.
• 66,000 members of school managementcommittees have been trained in schoolmanagement accountability, with a focus oneducation quality and a conducive schoolenvironment.
• 6,666 schools – many more than originallytargeted – are participating in the programmethrough a cooperation agreement with the Ministryof Education.
• Indirect benefits of the project included delays inthe age of marriage and reduced fertility rates,better nutrition, and more females employed withhigher incomes.28
Primary Education Stipend Programme (PESP)Description: The programme provides conditionalcash transfers of Tk 100 per month to families withone child in primary school and Tk 125 per month tofamilies with two or more children. The main objectivesare to:i. increase the number of children from poor families
in primary school;
28 Source: Bangladesh Ministry of Education, data reported on the World Bank website:http://www.worldbank.org.bd/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/BANGLADESHEXTN/0,,contentMDK:21227882~menuPK:295791~pagePK:1497618~piPK:217854~theSitePK:295760,00.html
34 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
ii. increase attendance and reduce dropout;iii. increase the rate of completion;iv. control child labour;v. increase the quality of primary education.
Implementing agency: Department of PrimaryEducation, Ministry of Education
Targeting and delivery mechanism: An estimated5.5 million pupils from the poorest households whoare enrolled in eligible primary schools in rural areasof Bangladesh. The school managing committees, withthe assistance of teachers and approved by upazilaeducation officer, identify 40 per cent of pupils enrolledin grades 1-5 from the poorest households.Households of qualifying pupils will receive Tk 100per month for one pupil (not to exceed Tk 1200 annually)and Tk 125 per month for more than one pupil (not toexceed Tk 1500 annually) as long as the child attends85 per cent of school days and obtains at least 40 percent marks in the annual examination.
Geographic coverage: 469 rural upazilas
Cost and coverage: Tk 33,123 million annually, solelyGovernment of Bangladesh funded; over 5.3 millionbeneficiaries per annum.
Evaluations: The programme is the largest cashtransfer in the country, but the truly needy or thepoorest pupils may not always benefit. Reasons forbias are mainly methodological: identification occursat the school level, each school proposing 40 per centof its enrolment, which assumes that prevalence ofpoverty is evenly distributed across the country.Moreover, not all schools are eligible for the
programme; in order to be eligible a child must firstenrol in primary school but there is no guarantee thatthe poorest families will enrol their children.29
Cash for Education (since 2002; previously Food forEducation 1993-2002)30
Description: Provides cash transfers to householdswith children in poor areas on condition that childrenare enrolled at school and maintain a minimumattendance level. The objectives are to raise schoolenrolment and attendance rates, reduce child labourand reduce dropout rates in primary school.
Implementing agency: Ministry of Education
Targeting: Geographic targeting of poor unions(economically backward with low literacy rates) in poorthanas. Then categorical targeting of households withless than 0.5 acres or landless, heads of householdswho are day labourers, female heads of households,and low-income professions; community selection.
Value of benefit: Tk 90 per month, equivalent tonearly 4 per cent of total household expenditures forpoor households.
Cost and coverage: US$ 77 million in 2000
Evaluations: Evaluation results include a 9-17 percent rise in school enrolment and nearly full attendanceamong beneficiaries, with improvements in long-termopportunities for the children. One study found thatimprovement in school attendance did not result inproportionate reduction in child labour, suggesting areduction in free/play time.31
29 For further reference see: The Bangladesh Primary Education Stipend Project: A descriptive analysis. A study preparedunder the management and guidance of Carolyn Winter (World Bank). Posted at http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/03/29/000160016_20040329173239/Rendered/PDF/282570PAPER0BangladeshStipend.pdf
30 Barrientos and Holmes (2007), Social Assistance in Developing Countries Database31 Meng, X. and Ryan, J. 2003. “Evaluating the Food for Education Program in Bangladesh”, available at www.worldbank.org
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 35
V. Food TransfersVulnerable Group Development Programme(VGD) (since 1987; previously named VulnerableGroup Feeding)
Description: The programme is a food-based transferwith a complementary package of developmentservices. It aims to increase the market efficiency ofwomen by providing training, motivating savings forinitial capital accumulation, and providing scope forobtaining credit. It also aims to build social awarenesson disaster management and nutrition. Thecomplementary package of development services wasintroduced in 1988, including health and nutrition,education, literacy training, savings, and support inlaunching income-generating activities. It providesmonthly food rations for two years.
Implementing agencies: Ministry of Women andChildren Affairs, in partnership with World FoodProgramme and other bilateral donors
Targeting: The VGD cardholders are physically ablewomen aged 18-49, selected from the most vulnerableand poor households in the union. Their householdsmust meet at least four of the following five criteria,with those meeting all getting priority:i. chronic food insecurity (i.e., members of the
households often skip meals due to insufficient food);ii. household is landless or owns less than 0.15
acres of land;iii. housing conditions (material and sanitation
facilities) are very poor;iv. household survives on casual labour with low
income and does not have any other regularsource of income;
v. household headed by a woman or includes noadult male income earner.
Geographic coverage: National programme spreadacross 296 upazilas designated as food insecureregions according to WFP’s vulnerability and mappingsystem. The geographic targeting is managed by aUnion Parishad VGD Committee (comprised of male
and female agricultural extension workers, NGO staff,Union Parishad members and three VGD women),based on a wide range of categorical indicators.
Benefit: Each participant receives either 30 kg ofwheat or 25 kg of micronutrient-fortified whole wheatflour each month for a 24-month period. The averagemonthly transfer to beneficiaries is valued atapproximately Tk 41, around one fifth of averagemonthly expenditures.
Costs and coverage: On average US$ 40 million.The 2008-2009 budget will continue to distribute 30kg rice or wheat per head to 750,000 women, underthe VGD. It will also continue a monthly allowance ofTk 400 per head to an additional 40,000 underprivilegedwomen of eight northern districts. Including familymembers, a total of 3.75 million people across thecountry benefit from VGD.
Evaluations: WFP reports good results at improvingthe nutritional status of malnourished women andchildren. In-kind transfers have greatly increased wheatconsumption.32 A Chronic Poverty Research Centre(CPRC) working paper33 observes that in this type ofprogramme the process of targeting can be costlyand provide scope for bias and corruption. Theselection of participants draws on local knowledgeand administrative arrangements of local government.“The effectiveness and long-term success of theprogramme depends on whether the balance is infavour of accountability to communities or corruptionand bias to achieve the political goals of local UnionParishad elites”.34
Food for WorkDescription: Employment generation for the poor,mainly in the dry season, through infrastructurecreation and maintenance. It also aims at reducingfood insecurity.
Implementing agency: Run by a number ofMinistries; formally the coordination of the programmeis with the Ministry of Women’s and Children’s Affairs.
32 World Food Programme, home.wfp.org/stellent/groups/public/documents/liaison_offices/wfp190321.pdf33 “The politics of what works: the case of the Vulnerable Development Programme in Bangladesh”, December 2007. CPRC
Working Paper 92 Posted at www.cprc.abrc.co.uk/pubfiles/92Hossain.pdf34 ibid., p.3.
36 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Targeting: The functionally landless; those who lackproductive assets; generally female-headedhouseholds; day labour or temporary workers; thosewith income less than Tk 300 per month.
Geographic coverage: Rural areasCost and coverage: US$ 40 million; about 1,000,000participants annually
VI. Employment SchemesThese programmes combine social protection andcomplementary interventions.
Challenging the Frontiers of Poverty ReductionProgramme (CFPR)35
Description: The programme aims to build up theasset base of the poorest, beginning with transfer ofincome-generating assets, health and educationsupport, training, social development and laterintegrating with microcredit programmes. It includes:i. transfer of productive assets worth 8,000 to 13,000
Taka to the poorest households in northernBangladesh;
ii. intensive training and support in managing theseassets and stipends until income is generatedfrom the assets (Tk 300 per month);
iii. subsidised health and legal services;iv. the provision of water and sanitation; andv. the development of supportive community
networks via Village Poverty ReductionCommittees.
Implementing agency: Bangladesh RuralAdvancement Committee (BRAC)
Targeting: Geographical targeting based on povertymaps to select poorest areas, combined with proxymeans testing, followed by selection of villages usingBRAC’s local knowledge, participatory wealth-rankingexercises to identify locations in villages where thepoorest live, and finally ranking households on targetedindicators, later visually confirmed by BRAC staff.Targeting ensures identification of the poorest but isalso instrumental in developing partnerships with localcommunities.
Geographic coverage: Northern Bangladesh
Cost and coverage: Per household cost is US$ 300;70,000 households had been covered by 2006. Fundedby BRAC Donor Consortium (EC, DFID, CIDA, NOVIB,and WFP).
Evaluations: Targeting has been effective, with 98per cent of participants having food consumption belowthe poverty line at the baseline. “At a 2004-mid-termassessment study on the 2002 entrants and acomparison group, it was found that: (i) Programmeparticipants fared significantly better in nutrients andin overall calorie intake; (ii) 97% of participants reportedto be in ‘food deficit’ at the baseline, but this wasreduced to only 27% two years later. Thecorresponding figures for the comparison group of ultrapoor households were 82% at the baseline and 75%two years later; (iii) Severe malnourishment(MUAC<125mm) among under-5 children was reducedby 27 percentage points for participants but only 3percentage points for the comparison group; (iv) Aninitial asset transfer of US$ 100 per household in 2002led to asset value of US$ 300 in 2005”.36
Chars Livelihoods Programme (CLP)Description: The programme aims at halving extremepoverty and improving livelihood security in the riverineareas of Bangladesh by 2015. CLP provides thepoorest households with:i. income generating assets (13,000 Taka);ii. livelihoods interventions support, including a
monthly stipend for 18 months (approximately Tk300 per month);
iii. infrastructure development;iv. social development training;v. seasonal cash for work and safety nets; andvi. promotes enterprise to facilitate growth in
agricultural and non-farm sectors.
Targeting: Proxy means testing
Implementing Agency: Rural Development andCooperative Division under the Ministry of LocalGovernment, Rural Development and Cooperatives.
35 Main source: A. Barrientos and R. Holmes, Social Assistance in Developing Countries Database (2007). Available online athttp://www.chronicpoverty.org/2/partners-pages.php
36 Barrientos and Holmes , Social Assistance Database (2007) p.18. For further review of the programme see R. Holmes, J.Farrington, T. Rahman and R. Slater. “Extreme poverty in Bangladesh: Protecting and promoting rural livelihoods”. ODI ProjectBriefing No. 15, September 2008.
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 37
Geographic coverage: 150 riverine unions in 28 upazilain five districts
Cost: 50 million GBP for seven years 2004-2011
Evaluations: A descriptive paper was written 15months into the programme, but no formal evaluationhas been done to date.
100-Day Employment Generation ProgrammeDescription: Initiated in September 2008, this is anemployment generation programme for the chronicallypoor, seasonally unemployed people and marginalisedfarmers that will create 200 million worker-days ofemployment, with daily remuneration of Tk 100 perperson. To overcome the impact of global foodshortages and high prices of essential foodstuffs onthe poor and the lower middle class, it allocates the100 days for the rural unemployed poor across thecountry throughout the whole year and in particularduring mid-September to November and March - April.
Implementing agencies: Planning andimplementation is by the Ministry of Food and DisasterManagement, monitoring and evaluation by the M&EDivision at the Ministry of Planning.
Targeting: Proxy means testing, with beneficiariesselected according to the following criteria:i. Rural hardcore poor including marginal farmers
(owning < 0.5 acre of agricultural land) living inerosion, flood-prone, monga, haor-baor (wetlands/water-bodies) and char areas;
ii. unskilled, unemployed poor people who intend towork;
iii. those between 18 and 50 who have the nationallyissued Identity Cards;
iv. only one male or member from a family isconsidered for the programme;
v. people engaged in other safety net programmescannot be included in this programme.
Geographic coverage: Countrywide coverage (i.e.,in 64 districts), but preference will be given to theabovementioned challenged areas.
Cost and coverage: Tk 20 billion has been allocatedfor the programme in the current budget. Two millionpeople benefit directly and about ten million indirectly.
Evaluations: n.a.
38 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
SO
CIA
LIN
SU
RA
NC
E
SO
CIA
LA
SS
ISTA
NC
E
CA
SH
FO
RW
OR
K
•S
ickn
ess
and
mat
erni
tybe
nefit
s•
Dis
abili
ty b
enef
its•
Une
mpl
oym
ent
bene
fits
Old
-ag
e A
llow
ance
Sch
eme
(OA
AS
).Ta
rget
ed s
ocia
las
sist
ance
.
Pro
gra
mm
e fo
rW
ido
ws
and
Des
titu
te W
om
en.
Targ
eted
soc
ial
assi
stan
ce.
Bo
ish
ka B
hat
aso
cial
pen
sio
n f
or
low
-in
com
eh
ou
seh
old
s.Ta
rget
ed s
ocia
lss
sist
ance
.
PK
SF
Pro
gra
mm
edIn
itia
tive
fo
r th
eE
rad
icat
ion
of
Mo
ng
a (P
RIM
E).
Pov
erty
alle
viat
ion
and
cred
it th
roug
h:1
.ca
sh f
or w
ork
empl
oym
ent
oppo
rtun
ities
for
one
mon
gase
ason
;
Con
trib
utor
y be
nefit
s
Low
-inco
me
citiz
ens
aged
65
or o
lder
. H
alf
the
reci
pien
ts m
ust
bew
omen
. Add
ition
alcr
iteria
incl
ude
lack
of
land
or a
nnua
l inc
ome
belo
w 3
000
Taka
(US
$42
), c
hron
ic p
oor
heal
th a
nd in
abili
ty t
ow
ork.
Wid
ows
and
dest
itute
wom
en
The
eld
erly
, rur
al p
oor
The
poo
rest
hous
ehol
ds
Mea
ns-t
este
d.C
om
mu
nity
sele
ctio
n of
bene
ficia
ries.
Targ
ets
ten
olde
stan
d po
ores
tm
embe
rs in
eac
hw
ard
in e
ach
unio
n.
AP
WD
W t
arge
tsth
e 5
poor
est
wom
en in
eac
hw
ard.
The
20
olde
st a
ndpo
ores
t peo
ple
inea
ch d
istr
ict
Sel
f-ta
rget
ing
The
Tk
180/
mon
thpe
nsio
n is
pai
dqu
arte
rly.
Rec
ipie
nts
colle
ctth
eir p
ensi
onfr
om l
ocal
bran
ches
of
the
gove
rnm
ent-
run
Son
ali b
ank.
Eac
hre
cipi
ent h
as a
pass
book
and
the
Soc
ial
Wel
fare
Offi
ce k
eeps
are
gist
er w
ithsa
mpl
esi
gnat
ures
of
all
reci
pien
ts.
Tk
220
to 2
50m
onth
ly t
o ea
chgr
oup,
appr
oxim
atel
y3.
65 U
S$
Tk
250/
mon
th
n.a.
Nat
ionw
ide
4.48
8 U
nion
s ar
eco
vere
d.
Rur
alB
angl
ades
h
Nor
ther
nB
angl
ades
h
In 2
006,
1.3
2m
illio
n pe
ople
rece
ived
the
old-
age
allo
wan
ce. O
nav
erag
e ea
chye
ar a
mill
ion
elde
rly
rece
ive
the
pens
ion
out
of a
n ab
ove
60po
pula
tion
estim
ated
at
7.6
mill
ion.
n.a.
n.a
Min
istr
y of
Lab
oran
d M
anpo
wer
.P
ublic
Hea
lthS
ervi
ce.
Min
istr
y of
Soc
ial
Wel
fare
Min
istr
y of
Soc
ial
Wel
fare
Min
istr
y of
Soc
ial
Wel
fare
PK
SF
(Pal
liK
arm
a S
ahay
akF
ound
atio
n), a
mic
rofin
ance
(mic
rocr
edit
and
capa
city
bui
ldin
g)um
brel
laor
gani
satio
n fo
r19
2 N
GO
sin
volv
ed i
n m
icro
-cr
editi
ng.
64.8
9 m
illio
nTa
ka in
200
2-20
03
Fin
ance
d fr
omge
nera
lgo
vern
men
tre
venu
es.
The
2005
-200
6bu
dget
was
Tk
3.2
billi
on, w
ith1.
5 m
illio
nin
tend
edbe
nefic
iarie
s.A
ddin
g th
eA
PW
DW
prog
ram
me,
the
tota
l co
st r
ises
to 0
.03%
of
GD
P.
US
$ 39
mill
ion
Cur
rent
Lab
our
Law
(200
6)
Co
nst
itu
tio
n o
fB
ang
lad
esh
art
.15
(D
) (T
he r
ight
toso
cial
sec
urity
,th
at is
to
say,
to
publ
ic a
ssis
tanc
ein
cas
es o
fun
dese
rved
wan
tar
isin
g fro
mun
empl
oym
ent,
illne
ss o
rdi
sabl
emen
t, or
suffe
red
byw
idow
s or
orp
hans
or in
old
age
, or
inot
her
such
cas
es.)
