CCT: Jamaican Case Study Presented by Faith Innerarity

1. Conference on Social Inclusion in Eastern Europe and Central Asia –Towards Mainstreaming and ResultsSponsored by the World Bank and the Government of Hungary Budapest, 25-26 September 2007 CCT: Jamaican Case Study Presented by Faith Innerarity

2. Outline of Presentation • Overview: • Profile of Jamaica • Social Safety Reform • Design of PATH • Results • Institutional and Legislative Framework • Educational impact • Health impact • Impact on elderly • Challenges and Way Forward

3. Country Profile • Jamaica is located in the North Western section of the Caribbean Archipelago, 145 kilometres south of Cuba, 161 kilometres west of Haiti and 898 kilometres south east of Miami. With an area of 10,991 square kilometres, it is the third largest island in the Caribbean. • According to the 2001 Census, the population size is 2.6 million. • It is a middle-income country with a GNP per capita of US$2,900 (World Bank Development Indicators July 2005). • The level of human development has been classified as medium range by the United Nations Development Programme (UNDP). • Multi-ethnic population, with majority of African descent

4. MAP OF JAMAICA

5. Social Policy Agenda: Jamaica • Integration of economic and social Policies to achieve macro-economic stability while simultaneously pursuing social development objectives. • Re-orienting social sector spending for increased equity and human development. • Promotion of social inclusion through the reduction of poverty, risk and vulnerability among disadvantaged groups.

6. Social Safety Net Reform: Rationale • Analysis of social safety net programmes in 1999-2000 led to recognition of need to: • Remove fragmentation and duplication in provision of social assistance benefits • Develop system for more cost effective delivery of benefits • Improve targeting of beneficiaries • Increase coverage of the poor • Adopt more developmental rather than welfare approach by establishing link between benefits and human capital investment

7. PATH: Principal Design Features • Institutional changes – Merger of principal social assistance programmes, new legislative framework, strengthening of institutional capacity in programme management • Use of scientific targeting mechanism • Introduction of conditional cash transfers to support human capital investment in education and health • Case management

9. @# PATH Beneficiary Target Groups 236,000 2% 8% 14% Children 0-17 years Pregnant &lactating Elderly (> 60yrs) 5% Persons with Disabilities Adult poor (18-59 yrs.) 71%

10. PATH TARGET GROUPS and BENEFICIARIES

11. Programme Outcome: Administrative Efficiency • Increased efficiency in programme delivery including significant reduction in administrative cost • Payments made to beneficiaries in more dignified manner (cheque payment through post offices and Cash Cards) • Social workers interact more closely with beneficiaries • Beneficiaries have access to wider range of social benefits

12. Programme Outcome: Targeting • From the standpoint of redistribution and coverage of the poorest and most vulnerable PATH has been fairly successful in terms of its targeting mechanism. • However, concerns in terms of errors of inclusion and exclusion have had to be addressed.

13. PATH Relative to Other Social Programmes: Distribution of Households Receiving Benefits by Quintile

14. PATH Beneficiaries by Quintiles and Area

15. PATH Beneficiaries Household Characteristics Source: PATH Participant Survey 2003, JSLC 2002

16. Targeting Outcome: Exclusion Errors – Urban Poor • Beneficiary Identification System (BIS) has had to be reviewed to address, among other issues, the disproportionate selection of households from urban centres including the Kingston Metropolitan area. • This is linked to the complexity of having a single poverty measurement instrument that can adequately capture the distinguishing features of rural versus urban poverty.

17. Distribution of PATH Beneficiaries Compared with Distribution of Poor and Share in Total Population By Parish (Percentages) *Based on Population Census 2001

18. Education Outcome • PATH has resulted in increased school attendance • There is, however as yet, no significant evidence that other outcomes such as advancement to the next grade or test scores have been impacted by participation in the programme.

19. Education Compliance Rates

20. Health Outcome • There has been an increase in preventative health visits for children in the programme • Health care visits for children 0-6 years increased by 38%. • As yet, there is no evidence of improvement in health status as a result of the programme

21. Supply Challenges • In respect of PATH compliance requirements a number of supply side difficulties have been encountered in relation to the physical and human capabilities of health facilities and schools. • Specific concerns include the need to expand primary health care capacity at the community level and increase secondary school places for the 15-17 years age group for which a gap still exist.

22. Need for Expanded Beneficiary Support Programmes • In terms of the beneficiary households, the high cost of transportation, especially in rural areas has impacted negatively on affordability of schooling. Special measures are therefore required to address this issue. • Availability of subsidised lunches has been found to be critical for attendance and in this regard, the School Feeding Programme needs to be strengthened.

