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Social Protection in Rural Areas

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Natalia Winder Rossi's (FAO) presentation for IFPRI's policy seminar "Boosting Growth to End Hunger by 2025 in Africa: The Role of Social Protection" held on 2 May 2019 in Washington DC.

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Social Protection in Rural Areas

  1. 1. SOCIAL PROTECTION IN RURAL AREAS Boosting growth to end hunger by 2025 The role of social protection Social Protection: From Protection to Production Natalia Winder Rossi FAO Social Protection Team Leader – Senior Adviser Washington, DC | 2 May, 2019
  2. 2. What is the issue? Social Protection: From Protection to Production 1 Progress, but still a long way to go….  736 million people live in extreme poverty  Increase in the number of extreme poor in Sub Saharan Africa from 1990 (413 million) to 2015 (413 million)  Most of the extreme poor are in rural areas:  income depend on agriculture and natural resources  Vulnerable to climate related risks and shocks  Limited access to social services, infrastructure, financial services  Heterogeneous group (income, geographic location, livelihood, age, gender)
  3. 3. What is the issue? Social Protection: From Protection to Production 1 How to accelerate progress to achieve SDG 1 (1.1; 1.3; 1.5)?  Political will as a pre-condition  Macro dynamics- stimulation of economic growth and generating employment where majority of poor live  Enhancing social and productive capital (investing in rural areas, access to services, including in extending social protection to the poor)*
  4. 4. Social Protection: From Protection to Production 3Boosting growth to end hunger by 2025 The role of social protection WHAT IS THE ISSUE? Pathways to enhance social and productive inclusion  Make processes of structural, rural and agricultural transformation more inclusive  Address inequitable distribution of resources and market failures  Create employment and economic opportunities  Increase access to assets (including land, natural resources, technology)  Accumulate human capital  Increase access to liquidity, credit, markets and services  Improve ability to manage risk  Reduce burden of care
  5. 5. What is the role of social protection in this context? Social Protection: From Protection to Production 1  Research carried out by Transfer Project (FAO, UNICEF, UNC and partners) focused exclusively in Africa, shows that:  Social protection can have social and productive impacts among the poorest; and  Can generate multiplier impacts in the local economy  How to sustain these impacts in the long-run?  Coordinated and coherent agricultural and social protection policies and programs can help break the intergenerational transmission of extreme poverty  Importance of this specific intersectoral coordination reflected in several African policy initiatives and declarations (e.g.: CAADP, Malabo)
  6. 6. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Impact: National cash transfer programmes:  Improvement of food security across the board  Strong effects on school enrolment  Mixed results in health  Enhance risk management capacity, relax liquidity constraints, and generate economic impacts even among the poorest  Generate multiplier impacts in the local economy (impacts on non-participants) Transfer Project contributed to build and strengthen the economic case for scale-up or programmes at national level!
  7. 7. STRONG IMPACT ON PRODUCTIVE ACTIVITIES, WITH VARIATION ACROSS COUNTRIES Crop Livestock NFE Productive labor Social Networks Risk management Zambia      Malawi   X    Zimbabwe    X X  Lesotho   X X   Kenya X  X  Ethiopia  X X X  Ghana X X X    Reduction in casual ag labor and increase in household economic activities—no general work disincentive, elasticity of leisure is low Synergies between cash and productive plus Social Protection: From Protection to Production
  8. 8. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Adequacy of programmes:  Take up, use and impact of programmes will largely depend on the adequacy of such programmes in terms of size, regularity, but also socio- cultural pertinence and livelihoods  TP contributed to shed light on the specific elements of design that matter for economic impacts  TP raising issues on gender-sensitive design, implementation  Still gaps in terms of pertinence for indigenous peoples, livelihoods*
  9. 9. Enhancing productive capital: Coherence Social Protection: From Protection to Production 1 How to maximize impacts: Coherence with agriculture interventions “A systematic promotion of complementary and consistent policies and programs across sectors, thereby creating synergies to combat rural poverty and food insecurity more effectively”  To maximize and sustain the gains over time, it is key to complement cash with complementary interventions (existing or new)  “To avoid/minimize conflicting interactions between policies/programs  To be pursued horizontally (across ministries/agencies) or vertically (across different levels of government)  Different desired outcomes will determine the type of “coherence
  10. 10. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Typologies of existing of coherent interventions (lit review): • Sustainable Livelihood Programs (SLP): single programs with multiple components including both agricultural and social protection interventions; • Complementary Programs (CP): programs from the two sectors that are designed and/or implemented in a somewhat coordinated and/or aligned manner; • Overlapping programmes (OP): programs from both sectors without alignment or coordination which beneficiaries can partially overlap at the individual/household and/or at geographical/community level only in an unplanned manner
  11. 11. Enhancing productive capital: Coherence Social Protection: From Protection to Production 1  Coherence with agriculture interventions (Example: Cash+ in FSN and agriculture) Social assistance interventions providing regular transfers in combination with additional components or linkages that seek to augment income/economic effects • The “plus” components can be integrated into the cash transfer program or can be externally linked • Cash component allows beneficiaries: 1) to address their immediate basic needs and 2) to invest in economic activities • The “plus” components (productive assistance and training) protect, restore, and develop livelihoods. • Cash+ as part of a broader long-term vision of economic inclusion strategies
  12. 12. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  What does the evidence say? • Mostly positive results on various domains (investment in productive assets, financial inclusion, food security) • Long-term implications not clear (sustainability) • Reaching the poorest still challenging • In addition to: • Limited Institutional arrangements to facilitate coordination across different government agencies • A conscious effort needed to to select the beneficiaries of both types of interventions in a way to increase the joint impact of both programs • Goal of raising agricultural productivity vs. the goal of mitigating or reducing rural poverty
  13. 13. Enhancing productive capital: End goal… Social Protection: From Protection to Production 1  Comprehensive strategy of economic participation and inclusion of the poorest  Gradual integration of households into broader rural and economic development processes  Identify processes to enhance inclusion of those left behind  Graduation models provide some elements, but gaps in terms of sustainability and linkages with broader processes  CASH+ and SP/AG coherence work provided some additional elements on sustainability on long-term impact, but still gaps on incentives to AG, labor, production sectors to systematically engage
  14. 14. 10 10 www.fao.org/social-protection Boosting growth to end hunger by 2025 The role of social protection THANK YOU FOR YOUR ATTENTION

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