Tabl
e 7:
BANG
LADE
SHSo
cial
pro
tect
ion
prog
ram
mes
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 39
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
2.
emer
genc
ycr
edit;
3.
cons
umpt
ion
loan
s;4
.re
mitt
ance
sse
rvic
es a
ndsp
ecia
llyde
sign
ed f
lexi
ble
cred
it su
ppor
tth
roug
hout
the
yea
r;5
.be
nefic
iarie
s'co
pyin
g sk
ills
and
reso
urce
s fo
r th
efu
ture
.
Ban
gla
des
hF
emal
e S
eco
nd
ary
Sch
oo
l Ass
ista
nce
Pro
gra
m.
Cas
hgr
ant,
book
allo
wan
ces
and
exam
inat
ion
fee;
tuiti
on f
ees
for
all
girls
in s
econ
dary
scho
ols.
Pri
mar
y E
du
cati
on
Sti
pen
dP
rog
ram
me.
Con
ditio
nal c
ash
tran
sfer
s to
fam
ilies
with
chi
ldre
n in
prim
ary
scho
ols.
Fam
ilies
re
ceiv
ebe
nefit
s as
long
as
the
child
atte
nds
85%
of
scho
ol d
ays
and
obta
ins
at le
ast
40%
m
arks
in t
hean
nual
exa
min
atio
n.
ED
UC
ATIO
N-
RE
LAT
ED
TR
AN
SF
ER
S
All
unm
arrie
d gi
rls o
fse
cond
ary
scho
ol a
gere
sidi
ng in
rur
al a
reas
,co
nditi
onal
on
(a)
atte
ndin
g sc
hool
for
at
leas
t 75
per
cent
of
the
days
in t
he s
choo
lye
ar;
(b)
mai
ntai
ning
acad
emic
perf
orm
ance
abo
ve a
set
min
imum
; an
d (c
)re
mai
ning
unm
arrie
d.
An
estim
ated
5.5
mill
ion
pupi
ls f
rom
the
poor
est h
ouse
hold
sen
rolle
d in
elig
ible
prim
ary
scho
ols
in a
llru
ral a
reas
of
Ban
glad
esh
(469
upaz
illas
).
Cat
egor
ical
The
sch
ool
man
agin
gco
mm
ittee
s w
ithth
e as
sist
ance
of
teac
hers
and
appr
oved
by
upaz
ila e
duca
tion
off
ice
r id
en
tify
40%
of
pupi
lsen
rolle
d in
gra
des
1-5
from
the
poor
est
hous
ehol
ds.
Tk
300
- 72
0st
ipen
d; f
ree
tuiti
on;
book
allo
wan
ce;
exam
inat
ion
fees
. T
he s
tipen
dis
tra
nsfe
rred
dire
ctly
to
indi
vidu
al b
ank
acco
unts
in
each
girl
’s n
ame.
The
pro
gram
me
also
tra
nsfe
rsru
ral g
irls’
tuiti
onan
d ex
amin
atio
nfe
es d
irect
ly t
osc
hool
s.
Tk
100/
mon
th t
ofa
mili
es w
ith o
nech
ild in
prim
ary
scho
ols
and
Tk
125/
mon
th t
ofa
mili
es w
ith t
wo
or m
ore
child
ren.
Nat
ionw
ide.
All
seco
ndar
ysc
hool
s &
mad
rash
as o
f28
3 up
azila
s an
dal
l mad
rash
as o
f19
upa
zila
s of
NO
RA
D-
assi
sted
Fem
ale
Sec
onda
ryE
duca
tion
Stip
end
Pro
ject
(FE
SP
).
Rur
alB
angl
ades
h
Ove
r 4
mill
ion
bene
ficia
ries
annu
ally
. 66
,000
mem
bers
of
scho
olm
anag
emen
tco
mm
ittee
sha
ve b
een
trai
ned
in s
choo
lm
anag
emen
tac
coun
tabi
lity,
with
a f
ocus
on
educ
atio
nqu
ality
and
aco
nduc
ive
lear
ning
sch
ool
envi
ronm
ent.
• 6
,666
sch
ools
– m
any
mor
eth
an o
rigin
ally
targ
eted
.
Ove
r 5.
3 m
illio
nbe
nefic
iarie
spe
r ann
um
Min
istr
y of
Edu
catio
n.D
irect
orat
e of
Sec
onda
ry a
ndH
ighe
r E
duca
tion.
Dep
artm
ent
ofP
rim
ary
Edu
catio
n,M
inis
try
ofE
duca
tion
I) T
otal
: 5
,029
.86
mill
ion
Taka
.II)
GO
B :
5,02
9.86
mill
ion
Taka
.G
OB
Gra
nt :
5,02
9.86
mill
ion
Taka
II) I
n 20
00 t
heco
st w
as 1
5%of
sec
onda
rysc
hool
gove
rnm
ent
expe
nditu
rean
d 6%
of
educ
atio
nbu
dget
.
Tk
6.6
billi
on in
2002
-200
3
40 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
Cas
h f
or
Ed
uca
tio
n.
Cas
htr
ansf
ers
toho
useh
olds
with
child
ren
in p
oor
area
s on
con
ditio
nth
at c
hild
ren
are
enro
lled
at s
choo
lan
d ha
ve a
min
imum
atte
ndan
ce l
evel
.
Vu
lner
able
Gro
up
Dev
elo
pm
ent
Pro
gra
mm
e (V
GD
).In
-kin
d w
heat
tra
nsf
er.
Com
plem
enta
rypa
ckag
e of
deve
lopm
ent
serv
ices
inc
ludi
nghe
alth
and
nut
ritio
n,ed
ucat
ion,
lite
racy
trai
ning
, sa
ving
s an
dsu
ppor
t in
laun
chin
gin
com
e-ge
nera
ting
activ
ities
. M
onth
lyfo
od r
atio
ns f
or t
wo
yea
rs.
Fo
od
-fo
r-W
ork
.E
mpl
oym
ent
gene
ratio
n fo
r th
epo
or m
ainl
y in
the
dry
seas
on t
hrou
ghin
fras
truc
ture
crea
tion
and
mai
nten
ance
. It
also
aim
s at
red
ucin
gfo
od i
nsec
urity
.
FO
OD
TR
AN
SF
ER
S
The
poo
rest
hous
ehol
ds
Phy
sica
lly s
ound
,ex
trem
ely
poor
wom
en 1
8-49
.S
elec
ted
from
the
mos
t vu
lner
able
and
poor
hou
seho
lds
inth
e un
ion
base
d on
4of
the
fol
low
ing:
chro
nic
food
inse
curit
y; h
ouse
hold
owni
ng n
o la
nd o
r le
ssth
an 0
.15
acre
s;ho
usin
g co
nditi
ons;
no
regu
lar
sour
ce o
fea
rnin
g; f
emal
e-he
aded
hou
seho
ld.
Fun
ctio
nally
lan
dles
s;la
ck o
f pr
oduc
tive
asse
ts;
gene
rally
fem
ale-
head
edho
useh
olds
; da
yla
bour
or
tem
pora
ryw
orke
rs;
inco
me
less
than
Tk
300/
mon
th.
Geo
grap
hic
targ
etin
g of
poo
rU
nion
s(e
cono
mic
ally
back
war
d w
ith lo
wlit
erac
y ra
tes)
in
poor
Tha
nas.
The
nca
tego
rical
targ
etin
g of
hous
ehol
ds w
ithle
ss t
han
0.5
acre
sor
land
less
, hea
dsof
hou
seho
lds
who
are
day
labo
urer
s,fe
mal
e he
ads
ofho
useh
olds
, and
low
inco
me
prof
essi
ons.
Co
mm
un
ityse
lect
ion.
Geo
grap
hic
targ
etin
g m
anag
edby
Uni
on P
aris
had
VG
D C
omm
ittee
s(c
ompr
ised
of
mal
ean
d fe
mal
eag
ricul
tura
lex
tens
ion
wor
kers
,N
GO
sta
ff, U
nion
Par
isha
d m
embe
rsan
d th
ree
VG
Dw
omen
) bas
ed o
n a
wid
e ra
nge
ofca
tego
rical
indi
cato
rs.
Taka
90/
mon
th,
equi
vale
nt t
one
arly
4%
of
tota
l hou
seho
ldex
pend
iture
s fo
rpo
or h
ouse
hold
s.
Par
ticip
ants
rece
ive
eith
er30
kg o
f w
heat
or
25kg
of
mic
ronu
trie
nt-
fort
ified
who
lew
heat
flo
ur e
ach
mon
th f
or 2
4m
onth
s. A
vera
gem
onth
ly t
rans
fer
to b
enef
icia
ries
was
appr
oxim
atel
y T
k41
, aro
und
20%
of a
vera
gem
on
thly
expe
nditu
res.
Poo
r uni
ons
acro
ss t
heco
un
try
VG
D c
over
sab
out 7
50,0
00ul
tra-
poor
rura
lw
omen
(fe
mal
e-he
aded
hous
ehol
ds)
that
are
vuln
erab
le to
chro
nic
cris
is in
480
upaz
ilas
inal
l 64
dis
tric
ts o
fB
angl
ades
h.To
tal c
over
age
570,
000
hous
ehol
ds.
Rur
alB
angl
ades
h
Nat
iona
lav
erag
e of
2.8%
; li
mite
dre
ach
to t
heex
trem
e po
or.
3.75
mill
ion
peop
le a
cros
sth
e co
untr
y
Abo
ut1,
000,
000
part
icip
ants
annu
ally
.P
rovi
ded
abou
t75
,000
,000
hour
s of
wor
k in
2003
-200
4.
Min
istr
y of
Edu
catio
n
Min
istr
y of
Wom
en a
ndC
hild
ren
Affa
irs,
Wor
ld F
ood
Pro
gram
me
and
othe
r bila
tera
ldo
nors
Run
by
a nu
mbe
rof
Min
istr
ies.
For
mal
ly t
heco
ordi
natio
n of
the
prog
ram
me
isw
ith t
he M
inis
try
of W
omen
’s a
ndC
hild
ren’
sA
ffa
irs.
US
$ 77
m in
2000
At
its p
eak,
the
annu
al s
ubsi
dyw
as U
S$
54m
illio
n.D
istr
ibut
ion
of30
kg
rice
orw
heat
per
hea
dto
750
,000
wom
en w
illco
ntin
ue w
ithth
e 20
08-2
009
budg
et, a
s w
ill a
a m
onth
lyal
low
ance
of T
k40
0 pe
r he
ad to
an a
dditi
onal
40,0
00un
derp
rivile
ged
wom
en o
f 8
nort
hern
dist
rict
s.
US
$ 40
mill
ion
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 41
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
EMPL
OYM
ENT
SC
HE
ME
SC
hal
len
gin
g t
he
Fro
nti
ers
of
Po
vert
y R
edu
ctio
nP
rog
ram
me
(CF
PR
). B
uild
s t
heas
set
base
of
the
poor
est,
begi
nnin
gw
ith t
rans
fer
ofin
com
e-ge
nera
ting
asse
ts,
heal
th a
nded
ucat
ion
supp
ort,
trai
ning
, so
cial
deve
lopm
ent
and
late
r int
egra
ting
mic
rocr
edit
prog
ram
mes
.
Ch
ars
Liv
elih
oo
ds
Pro
gra
mm
e (C
LP
).A
ims
at h
alvi
ngex
trem
e po
vert
yan
d im
prov
ing
livel
ihoo
d se
curit
y in
river
ine
area
s by
2015
.
100-
Day
Em
plo
ymen
tG
ener
atio
nP
rog
ram
me
Poo
rest
peo
ple
The
poo
rest
hous
ehol
ds
Rur
al c
hron
ical
ly p
oor
livin
g in
the
riv
erer
osio
n, f
lood
pro
ne,
mon
ga (s
easo
nal
fam
ine)
, hao
r-ba
or(w
etla
nds/
wat
er-
bodi
es) a
nd c
har
area
s w
ho re
mai
nun
empl
oyed
gen
eral
lyfo
r 5
mon
ths
from
mid
-Sep
tem
ber t
oN
ovem
ber
and
Mar
chto
Apr
il.
70,0
00 h
ouse
hold
s(2
006)
. Sta
rts
with
map
s to
sel
ect
poor
est
area
s, t
hen
sele
ctio
n of
villa
ges
usin
gB
RA
C’s
loca
lkn
owle
dge,
part
icip
ator
y w
ealth
rank
ing
exer
cise
sto
ide
ntify
whe
reth
e po
ores
t liv
e;ra
nkin
g ho
useh
olds
on ta
rget
ing
indi
cato
rs,
late
rvi
sual
ly c
onfir
med
by
BR
AC
sta
ff.
The
rura
lch
roni
cally
poo
r;un
skill
edun
empl
oyed
peo
ple
betw
een
18 a
nd 5
0w
ith n
atio
nal
Iden
tity
Car
ds.
Onl
y on
e fa
mily
mem
ber
can
beco
nsid
ered
for
the
prog
ram
me.
Peo
ple
enga
ged
inot
her
safe
ty n
etpr
ogra
mm
esca
nnot
be
incl
uded
.
Tra
nsfe
r of
prod
uctiv
eas
sets
wor
th8,
000
to 1
3,00
0Ta
ka to
the
poor
est
hous
ehol
ds in
nort
hern
Ban
glad
esh;
trai
ning
inm
anag
ing
thes
eas
sets
and
ada
ily s
tipen
d un
tilth
e as
sets
gene
rate
Tk
300/
mon
th o
fin
com
e.
i. in
com
ege
nera
ting
asse
ts (
13,0
00Ta
ka);
ii. l
ivel
ihoo
dsin
terv
entio
nssu
ppor
t inc
lude
sa
Tk
300/
mon
thst
ipen
d fo
r 18
mon
ths;
iii.
infr
astr
uctu
rede
velo
pmen
t;iv
. so
cial
deve
lopm
ent
trai
ning
;v.
sea
sona
l ca
shfo
r w
ork
and
safe
ty n
ets
.
Nor
ther
nB
angl
ades
h
150
river
ine
unio
ns in
28
upaz
ila in
5di
stri
cts
Cou
ntry
wid
e, b
utpr
efer
ence
to
peop
le li
ving
inth
e riv
er e
rosi
on,
flood
pro
ne,
mon
ga (s
easo
nal
fam
ine)
, ha
or-
baor
(wet
land
s/w
ater
-bod
ies)
and
char
are
as.
70,0
00ho
useh
olds
cove
red
by20
06.
Tw
o m
illio
npe
ople
dire
ctly
and
abou
t ten
mill
ion
indi
rect
ly.
Ban
glad
esh
Rur
alA
dvan
cem
ent
Com
mitt
ee(B
RA
C).
Fun
ded
by B
RA
C D
onor
Con
sort
ium
(E
C,
DF
ID,
CID
A,
NO
VIB
, and
WF
P)
Rur
alD
evel
opm
ent
and
Coo
pera
tive
Div
isio
n un
der
the
Min
istr
y of
Loca
lG
over
nmen
t,R
ural
Dev
elop
men
tan
dC
oope
rativ
es
Pla
nnin
g an
dim
plem
enta
tion
isby
the
Min
istr
yof
Foo
d an
dD
isas
ter
Man
agem
ent.
Mon
itorin
g an
dE
valu
atio
n by
the
M&
E D
ivis
ion
(IM
ED
) at
the
Min
istr
y of
Pla
nnin
g.
$ 30
0 pe
rho
useh
old
50 m
illio
n G
BP
for
seve
nye
ars
2004
-20
11
Taka
20,
000
mill
ion
has
been
allo
cate
d in
the
budg
et.
42 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
General background
Bhutan has a social insurance system but no socialassistance programmes. The Government’s efforts tomake free education and free health servicesuniversally available are impressive in the South Asiancontext, but do not constitute social protection assuch.
Civil servants and military personnel are covered bypension and disability benefits, but in the absenceof a formal social protection system and safety nets,most Bhutanese rely on traditional systems of inter-household transfers in cash or kind, family support,migration, and borrowing.
Recommendations and observations
Demographic and economic changes are makingtraditional family systems less reliable as sourcesof support, and some groups such as the elderly oryouth may become increasingly vulnerable to poverty.
Summary of programmesI. General:• Death benefit covering funeral expenses for every
citizen.
II. Social Insurance:Beneficiaries: civil servants and employees ofGovernment and joint-sector corporations
National Pension and Provident Fund Plan(member’s pension benefit, permanent disabilitybenefit, and surviving family benefit)• I Tier- National Pension:
> Partially funded pay-as-you-go-defined benefitpension plan.
> Financing comes from employeecontributions (5 per cent of the monthly payof a member) matched by employer.
> The Government is committed to supportingany future finance deficit.
* UNICEF ROSA, South Asia Fiscal Budget database, 2008. The WB’s 2006 calculation includes all public interventions orientedto human capital and social risk management. The ADB’s 2008 calculation includes programmes to reduce poverty andvulnerability, including microcredit schemes.
BHUTAN
Total Population635,000 (source: UNICEF ROSA, 2006)
Social Protection Expenditures as a % of GDP:1.4% (ADB) - 2.0% (UNICEF ROSA)*
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 43
• II Tier- National Provident Fund Plan:> Defined contribution scheme payable as lump
sum upon retirement.> Contributes 3 – 5 per cent of monthly salary
with matching contribution from the employer.