23. Slow Pace of Legislative Change • The new social protection legislation, the National Assistance Act, which will repeal the Poor Relief Law of 1886, is critical for the achievement of the goals of the Social Safety Net Reform but the pace of legislative change has been slow. • Finalization of post project institutional structure depends on passage of new legislation.

24. Legislative and Institutional Framework

25. Coverage Gaps • Incidence of poverty 14.8% in 2005 • Poverty Line 2005 • Individual J$63,717 • Family of five J$240,816 • Estimated 394,000 persons are below the poverty line • PATH covers 236,000 • Approximately 158,000 persons below the poverty line are not covered by PATH • These are mainly the working poor

26. Working Poor • “ The working poor are individuals engaged in either paid or self employment who belong to households with an adult equivalent per capita household expenditure (or income) that falls below a specified poverty line” (Labour Market and Poverty Studies Unit, University of the West Indies, Trinidad and Tobago)

27. Working Poor: Results of ILO Study • Males dominate the working poor • The working poor are clustered in the 25 to 44 age group • The working poor have lower levels of education • The working poor are employed in a variety of sectors, but most are found in agriculture, community and social services, construction and wholesale/retail sales. • The working poor work fewer hours than their non-poor counterparts • In Jamaica 34% of the working poor are in agriculture.

28. Coverage Gaps: Elderly/Incapacitated • Food Stamp programme catered to 88,641 elderly/incapacitated persons in 2002 when it was merged with PATH. • PATH currently provides benefits for 51,583 elderly persons and 5,633 adults with disabilities between 18-59 years (57,216). • Gap of over 32,000 exists in respect of number of elderly and persons with disabilities receiving social assistance benefits when both programmes are compared. • It should be noted however, that some of the persons receiving Food Stamps were not below the poverty line.

29. Distribution of National Insurance Scheme Pensioners (2007)

30. Coverage Gap: Elderly

31. Age Dimension of Poverty • Children (0-18 years)are over-represented among the poor. They account for 52.3% of persons in poverty while constituting 38.2% of the overall population. • Sixty one percent (61%) of the poor are under 25 years. • Consistent with their overall share of the population, the elderly (60 years and over) account for 9.6% of the poor Source: Economic and Social Survey of Jamaica 2001

32. Long Term Options for Expanded Safety Net • Welfare to work initiative focusing on persons in the economically active age-group in PATH beneficiary and other poor households. • Young school leavers – focus on school to work transition process with link to Jamaica Youth Employment Network (JYEN) and initiatives. • Social pension • Provisions for street and homeless persons

33. Welfare to Work • Training and job placement for members of beneficiary household in economically active age groups • Promotion of entrepreneurial activities through revamped rehabilitation grant programme • Community based interventions • Provision of range of referral services

34. School to Work Transition • Support for PATH beneficiaries beyond age 17 (8,000- 10,000 PATH School Leavers annually) • Assistance for further education (Government guarantee of Students Loans) • Stipend for skills training/apprenticeship • Provision of Job placement services • Promotion of Entrepreneurship (grants or soft loans for income generating projects) • Training centre for Young persons with disabilities in Western Jamaica

35. School to Work Transition • Overall unemployment among the 14-29 years age group stands at 26.5% (35.05 for females and 18.9% for males) • At risk youth to be targeted: • Youths in rural areas and inner-city communities • Youths with disabilities • HIV/AIDS victims

36. Social Pension • PATH implementation highlighted immense need for income support to the elderly poor • Significant coverage gap exists in respect of social insurance scheme with only approximately 28% of persons 60 and above qualifying for benefits. • Social (non-contributory) pensions are a valuable and strategic element of a minimum social security package. They also make important contributions to older people’s empowerment.

37. Social Pension • Social pensions are an effective way of reducing income and other forms of poverty among older people. • Regular cash transfers also increase poor older people’s access to services, particularly health care. • Most older people live and share resources with younger family members, therefore social pensions have a substantial impact on child well-being. • Social pension can actually reduce rather than create dependency.

38. Street and Homeless Persons • Currently there are programmes implemented by the NGO community which target both children and adults on the streets, but a comprehensive social policy framework and Government intervention strategies are necessary for a greater impact.

39. Street and Homeless Persons • In the institutional arrangements for the Social Safety Net Reform, the issue of homeless/street people is one of the designated areas of responsibility for the Local Authorities. • However, there have been discussions as to whether these persons should also be targeted for cash transfers under PATH, after a process of settlement in half-way houses and eventually permanent dwellings.

40. Street and Homeless Persons • Children living on the streets have also posed a particular difficulty as it is not prudent to provide them with cash which could be used to support delinquent behaviour patterns. • Based on the design of PATH, they would need to be reconnected with a family unit in order to be assessed for benefits and meet programme conditionalities.

41. The End