Building Coherent Social Protection Systems in Africa

1. Building Social Protection and Labor Systems In Africa for Steen Jorgensen Director, World Bank, Social Protection and Jobs April 26, 2017 Algiers

2. World Bank Global Social Protection and Labor Strategy 2012-2022focuses on developing Social Protection Systems: portfolios of coherent programs that can communicate with each other, often share administrative sub-systems, and work together to deliver resilience, equity and opportunity objectives Equity: Social pensions Resilience: Old-age pensions, disability insurance Opportunity: Nutrition/ECD, CCTs for pre-school, health Equity: OVC programs, child allowances Opportunity: CCTs for (girls’) education Equity: Child allowances, school feeding Opportunity:Employment services, entrepreneurship, training and skills Equity: Cash and in-kind transfers, public works programs Resilience: Unemployment, disability insurance Opportunity:Youth employment programs, skills training Example: SPL programs across the life cycle

3. Social Protection & Labor Lending at the Bank (2012-2016) • SPL lending reached an all time high about 6.2 billion in 2016 • Lending has typically been dominated by IBRD, but in 2012 this trend changed with IDA lending exceeding IBRD lending.

4. Focusing Resources on Low Income and Fragile CountriesFor the first time the World Bank’s social protection lending is higher in IDA than in IBRD countries; IDA is now 50% of total portfolio Figure: The size of the World Bank’s social protection lending by country status, 2017, US$ billion Figure: The size of the World Bank’s social protection portfolio – commitment from IDA as a financing source, FY13-FY16, US$ billion Notes: IDA – International Development Association; IBRD – International Bank for Reconstruction and Development.

5. Social Protection and Labor Strategy in Africa • Strengthen social protection systems to reduce vulnerability and build resilience by supporting poor citizens to: • Manage risk and respond to shocks. • Engage in productive income-earning opportunities • Gain access to basic services • Safety Nets • Pensions • Insurance • Jobs and informality • Employing a range of SP Instruments: • Employing A Range of SP Instruments • Targeted service delivery Requires multi-sectoral, multi-agency collaboration to deliver results.

6. Social Protection Portfolio in Africa 2016 1. 42 projects in portfolio, of which 17 East and 25 West. 2. Added a record 18 projects in FY16, 8 in the East and 10 in the West. 3. Africa SPL’s new lending amounts to 62% of total SPL lending and 23% of the Africa Region.

7. Where We Are Now: Africa SPL Key Engagement Areas 1. Expanding Coverage and Quality of Social Safety Nets: • 2000 • 9 countries, • 25 programs* • 2012 • 41 countries, • 245 programs * Garcia & Moore, the cash dividend: the rise of cash transfer programs in SSA (2012). World Bank. Note: Map shows data sub-Saharan Africa

8. Where Are We Now: Africa SPL Key Engagement Areas1. Expanding Coverage and Quality of Social Safety Nets: Over 40 million people Supported by current World Bank programs in more than 30 countries in Africa • Gender: 20.5 million female beneficiaries with 97 projects in review. • Expanding Coverage: • Tanzania: the conditional cash transfer program has moved from 20,000 households to 1.1 million households and has completed its 15th consecutive bimonthly payment cycle. Planed over 6 million by 2020. • Egypt: A 400m$ support for two programs (Takaful and Karama) to develop and establish new cash transfer programs. 200m support for Labor Intensive Public Works program in partnership with EU to provide cash for work to unskilled or semi-skilled workers in poorer areas. • Ethiopia: the Urban Productive Social Safety Net will adapt the model of flagship PSNP program (rural) to urban settings, expanding coverage to 10 million chronic and transitory food insecure people, with a focus on building pathways into wage and self-employment.

9. Where We Are Now: Africa SPL Key Engagement Areas 2. Access to Infrastructure and Social Services Spending on social infrastructure in poor countries is often below benchmarks; and remote rural communities often fare worse than urban centers. Access to basic infrastructure such as water, electricity, roads, health centers and schools are critical to improving human development outcomes. When local communities prioritize needs and assist with building, ownership of the assets is greater.

10. Where Are We Now: Africa SPL Key Engagement Areas2. Access to Infrastructure and Social Services: Nigeria: Increasing access by the poor to improved social and natural resource infrastructure services by using a CDD approach: (i) the empowerment of communities to develop, implement, and monitor public and common pool goods; and (ii) strengthening the skills and capacity of Local Government Authoritiesto support communities and build partnerships between them. Benin:  Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by about 3.2 percentage points. Benin has made significant progress in some areas of its infrastructure, including roads, air transport, water, and telecommunications.  DRC: The project supports investments in infrastructure combined with strengthening of the legal and regulatory framework and capacity building (technical, organizational, financial) of the principal actors at all levels (central, provincial, and city) charged with planning and delivering basic services.