Gratuity scheme• Based on number of years of service and last
monthly salary• Financed out of general revenue for civil servants• The benefit is given in a lump sum upon retirement
from service• The benefit is limited to a maximum of Nu
300,000.37
37 US$ 1.00 = 46.10 Ngultrum
Group insurance schemes also exist, but are limitedin scope at present.
Beneficiaries: Armed Forces• Pension and provident fund scheme; gratuity and
group savings cum insurance scheme
Beneficiaries: Formal Private Sector Employees• The formal private sector in Bhutan covers roughly
one per cent of the total labour force.> Formal private sector employees are covered
under a provident fund scheme, a gratuityscheme, and a group savings cum insurancescheme.
44 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
General background
India has a comprehensive and extensive system ofsocial security that was introduced at independenceand has since seen a long evolution. Manyprogrammes are implemented nationally or at statelevel and may be funded jointly or wholly state funded.38
The first poverty alleviation schemes were introducedin the 1960s. The ‘food programme’ of the timecombined land reforms, new agricultural technologiesand crops with an extensive rural employmentscheme. It provided food for work in selected areasalong with employment generation schemes and theIntegrated Rural Development Program (IRDP) to createassets for the landless.39 A limited form of socialinsurance had existed since 1971 with the FamilyPension Scheme, which ceased to exist when theEmployee Pension Scheme was introduced in 1995.In 1995, the Government took a significant step
towards fulfilling the constitutionally guaranteed rightto social security (enshrined in Article 41 of the IndianConstitution, which guarantees public assistance inold age)40 by launching the National Social AssistanceProgramme, the first comprehensive, pro-poorGovernment-managed scheme.
There are a number of large national social assistanceprogrammes. They include the food distribution systemproviding subsidised rice to the poor, labour market/microcredit programmes designed to provide food forwork and generate employment especially in rural areas(Sampoorna Grameen Rozgar Yojana, Swarna JayantiShahari Rojgar Yojana) and Food for Work Programme,mother and child protection (Integrated ChildDevelopment Service Scheme), housing for the poor(Indira Awas Yojana as part of the Jawahar RojgarYojana, reviewed below) and social assistance transfers.
* UNICEF ROSA, South Asia Fiscal Budget database, 2008. The WB’s 2006 calculation includes all publicinterventions oriented to human capital and social risk management. The ADB’s 2008 calculation includesprogrammes to reduce poverty and vulnerability, including microcredit schemes.
38 Asian Development Bank Social Protection Index for Committed Poverty Reduction Volume 9. India Country Report – FinalNovember 2007. Halcrow China, p.4
39 Ibid., p. 1540 S. Irudaya Rajan, “Chronic Poverty Among the Indian Elderly” in A.K. Mehta and A. Shepherd, Chronic Poverty and
Development Policy in India, p.189
INDIA
Total Population (thousands, 2006):1,151,751 (Source: ROSA)
Estimated Social Protection Expenditures as a % of GDP:1.0% (UNICEF ROSA), 4.0% (ADB), 4.4% (WB)*
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 45
India has a long experience with labour-intensive publicworks, starting with the Employment GuaranteeScheme of Maharashtra (EGS) since 1972/73. At thenational level, since 1989 there have been JawaharRojgar Yojana (JRY), Employment Assurance Scheme(EAS), Complete Village Rural EmploymentProgramme (SGRY) and the most recent innovation,the National Rural Employment Guarantee Scheme(NREGS) introduced in 2005. These programmesgenerally seem to be well targeted to the poor andhave impacted income and unemployment rates. Theirindirect or secondary benefits include impact onagricultural growth, upward pressure on agriculturalwages, mobilisation of rural poor as a political force,and empowerment of women.
Finally there are a number of community-based andNGO initiatives. For example, 54 NGO andcommunity-based programmes cover around 5 millionworkers (4 per cent of total workers). These areconcentrated in three southern states (16 in A.P., 8 inKarnataka, 12 in Tamil Nadu), and most started in the1990s or later.
Recent trends
In general, India seems to be moving from a top-downapproach to social protection characterised by lackof people’s participation to new approaches on socialmobilisation, participation, involvement of civil societyorganisation and decentralisation, and the right toinformation. The decentralisation process is alsogeared to increasing accountability.41
Reflecting the strong commitment to expanding socialsecurity coverage expressed in the Common MinimumProgramme of the United Progressive Alliance of thecoalition government, the Government has recentlybeen developing policies and programmes in responseto the gaps in coverage and the needs of householdsin the unorganised sector. The current Governmentdevelopment plan states a commitment toinstitutionalise programmes as legal rights, expandexisting interventions, and expand social protectioncoverage to the large unorganised sector.42
Recommendations and observations
Currently, India faces the challenge of improvingpension coverage, as only about a fifth of the formal-sector labour force is covered. Of the total earningworkforce of 450 million, 85 per cent (about 380 million)work in sectors other than the formal private sectorand the Government and are usually classified asbelonging to the unorganised sector.43 The Governmenthas responded to this problem with the recentlyapproved Bill for the Social Security of the UnorganisedSector Workers. Various ideas are being consideredfor financing the expansion of coverage to theunorganised sector, including a surcharge on incometaxes, finding resources from existing tax revenues,and/or using earmarked product-group/trade-basedtaxes.44
Summary of programmes
I. Social InsuranceFormal social insurance schemes covering health,pensions and other benefits are available to themajority of those working in the formal sector, publicor private. These schemes, however, cover only aboutten per cent of the population. India’s social securitysystem has seven components – the Employees’Provident Fund Organisation (EPFO) schemes, thecivil service schemes, the schemes of publicenterprises, superannuation plans of the corporatesector, voluntary tax advantaged schemes, socialassistance schemes, and micro-pension schemes.Social insurance takes up about 60 per cent of overallsocial protection expenditures.45
• Employees’ Pension Scheme: The Employees’Pension Scheme was introduced in 1995 by theEPFO, Ministry of Labour. The scheme includesthe following benefits: superannuation on attainingage 58; retirement; permanent total disablement;death during service; death after retirement/superannuation/permanent, total disablement;children pension; orphan pension. Membersbecome eligible on attaining age 58 with aminimum ten years’ contributory service. The
41 M. Dev “Individual Shocks and Social Protection in South Asia” (Special Reference to India); posted at info.worldbank.org/etools/docs/library/233761/Mahendra%20Individual%20Shocks.pdf.
42 World Bank, Project Information Document, concept note. Project title: Public works programs in India (October 2008)43 M. G. Asher, “Pension Reform in India”. National University of Singapore; p.2244 S. Mehrotra, Government of India, Costs and financing of a social insurance in India, presentation at the UNICEF ROSA
Regional Symposium on Social Protection, Dhaka, April 200845 ADB, SP Index for Committed Poverty Reduction, p. 57
46 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
scheme is financed by transferring 8.33 per centof the Provident Fund contribution from theemployees’ share and by 1.16 per cent of basicwages contributed by the Central Government.All accumulations in the defunct Family PensionFund constitute the corpus of the Pension Fund.46
• Employees’ State Insurance Scheme (ESIS):The ESI Act (1948) applies to non-seasonalfactories using power and employing 10 or morepersons, and non-seasonal and non-power-usingfactories and establishments employing 20 or morepersons. Employees of covered units andestablishments drawing wages up to Rs 7,50047
per month come under the purview of the Act formulti-dimensional social security benefits.
Only 11.5 per cent (37 million) of India’s paid workforceis covered under pensions. The remaining 284 milliondo not have any formal social security coverage.48 Ofthese, 22 million are Government employees whobenefit from a civil service defined pension scheme;15 million workers are estimated to be covered underdefined-contribution employee provident funds. Formalsector employers with at least 20 employees arerequired to join the EPFO, which offers both definedbenefit and defined contribution schemes. Thesevarious components are supervised and regulated bydifferent agencies, with little coordination. Otherschemes include benefits for sickness and maternity,work injury, and unemployment; Government/civilservice social insurance schemes; and the LifeInsurance Corporation (LIC) of India Pension Scheme.
II. National Social Assistance ProgrammeCost: The cumulative cost for the three programmesdescribed below is Rs 14.3 billion; since 1995, entirelycentrally sponsored.
Delivery mechanism: Pensions are credited directlyto the account of the beneficiary in a post office orbank.
National Old-Age Pension Scheme (NOAPS)Description: NOAPS provides an unconditional cashpayment to destitute elderly (65 or older) who do nothave any regular means of subsistence. The benefitis Rs 450 in two instalments.
Implementing agency: Ministry of Labour andEmployment; jointly administered by the CentralGovernment and the various state governments
Targeting: Categorical (65 or older) and means-tested
Delivery mechanism: The district official in chargeof coordinating the programme is responsible forprocessing applications for benefits and for arrangingdisbursal of the benefits, which may adopt variousmodes including cash disbursement.
Geographic coverage: Nationwide
Coverage: One fourth of India’s elderly receive somesocial assistance from the state-level pensionschemes or from the National Old-Age PensionScheme.
Evaluations: A 2006 baseline survey carried out byHelpAge and partner organisations in some of India’spoorest districts revealed that 84 per cent of the elderlywere not aware of their rights. A few years before,another HelpAge study in Uttar Pradesh found thatlimits on the funding available for the programmeprovided a disincentive for Government officials topublicise it. It appears that criteria for eligibility arepoorly understood, and the registration and selectionprocesses are complex and time consuming. Inaddition, the delivery of benefits is erratic.49
National Maternity Benefit SchemeDescription: Provides lump sum cash assistance topregnant women in households living below the povertyline subject to the following conditions:
46 Ibid., p 2247 US$ 1.00 = 46.10 Rupees48 World Bank, Pension at a Glance, Asia and the Pacific, 2008, p. 8449 HelpAge news, Vol. 5 No.2, July-September 2006. See also: Rajan, S.I. [2001] “Social Assistance for Poor Elderly: How
Effective?” Economic and Political Weekly XXXVI (8): 613-617 HelpAge International [2003] Non-contributory pensions inIndia: A case study of Uttar Pradesh, London: HAI.
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 47
i. restricted to pregnant women for up to the firsttwo live births provided that they are 19 years ofage or above;
ii. beneficiaries should belong to a household livingbelow the poverty line;
iii. the ceiling on the benefit for the purpose of claimingcentral assistance should be Rs 500 (approx.US$ 12)
The benefit is disbursed in two instalments 12-8 weeksprior to delivery.
Implementing agency: Ministry of Labour andEmployment; jointly administered by the CentralGovernment and the various state governments
Geographic coverage: Nationwide
Targeting : Categorical and means-tested
Delivery mechanism: The district official in chargeof the programme processes applications for benefitsand arranges disbursal of the benefits, which mayadopt various modes including cash disbursement.
Coverage: In 2000, 1.2 million beneficiaries
Evaluations: Benefits are reaching the target group,but more care is needed in areas like selection ofbeneficiaries and timely disbursal of benefits so theycan better benefit mothers and babies. There are someleakages to non-poor families. Overall, the scheme isreported to be benefiting socially and educationallybackward poor women.50
National Family Benefit Scheme (part of theNational Social Assistance Programme)
Description: To provide benefits to the household incase of death of primary earner (defined as the memberof the family whose earnings contribute substantiallyto the total household income).
Implementing Agency: Ministry of Labour andEmployment; jointly administered by the CentralGovernment and the various state governments
Geography: Nationwide
Targeting: The death of the primary breadwinner dueto natural or accidental causes should have occurredwhile he or she was aged 18 to 62. The family benefitis paid to surviving members of the household of thedeceased head of household.
Coverage: In 2006-2007 a total of 9.3 million peoplein 30 districts
Value of benefit: Lump sum of Rs 10,000
Evaluations: Monitoring and evaluation is by theMinistry of Rural Development. One evaluation reportedthat “only a small proportion of the total beneficiarysamples felt that the scheme had in a way brought asense of security to life although the majority ofbeneficiaries studied were satisfied with the benefitthey received. The evaluation suggests that care hasto be taken for better and efficient implementation ofthe scheme especially in selection of beneficiaries,sanctioning of applications, and timely disbursementof benefits to the beneficiaries”.51 Difficulties inobtaining benefits, corruption, and delays in transfersare key challenges to implementing the scheme.52
III. Cash for WorkJawahar Rojgar Yojana (JRY) (JawaharEmployment Scheme)53
Description: JRY is a poverty alleviation schemeamalgamating two wage employment programmes,National Rural Employment Program (NREP) and RuralEmployee Guarantee Program (REGP). JRY includestwo sub-schemes, the Indira Awas Yojana (IAY), ahousing programme, and the Million Wells Scheme(MWS). The programme aims at providing food and
50 For further reference: Ministry of Rural Development, Executive Summary of National Social Assistance Programme,Government of India. Posted at: http://www.drd.nic.in/jry2/esnsap.htm National Social Assistance Programme. Posted at: http://rural.nic.in/book00-01/ch-7.pdf
51 A. Barrientos, R. Holmes; Social Assistance in Developing Countries. Database. Version 3.0 July 200752 For further reference: Ministry of Rural Development, Executive Summary of National Social Assistance Programme,
Government of India. http://www.drd.nic.in/jry2/esnsap.htm; National Social Assistance Programme, Posted at: http://rural.nic.in/book00-01/ch-7.pdf; Ministry of Rural Development, National Social Assistance Programme: Introduction,Government of India. Posted at: http://rural.nic.in/nsap.htm
53 A. Barrientos and R. Holmes, “Social Assistance in Developing Countries Database”, Chronic Poverty (July 2007)
48 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
cash to stave off poverty, mainly in rural areas. JRYoffers a legitimate minimum wage for unskilled labour,which is generally higher than the prevailing marketwage rates.
Implementing agency: Central and stateGovernment; District Rural Development Agency
Targeting: Geographic, demographic and self-targeting. Allocations are made to states based oftheir share in rural poverty, using headcount index.State allocations to districts are based on index ofbackwardness, which takes into account the proportionof rural castes/tribes in the overall population, andagricultural productivity. Preference is given tounderprivileged groups (scheduled castes/tribes, freedbonded labourers), and 30 per cent of the employmentopportunities are earmarked for women.
Evaluations: Although unemployment has beenreduced, the impact of the programme at thehousehold level has been modest. Food grainsdistributed as part of wages were negligible (Rs 0.21worth of food grains per day per JRY worker). Sincethe programme wage was higher than the market wage,it tended to attract many of the non-poor.54 An analysisof the percentage distribution of workers by incomeclass indicates that on average for the whole of India,57 per cent of those working under the schemes arenon-poor with monthly incomes exceeding Rs 6,400.55
The programme creates social assets and has apositive impact on wages.
Employment Guarantee Scheme (EGS),Maharashtra State56
Description: This cash for work programme startedin the 1960s, with a view to alleviating poverty byproviding employment to the poorer sections of thecommunity in the rural as well as the depressedcouncils in the State of Maharashtra. The StateGovernment gave statutory support to the guaranteeof employment though the Maharashtra EmploymentGuarantee Act, which was brought into force in January1979. Labourers are paid according to the quantity ofwork done at the minimum prevailing wage foragricultural labour in the concerned zone.
Implementing agencies: Central and StateGovernment; Food Corporation of India (FCI)
Targeting: Self-targeting; placement of schemes bythe State followed by self-selection
Geographic coverage: State of Maharashtra
Cost: The total amount spent on the EGS hasincreased progressively since its inception. AlthoughRs 108 billion has been collected under theemployment guarantee fund (EGF) – which funds thescheme through professional tax and other taxescollected from citizens – only Rs 46.8 billion was spenton the EGS in 2006-2007.
Evaluations: EGS is one of the most researched anddiscussed programmes in the country and one of thelarger public programmes in the developing world.When introduced it was seen as innovative as itguarantees employment at a defined wage. It is stillconsidered a model because of the underlyingphilosophy of “fulfilling a guarantee”. However, theeffectiveness of the EGS in covering the target grouphas been debated, as poverty in Maharashtra has notdeclined more rapidly than average for India. However,EGS has a considerable impact on the social life ofworkers by increasing their interactions acrosscastes. Leakages have been of two kinds: employmentleaks to non-targeted groups and misappropriation ofEGS funds by implementing agencies. The fist typeis not frequent, but corruption has been a majorconcern since the programme’s inception. Anotherissue regards the number of agencies having tofunction at six different levels (from central to local) toadminister the programme with many layers ofdecision-making and a heavy bureaucracy.
