Economic Research Center

1. Economic Research Center The project on estimating of factors that affect Targeted Social Assistance (TSA) system 24 april, 2008

2. The passport of project The name of project: “; The project on estimating of factors that affect targeted social assistance system The purpose of project:To explore the quality of new mechanism’s application, perceiving its importance, to determine the factors that influence errors of inclusion and exclusion that can affect coming consumption of poor population, preparing Recommendations' Packet Interrogatory during the project:The interrogatory among 200 TSA determined person, 200 person who denied to be TSA determined and 400 casual picked person in Mingachevir city. The organization hold the project:Economic Research Center; Donor of the Project:The Oxfam (Novib) Organization of Netherlands The sum of grant intended for project: 25.000 euro

3. The structure of interrogatory form • General information – family members of responders, education, the occupied status, age, the information about area of economic that he or she is occupied • Estimating of population’s intelligence; • The process of applying for targeted social assistance and about officials’ behavior; • About officials’ abusing during determined TSA and about estimating of corruption condition, about families’ income and expenditure; • .Estimating influence of TSA to real home economy level

4. Just division of incomes Gene coefficient 0.313

5. Depth of poverty in Mingachevir Foster-Greer-Thorbecke (FGT) poverty index (headcount ratio) – 25,8 faiz (poverty gap)– 7,9 faiz (average squared normalised poverty gap) 3,6 faiz

6. Composition of minimum consumption basket

7. Employment status’s influence to probability getting TSA

8. Results of interrogatory Sorğu nəticələri • People who got TSA picked 7 documents. Responders could get TSA by presenting maximum 16 minimum 1 document. • People from Mingachevir who got TSA spent 5,1 day on it. From responders one person for 40 day 22 people for one day picked all documents. • In order to get an aid from state 94 people(49%)1 time, 52 people (25,7%) 2 times, 38 people (18,8%) 3 times, and 8 people tried much more times for “registering their documents”. • Last time during presenting documents responders lost 43 minutes in turn. 25,7% of responders informed that there was not any turn. -----------

9. “ How do you estimate official’s behavior who admitted your documents?” distributing answers to this question

10. Bureaucratic hindrance while getting tsa “in which organization you have faced with much more problems” distributing answers to this question

11. Yes 53,6 46,4 No “Do you have any information that people who do not need aid got TSA?” the structure of answers given to this question with percentage)

12. Inclusion error • Families who got TSA income for per person was 21 AZN • Among the surveyed TSA applied households, the percent of households with an income of 40 AZN of above per person made up 12,9%

13. 38% Yes No 62% “Do you have any information about people who need but can not get TSA?” responders answers to this question

14. Exclusion probability • Average measure in denied families was 3,8 person and average income per person was equal to 27,4 AZN. Statistic analysis showed that despite of refusing to determine TSA, 79% of such responders’ per man average benefit was lower than need criterion(40 AZN) -----

15. Reasons of rejection People who refused to determine tsa based their repudiation with below arguments: • Rejection from work suggested by employment-81,4% • Benefit is higher need criterion-14,2% • Wrong showing benefit’s and familie members’ number-3,8% • Other-0,5%------

16. Rejection from employment Rejection from employment mainly connected with below factors • 63,5% rejected from employment because suggested work was not suitable with profession. • 34,6% rejected because of unsuited salary • Thus, based on rejection from work from employment, refusing to determine TSA disorders social justice

17. “Which of below arguments play main role in determining tsa?” distribution answers to this question 1,0 Other 3,1 None official payments 17,5 relations & acquiantances 78,4 Under the law 0,0 20,0 40,0 60,0 80,0 Economic Research Center

18. Results • During preparing prognosis for TSA in 2008, it was based on 2006 year’s information and population’s benefit admitted as unchanged, there was not considered increasing observed in 2007 and prognosticated for 2008 ; • Considering little increasing of need criterion in 2008 we can say that, prognosticated sum was not based enough; • Prognosticated sum of social guarantee expenditures per person is not correspond to life level in some regions; • Population's lower knowledge about TSA; • Expensiveness of “ application cost” for getting TSA; • Plenty of demanded documents for getting TSA; • Problems in counting household benefit; • TSA surrounds only 30% of poor population; • Existing inclusion and exclusion errors

19. Recommendations • Need criterion by stages has to be attained to living minimum; • Poor population has to be supplied with tsa widely as possible; • TSA prognosis have to be worked out according to level of poverty in the country and regional features; • TSA has to be given for one year; • During giving TSA counting household benefit has to be prompt and real; • During giving TSA the factor of considering family’s property has to be softened; • Appeal for TSA has to be put into practice in method “one window”

20. Economic Research Center We express our gratitude! Baku, Azerbaijan J.Jabbarli44, Caspian Plaza 3, floor 9Tel: (+99412) 437 32 30Fax: (+99412) 437 32 40web-site: www.erc-az.orge-mail: office@erc-az.org,erc-az@azeurotel.com