Tanzania –Building a Productive Social Safety Net

1. Tanzania –Building a Productive Social Safety Net Presentation to the DPG Meeting on Nov 12, 2013

2. Guide to the presentation • Rationale • Overall Approach • Benefits and Costs • Institutional Arrangements • Challenges • Implementation Status • Strategic Issues

3. Why a social safety net in Tanzania?

4. Good economic growth but not commensurate with poverty reduction… High economic growth (7% annual average 2000-2007) but still high levels of poverty and vulnerability (poverty reduction 2000-2007: 2.2% total) Seasonality in labor and livestock activities Seasonal shocks deepen chronic poverty and prevent improving wellbeing of the poorest

5. … however, not everybody is equally poor… a significant number of people is very close to the poverty line… … but there are differences among the poor.

6. … and a significant proportion of the population is still highly vulnerable High levels of poverty and food insecurity… • Primary school attendance (poorest 40%): <80% • Secondary school attendance (poorest 60%): <15% • Stunting (poorest 60%): >40% • Births attended by skilled staff (poorest 20%): 31% • Under 5 mortality: >130 per 1,000 • Life expectancy at birth: 52 …and unacceptable social indicators

7. How would a safety net in Tanzania look like?

8. Need for a productive social safety net system approach Poor and vulnerable households require different types of support – A single intervention is not enough

9. The Productive Social Safety Net: A system to support the poor and vulnerable in Tanzania Common targeting Unified registry of Beneficiaries Participation for several years + CCTs (HH with children and pregnant women) Incl. monthly community sessions PWP (HH with adults able to work) Plus savings promotion Income generating activities, Savings, Training Smooth consumption, accumulation of assets v Education, health and nutrition services Human capital accumulation and sustained reduction of poverty v *A family could be beneficiary of both programs

10. Who will be supported by the social safety net and how much will it cost?

11. Benefits and beneficiaries • Target population: Population under the food poverty line • 1.2 million households (about 7.5 million people or 15% of the population) • Benefits • From the CCT: • Basic benefit: US$5 per month per household • Variable benefit: up to additional US$5 per month per household • From the cash-for-work: • US$1.35 per day for up to 60 days in three months Participation in the two programs equivalent to about 35% of annual household’s consumption

12. It is a generous program… Size of thebenefit as % of pre-transfer consumptionamongbeneficiaries

13. … with expected significant impacts… • Ex-ante simulations indicate: • Extreme poverty reduction of 52% • Extreme poverty gap reduction of 43%

14. … and affordable The cost once the program to reach the 1.2 million households: <1% of the GDP

15. Institutional Arrangements

16. Options for Scaling Up GoT had in Sept • Option 1: Reaching the 1.2 million households with transfers costing $300m/year by December 2015 • Option 2: Having 1.2 million households targeted and enrolled in CCT before December 2015 then phase- in Public Works, COMSIP, nutrition interventions • Option 3: To only conduct the targeting and enrolment processes for all 1.2 million HHs in the program Government endorsed the first option

17. Main Challenges for Scaling Up • Moving from a social fund intervention towards a social safety net approach • Capacity at LGA and ward levels to facilitate scaling up of a community-based approach • Ensuring predictable and timely transfers • Constructing and broadening the evidence base to rationalize SP expenditures to ensure sustainability

18. Implementation Status • Short-term Roll out Plan: Nov 2013 – Jan 2014 (In progress now) • Reach out to 12 Districts in Mtwara & Lindi Regions • To reach 131,332households • Capacity Building for LGA teams, targeting and enrolling, procedures and processes and tools • Assess the roll out by January 2014 • Long Term Detailed roll out to 2015 • February Mission will incorporate lessons from the assessment and finalize detailed massive roll plan: • changes in processes, timing, costing, ICT/MIS and T/A requirements

19. Coverage for Short-term Roll Out Plan • Estimated Number of Beneficiaries in the first 12 Project Authority Areas (PAAs)

20. Strategic Issues • Fiscal Sustainability • Option needs US$300m per yr at full coverage • Sources of funds Government and donors • Initial modeling suggests that fiscal impact of 0.6 - 0.8% of GDP Spending on Safety Nets in a Selection of Low-Income Countries • Inclusion of PSSN in the Government’s recurrent budget • MoF has advised that PSSN is in the budget preparation guidelines for FY 2014/15 • Ministry of Finance preparing Cabinet Paper • Need support with policy note to inform Cabinet Paper

21. THANK YOU FOR YOUR ATTENTION

22. Objective of the productive social safety net

23. Tanzania Productive Social Safety Net • Provision of predictable and timely cash transfers through a combination of : • CCTs for poor and vulnerable households (Education, health, nutrition) • Participation in seasonal cash-for-work programs during the lean season and shocks (a labor intensive intervention with 75/25 ratio of labor/capital) The same group of households will be beneficiary of both programs (over 85% beneficiaries will be able to participate in the CCTs and the cash-for-work • Institutional reform • At the Social Protection sector level (Coordination, institutional responsibilities, rationalization of SP expenditures) • Implementing agency level (from a social fund to a safety nets approach) • Instruments to support a system approach • Common targeting mechanism • Single registry of beneficiaries • Same payment mechanism • Comprehensive and integrated MIS

24. Selection and Registry of Beneficiaries TASAF verifies list of beneficiaries applying a PMT URB (administered by TASAF) In all LGAs select villages using a Village/Mtaa/Shehia Index VC sends list of hh via LGAs TASAF sends list of hh via LGAs Village Assembly validates final list of households Village Assembly identifies the poorest households CMC collects information from households CMCs collects information to register beneficiaries in the URB

25. Decentralized operations and processes • Central level (TASAF): Overall management and monitoring, support to sub-national authorities, disbursement of funds. Coordination with other SP actors (Welfare) • Regional level: Follow up of implementation in LGAs • LGA level: Provision of support to ward level extension staff. Technical support and guidance including training and follow-up of implementation in the villages. Selection of works and activities. • Ward level:Direct provision of technical support to communities and households • Village level:Selection of beneficiaries by CMC under oversight of Village Council, endorsed by Village Assembly, overall support to program • CMCs:Day to day implementation management, collection of information to register beneficiaries and to verify compliance with co-responsibilities • Education and health sectors:Provision of information on compliance with co-responsibilities • Payment Agents:Direct transfer to beneficiary households and reconciliation of payments

26. Social Protection Policy Environment • Draft National Social Protection not yet endorsed by Cabinet but in principle it is accepted • Cabinet has asked for an action Plan that will operationalize the Framework • Ministry of Finance is working on the plan (timeframe for this work not known)

27. Implementation Status (cont….) • Procurement processes are in progress for: • Unified Registry of Beneficiaries • Mobile Payments • MIS enhancement • Recruitment for staff almost finalized at national and district levels • Procurement of goods in progress • International TA is in place assisting with massive scale-up