A recent Comptroller and Auditor General (CAG)investigation has indicted EGS for falling short onseveral fronts: planning, financial management,registration of labourers, selection and execution ofworks, payment of wages, and monitoring. The 2006-2007 CAG report says the scheme has not met itsobjective of poverty alleviation. Some people have beenleft out and budgets prepared for the scheme have
54 Ibid.55 N. Islam, Reducing Rural Poverty in Asia, 2006.56 Barrientos and Holmes, op cit.
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 49
not been based on demand. Moreover, registration oflabourers is incomplete, works have been leftunfinished for years, and payment to labourers ispending or has not been in accordance with theMinimum Wages Act. Monitoring has been deficient,as committees have not been set up for this purpose.The CAG pointed out that district collectors did notprepare human resources budgets to assessemployment needs. This resulted in unrealistic plans,which in turn resulted in annual expenditure being just19 per cent of the funds that these plans demanded.57
National Rural Employment GuaranteeScheme (NREGS)Description: To enhance livelihood security in ruralareas by providing at least 100 days of guaranteedwage employment in a financial year to everyhousehold whose adult members volunteer to dounskilled manual work. NREGS provides a rights-based framework for wage employment (employmentdepends on workers exercising their choice to applyfor registration, obtain a Job Card, and seekemployment for the time and duration that they wish).The 100 days of guaranteed employment in a financialyear is per household and can be shared within thehousehold. To register, households must be localresidents, be willing to do unskilled manual work, andapply as a household at the local Gram Panchayat.
As per Schedule I of the Act, the National RuralEmployment Guarantee Scheme (NREGS) shall focuson the following:i. water conservation and water harvesting;ii. drought proofing, including afforestation and tree
plantation;iii. irrigation canals, including micro and minor
irrigation works;iv. providing irrigation facility, plantation, horticulture,
land development to land owned by householdsbelonging to scheduled castes or tribes, by thebeneficiaries of land reforms, or by beneficiariesunder the Indira Awas Yojana (IAY; Indira ShelterScheme)/BPL families;
v. renovation of traditional water bodies, includingde-silting of tanks;
vi. land development;vii. flood-control and protection works, including
drainage in waterlogged areas;viii. rural connectivity to provide all-weather access;ix. any other work proposed by the Central
Government in consultation with the StateGovernment.
The programme also entitles beneficiaries tounemployment allowance if a job is not provided withina 15-day period; medical treatment in case of injuryunder the programme; childcare in cases where atleast 20 women are employed on a worksite; andfacilities for the employment of persons with physicalor mental disabilities in activities that are compatiblewith their abilities. At least one third of beneficiariesmust be women. Drinking water, emergency healthcare, crèches, and a minder (preferably female) willbe at work sites. Transparency, public accountabilityand social audit are ensured through institutionalmechanisms at central level. Participatory planningexists at all levels.
The Act covered 200 districts in the first phaseimplemented on February 2, 2006, and was extendedto 330 additional districts in 2007-2008.
Implementing agency: Government of India (Ministryof Rural Development) and state/local governments
Targeting: Categorical for all rural population: alladults residing in any rural area who are willing to dothe work
Geographic coverage: National; from April 1 2008,the Act covers all districts.
Transfers: Wages are paid in cash, in kind or both.The minimum wage across the country has increasedover the past three years, and the average daily wagerate of agricultural labourers under NREGS has risen
57 Report posted at http://www.cseindia.org/programme/nrml/update_may-june08.htm#CAG For further reference, see M. Dev,India’s Maharashtra Employment Guarantee Scheme: Lessons from Long Experience. Posted at www.ifpri.org/pubs/books/vonBraun95ch05.pdf; Datt, G. and M. Ravallion [1994] “Transfer Benefits from Public-Works Employment: Evidence for RuralIndia”, Economic Journal 104:1346-1369; Imai, K and R. Gaiha (2002)’Rural Public Works and Poverty Alleviation - The Case ofthe Employment Guarantee Scheme in Maharashtra’, International Review of Applied Economics, Vol. 16, No. 2, April 2002,pp.131-151. A version of this paper is posted at: http://www.socialsciences.man.ac.uk/economics/staffpages/imai/RuralPublicWork-Gaiha-Imai.pdf; Imai, K (2002) ‘Employment Guarantee Scheme as a Social Safety Net-Poverty Dynamics andPoverty Alleviation’ 2002, Department of Economics Working Paper, Ref. 149, March 2003, Department of Economics,University of Oxford. Posted at: http://www.econ.ox.ac.uk/Research/WP/PaperDetails.asp?PaperID=481
50 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
from Rs 65 in 2006 to Rs 83 in 2008. ThroughDecember 2008, more than 58 million savingsaccounts have been opened in banks and post officesacross the country due to this scheme.
Cost and coverage: The 2007 budget for NREGAwas Rs 126 billion, of which the Central Government’sshare is Rs 113 billion; the states bear 10 per cent ofthe total cost. According to Prime Minister Singh, thescheme benefited 35 million rural households in the2007-2008 financial year and generated 1.38 billionperson-days of work up to December 2008. “It hasplayed a role of a catalyst in promoting inclusive growthcoverage with over 50% coverage to the women andthe weaker sections of the society”.58
Evaluations:59 The Comptroller and Auditor Generalconducted a review in 2007, and NGOs have alsoconducted reviews, especially the National Consortiumof Civil society organisations.60
The local press reports numerous examples aroundthe country of how the programme has enabledchildren to go to school, improved nutrition within thefamily, increased wages, reduced indebtedness andeven migration. The wages create assets that yielddirect benefits to the villages.61 In a 2006 evaluation,the Ministry of Local Development highlighted anumber of challenges, including the need for greaterinformation especially about entitlements; the needto put more emphasis on community mobilisation andcommunication; the need to match households’employment demands with community works; and theneed to improve transparency and accountability.NREGS has raised expectations, but still needs tofully deliver on its massive potential.62 Other criticalissues include:• Piece-work rates are low in many places. As a
result, even if one works for 8 hours, workers mayget less than prescribed.
• Workers do not attend public works although JobCards are given to many. For example, Job Cards
are given to 4 million in A.P., but only 400,000seek employment.
• Panchayats (local councils) need capacity-building.63
Swarna Jayanti Shahari Rojgar Yojana (SJSRY)(Golden Jubilee Rural Employment Scheme; 1997-present)
Description: An umbrella programme targeting theurban underemployed or unemployed,64 defined asthose under the poverty line, with two maincomponents: the Urban Self Employment Programme(USEP), and the Urban Wage EmploymentProgramme (UWEP). The scheme is implemented ona whole-town basis with special emphasis on clustersof urban poor. Special attention is given to women,persons belonging to scheduled castes/tribes, anddisabled persons and other such categories indicatedby the Government from time to time. There is nominimum educational qualification for beneficiaries,but this scheme is not applied to beneficiarieseducated beyond the IXth Standard.
Implementing agency: Ministry of UrbanEmployment and Poverty Alleviation
Targeting: Those living below the urban poverty line,as defined periodically. A house-to-house survey isconducted to identify genuine beneficiaries. Non-economic parameters will also be applied to the urbanpoor in addition to the economic criteria of the urbanpoverty line. Women beneficiaries belonging to female-headed households, such as widows, divorcees, orsingle women of households where women are thesole earners, are given higher priority.
Geographic coverage: All urban towns in India
Cost and coverage: The SJSRY is funded by UnionGovernment and the states on a 75:25 basis. Thetotal allocation in 2006-2007 was Rs 2.36 billion, and
58 Government Press Release: http://pib.nic.in/release/release.asp?relid=4689759 Barrientos and Holmes, op. cit.60 For full review see R. Datt, “Dismal experience of Nrega: Lessons for the Future”, 14 April 2008 //
www.mainstreamweekly.net/article641.html61 http://southasia.oneworld.net/fromthegrassroots/women-augmenting-family-income-creating-community-assets62 SCRIBD, www.scribd.com/doc/2176739)/Two-Years-of-NREGA)63 M. Dev, “Individual Shocks and Social Protection in South Asia, Special Reference to India”, presentation posted at
info.worldbank.org/etools/docs/library/233761/Mahendra%20Individual%20Shocks.pdf64 According to the 2001 Census, approximately 28% of the total population in India lives in urban areas.
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 51
the annual target is to assist 2 million urban poor insetting up micro-enterprises for self employment andtraining.
Evaluations: A comprehensive evaluation was carriedout in 2005-2006 through the Human Settlement &Management Institute (HSMI). The major findings are:i. good impacts on facilitating employment have
been observed in all states;ii. participants make decent earnings under the
scheme;iii. indirect benefit on empowerment of women;iv. some states have not reached their target due to,
inter alia, inadequate skill training and non viabilityof projects;
v. awareness of the scheme is still lacking in somestates;
vi. budget allocations are too low.65
Sampoorna Grameen Rozgar Yojana (SGRY) (AllRural Employment Scheme; 2002-2008 andsubsequently absorbed by NREGS)66
Description: To provide additional wage employmentin all rural areas and thereby provide food securityand improve nutritional levels. The secondary objectiveis to create durable communities, socio-economicassets, and infrastructure in rural areas. The wagesunder the programme are paid partly in food grainsand partly in cash.
Implementing agencies: Ministry of RuralDevelopment; local governments
Targeting: The programme is self-targeting and meantto benefit the rural poor who need wage employmentand desire to do manual and unskilled work in andaround their villages.
Geographic coverage: Rural areas
Cost and coverage: Resources allocated in 2007-2008 amount to Rs 291.4 million, with 264 districtscovered.
Evaluations: n.a.
IV. Food TransfersTargeted Public Distribution System (TPDS)Description: Under TPDS, above the poverty line (APL)families are provided food grains at nearly the fulleconomic cost and below poverty line (BPL) families atabout half this rate. TPDS is entirely funded by the UnionGovernment, and its main objective is to improve thePDS consumption of the poor by offering them cerealsat highly subsidised prices while simultaneously guidingthe non-poor away from the PDS.
Targeting means tested: BPL families whose totalannual household income is below Rs 25,985, basedon an average household size of 5.3. Family IdentityCards (ration cards) have been issued to all heads ofBPL families with details of members in the familylisted in the card, entitling them to 20 kg of food grains(rice + wheat) per month (240 kg annually).
Evaluations: The scheme has a near 100 per centtargeting of poor. A 2005 evaluation study confirmsthis. On the other hand, the official offtake of foodgrains for BPL families under TPDS is 22.8 millionmt. On average, therefore, each family receives about95 kg annually as against an entitlement of 240 kg –only about 40 per cent of the quota.67
V. Child Benefits and Services
A number of state-level and local schemes providegrants directed to children.
Grant of Financial Assistance to the Poor ParentsHaving One Girl Child Who is Studying 8th to 10th:Puducherry68, Tamil Nadu
65 Ministry of Housing & Urban Poverty Alleviation, Mhupa.gov.in/ministry/housing/11thplanChapter-XI.pdf66 This programme has been recently evaluated by Icfai University. The evaluation is published in EconPapers, 2006, vol II, issue
3, pages 52-68.67 Social Protection Index for Committed Poverty Reduction Volume 9. India Country Report – Final November 2007. Halcrow
China, p. 2868 Source: Government of Puducherry, http://wcd.puducherry.gov.in/EighttoTenth_Eng.htm
52 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Description: The benefit aims to create awarenessamong parents about the desirability of girl children,to raise the status of girl children in the family and toshare the financial burden of the parents at the timeof marriage of the girl child.
Implementing agency: Women and ChildDevelopment, Government of Puducherry
Targeting: Categorical
Geographic coverage: Puducherry
Cost and coverage: Rs 25,000 is deposited in aNational Savings Certificate in the name of the girlchild; the maturity amount is released when she attainsage 18. The parents’ annual income shall not exceedRs 24,000, and they should be Indian nationalsresiding in Puducherry for not less than five years.
Evaluations: n.a.
Grant of Retention Scholarship to S.C. GirlStudents: Puducherry69
Description: Retention scholarship to encouragescheduled caste girl students to continue theirstudies.
Implementing agency: Adidravidar WelfareDepartment, Government of Puducherry
Targeting: Categorical
Geographic coverage: Puducherry
Cost and coverage: Rs 1,000 per year to girlsstudying from I to V standard; annual income of parentsshall not exceed Rs 24,000.
Evaluations: n.a.
Ladali Lakshmi Yojna: Madhya Pradesh70
Description: To improve health and educationalfacilities for girls and stop female foeticide.
Implementing agency: Women and ChildDevelopment, Government of Madhya Pradesh
Targeting: Categorical. Girls born after 1 January2006.
Geographic coverage: Madhya Pradesh
Cost and coverage: Girls registered under the schemewill receive Rs 118,000 at the time of marriage.
Evaluations: n.a.
Girl Child Protection Scheme: Tamil Nadu71
Description: Grants to girls in families without malechildren and with one sterilised parent. Interest helpsdefray educational expenses, and the girl receives theprincipal at age 20.
Implementing agency: Social Welfare and NutritiousMeal Programme Department, Government of TamilNadu
Targeting: Categorical
Geographic coverage: Tamil Nadu
Cost and coverage: For families with one girl child,Rs 22,200 is deposited; for those with two girls, Rs15,200 is deposited for each..
Evaluations: n.a.
69 Source: http: Government of Puducherry, //adwelfare.puducherry.gov.in/schemesnext7.htm70 Source: National Portal of India, http://india.gov.in/citizen/health/viewscheme.php?schemeid=124171 Government of Tamil Nadu, Source: http://www.tn.gov.in/policynotes/archives/policy2002-03/swnmp2002-03-2a.htm
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 53
Typ
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ram
me
Pro
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and
Des
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n:A
rtic
les
38-4
1
Tabl
e 8:
IND
IASo
cial
pro
tect
ion
prog
ram
mes
54 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEWTy
pe
of
Pro
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mm
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wo
mai
nco
mpo
nent
s i)
the
Urb
an S
elf
Em
ploy
men
tP
rogr
amm
e (U
SE
P)
and
the
ii) U
rban
Wag
e E
mpl
oym
ent
Pro
gram
me
(UW
EP
).
Rur
al p
oor
Rur
al p
oor
Rur
al p
oor
Urb
an p
oor
Geo
grap
hic,
dem
ogra
phic
and
self-
targ
etin
g.P
refe
renc
e g
iven
to u
nder
priv
ilege
dgr
oups
(sch
edul
edca
stes
/tri
bes,
free
d bo
nded
labo
urer
s), a
nd30
% o
f th
eem
ploy
men
top
port
uniti
es a
reea
rmar
ked
for
wom
en.
Sel
f-ta
rget
ing.
Pla
cem
ent
ofsc
hem
es b
y th
eS
tate
fol
low
ed b
yse
lf-se
lect
ion.
Cat
egor
ical
and
geog
raph
ic.
Eve
ryad
ult w
ho r
esid
esin
any
rur
al a
rea
and
is w
illin
g to
do
the
wor
k.
Cat
egor
ical
and
mea
ns-t
este
d. A
hous
e-to
-hou
sesu
rvey
ide
ntifi
esge
nuin
ebe
nefic
iarie
s. N
on-
econ
omic
para
met
ers
are
appl
ied
in a
dditi
onto
the
urba
npo
vert
y lin
e.W
omen
bene
ficia
ries
inw
omen
-hea
ded
hous
ehol
ds a
regi
ven
prio
rity.
Min
imum
wag
ean
d fo
od
Min
imum
wag
epr
escr
ibed
for
agric
ultu
ral l
abou
rfo
r th
eco
ncer
ned
zone
.
Wag
es p
aid
inca
sh,
kind
or
both
. D
aily
wag
era
te o
fag
ricul
tura
lla
bour
ers
has
risen
fro
m R
s 65
in 2
006
to R
s 83
in 2
008
at th
ena
tiona
l le
vel.
The
Sch
eme
isse
tting
a r
ecor
dfo
r th
e la
rges
tnu
mbe
r of
ban
kac
coun
ts o
pene
dth
roug
h a
deve
lopm
ent
prog
ram
me.
Rur
al a
reas
Mah
aras
htra
Sta
te
Nat
ionw
ide
All
urba
n to
wns
in In
dia
In 1
993-
94, t
hefir
st c
ompo
nent
crea
ted
952
mill
ion
pers
on-
da
ys o
fem
ploy
men
t;th
e se
cond
7.3
5m
illio
n pe
rson
days
. M
ore
rece
nt d
ata
are
not
avai
labl
e.
n.a.
35 m
illio
n ru
ral
hous
ehol
ds in
curr
ent
finan
cial
year
; 1.
38bi
llion
per
son-
days
of
wor
kge
nera
ged
up to
Dec
embe
r20
08; 5
0%co
vera
ge t
ow
omen
and
the
wea
ker
sect
ions
of
soci
ety
.
In t
he la
st t
hree
year
s, t
he t
otal
num
ber
of s
elf-
empl
oym
ent
loan
s gi
ven
unde
r S
JSR
Yha
s be
en ju
st95
2, w
hich
isle
ss t
han
one
per
cent
of
the
belo
w-p
over
tylin
e fa
mili
es.
Cen
tral
and
Sta
teG
over
nmen
t;D
istr
ict
Rur
alD
evel
opm
ent
Age
ncy
Cen
tral
and
Sta
teG
over
nmen
t;F
ood
Cor
pora
tion
of I
ndia
(F
CI)
Gov
ernm
ent
ofIn
dia
(Min
istr
y of
Rur
alD
evel
opm
ent)
and
stat
e/lo
cal
gove
rnm
ents
Min
istr
y of
Urb
anE
mpl
oym
ent
and
Po
vert
yA
llevi
atio
n
Rs
108.
18bi
llion
allo
cate
dbu
t on
ly R
s46
.77
billi
onsp
ent i
n 20
06-
2007
.
The
200
7bu
dget
was
Rs
125.
