Alemayehu Seyoum Taffesse International Food Policy Research Institute (IFPRI)

1. Social Protection Policy - Some Lessons from Ethiopia’s PSNP Alemayehu Seyoum Taffesse International Food Policy Research Institute (IFPRI) Achieving inclusive development in Africa: Policies, processes and political settlements Policy research seminar, 13-14 May 2014, Addis Ababa

2. Outline • Premise and aim; • The PSNP – a brief description, impact; • Key lessons – as a means of summarizing the state of knowledge;

3. Introduction • Policy • Goals– objectives or targets that are to be attained or promoted; • Instruments– means deployed to achieve policy goals or targets; • Causal framework– summarises the expected link between instruments and goals; • Social Protection (Ethiopia’s draft policy document) • A rather broad characterization; • a set of ‘formal and informal interventions that aim to reduce social and economic risks, vulnerabilities and deprivations for all people and facilitates equitable growth’. • Social protection policy (Ethiopia’s draft policy document) • Focus Areas: Social Safety Net; Livelihood and Employment Schemes; Social Insurance; and Addressing Inequalities of Access to Basic Services

4. Premise and aim • Premise • Lessons can be distilled from country-level experiences; • These lessons may inform other initiatives at the country and/or regional levels; • Aim • highlight key lessons from the PSNP for future social protection interventions; particularly those involving cooperation between donors, governments, and other stakeholders; • Some of these lessons appear to have influenced the draft National Social Protection Policy;

5. The PSNP • Motivation • the drought of 2002-03; • New Coalition for Food Security in Ethiopia (2003) • Features • Coordination and commitment – donors (9), government; • Predictability - multi-year planning and financing; • Combine transfers with asset building – PW plus direct support ; • Integrated with the broader development agenda; • Large • Beneficiaries - Up to 8 million persons, nearly 300 woredas (40%); • Cost - US$1.5 billion (2005-09); US$2.1 billion (2010-14)

6. The PSNP • Impact • Food gap declined by (due to participation in the PSNP-PW): • 1.3 months between 2006 and 2010; • further 1.4 months between 2010 and 2012; • Increased use of fertilizers; • Higher medical expenditures; and • Investments in soil conservation such as stone bunding, • Note: these impacts occurred against the background of rising food prices and widespread drought

7. Key Lessons • Crisis can be an opportunity – 2002-03 drought and PSNP; • Principles: • Ownership – Government program; • Integration – part of the national development effort/plan; • Coordination – among donors, donors and government, within government; • Complementarity – addressing emergency, enhancing resilience, and promoting development (E.g. Drought Risk Financing (DRF)) • The combination of these principles enables the program to be: • more effective (own objective); and • generate significant spillover (capacity building, broadly defined…)

8. Key Lessons • Process • Dialogue – genuine; • What and how – implementation strategy; • Monitoring and evaluation • a part of the initial design and mutual understanding; • independent but collaborative – government, donors, the national statistical agency, external evaluators; • interim rigorous evaluations – four so far (fifth in progress); • Create opportunities to learn and adjust (Payroll and Attendance Sheet System (PASS), Client cards ) • Help bridge results-based budgeting and longer term programming designed to achieve impact