11. Where Are We Now: Africa SPL Key Engagement Areas3. Youth Employment • Labor is the best form of social protection, and jobs are a client priority. • The World Bank’s Jobs and Youth Employment portfolio grew to $1.8 billlionfor project costs in FY2016. • Africa SPL is engaged in extensive analytical work and is operationalizing this knowledge with multi-sectoral programs for jobs, skills and productivity. • Africa SPL is focused on “Quality and Quantity”: Moving the labor market from underemployed and informal sector employment to formalized jobs and skills training—this helps reduce risk and building resilience to shocks. • Africa SPL is committed to creating conditions for job creation.

12. Where Are We Now: Africa SPL Strategic Priorities3. Youth Employment Innovative operations combined with multi-sectoral engagement reduce risk of radicalization. • Benin: Better understanding the relationship between employment outcomes and aspirations, address gender norms and other psycho-social factors, introducing 17, 500 new jobs to the economy. • Nigeria Youth Employment and Social Support Operation: will strengthen the public workfare scheme to provide immediate, labor-based and temporary work opportunities for unskilled and semi-skilled unemployed youth and women for two years. • Mali: Linking a target of 37,000 safety net beneficiaries to productive employment opportunities. • Kenya: Youth Employment Opportunity program boasts 78% of interns who complete the internship and are employed by their internship employer, have found employment with a new employment or starting a business. • Liberia: Targeting youth-at-risk with a next generation youth employment project focuses on re-starting businesses after Ebola epidemic shock, creating greater economic opportunities while reducing the risk of radicalization.

13. Where Are We Now: Africa SPL Key Engagement Areas 4. Promoting Human Capital Development • Poverty generally more widespread among households with low educational attainment or poor health. • Boosting human capital through education, nutrition and other health interventions can help to break the inter-generational cycle of poverty. • Increasingly, cash transfers, which provide for immediate needs, are accompanied by conditions or measures which also aim to ensure that longer-term investments are made. • Examples include school attendance, regular health check-ups or participation in nutrition seminars. They tend to be focused on the female head of household and promote investment in children.

14. 4. Promoting Human Capital Development Where We Are Now: Africa SPL Key Engagement Areas REDUCING INTERGENERATIONAL POVERTY • Cash transfer programs conditioned on education for children and mothers alike: school enrollment for children and women’s attendance to financial and nutrition management programming. • Building up Mother Leaders with curriculum based on self-confidence, financial management, nutrition and empowerment. • Continue to foster the SPL skills and jobs agenda and build opportunities for behavioral changes in parenting, investments in children and overall, community enhancement and access to family planning. • Transformative changes through “behavioral nudges and productive spaces” where individual households reflect on their productive assets to drive development and attend home and community-based classes aimed at improving parental responsiveness and caregiver practices related to nutrition or psycho-social stimulation. • Linking cash transfers to the attendance of mothers to nutritional programming in Madagascar, providing more than 80,000 households with regular cash transfers linked to early childhood development, nutrition and school attendance of young children as well as to enhancing the productive capacity of these ultra-poor.

15. Where We Are Now: Africa SPL Key Engagement Areas5. Strengthening Resilience Individual shocks: Supporting households’ resilience Covariate shocks: Strengthening community resilience, rapid response Climate shocks: Supporting prevention through resilience - building projects. SSN systems have to be flexible to respond to all types of shocks, regardless of the source

16. Where We Are Now: Africa SPL Key Engagement Areas5. Strengthening Resilience • Social Protection systems have to be flexible to respond to both chronic poverty and ad hoc shocks • We help countries build systems that can respond to idiosyncratic and co-variate shocks, whether man-made or natural • Communities’ resilience is built first from economic growth and shared prosperity • Sound management of natural resources e.g. irrigation infrastructure, watershed management and agricultural techniques can build resilience against some shocks • Investing in putting reliable systems in place before the emergency is critical.

17. Where We Are Now: Africa SPL Key Engagement Areas5. Strengthening Resilience Building Capacity to Individual Shocks • Dynamic Safety Net systems that can respond to an individual or household’s needs. • Many informal systems pool risk within a community, e.g. savings groups, state-funded systems, social health insurance, community-based health insurance and voluntary health insurance. • Responding to Covariate Shocks – such as epidemics or conflict displacement • Mobilized US$1.62 billion in financing for Ebola response and recovery efforts to support the countries hardest hit by Ebola: US$260 million for Guinea; US$385 million for Liberia and US$318 million for Sierra Leone; these funds pay for essential supplies and medicine and support foreign health workers but also provides budget support to help governments scale up social safety net programs. • Great Lakes Region: The team enhanced resilience for displaced and border communities through supporting basic service provision and productive opportunities for the 3.3 million people who remain forcibly displaced through a $133 million grant, including an additional financing of $50k last year. • Nigeria: The team scaled up two projects to support the joint World Bank, EU, and UN North-East Nigeria Recovery and Peace Building Assessment, a comprehensive analysis of damages and estimated needs resulting from the Boko Haram crisis.