55 b
illio
n,w
ith C
entr
alG
over
nmen
tpa
ying
90
%an
d th
e st
ates
10%
.
The
SJS
RY
isfu
nded
on
a75
:25
basi
sbe
twee
n ce
ntra
lan
d st
ate
gove
rnm
ents
.To
tal a
lloca
tion
in 2
006-
2007
Rs
2.36
bill
ion.
NR
EG
A (
stat
utor
ygu
aran
tee;
righ
t-ba
sed
sche
me)
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 55
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
Sam
po
orn
aG
ram
een
Ro
zgar
Yoja
na
(SG
RY
).W
age
empl
oym
ent
and
food
. P
art
cash
,pa
rt i
n-ki
nd t
rans
fer.
Targ
eted
Pu
blic
Dis
trib
uti
on
Sys
tem
. To
pro
vide
cere
al g
rain
s to
the
poor
at s
ubsi
dise
dpr
ices
.
Gra
nt
of
Fin
anci
alA
ssis
tan
ce to
the
Po
or
Par
ents
Hav
ing
On
e G
irl
Ch
ild W
ho
Is
Stu
dyi
ng
8th
to
10th
. F
unds
depo
site
d in
nam
eof
girl
stu
dent
s.
Gra
nt
of
Ret
enti
on
Sch
ola
rsh
ip t
oS
.C.
Gir
l S
tud
ents
:P
ud
uch
erry
.S
chol
arsh
ip to
enco
urag
e gi
rls to
cont
inue
thei
rst
udie
s.
Lad
ali
Lak
shm
iYo
jan
a: M
adh
yaP
rad
esh
. G
rant
to
impr
ove
heal
th a
nded
ucat
ion
for
girls
and
stop
fem
ale
foet
icid
e.
Gir
l C
hild
Pro
tect
ion
Sch
eme:
Tam
ilN
adu.
Gra
nts
to g
irlch
ildre
n of
ste
rilis
edpa
rent
s.
FO
OD
TR
AN
SF
ER
S
CH
ILD
BE
NE
FIT
S
Sel
f-ta
rget
ing
Cat
egor
ical
Cat
egor
ical
Cat
egor
ical
:sc
hedu
led
cast
egi
rls
Cat
egor
ical
: G
irls
born
afte
r 1
Janu
ary
2006
Cat
egor
ical
: G
irls
with
out b
roth
ers
and
with
at l
east
1st
erili
sed
pare
nt.
Wag
es p
aid
inca
sh,
in k
ind
orbo
th
240
kg o
f fo
odgr
ains
ann
ually
per
fam
ily
Rs
25,0
00 is
depo
site
d in
aN
atio
nal
Sav
ings
Cer
tific
ate
in t
hegi
rl's
nam
e. T
hem
atur
ity a
mou
ntis
rele
ased
whe
nsh
e be
com
es 1
8.
Rs
1000
per
yea
rfo
r gi
rls f
rom
I t
oV
sta
ndar
d
Rs
118,
000
per
girl
at t
ime
ofm
arria
ge
Rs
22,0
00de
posi
ted
for
sing
le g
irlch
ildre
n; R
s15
,200
eac
h fo
rtw
o.
The
poo
r, w
ithpr
efer
ence
giv
en t
oag
ricul
tura
l wag
eea
rner
s; n
on-
agric
ultu
ral u
nski
lled
wag
e ea
rner
s;m
argi
nal
farm
ers;
wom
en;
mem
bers
of
sche
dule
d ca
tses
;pa
rent
s of
dis
able
dch
ildre
n or
chi
ldre
nw
ithdr
awn
from
haza
rdou
s la
bour
.
Fam
ilies
bel
ow th
epo
vert
y lin
e
Par
ents
' ann
ual
inco
me
cann
ot e
xcee
dR
s 24
,000
Ann
ual i
ncom
e of
pare
nts
cann
otex
ceed
Rs
24,0
00
Girl
chi
ldre
n
Girl
chi
ldre
n
Rur
al a
reas
Nat
ionw
ide
Pud
uche
rry
Mad
hya
Pra
desh
Tam
il N
adu
264
dist
ricts
in
2007
-200
8M
inis
try
of R
ural
Dev
elop
men
t;lo
cal
gove
rnm
ents
Wom
en a
ndC
hild
Dev
elop
men
t
Adi
drav
idar
Wel
fare
Dep
artm
ent
Wom
en a
ndC
hild
Dev
elop
men
t
Soc
ial
Wel
fare
and
Nut
ritio
usM
eal P
rogr
amm
eD
epar
tmen
t
Rs
291.
4 m
illio
nin
200
7-20
08
56 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
General background
Social protection arrangements in the Maldives includesocial insurance covering public sector employees andsome safety net programmes.
Social insurance has two components – the CivilService Pension (CSP) scheme and the GovernmentProvident Fund (GPF). While there is a constitutionalmandate to provide pensions to all employed persons,there is no constitutional definition of the type ofpension or the term ‘employed’. Reform efforts areongoing. In early 2009, the Government introduced auniversal social pension. This programme will befinanced from general budget revenues and will cost1.5-2.0 per cent of GDP.72 The pension allowance willbe available to all those above age 65. Eligible peoplemust register for the pension, a process begun at allinhabited islands of the country in mid-January 2009.The task is being managed by the recently createdNational Social Protection Agency. The Governmenthas also promised to expand healthcare insurance.
The main social assistance programme, the AbsolutePoverty Scheme initiated in 2003, is a cash transfer
programme for the poor. The Government also providesvouchers to defray textbook costs, one school uniform,shoes, and socks for low income families. In addition,the Government provides two types of medicalassistance for Maldivians abroad and at home, as wellas assistance to disabled people (hearing aids/glasses) and critical drugs for people with learningdisabilities.
These programmes are administered by differentagencies, some without formal qualifying criteria or aregular schedule of benefits. While social protectionexpenditures have been increasing, they remain lowcompared to other countries with similar per-capitaincomes. Coverage is also low.
Tsunami-related cash transfers introduced in 2005 havenow been completed. In the months following theDecember 2004 tsunami, a programme of cashtransfers was developed to support the affectedpopulation. The security forces, relying on inter-ministerial teams, were responsible for implementation.All families whose homes were damaged by the
* UNICEF ROSA, South Asia Fiscal Budget database, 2008. The WB’s 2006 calculation includes all public interventions orientedto human capital and social risk management. The ADB’s 2008 calculation includes programmes to reduce poverty andvulnerability, including microcredit schemes.
72 World Bank, www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/05/01/000160016_20060501163658/Original/348180MV0Socia1white0cover01PUBLIC1.doc
MALDIVES
Total Population:299,000 (source: UNICEF ROSA, 2006)
Estimated Social Protection Expenditures as a % of GDP:1.5% (ADB) - 2.0% (UNICEF ROSA) *
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 57
tsunami were eligible. Multi-sectoral teams from Male’together with island committees identified thebeneficiaries, registered them, and disbursed theassistance as a one-time cash transfer. The level ofbenefit was Rf 1500 per family member to those whocompletely lost their houses; Rf 1000 per person tothose whose houses were damaged and neededrepairs; and Rf 500 per family member to those whosehouses were flooded and who therefore lost householditems and belongings. The programme covered 63,000beneficiaries and disbursed approximately Rf 50million. A follow-up income support programme for thepoorest among the affected (i.e., the elderly and peoplewith disabilities) has also been proposed.
Summary of programmes
I. Social InsuranceIn early 2009 the Maldives Parliament ratified a PensionBill establishing a contributory scheme withcontributions from employers and employees aged 16-65 to cover every working citizen, which means it willopen the pension system to the informal economy aswell. The government also introduced a social pensionof Rf 2,000 (US$156)73 per month for people over age65 not covered by the contributory pension scheme.These efforts will complement the pension scheme inplace for government officials. The Maldives PensionAdministration Office was also created under this Bill.74
Civil Service Pension (CSP)Description: The scheme is a non-contributory, pay-as-you-go, defined-benefit arrangement. Pensions arefinanced directly from the Government budget.Pensions are paid out for every 20 years ofuninterrupted Government service, and there is norequirement to retire. Therefore employees cancontinue to work for another 20 years and earn asecond pension, and in a few cases even a third. Thepension accrues at a rate of 2.5 per cent of the last
wage in the 20-year period per year, and pensionersin Maldives can receive benefits along with their currentearnings. The pensions are not indexed, however, sotheir value in real terms declines over time dependingon inflation rates.75
Coverage: Approximately 26,000 Governmentemployees
The Government Provident Fund (GPF)Description: A defined contribution arrangement withmatching employee and Government contributions of5 per cent of the employee’s basic wage each month.Participation is voluntary and withdrawals are allowedfor the education of children, house construction andrepair, and health care. The scheme does not play amajor role in providing retirement income.76
Evaluations: A World Bank/Government of Maldivesassessment found two major deficiencies. First, thecurrent parameters of the civil service pension schemedo not result in secure and adequate stream of pensionincome after a certain age. As a result, and given thatthe scheme does not stipulate a retirement age, civilservants choose never to retire. The second deficiencyis the absence of any safety net for the elderly in acountry where only civil servants participate in apension scheme.77
Maldives Pension and Social ProtectionAdministration ProjectDescription: Rf 2000 monthly pension
Implementing agency: Ministry of Health and Family
Targeting: Categorical. Citizens over 65.
Geographic coverage: Nationwide
Evaluations: n.a.
73 US$ 1.00 = 12.80 Rufiyaa74 See World Bank.
Press Release No: 2009/344/SAR. http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/0. also seeSouth Asian media net.http://www.southasianmedia.net/cnn.cfm?id=579279&category=Social%20Sectors&Country=MALDIVES;MIADHU News. http://www.miadhu.com.mv/news.php?id=10012; andMinivan News http://www.minivannews.com/news_detail.php?id=6519
75 World Bank, Maldives, Social Protection in the Maldives: Options for reforming pensions and safety nets. April 25, 2006Human Development Unit South Asia Region, p. 15
76 Ibid.77 Ibid.
58 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
II. Social AssistanceAssistance for health care in Maldives orabroadThe Government provides two types of assistance—medical treatment of catastrophic illness (payment offees/travel costs). It also provides assistance to thedisabled (hearing aids/glasses) and critical drugs forpeople with learning disabilities.
Coverage: For the three types of scheme, the totalnumber of beneficiaries was 3,583 in 2004.
Cost: Over Rf 12 million
Absolute Poverty Scheme (initiated 2003)Description: Cash transfer programme for the poor
Implementing agency: The Social Security sectionof the Ministry of Higher Education, Employment andSocial Security (MHEESS). The Rf 500 monthlybenefit is disbursed through the atoll offices.
Targeting: Proxy means testing. Based on individualsmeeting at least one of the following criteria: not ableto eat more than one meal a day, not in possession ofmore than two sets of clothing, or currently homeless.
Coverage: In 2004, the programme had 1,026beneficiaries.
Cost: Rf 6 million, less than 0.1 per cent GDP
Evaluations: n.a.
Vouchers to defray textbook costs, one uniform,shoes, and socks for low income families
Description: The voucher programme allows poorfamilies to buy textbooks and other essentials for theirchildren.
Implementing agency: The programme isadministered by the Ministry of Education but theselection of eligible children is made by the islandand atoll offices. Island offices also handle thedistribution of the vouchers.
Targeting: At the discretion of the island authorities,conditions are applied (e.g., the absence of a father’ssupport is one reason for granting textbook vouchers).
Evaluations: n.a.
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 59
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
SO
CIA
LIN
SU
RA
NC
E
SO
CIA
LP
EN
SIO
N
SO
CIA
LA
SS
ISTA
NC
E
Civ
il S
ervi
ceP
ensi
on
(C
SP
)
Go
vern
men
tP
rovi
den
t F
un
d(G
PF
)
Mal
div
es P
ensi
on
and
So
cial
Pro
tect
ion
Ad
min
istr
atio
nP
roje
ct.
Un
iver
sal
pen
sio
n.
Ass
ista
nce
for
hea
lth
car
e in
Mal
div
es o
rab
road
. M
edic
altr
eatm
ent
of
cata
stro
ph
icil
lnes
s.
Vo
uch
ers
to d
efra
yte
xtb
oo
k co
sts,
on
e u
nif
orm
,sh
oes
, an
d s
ock
sfo
r lo
w i
nco
me
fam
ilies
.
Ab
solu
te P
ove
rty
Sch
eme
Chi
ldre
n in
low
inco
me
fam
ilies
The
ultr
a-po
or
Cat
egor
ical
. A
llci
tizen
s ov
er a
ge65
.
At
the
disc
retio
n of
the
isla
ndau
thor
ities
cond
ition
s ar
eap
plie
d (e
.g.,
the
abse
nce
of a
fath
er’s
sup
port
is
one
reas
on f
orgr
antin
g te
xtbo
okvo
uche
rs).
Con
ditio
nal.
Bas
edon
indi
vidu
als
mee
ting
at le
ast
one
of t
he f
ollo
win
gcr
iteria
: no
t ab
le t
oea
t mor
e th
an o
nce
a da
y, n
otpo
sses
sing
mor
eth
an t
wo
sets
of
clot
hing
, or
curr
ently
hom
eles
s.
Rf
2000
per
mon
th
Rf
500/
mon
th,
disb
urse
dth
roug
h th
e at
oll
off
ice
s.
Nat
ionw
ide
App
roxi
mat
ely
26,0
00go
vern
men
tem
ploy
ees
3,58
3be
nefic
iarie
s in
2004
1026
bene
ficia
ries
(200
4)
Min
istr
y of
Hea
lth a
ndF
am
ily
Adm
inis
tere
d by
the
Min
istr
y of
Edu
catio
n bu
tel
igib
le c
hild
ren
are
sele
cted
by
the
isla
nd a
ndat
oll
offic
es.
Isla
nd o
ffic
esal
so h
andl
edi
strib
utio
n of
the
vouc
hers
.
Soc
ial
Sec
urity
sect
ion
of t
heM
inis
try
ofH
ighe
rE
duca
tion,
Em
ploy
men
t an
dS
ocia
l S
ecur
ity(M
HE
ES
S)
Ove
r R
f 12
mill
ion
Rf
6 m
illio
n,le
ss t
han
0.1%
GD
P
Con
stitu
tion
ofth
e M
aldi
ves
Tabl
e 9:
MA
LDIV
ESSo
cial
pro
tect
ion
prog
ram
mes
60 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
General background
The current formal social protection system consistsof social and health insurance, social assistanceprogrammes (including the old-age pension, adisability pension, widow-allowances and a maternityscheme), microcredit schemes, and labour marketprogrammes. Social insurance is limited to a providentfund, in place since 1962, that covers civil servants,the army, the police and teachers. Less than 10 percent of the labour force has formal old-age protection.78
Informal sector workers benefit mainly from income-generating programmes such as public works fundedby the Food for Work Scheme and block grants. Animportant component of the social protection systemis the old-age allowance, a universal non-contributorysocial pension in place since 1995 that was expandedin 2008.
Recent trends
Nepal’s political transition provides an opportunity tostrengthen social protection by introducing newprogrammes while improving existing ones byexpanding coverage and improving service delivery.The 2008-2009 budget places a “reasonable priority”on extending the benefits of economic growth to “thesuppressed classes, ethnicities, region, and gender,also guaranteeing social security to the seniorcitizens, differently able, widows, Dalits andendangered ethnicities”.79
In particular, the new provisions are:80
I. monthly Rs 50081 for all age groups of “endangeredethnicities”;
* UNICEF ROSA, South Asia Fiscal Budget database, 2008. The WB’s 2006 calculation includes all public interventions orientedto human capital and social risk management. The ADB’s 2008 calculation includes programmes to reduce poverty andvulnerability, including microcredit schemes.
78 ILO Technical Note, “Affordable and not an Illusion. Costing of basic social protection benefits for Nepal 2007-2034”. SocialSecurity Department. International Labour Organisation. June 2007
79 Government of Nepal, Ministry of Finance. Budget speech 2008-2009. ‘Endangered ethnicities’ is the Government’s term forethnic or linguistic groups so small in numbers that their language may disappear or who pursue very precarious sources oflivelihoods, from forest or other resources.
80 ibid., par. 4781 US$ 1.00 = 77.80 Rupees
NEPAL
Total Population:27,641,000 (source: UNICEF ROSA. 2006)
Estimated Social Protection Expenditures as a % of GDP:1.0% (UNICEF ROSA) - 2.3% (ADB)*
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 61
II. monthly Rs 500 for Dalits, single women, andpeople above age 60 living in the Karnali zone;
III. monthly Rs 500 for all other citizens above 70years (see old-age pension);
IV. increased monthly allowance for the blind ordisabled: Rs 1000 for fully disabled and Rs 300for partially disabled;
V. subsistence allowances to families of thosemartyred or handicapped as a result of the conflict(Rs 1.5 billion in compensation to conflict-affectedpeople in the 2008-2009 budget).
