Beyond Livingstone Profiling social transfers in national development policy Sylvia Beales sbealeshelpage Finland No

1. Beyond Livingstone Profiling social transfers in national development policy Sylvia Beales sbeales@helpage.org Finland November 2006

2. Mainstreaming ageing into development: the work of HAI HAI: a global network of over 200 affiliates and partners in over 60 countries; 10 international offices in Africa, Asia, Caribbean, Eastern Europe,and Latin America, and Africa ECOSOC Category 1 member; active in United Nations Working with older women and men to make sustainable improvements to their and their dependents lives (MISSION) Raising awareness and develop policy and practice to tackle ageing and poverty through programmes, research and advocacy Supporting civil society action to enable governments and civil society to take action on ageing and deliver on the obligations they have to older women and men - nationally, regionally and internationally

3. Demographics, poverty and exclusion 1 in 5 women and men will be over 60 by 2050 in developing countries; 1 in 12 in 2006 Currently over 100 million older people live below poverty line and have limited access to health care, water and basic services 80 % of older women and men have no regular income; most work until very old age in the informal sector Women outlive men by 3-5 years, are the poorest of the poor, and are primary carers of children affected by HIV and AIDS, adult migration and humanitarian crises Older people tend to live in households with less potential for economies of scale Development programmes tend to exclude & ignore older poor

4. Successful development should target the poorest - reflections The poorest include both children & older people (CPRC, World Bank) Estimates of poverty rates by age groups generally conclude that poverty is higher among the young & the old Older women and men are often children’s primary carers (65% SSA) A non-contributory pension recipient reduces the probability of household poverty by 21% in Brazil, 11% in South Africa Intergenerational policy is needed to support households, To foster relations between carers and dependants, and within and between interdependent age groups To build up formal & informal support networks to support mutual support and accountability at community and government level

5. Development policy, social protection and cash transfers 2006/7 demand for better and more effective aid – as well as increased aid – to reach the billions still trapped in poverty Greater emphasis is needed on frameworks for equity & redistribution to reach the poorest More equitable and rights based poverty programmes deliver better development outcomes Outcomes of the 2005 Commission for Africa report; all African countries to have social protection strategies for 2007, a rights and inclusion framework to support them and predictable funding streams; Livingstone Call for Action 2006 ILO 2006 estimates a basic package of social pension and disability allowance would absorb average around 4 percent of Gross Domestic Product and reduce the incidence of poverty by one third

7. The case for universal cash transfer (age based) Is transparent and politically popular Simplifies administration Removes stigma Reduces opportunities for corruption Minimises work disincentives Is gender-neutral Is affordable (2-4% of GDP – ILO 2005 estimates) Protects against risk and shocks Is a right Reduces poverty and increases access to basic services Increases social capital

8. Results of HAI/DI Africa wide survey on attitudes to social transfers 2005/6 Social transfers -in the form of child and foster care grants, school support programs and social pensions for older carers - are already recognised as effective mechanisms to support households dealing with increasing poverty, the impact of HIV/AIDS and social conflict Regional institutions and national governments described enhanced social protection - and cash transfers - as components of a strategy to combat social exclusion and deliver rights, which they are profiling as important in overall poverty reduction National governments are concerned that social protection and cash transfers lack donor profile and predictable funding Greater support, financing, capacity building and recognition is needed for Social Welfare Ministries Despite lack of donor interest a number of African countries are introducing and developing social protection strategies

9. Outcome of Livingstone 2006: Call for Action supported by African Union and 13 African governments It affirms: Social protection is both a rights and an empowerment agenda The Universal Declaration of Human Rights and other human rights conventions establish that social security for all and social protection for the vulnerable is a basic human right It asks: African governments to put together costed national social transfer plans within 2/3 years that are integrated within National Development Plans and within National Budgets, and that development partners can supplement. Increased investment in institutional and human resource capacity and accountability systems. Reliable long term funding for social protection, both from national budgets and development partners.

10. Development partners can focus on national action Learning from existing schemes; (Africa) including Mauritius, Namibia, Botswana, South Africa, Lesotho; ( LA); Brazil, Chile, Mexico, Argentina Impact monitoring of existing schemes and pilots; key component for political will Civil society engagement in monitoring and impact; state/citizen contract Focus on agreements reached: eg Livingstone call Uganda: piloting cash transfers Tanzania: setting up social protection taskforce Malawi: Designing social protection strategy and supporting pilots Kenya: social protection strategy and implementing pilots Ghana: social protection framework Support to African institutions supporting capacity building in governments (ie EPRI, social transfers course from 2007)

11. Policy questions for development partners Political choices that are popular (finance available nationally and with support ) Ability to demonstrate ‘good’ use of increased aid to reach excluded/most vulnerable Clear story line; what works best (clear results – MDGs, national targets) What can be implemented and monitored within national capacity constraints Capacity development of national implrmenters Can Direct Budget Support (DBS) deliver or not? Other mechanisms? Role of IFIs in supporting national priorities

12. What is helpful Clear political positioning backed with disagregated data Support for national efforts to build institutional capacity on dealing with vulnerability and exclusion (Lobby for) predictable financing for mechanisms that reach poor directly – global fund? Convention on social security? Evidence that helps further develop a model (impact of pension in Lesotho) What is not helpful Complex theorising Models which require costly capacity building Evidence with no clear policy application

13. Agenda for action; next steps Making the case; we need to deal with: Key knowledge gaps; data on poorest; who, where, gender, age, disability, ethnicity Are national and integrated responses possible Political agenda of development partners – conditional, universal, hunger Policy maker interest in Economic growth Social cohesion (furthering commitments to basic human rights) National instruments for social transfers Enabling more poor people to access basic services Reducing hunger Monitoring and reporting on progress nationally and to donor constituencies

14. Challenges Data gaps Clear and concise arguments to prove case Disaggregated data on vulnerability and exclusion Agreement on where barriers are Understanding Impact of social transfers on the lives of poor people Costs and affordability Institutional constraints for implementation Poor can be trusted and make rational decisions Need for clear and transparent transfers (social pension, child benefit, disability allowance) Role of civil society

15. Recommendations; what we should do Maximise opportunities Make use of increasing evidence that SP is growth enhancing and reduces inequality and is affordable (ILO, IPC, DFID) Support and improve existing schemes/mechanisms Encourage interest of developing country governments; national schemes and pilots Commit to long term, predictable aid Link to EU presidencies, Decent work Agenda, G8 Partnerships needed to Gather the evidence Use it for advocacy Support disadvantaged groups to advocate & demand rights Support establishment of national schemes