18. Building systems are integral for institutional sustainability • Enables like programs to expand and develop further, impacting more people in its coherence of objectives. • Build administrative efficiencies through harmonized registries of beneficiaries, common payments mechanisms, targeting systems. • Improve targeting to ensure scarce resources go to those most in need. • Build systems with capacity to scale up and expand. • Systematic Approaches with SMART characteristics: • Synchronized across programs • Monitored, evaluated and adapted • Affordable • Responsive to crises and shocks • Transparent and accountable Where Are We Now: Africa SPL Key Engagement Areas 6. Systems Building

19. Where Are We Now: Africa SPL Key Engagement Areas6. Systems Building • Targeting Benin:has created a detailed geospatial mapping system that documents beneficiaries’ information, from their access to water to their level of beneficiary status. Sierra Leone:Geospatial Poverty Mapping has been replicated in Tanzania and Afghanistan. • Registry Sierra Leone: a consolidated registry of beneficiaries with a unique ID number and a comprehensive MIS providing integration of project data for the implementing agency. • MIS Mali:Jigismejiri project, with a budget of $15.5 million a year, accesses between 41 and 62 thousand beneficiary households. • Payment Systems Kenya: 93 percent of Kenyans are mobile phone users and 73 percent are mobile money customers; new potential for mobile money has come with the rise of interest-earning bank-integrated mobile savings systems, beginning with the launch of the M-KESHO system Niger: Well-supervised mobile money can be safer than alternatives, offering speed and liquidity through electronic e-payment cards; direct Project Beneficiaries moved from 556261 in December 2015 to 881107 in June 2016.

20. Where We Are Now: Africa SPL Key Engagement Areas6. Systems Building: ID4D • ID4D aims to bring global knowledge and expertise to governments and authorities across multiple countries and sectors, with the goal of “providing legal identity for all, including birth registration, by 2030”. • Identification is core to development because it is a key enabler for: Financial Inclusion: Accessible, secure, and verifiable ID systems can help expand the use of financial services by approximately 375 million unbanked adults in developing countries. Gender Equality: Women who are equipped with proof of legal identity can better assert their rights and have greater say in household decisions. Access to Health Services: Identifying beneficiaries of health services allows countries to target and monitor health interventions. Social Safety Net: Precise targeting and robust identification of beneficiaries can help bring social assistance programs to over 875 million people living in extreme poverty. Improved Governance: Many country governments link civil servant databases to national identification registers to verify who is still on the rolls, check absenteeism and overall increase the accountability of government institutions and curb fraud and corruption in these places. • Morocco: $100 million project to finance the development of a biometrically ID based national population registry & social registry.

21. Impact EvaluationsExemplary in Innovation, Foundational for Progress Selected Recent Impact Evaluations of SSN Africa • Tanzania:Significant impacts are observed across a broad array of areas, including health, education and various risk-reducing behaviorsshowing that while 69 percent of children age 0–18 had attended school at some point at baseline, treatment made them 4 percentage points more likely to have done so by endline. • Cote D’Ivoire: Impact Evaluations show total monthly earnings increase from 60,000 FCFA to 81,000 FCFA (+21,000FCFA) and earnings gains contribute to higher expenditures (~+15,000/month) and higher savings (~+6,000/month). • Ethiopia: Productive Safety Net Project information collection through Government Systems verifies the proper implementations of processes and identifies areas where performance does not match expectation; impact evaluations showed each Birr distributed generated an extra 1.52 birr via local market linkages. Paving the Way Forward

22. Paving the Way Forward Partnerships: Examples to Build-on and Expand Ethiopia PSNP: Enhancing Food Security • The PSNP supports the creation of 35,000 public works sub-projects per year and the PSNP and OFSP/HABP have contributed significantly to food security, with community members’ average months of food security rising from 8.4 months per year in 2006 to 10.1 in 2012. • PSNP public works have led to the construction of over 39,000 kilometers of road, achieved through the grant of 10 international donors, the implementation from the Ministry of Agriculture and Natural Resources Food Security Directorate, Ministry of Finance and Economic Cooperation and Ministry of Labor and Social Affairsand UN Agencies. Liberia: PSMP • With the partnership of USAID, this project supports pillar four of Liberia’s Agenda for Transformation, which seeks to raise the bar for performance standards and to build a robust system for managing performance and improving integrity in the public service ASPP: Responsive and Innovative Disaster Risk Management • DFID-funded Multi-Donor Trust Fund will support the documentation of social protection knowledge in the Sahel out of a range of programs and activities such as this one—including evidence of what works and what doesn’t in individual countries—and will contribute to a growing body of analytical work and rigorous evaluation of social protection in Sub-Saharan Africa. • While drawing on country experiences in Africa, Latin America, and other developing regions, the trust fund will also encourage specific innovations suited to the Sahel focused on building resilience to climate change and disaster risk management.

23. Thank you!www.worldbank.org/sp World Bank Group Social Protection and Labor Global Practice 1818 H Street NW Washington DC 20433 USA