With donors’ support, the Government provides asubsistence allowance of Rs 6,800 per month to theex-combatants of the People’s Liberation Army.82
In addition, the Ministry of Health and Population hasextended the free healthcare services currentlyavailable in health posts and sub health posts to 180primary healthcare centres. Free health services willbe further extended to include district hospitals frommid-January 2009.83
The Government’s formal-sector social security plancame into effect in mid-December 2008. The Ministryof Local Development has issued circulars to localbodies regarding creating a beneficiaries’ databaseand issuing identity cards. The budget has alreadybeen released.
Recommendations and observations
Social protection in Nepal has traditionally been limitedin scope and coverage, and mainly donor driven.According to the ADB Social Protection Index,coverage rates for the seven key social protectiontarget groups (the unemployed, the underemployed,the elderly, the sick, the poor, the disabled, andchildren with special needs) vary markedly – from overone third the eligible elderly population to under 10per cent for the disabled, heath insurance and thepoor.84 By the same index, 2.3 million people areestimated to be beneficiaries of some form of social
assistance (less than a quarter of the total poorpopulation). Another feature of the current system isthat programmes are administered by a large numberof Government agencies, and the finance andgovernance structure remains highly fragmented.
A recent World Bank evaluation pointed out the “lackof rigorous analysis to determine coverage, targeting,labor to capital ratios, payment systems, share ofdistricts covered, matching with seasons, quality ofassets created, wage rates, design, finance andmanagement”.85 Donors and government are workingtogether to address some of these issues.
Summary of programmes
I. Social InsuranceSocial security only applies to permanent workers inthe formal sector. There is no comprehensive socialsecurity system under the Nepali labour law. Employeesare entitled to receive the following benefits as part ofsocial security under the Labour Act and Rules.
Provident fund: Provident fund is a contributory old-age benefit under the labour law. The employer deducts10 per cent of basic salary of the employee, adds 10per cent to it, and deposits the amount in anycommercial bank or the Karmachari Sanchaya Kosh,the autonomous provident fund authority in Nepal.
Gratuity: Gratuity is also part of an old-age benefit.Employees serving for three years or more and retiringfrom the service are entitled to get gratuities at differentrates depending on the years of service.
Employees are also entitled to treatment expenses;salary during treatment; disability compensation;compensation in case of death; insurance andcompensation; termination on health grounds; housingfund; welfare fund; pension (limited to Governmentemployees in civil services, police and armed forces,including some public corporations); retrenchment;sick leaves; maternity leaves.
82 Himalayan Times, 1 June 2009, “Bank Route for PLA Payment”83 Kantipur on Line, www.kantipuronline.com/kolnews.php?&nid=16670184 ADB, Social Protection Index for Committed Poverty Reduction, 2008, p. 21685 “Social Protection in Nepal: Present Characteristics and Future Prospects”. L. Joshua, Social Protection Specialist SAS HD
World Bank. Power Point Presentation, Kathmandu, December 4th 2008
62 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
II. Social AssistanceOld-Age AllowanceDescription: Pension for people aged 70 years andolder (lowered from age 75 by the Maoist Government).The 2008-2009 budget has raised the amount to Rs500 rupees/month from 250.
Implementing agency: Ministry of LocalDevelopment
Targeting: Categorical by age. Benefits are distributedquarterly at the Village Development Committee (VDC)offices upon presentation of certificate of entitlement.Coordination and financial management take place atthe district level.
Geographic coverage: Nationwide
Coverage: “According to a study based on a surveyundertaken among recipients of the social pension(Rajan, 2003), 83 percent of the eligible elderly werereceiving the benefit. At the time of the survey in 2002,the old-age allowance was rupees 150. The amountof the benefit was considered as sufficient to meettheir daily needs by only 40 percent of the beneficiariessurveyed, whereas approximately 26 percentconsidered that the benefit should be doubled andabout 16 percent that it should be tripled.”86
Cost: The entire social security budget for 2008-2009is Rs 4.4 billion.
Evaluations: HelpAge International is currentlypreparing a comprehensive evaluation of the scheme.
Survivor Allowance (widow cash grant)Description: Cash transfer for female Nepali citizensabove 60 years of age and who satisfy a means test.Conditions include: no income source, no caretakingfamily member, no pension income from husbands.
Implementing agency: Ministry of LocalDevelopment
Geography: Nationwide
Targeting: Categorical and means tested. Distributionmechanism same as the old-age pension.
Disability Cash GrantDescription: Cash transfer conditional on Nepalicitizenship; disability as per the Ministry of LocalDevelopment list: age above 16 years with blindnessin both eyes or without / dysfunctional two hands orlegs. The 2008/09 budget raised the benefit from Rs250/month to 1000/month for fully handicapped, anddisabled; and 300/month for partially handicapped anddisabled.
Implementing Agency: Ministry of LocalDevelopment
Geographic coverage: Nationwide
Targeting/delivery mechanism: same as above
Evaluations: n.a.
III. Block GrantsDistrict Development Committee (DDC) BlockGrantDescription: A block grant to local bodies to supportlocal governance and community development. Themain objective is to develop infrastructure and improveservice delivery based on the beneficiaries’preferences. The allocation is based on the followingformula: population (20%), area of the district (10%),human development index (50%), cost index (20%),along with analysis of internal revenue received fromthe respective districts. Minimum conditions andperformance measures have been introduced.
Implementing agency: The Ministry of LocalDevelopment (MLD) and donor/implementing partners
Targeting and delivery mechanism: Nationwide.DDCs and VDCs provide 10 per cent matching grants.Communities are expected to contribute anunspecified amount to the project in cash or kind.Block grants are transferred to DDCs in three tranchesupon confirmation of matching funds allocation, firstto the DDC account and then to the user committeebank account; six per cent of the block grant is usedto employ full-time technical staff (rather than tocontract consultants for specific schemes); theprojects should cover a large number of VDCs andshould not exceed 40 per cent of district budget.
86 ILO Technical Note (2007), p. 9
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 63
Projects are identified through local planningprocesses based on social mobilisation of NGOs, etc.The block grants to DDCs are linked to an annualreview of their compliance with Minimum Conditionsand Performance Measures (MC/PM), derived fromthe Local Self-governance Act (LSGA), local self-governance regulations, and local financial andadministrative regulations.
Geographic coverage: 20 DDCs until the end of2007; now proposed for replication in all 75 districtsand municipalities
Cost and coverage: A total of US$ 391.5 million forDDC, VDC, and top-up capital grants over 4 years.By end of 2007, almost 1,700 micro-projects hadbenefitted over 2.7 million people.
Evaluations: “Final Joint Assessment Report”, LocalGovernance and Community DevelopmentProgramme, May 2008.
Village Development Committee (VDC) BlockGrantDescription: A block grant to local bodies to supportlocal governance and community development. DDCsand VDCs provide 10 per cent matching grants, andcommunities are expected to contribute an unspecifiedamount to the project in cash or kind.
Implementing agency: MLD and developmentpartners
Targeting: Untargeted
Delivery mechanism: Being formulated
Geographic coverage: Selected VDCs
Value of benefit: As of 2008-2009, the annual blockgrant to each of Nepal’s 3,915 VDCs to provide localgovernance and basic services has increased to Rs1.5 million each (more than $80 million) per year, or atotal of about US$ 80M.
Cost and coverage: The Government’s share totalsUS$ 391.5 million for DDCs, VDCs and top-up capitalgrants, under the Local Governance and CommunityDevelopment Programme, over a period of four years.
Evaluations: n.a.
Top-up Grant to VDCsDescription: The scheme is aimed at enabling localgovernment to deliver more public goods and servicesand respond more effectively to citizens’ needs andpriorities. Top-up grants are also expected to act as afiscal incentive for empowerment of local communitiesand citizens. The allocations are formula based (basedon population and poverty targeting) and mapping ofthe disadvantaged group. These grants will be linkedto the Government block grant system.
Implementing agency: Ministry of LocalDevelopment (MLD)
Targeting and delivery: 7 per cent of the total top-up has been set aside to cover investment costs andtechnical assistance. VDCs and municipalities canspend up to 5 per cent of their expanded block grantson investment servicing and technical assistancecosts. The blended grants (block + top up) will containa minimum eligible allocation for each local body (20-30 per cent of the total blended development blockgrants), and the remainder (the largest share) will beallocated in accordance with the MC/PM system.
Geographic coverage: Top-up grants will be piloted inabout 900 VDCs in 2008-2009 and in 2000 VDCs thefollowing year. Detailed piloting of systems for VDC blockgrants will take place in 50 VDCs. Top-up grants willalso be piloted in 10 smaller municipalities in 2009-2010.
Cost and coverage: The Government has allocateda total of US$ 391.5 million for DDC, VDC and top-upcapital grants over a period of four years.
Evaluations: n.a.
IV. Cash for WorkOne Family, One EmploymentDescription: Unemployed persons (or those withannual income insufficient to feed the family for morethan three months) in the most remote parts of thecountry will be offered jobs yielding between Rs 180and 350 per day. With the 2008/2009 budget, 270,000people will get employment for 100 days through a“labour-oriented Development Programme” based onpeople’s participation, local infrastructure developmentprogrammes, and the Karnali Employment Programme.
Implementing agency: Ministry of LocalDevelopment
64 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Targeting and delivery: Self-targeting. Funds aredisbursed among the 30 VDCs in the Karnali zone.Applicants should form a team with at least fiveunemployed people of separate families and submit aproject proposal. This could be anything from small-scale infrastructure development, self-employment, totrade.
Geographic coverage: 30 VDCs in the Karnali region
Cost and coverage: The amount allocated in 2007was Rs 41.64 million. Around 55,000 households inthe Karnali region have been covered.
Evaluations: n.a.
V. Health-related TransfersMaternity SchemeDescription: Promotes safe motherhood by enablingwomen to reach a facility for delivery or by ensuringthat home deliveries are attended by a health worker.The scheme includes the following components:i. all women who deliver at a Government health
facility receive a cash incentive as transport-costsupport (Rs 500 in the Terai, Rs 1000 in the Hills,Rs 1500 in the Mountains);
ii. free delivery service in 25 low-Human DevelopmentIndex (HDI) districts;
iii. health institutions that provide free deliveryservices in 25 low HDI districts receive cashincentive (Rs 1000, used for improving quality ofservices);
iv. health workers also receive cash incentives (Rs300 per delivery) for conducting delivery at facilityor home.
Implementing agency: Ministry of Health withsupport from DFID and NGOs
Targeting and delivery: Categorical. The Departmentof Health Services (Ministry of Health) allocates fundsto the districts. The District Public Health Officeprovides parts of the funds to health institutions fordistribution. The health management committeedistributes the incentives.
Geographic coverage: Women and birth attendants;additional free delivery care for the lowest 25 HDI districts.
Evaluations: Data from 2006-2007 indicate thatinstitutional deliveries increased from 13.5 to 15.3 percent and attended home births from 10 to 14.4 percent. Lessons learnt include:87
i. Reliable and timely flow of funds is essential tobuild confidence.
ii. More information on the scheme is needed,especially in remote areas.
iii. Strong local leadership and management arecritical for successful implementation.
VI. Education-related TransfersStipends for Dalits and Girl StudentsDescription: Incentives in the education area haveexisted for decades in Nepal, but with theGovernment’s Education for All (EFA 2004-2009)programme emphasis has been put on new andimproved scholarship and incentive programmes forgirls and children from disadvantaged groups. All majoractors involved in the development of education inNepal – the Government, international developmentagencies, UN agencies and the donor community –have combined scholarship and incentive schemeswith several other reform interventions. There areseveral type of stipends in primary and secondaryschools for girls and Dalit students.
Implementing agency: Ministry of Education andSport (MOES)
Targeting Categorical: Most of the Governmentscholarships are in the form of monetary support toindividual students. The number of differentscholarships allocated to individual schools isdetermined by the Department of Education (DOE)as per the information provided by schools. At thedistrict level a committee called the District SchoolManagement Committee (DSMC) is formed to lookafter the entire process of school selection and thedistribution of scholarships. Provisionally, publicnotices about scholarships are broadcast on local FMradios and posted in newspapers. At the local level,the School Management Committee (SMC) isresponsible for the selection, distribution and overallmonitoring of different scholarships. In addition MOEShas a separate incentive package for schools. Suchincentives are provided on the basis of a school’sperformance in terms of girls’ enrolment, Dalit and
87 “The Maternity Incentive Scheme in Nepal: Increasing Demand & Equity”. Presentation by the Ministry of Health, 2007. Availableat www.womendeliver.org/presentation/slides/103_Marasini.ppt
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 65
other disadvantaged children’s enrolment, SchoolLeaving Certificate results, girls’ retention, etc.
Geographic coverage: Nationwide
Evaluation: No significant improvement is reportedas measured in terms of the gross enrolment rate(GER), NER and other educational indicators. Whilescholarships and incentives have at least 40 years ofhistory in Nepal, very little is known about how theseschemes function and the extent to which they have
88 UNESCO Kathmandu series of working papers, n.9. S. Acharya, B.C. Luitel, “The Functioning and Effectiveness ofScholarship and Incentive Schemes in Nepal”, p.25
been effective in meeting the expectations of thebeneficiaries. “Looking at the effectiveness of Dalitscholarships, various problems such as inadequateincentive quota, untimely delivery of scholarships,and delayed information about students were reportedin a study conducted by CERID (1999) for MOES.Furthermore, reports of unavailability of records ofthe Dalit population, even in the Dalit Committee,indicate a messy situation which by no meansrepresents the envisioned system of functioning atthe local level”.88
66 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
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SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 67
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68 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
General background89
Social protection in Pakistan is grounded inconstitutional norms (Constitution of Pakistan, article38)90 and forms part of the country’s poverty reductionstrategy. Social insurance was introduced in 1976,with the Employees’ Old-Age Benefits Act. The mostcomprehensive social insurance scheme is thepension for government employees. There are twoformal contributory schemes nationwide – theEmployees Social Security Institution (ESSI), and theEmployees Old-age Benefits Institution – foremployees of industries and establishments.91
Pakistan’s social assistance comprises three mainfederal cash transfer programmes (Zakat, Bait-ul-Mal,and the Benazir Income Support Program introducedin 2008), and small programmes that provide socialwelfare and care services to seven target groups (theunemployed, the under-employed, the elderly, the sick,the poor, the disabled, and children with special needs).
A People Works Programme Phase-II (PWP-II)formelyknown as Khushal Pakistan Programme is in place,available to create employment in electrification
* UNICEF ROSA, South Asia Fiscal Budget database, 2008. The WB’s 2006 calculation includes all public interventions orientedto human capital and social risk management. The ADB’s 2008 calculation includes programmes to reduce poverty andvulnerability, including microcredit schemes.
89 Draft Social Protection Strategy for Pakistan. Presentation by P. Tahir, Chief Economist, Planning Commission, Government ofPakistan at the Workshop on Social Protection in South Asia. 17-19 May 2006 Colombo, Sri Lanka.
90 “The State shall – (a) secure the well-being of the people, irrespective of sex, caste, creed or race, by raising their standardof living, by preventing the concentration of wealth and means of production and distribution in the hands of a few to thedetriment of general interest and by ensuring equitable adjustment of rights between employers and employees, and landlordsand tenants; (b) provide for all citizens, within the available resources of the country, facilities for work and adequatelivelihood with reasonable rest and leisure; (c) provide for all persons employed in the service of Pakistan or otherwise,social security by compulsory social insurance or other means; (d) provide basic necessities of life, such as food, clothing,housing , education and medical relief, for all such citizens, irrespective of sex caste, creed or race, as are permanently ortemporarily unable to earn their livelihood on account of infirmity, sickness or unemployment; (e) reduce disparity in the incomeand earnings of individuals, including persons in the various classes of the service of Pakistan; and (f) eliminate riba [usury]as early as possible.”
91 All employees of the federal government, provincial governments, armed forces, civilian employees of armed forces, andsemi-autonomous organisations, most statutory bodies and Water and Power Development Authority are entitled to pensionand other benefits on completion of 25 years of service or on reaching the age of 60 years.
PAKISTAN
Total Population:160,943,000 (source: UNICEF ROSA, 2006)
Estimated Social Protection Expenditures as a % of GDP:1.4% (WB) - 2.0% (ADB)*
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 69
schemes, road schemes, gas schemes and otherdevelopment schemes project.92
Recent trends
In July 2007 the Government approved the NationalSocial Protection Strategy (NSPS). The NSPS’s long-term goal is social protection for all within an integratedand comprehensive social protection system includingsocial insurance and social assistance. In the short-term, the focus is on providing social protection to thepoorest households by improving targeting andadministration, expanding educational and healthservices for the poor, and providing school meals andfree textbooks. The NSPS commits the Governmentto increasing spending on social protection and toincreasing the number of poor who receive regular cashtransfers from just over 2 million to over 6 million inthe first five years of implementation.93 A year afteradopting the strategy, the Government is auditingseveral programmes, and people are anxious to seeconcrete improvements.94
At the 2008 general election, the issue of increasingsocial development and social protection spendingfigured prominently in the parties’ manifestos. Thiscommitment has already translated into newprogrammes and increased spending (the Governmenthas pledged to increase expenditures from Rs 10 billionto 60 billion).95
The Government recently has launched the BenazirIncome Support Program (BISP), which involves cashpayments to persons below the poverty line. The initialscope is limited due to severe fiscal resourcelimitations, but is to be expanded to increase thenumber of beneficiaries. The Government hasearmarked Rs 34 billion (US$ 625 million) for BISP in2009. This programme will run in parallel with otherpoverty reduction programmes, including Zakat andBait-ul-Mal.96
Recommendations and observations
Pakistan’s social protection expenditures aretraditionally low.97 Resources are scarce and poorlytargeted, resulting in inadequate coverage. The ADBindex reports that coverage rates for the six key targetgroups are low,98 with none exceeding 10 per cent.For example, Zakat and Bait-ul-Mal cover less than35 per cent of households living below the poverty line(7 million). Pension schemes benefit only a smallportion of the population in the formal sector and coverless than 3 per cent of the total employed labour force.There are few informal, traditional, community-basedinsurance arrangements (for example micro-insurance). Social protection schemes often show agender and rural-urban bias. Overall, around 2.5 millionpeople are covered by some form of social protection(1.6 per cent of the population).
A recent World Bank report recommends that theeffectiveness of these schemes could be significantlyimproved.99 Many programmes are seen to overlap andto lack coordination. On the implementation side, theorganisations frequently manage multiple activities thatare not part of their core competencies (runningschools, hospitals, training centres, etc.) and thereseems to be a lack of synergy between agencies andprogrammes. Targeting flaws and leakages of fundshave been reported. In terms of geographic coverage,some areas are consistently covered while others donot benefit from any programme. Monitoring, evaluationand data management are weak overall.
Summary of programmes
I. Social InsuranceThe main social insurance schemes are run underthe Worker Welfare Fund (WWF), Worker ProfitParticipation Fund (WPPF), Employee Social SecurityInstitutions (ESSI), Education Cess Fund, and theEmployee Old Age Benefits (EOAB). Together, they
92 National Assembly Secretariat, Government of Pakistan, 8th session, http://www.na.gov.pk/questions/session8/thursday131108_8S.pdf
93 Social Protection Strategy for Pakistan; Government of Pakistan: National Planning Commission; May 200694 “Social Protection Plans Fail to Reduce poverty” The Nation, 18 November 2008 www.thenews.com.pk/
editorial_detail.asp?id=12605795 US$ 1.00 = 79.8 Rupees96 “Social Protection Promise”, The Nation, www.natino.com.pk/pakistan-news-newspape-daily-english-online/Opinions/Colums/
29-Sep-2008/Social-protection-promise97 World Bank Human Development Unit, South Asia Region, “Social Protection in Pakistan”, October 18, 2007, p. 3098 Asian Development Bank (2008). Social Protection Index for Committed Poverty Reduction, 200899 World Bank Human Development unit, op. cit.
70 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
account for less than 25 per cent of total expenditureson social protection. The ESSI provides health servicesand some cash benefits to registered employees. TheEOAB is a compulsory pension scheme for employeesof establishments employing 10 or more persons. Thiscost the Government Rs 1.7 billion in 2006, or 0.03per cent of GDP, and covered approximately 850,000people.
II. Social AssistanceZakat disbursementDescription: Zakat or “charity to the poor” is one ofthe pillars of Islam. The programme is entirely basedon private, voluntary contributions but is administeredby the Government. Zakat seeks to provide incomeand other support to the ‘deserving needy’ amongMuslims. Support takes various forms, the mostimportant of which are the subsistence (guzara)allowance and the rehabilitation grants for establishingsmall businesses. The scheme was introduced in 1980and financed by taxes deducted once a year at therate of 2.5 per cent at source from specified financialassets. The tax is levied on Muslims and the fundsare intended for Muslims, which are over 90 per centof the population in Pakistan thus making the schemea nearly universal one. However, more recently ShiaMuslims have been made exempt from the tax,reducing the inclusiveness of the scheme.100
Implementing agency: The Ministry of ReligiousAffairs seeks guidance by the Zakat Council, headedby a Supreme Court judge.
Targeting: The almost 40,000 local Zakat committeesselect recipients of zakat from among the eligiblepopulation. The person’s income must be below theofficial poverty line.
Geographic coverage: Nationwide
Value of the benefit: The guzara allowance is arecurrent monthly transfer of Rs 500 per household,while the rehabilitation grants are one-time paymentsof Rs 10,000 to 30,000 per household. The programmealso provides health and education benefits.
Cost and coverage: According to the World Bank,in 2005, Rs 5.9 billion or 0.17 per cent of GDP; 11.3per cent of total social protection budget. Benefitsapproximately 1.7 million people.
Evaluations: Lack of information and clarity oneligibility criteria may explain some of the exclusionaryoutcomes. Using data from the Pakistan Socio-economic Survey (PSES) for 2000-2001, a 2006 studyconcluded that public Zakat currently covers far fewerhouseholds than the number actually eligible and thatmost microfinance programmes fail to target thepoorest households, while health services have notreached the most disadvantaged areas of thecountry.101 The scheme’s targeting efficiency variesconsiderably between urban (64 per cent of the poorestquintile) and rural areas (37 per cent).102 “Zakat transfersare neither regular nor predictable, nor are the eligibilitycriteria transparent. The programme is also fragmentedalong religious and sectarian lines”.103
The World Bank reports corruption and patronage inthe Zakat distribution system. People perceiveeligibility decisions as taken randomly. Zakat’stargeting has some pro-poor elements but coverageis limited relative to needs. The lack of objectivetargeting tools might be a problem. Zakat’s benefitshave limited impact on poverty and income distribution.Impact on rehabilitation through the grant seemspositive albeit limited, whereas school enrolment doesnot seem to be improved by the programme.104
Pakistan Bait-ul-Mal (PBM)Description: The programme is a tax-financed safetynet combining food subsidies and cash transfers toassist destitute widows, orphans, disabled, needy andpoor persons. Funds for Bait-ul-Maal come in the formof non-lapsable grants from the federal Government.PBM’s main programmes directly assisting individualsare the Food Support Programme (FSP), IndividualFinancial Assistance, Prevention of Child Labour, andTawana Pakistana (girls’ school feeding programme).Benefits include residential accommodation, freemedical treatment, stipends for education, and cashto sponsor self-employment schemes.
100 N. Kabeer, Mainstreaming Gender in Social Protection for the Informal Economy, 2008, p. 269101 Arif, G. M. (2006) Targeting Efficiency of Poverty Reduction Programs in Pakistan, Pakistan Resident Mission Working Paper
No. 4, May. Islamabad: Asian Development Bank102 Kabeer op cit., p. 270103 Ibid., p. 273104 World Bank Human Development Unit, South Asia Region, “Social Protection in Pakistan”, October 18, 2007, pp. 38-41
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 71
Targeting and delivery: Categorical and proxymeans testing. Three local people (including a localZakat Committee member) must support theapplication, which is then processed both at the districtand provincial levels. However, the Prime Minister andother high-level functionaries can approve individualfinancial assistance in open kutcheries (publicgatherings) or elsewhere.
Geographic coverage: Nationwide
Value of benefit: Depending on the type of support(e.g., in 2003, households would receive Rs 2000 peryear under the food support programme; at the samepoint in time, support for small business would beapproximately Rs 40,000)
Implementing agency: Ministry of Social Welfareand Special Education (MOSWSE)
Cost and coverage: Rs 2.5 billion; 0.05 per cent ofGDP; 4.9 per cent of the total federal social protectionbudget. Since its inception, the FSP (core programme)has provided cash transfers to 1.25 - 1.46 millionhouseholds. Food assistance is provided toapproximately 30,000 households per year.
Evaluations: PBM’s performance is similar to Zakat’s.As reported by the World Bank, fiscal allocations forBait-ul-Mal have increased. The two programmestogether cover two million households (eight per centof the population) with cash transfers; in contrast,some eight million households are vulnerable to chronicpoverty. PBM’s benefit levels are small and paymentsirregular; governance and eligibility criteria are nottransparent; and conditions reduce targetingeffectiveness. Both programmes are seen to have littleimpact on poverty of the recipient households.105
Child Support ProgrammeDescription: The scheme pays quarterly benefits tochronically poor households with children aged 5-12who have been selected for participation in the Bait-ul-Mal Food Support Programme. Payments areconditional on the children enrolling in and attending
school regularly. The scheme aims at short-termpoverty alleviation and raising primary schoolattendance. At present the programme is piloted inthree districts, and will be scaled up nationally in aphased manner, once approved.106
Implementing agency: Bait-ul-Mal in the Ministryof Social Welfare and Special Education
Targeting Categorical and proxy means tested:Cash transfer to chronically and extremely poorhouseholds with children aged 5-12, conditional onchildren attending school and passing examinations.The transfer is paid quarterly together with the FoodSupport Programme transfer.
Geographic coverage: 125,000 households in fivedistricts of every province in the country
Value of benefit: Rs 300 (US$ 3.50) per month forone child; Rs 600 (US$ 6) if two or more children
Cost and Coverage: US$7 million for fiscal year 2006-2007; 10 per cent of Food Support Programmebeneficiaries
Tawana PakistanaDescription: Mid-day meals for girls in rural primaryschools. The scheme is not only a food supplement,but part of a wider community-based intervention targetingsome underlying determinants of malnutrition such ashousehold food security for women and children, foodchoices, etc. The strategy addresses malnutrition andmicro-nutrient deficiencies in girl children, andimprovement in school enrolment and cognitive learning.The project uses a participatory approach to buildpartnership between Government departments and localcommunities through elected district representatives.107
Implementing agency: Ministry of WomenDevelopment, Pakistan Bait-ul-Mal. The Aga KhanUniversity partnered the Government for the design,management, monitoring and evaluation of the project,and 11 NGOs facilitated implementation in 4,035 ruralGovernment girls’ schools.
105 World Bank Human Development Unit, South Asia Region, “Social Protection in Pakistan”, October 18, 2007, p. 38-41106 Interview with PBM; Pakistan Bait ul Mal, Child Support Programme, A Conditional Cash Transfer in Pakistan. Powerpoint
presentation [Islamabad May 2009]107 South Asia Partnership Project: http://www.sappk.org/tawana.htm
72 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Targeting Categorical: Targeted coverage of 650,000girls aged 5 to 12, with equal proportions of enrolledand out-of-school girls. It extends to approximately250 primary schools for girls in each district (6,500schools in all) with participation of about 100 girls ineach school location.
Geographic coverage: 26 of the most malnourisheddistricts of Pakistan
Cost and coverage (data from 2002-2003): Rs 700million; 530,000 beneficiaries108
Evaluations: Tawana Pakistana’s strategy is to createsafe environments empowering village women to takecollective decisions. Women learned to plan balancedmenus, purchase food, prepare and serve a noon mealat school from locally available foods at nominal costs(US$ 0.12/child). Between 2002 and 2005, trainingwas provided to 663 field workers, 4,383 communityorganisers, 4,336 school teachers and around 95,000rural women. Height and weight were recorded atbaseline and every six months thereafter. Wasting,underweight and stunting decreased by 45, 22, and 6per cent, respectively. Enrolment increased by 40 percent. Women’s’ ability to plan balanced mealsimproved and by end of the project over 76 per cent ofall meals provided the basic three food groups. Thereare some bureaucratic issues, which especially atthe district level proved to be the most challengingbottlenecks. Success can be attributed to synergiesgained by dealing with nutrition, education andempowerment issues simultaneously.109
Benazir Income Support Program (BISP)Description: The Benazir Income Support Programme(BISP)110 was launched in 2008 as a family grant of Rs1000 per month, primarily to address food price increases,disbursed to the woman in the family. Beneficiaries were
originally identified through parliamentarians’ officeswhich were to identify the poorest in the constituencies.This approach was changed in 2009 to systematic proxymeans testing based on a scorecard. The scorecard isbeing piloted in 16 districts.111 The benefit delivered inbimonthly installments via the post offices. In mid-2009,1.8 million people were receiving a benefit. The programmeaims to cover 15 per cent of the population, and 40 percent of the population below the poverty line.
Targeting: Below-the-poverty-line families; internallydisplaced persons
Geographic coverage: Nationwide Cost andcoverage: Eligibility criteria include that the woman ofthe household have a Citizens Card and that monthlyfamily income is below Rs 6000. For registered IDPs,the Government will disburse a one-off emergencypayment plus monthly transfers.112 The initial budgetallocation for 2008-09 was Rs 34 billion or US$ 425million, roughly 0.3 per cent of GDP. The allocationfor 2009-2010 is $625 million, of which $200 million isa World Bank IDA loan for capacity building.
Evaluations: n.a.
III. Cash for WorkPeople’s Works Programme Phase II (formerlyKhushal Pakistan Programme)113
Description: Cash for work
Targeting: Parliamentarians’ development schemesas approved by the Prime Minister: electrification, roadbuilding, etc.
Cost and coverage: Rs 22 billion has been allocatedfor 2008-2009114
Evaluations: n.a.
108 Source: World Bank (2006)109 Badruddin SH, Agha A, Peermohamed H, Rafique G, Khan KS, Pappas G. The Aga Khan University, Department of Community
Health Sciences, Stadium Road, Karachi, Pakistan. http://www.ncbi.nlm.nih.gov/pubmed/18296378110 See Benazir Income Support Program. http://www.bisp.gov.pk/benazir/; Briefing for UNICEF at BISP Office, Islamabad, 27 May
2009.111 The districts were selected based on poverty level, security issues and to cover the provinces and regions of the country.
Briefing for UNICEF at BISP Office, Islamabad, 27 May 2009112 Dawn Newspaper. Islamabad, 30 May 2009113 National Assembly Secretariat, Government of Pakistan, 8th session, http://www.na.gov.pk/questions/session8/
thursday131108_8S.pdf114 “Social Protection Promise”, The Nation, www.natino.com.pk/pakistan-news-newspape-daily-english-online/Opinions/Colums/
29-Sep-2008/Social-protection-promise
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 73
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
SO
CIA
LIN
SU
RA
NC
E
SO
CIA
LA
SS
ISTA
NC
E
Wo
rker
Wel
fare
Fu
nd
, W
ork
erP
rofi
t P
arti
cip
atio
nF
un
d,
Em
plo
yee
So
cial
Sec
uri
tyIn
stit
itio
ns,
Ed
uca
tio
n C
ess
Fu
nd
, E
mp
loye
eO
ld A
ge
Ben
efit
s.
Zak
atd
isb
urs
emen
t.E
ntire
ly b
ased
on
priv
ate,
vol
unta
ryco
ntrib
utio
ns b
utad
min
iste
red
by t
heG
over
nmen
t.P
rovi
des
inco
me
and
othe
r su
ppor
t to
the
‘des
ervi
ng n
eedy
’am
ong
Mus
lims.
Pak
ista
n B
ait-
ul-
Mal
. Tax
-fin
ance
dsa
fety
ne
tco
mbi
ning
foo
dsu
bsid
ies
and
cash
tran
sfer
s to
ass
ist
dest
itute
wid
ows,
orph
ans,
dis
able
d,ne
edy
and
poor
pers
ons.
Ch
ild S
up
po
rtP
rog
ram
me.
Pay
squ
arte
rly b
enef
its t
obe
nefic
iarie
s of
Foo
d S
uppo
rtP
rogr
amm
e w
ith
'Des
ervi
ng n
eedy
'am
ong
Mus
lims
Dis
able
d pe
rson
s,in
valid
s, w
idow
s,or
phan
s an
dho
useh
olds
livi
ngbe
low
the
pov
erty
line.
Poo
r hou
seho
lds
with
child
ren
aged
5-1
2
Loca
l Zak
atco
mm
ittee
s se
lect
reci
pien
ts f
rom
the
popu
latio
n of
tho
sebe
low
the
offi
cial
inco
me
pove
rty
line.
App
licat
ions
mus
tbe
sup
port
ed b
yth
ree
loca
l peo
ple
(incl
udin
g a
loca
lZ
akat
com
mitt
eem
embe
r). T
heP
rime
Min
iste
r and
othe
r hi
gh-le
vel
func
tiona
ries
can
sanc
tion
amou
nts
in o
pen
kutc
herie
sor
els
ewhe
re fo
rin
divi
dual
fin
anci
alas
sist
ance
.
Chi
ldre
n at
tend
ing
scho
ol a
nd p
assi
ngex
amin
atio
ns.
The
guz
ara
allo
wan
ce is
are
curr
ent
mon
thly
tran
sfer
of
Rs
500
per
hous
ehol
d;re
habi
litat
ion
gran
ts a
re o
ne-
time
paym
ents
of R
s 10
,000
to
30,0
00 p
erho
useh
old.
The
prog
ram
me
also
prov
ides
hea
lthan
d ed
ucat
ion
be
ne
fits.
Dep
ends
on
the
type
of
supp
ort.
US
$ 3.
50 p
erch
ild p
er m
onth
,ris
ing
to U
S $
6 if
two
or m
ore
child
ren.
Thi
str
ansf
er i
s pa
id
Nat
ionw
ide
Nat
ionw
ide
125,
000
hous
ehol
ds in
5di
stri
cts
ofev
ery
prov
ince
in t
he c
ount
ry
1.7
mill
ion
peop
le
Sin
ce i
tsin
cept
ion,
cas
htr
ansf
ers
to1.
25-
1.46
mill
ion
hous
ehol
ds.
Foo
das
sist
ance
to
appr
oxim
atel
y30
,000
hous
ehol
ds p
erye
ar.
In p
ilot
phas
e(2
006)
, 10
% o
fF
ood
Sup
port
Pro
gram
me
bene
ficia
ries.
The
Min
istr
y of
Rel
igio
us A
ffairs
seek
s gu
idan
ceby
the
Zak
atC
ounc
il, h
eade
dby
a S
upre
me
Cou
rt ju
dge.
Min
istr
y of
Soc
ial
Wel
fare
and
Spe
cial
Edu
catio
n(M
OS
WS
E)
Bai
t-ul
-Maa
l in
the
Min
istr
y of
Soc
ial
Wel
fare
and
Spe
cial
Edu
catio
n
Rs
5.9
billi
on(2
006)
or 0
.17%
of G
DP,
11.
3%of
tot
al S
Pbu
dget
Rs
2.5
billi
on;
0.05
% o
f G
DP
;4.
9% o
f to
tal
fede
ral
soci
alpr
otec
tion
budg
et
US
$ 7
mill
ion
for
fisca
l ye
ar20
06-2
007
Tabl
e 11
:PAK
ISTA
NSo
cial
pro
tect
ion
prog
ram
mes
74 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
child
ren,
con
ditio
nal
on th
eir
child
ren
enro
lling
in a
ndat
tend
ing
scho
olre
gula
rly.
Taw
ana
Pak
ista
na.
Mid
-day
mea
ls f
orgi
rls in
rur
al p
rimar
ysc
hool
s an
dco
mm
unity
-bas
edin
terv
entio
ns t
oad
dres
s m
alnu
triti
on.
Ben
azir
In
com
eS
up
po
rt P
rog
ram
.C
ash
gran
t to
miti
gate
foo
d pr
ice
incr
ease
s.
Girl
s in
rur
alpr
imam
ary
scho
ols
Mon
thly
fam
ilyin
com
e be
low
Rs
6000
; wom
en m
ust
have
a C
itize
ns C
ard.
650,
000
girls
age
d5
- 12
, ha
lfen
rolle
d an
d ha
lfou
t-of
-sch
ool,
in
appr
oxim
atel
y 25
0gi
rls'
prim
ary
scho
ols
in e
ach
dist
rict
(6,5
00sc
hool
s in
all)
.
BP
L fa
mili
es a
ndID
Ps
quar
terly
toge
ther
with
the
Foo
d S
uppo
rtP
rogr
amm
etr
an
sfe
r.
Mid
-day
mea
ls
Rs
1000
/mon
th in
2008
26 m
ost
mal
nour
ishe
ddi
stri
cts
ofP
akis
tan
Nat
ionw
ide
530,
000
bene
ficia
ries
(200
2-20
03)
1.8
mill
ion
peop
le in
mid
-20
09
Min
istr
y of
Wom
enD
evel
opm
ent
Rs
0.70
bill
ion
US
$ 42
5 m
illio
nin
200
8-20
09;
US
$ 62
5 m
illio
nin
200
9-20
10
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 75
General background
A formal system of social protection, including socialinsurance and a strong social assistance component,has been in place since independence. Sri Lanka hasa well-established tradition of providing social protectionand a long history of social programmes. Its socialprotection efforts include employment protection andpromotion, social security/insurance, and safety nets.While some social protection programmes have auniversal coverage (i.e., health education), others arespecially targeted programmes (Samurdhi, old age,disability, conflict affected). The country has anextensive safety net system comprising incometransfers (social assistance) to address chronicpoverty and individual risks (illness, disability), andcovariate shocks (e.g., conflict, tsunami).
Recent trends
Social security coverage is more extensive than inmost South Asian countries and includes schemes
for government employees largely funded by the state,various provident funds essentially for private sectorworkers, and voluntary schemes in the informaleconomy funded through employer-employeecontributions.115 While Sri Lanka’s social securityperformance is better than most of its neighbours,some gaps remain. For instance, only 28 per cent ofthe working age population is covered under pensionand benefit schemes. Moreover, Sri Lanka is one ofthe fastest-aging countries in South Asia, so theexisting system is unable to guarantee a minimumincome for older people and prevent them from livingin poverty. In recent months, the Sri LankanGovernment has been considering implementing auniversal pension. A recent feasibility study revealedthat a pension giving around US$ 27 per month toeveryone over 70 would cost only 0.8 per cent of GDP.This is equivalent to less than 5 per cent of currentGovernment expenditure and could be covered by asmall increase in VAT.116
* UNICEF ROSA, South Asia Fiscal Budget database, 2008. The WB’s 2006 calculation includes all public interventions orientedto human capital and social risk management. The ADB’s 2008 calculation includes programmes to reduce poverty andvulnerability, including microcredit schemes.
115 ILO, “Social Protection in Sri Lanka”, advisory report for the Ministry of Labour Relations and Manpower. Social SecurityDepartment, International Labour Office, Geneva, August 2008, p. 4
116 S. Kidd; L.Wilmore, Helpage, Tackling Poverty in Old Age: A universal pension for Sri Lanka. November 2008, available atwww.pensionreorms.com
SRI LANKA
Total Population:19,207,000 (source: UNICEF ROSA, 2006)
Estimated Social Protection Expenditures as a % of GDP:3% (WB; UNICEF ROSA) - 5.7% (ADB)*
76 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Social assistance programmes provide cash transfersto approximately 1.9 million poor families. Existingschemes present some deficiencies such as lack ofcoherence in the design, management and methodsof financing.
Recommendations and observations
A 2006 World Bank evaluation found that the safetynet system could be strengthened not only to producemore equitable outcomes but also to promote growth.It pointed out that this could be achieved by: “(i) bettertargeting existing social assistance/cash transferprograms to the poor; (ii) ensuring that poor participatein human development and income earning programs;(iii) ensuring that programs are designed to helpindividuals cope with vulnerability (sickness, disability,and loss of employment) by providing them socialwelfare and care services and by integrating workfareinto social assistance programs; and finally (iv) scalingup safety net programs to help address the communitylevel shocks (natural disasters and the civil conflict)”.117
In line with the above, the ADB assessment highlightssome contradictions in the overall situation of socialprotection in Sri Lanka. On the one hand, its socialprotection indicators are above average for Asiancountries. On the other hand, overall expenditure isbiased towards the not poor, the average value of benefitsto poor households is low relative to the poverty line andthere are major targeting issues with the Samurdhiprogramme, where the majority of beneficiaries are notpoor. Coverage rates for the elderly and the disabled arealso below the all-Asia average. Finally, the formal socialinsurance schemes have weak administrations and theirfinancial sustainability is in question.118 Strengtheningthe current social protection system is thus an importantchallenge for Sri Lankan policymakers.
Summary of programmesI. Social InsuranceOld-age income supporta. Employees’ Provident Fund (EPF)
Established through legislation by the Employees’Provident Fund Act No. 15 of 1958, administeredby the EPF division of the Department of Labour.
b. Civil Service Pension Scheme (CSPS)
c. Voluntary schemes for informal sector workers(farmers’ pension scheme; fishermen’s pensionscheme; self-employed pension scheme)
Coverage: the EPFO, the CSPS, and the two informalschemes combine to cover one quarter of the workingage population and about a third of the labour force.
Disability and survivor insuranceAd hoc schemes tied directly to coverage in thepension system and provided as defined benefits.
Unemployment schemesWorkfare schemes also exist on an ad-hoc basis toprovide employment for low-wage workers. Theseschemes provide labour-intensive low-skill jobs for thepoorest unemployed, self-targeted through thepayment of low wages.
II. Social AssistanceThe Samurdhi (“Prosperity”) income transfer tothe poorDescription: A comprehensive poverty alleviationprogramme seeking to create opportunities for youngpersons, women, and vulnerable and disadvantagedgroups. It has three major components: (i)consumption grant transfers to eligible households;(ii) savings and credit operated through Samurdhibanks together with loans for entrepreneurial andbusiness development; (iii) workfare and socialdevelopment programmes to rehabilitate and developcommunity infrastructures. Beneficiaries are requiredto participate in microcredit and communityinfrastructure development programmes.
Implementing agency: Ministry of Nation Buildingof Estate and Infrastructure Development. Theprogramme is managed by offices at national and sub-national/local levels under the authority of theCommissioner General of Samurdhi.
Targeting: Means tested (based on a householdsurvey conducted in 2005); the Samurdhi DevelopmentOfficers oversee the selection.
Cost and coverage: According to last available data,2.1 million households (41 per cent of the eligible
117 World Bank, “Strengthening Social Protection” (April 2006), p. 62118 ADB, Scaling Up of the Social Protection Index for Committed Poverty Reduction. Volume 20: Sri Lanka country report -
Final Version November 2007. Halcrow China Limited. In association with Health Policy research Associates (Pvt) Ltd, p. 5
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 77
population) benefited from income transferprogrammes that cost about 0.4 per cent of GDP in2004. The 2008-2009 budget allocates Rs 41 million119
for the programme, against expected total Governmentexpenditures of Rs 1,719 billion.120
Evaluations:121 The programme presents an innovativeapproach that seeks to both reduce vulnerability andhelp the poor move on to higher income growth paths.122
The main issues observed include: (i) mistargeting:44 per cent of the richest quintile received transfers in2000 while only 60 per cent of the poorest quintilereceived them; (ii) administrative cost and problemswith the delivery system; (iii) inadequacy of the benefit.Programme expenditures declined from 0.9 per centof GDP in 2001 to 0.4 per cent of GDP in 2004. Itswelfare impact is minimal. “Thus, as currentlydesigned, the program provides inadequate assistanceto the poor. It also does not adequately help the poorescape poverty”.123
Cash Transfers for DisabledDescription: This is the second-largest income-transferscheme and encompasses several types of disabilitiesaccording to a broad definition of the Ministry of Welfare,but is primarily focused on disabled soldiers injured inthe conflict, who are the main beneficiaries along withfamilies of soldiers killed in action. This componentconsumed 92 per cent of transfers by the Ministry in2003 and 85 per cent of its total budget, leaving verylittle support for other disabled groups.
Implementing agency: Ministry of Social Serviceand Social Welfare
Cost and coverage: Rs 3.86 billion, 0.32 per cent ofGDP in 2004. The number of beneficiaries is unknown.
Evaluations: Expenditure on disability payments hasincreased over time due to the conflict. There is oftenpressure on Government to extend the definition ofdisability, which increases the number of eligibleindividuals and therefore expenditures.
Assistance for Internally Displaced Persons(IDPs)Description: Food assistance for internally displacedpersons (IDPs) if their monthly income is less thanRs 1500 for 12 months from date of permanentresettlement
Implementing agency: Ministry of Women’sEmpowerment and Social Welfare
Evaluations: The relief for the displaced is insufficientto meet basic nutrition needs, and rehabilitationassistance for permanent settlements faces strongfiscal constraints.124
Emergency Assistance to People Affected byNatural Disasters such as Drought and FloodsDescription: Cash grants or food stamps
Implementing agency: Ministry of Women’sEmpowerment and Social Welfare
Targeting: Beneficiaries are selected on the basis ofthe disaster’s impact rather than on income poverty.However, a broad income criterion of Rs 3000/month perfamily exists for long-term assistance to recipients ofdisaster relief. In the short term, disaster relief covers allaffected persons on the basis of the impact and injuriessuffered. Divisional Secretaries in the affected regionsselect beneficiaries with the assistance of GramaNiladharis and social service officers at the divisional level.Drought relief is provided to families with incomes lessthan Rs 2000 a month from agriculture or relatedactivities. Families become eligible for the relief ifcultivation has been disrupted or crops damaged for atleast two consecutive seasons due to drought, the cropshave not been insured, and the family does not have analternative source of income.
Cost: 0.07 per cent of GDP (2004)
Evaluations: Disaster relief covers all affected personsand works effectively.
119 US$ 1.00 = 114 Rupees120 Sri Lanka Government Budget Speech, available at www.treasury.gov.lk121 ILO (2008)122 M. Vodopivec et al., “Sri Lanka: Strengthening Social Protection”, the World Bank (2006), p.66123 World Bank (2006), p.8124 World Bank (2006), p.86
78 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
SO
CIA
LIN
SU
RA
NC
E
SO
CIA
LA
SS
ISTA
NC
E
1.O
ld A
ge
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me
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pp
ort
a.E
mp
loye
esP
rovi
den
t F
un
db
.C
ivil
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vice
Pen
sio
n S
chem
ec.
Vo
lun
tary
sch
emes
fo
rin
form
al s
ecto
rw
ork
ers
2.D
isab
ility
an
dsu
rviv
or
insu
ran
ce3.
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emp
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ent
sche
mes
Th
e S
amu
rdh
iin
com
e tr
ansf
er t
oth
e p
oo
r.C
onsu
mpt
ion
gran
ttr
ansf
ers
to e
ligib
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olds
, tog
ethe
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ith lo
ans
for
entr
epre
neur
ial a
ndbu
sine
ssde
velo
pmen
t,w
orkf
are
and
soci
alde
velo
pmen
tpr
ogra
mm
es to
reha
bilit
ate
and
deve
lop
com
mun
ityin
fras
truc
ture
.
Cas
h T
ran
sfer
s fo
rD
isab
led
.E
ncom
pass
esse
vera
l ty
pes
ofdi
sabi
litie
s ac
cord
ing
to a
bro
ad d
efin
ition
of t
he M
inis
try
ofW
elfa
re b
utpr
imar
ily f
ocus
ed o
ndi
sabl
ed s
oldi
ers
inju
red
in th
eco
nfli
ct.
The
poo
r. Yo
ung
pers
ons
and
wom
enof
vul
nera
ble
and
disa
dvan
tage
dgr
oups
. Tho
se e
ligib
lear
e re
quire
d to
part
icip
ate
inm
icro
cred
it an
dco
mm
un
ityin
fras
truc
ture
deve
lopm
ent
prog
ram
mes
.
Dis
able
d pe
rson
s
Mea
ns-t
este
d(b
ased
on
aho
useh
old
surv
eyco
nduc
ted
in 2
005)
.T
he S
amur
dhi
Dev
elop
men
tO
ffice
rs s
elec
t th
epa
rtic
ipan
ts.
Nat
ionw
ide
2.1
mill
ion
hous
ehol
dsbe
nefit
ed f
rom
the
inco
me
tran
sfer
prog
ram
mes
(41%
of
the
targ
etpo
pula
tion)
.
Min
istr
y of
Nat
ion
Bui
ldin
g of
Est
ate
and
Infr
astr
uctu
reD
evel
opm
ent
Min
istr
y of
Soc
ial
Ser
vice
and
Soc
ial
Wel
fare
RS
41
mill
ion
inth
e 20
08-2
009
budg
et, a
bout
0.4%
of
2004
GD
P
Rs
3. 8
6 bi
llion
;0.
32%
of
GD
P(2
004)
Tabl
e 12
:SR
ILA
NK
ASo
cial
pro
tect
ion
prog
ram
mes
SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW 79
Typ
e o
fP
rog
ram
me
Pro
gra
mm
e T
itle
and
Des
crip
tio
n
Elig
ibili
ty a
nd
Oth
erB
enef
icia
ry-r
elat
edIs
sues
Targ
etin
g/D
eliv
ery
mec
han
ism
Val
ue
of
the
Ben
efit
&D
eliv
ery
Geo
gra
ph
yC
ove
rag
e
Key
Imp
lem
enti
ng
Age
ncy
Co
sts
and
Bu
dg
et I
ssu
esL
egal
Fra
mew
ork
for
SP
Ass
ista
nce
for
inte
rnal
lyd
isp
lace
d p
erso
ns
(ID
Ps)
. M
ainl
y fo
odas
sist
ance
.
Em
erg
ency
assi
stan
ce to
peo
ple
aff
ecte
d b
yn
atu
ral
dis
aste
rssu
ch a
s d
rou
gh
tan
d f
loo
ds.
Cas
hgr
ants
or
food
sta
mp
s.
IDP
s w
ith m
onth
lyin
com
e le
ss t
han
Rs
1,50
0 fo
r 12
mon
ths
from
dat
e of
perm
anen
tre
settl
emen
t
Sel
ectio
n ba
sed
onth
e di
sast
er's
impa
ct r
athe
r th
anin
com
e po
vert
y,th
ough
onl
yfa
mili
es w
ith l
ess
than
Rs
3000
inco
me
per
mon
thre
ceiv
e lo
ng-t
erm
assi
stan
ce.
Dro
ught
rel
ief
prov
ided
to
fam
ilies
with
inco
me
less
than
Rs
2000
am
onth
fro
mag
ricul
ture
or
rela
ted
activ
ities
.
Aff
ect
ed
regi
ons
Min
istr
y of
Wom
en’s
Em
pow
erm
ent
and
Soc
ial
Wel
fare
Min
istr
y of
Wom
en’s
Em
pow
erm
ent
and
Soc
ial
Wel
fare
0.07
% o
f G
DP
(200
4)
80 SOCIAL PROTECTION IN SOUTH ASIA: A REVIEW
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