Presentation to the Policy Dialogue and a South – South Learning Event

Johannesburg, RSA11 October, 2010

Ministry of Development Planning and Cooperation

Poverty Reduction and Social Protection Division

Harry Mwamlima

Social Protection and Financing

• 1992/93 Drought Recovery Programme (DRP)• Starter Pack Schemes (SPS) in 1998/1999 and 1999/2000• Cabinet endorsement of the National Safety Nets Strategy (NSNS) in February, 2000

1. Malawi Poverty Reduction Strategy (MPRS) - 2001

(Pillar 4: Protection of the Vulnerable) hence the National Safety Nets Programme October, 2002)

2. Malawi Growth and Development Strategy (MGDS) - 2006

(Theme 2: ‘‘Social Protection’’ &‘‘Disaster Risk Management’’)

‘‘Social Protection is an improvement of the National Safety Net Programme under the MPRS’’

From NSNP to SP

• Capacity constraints;

• Ad hoc and uncoordinated implementation;

• Inadequate funding;

• Inherent programme design challenges; and

• Lack of a policy.

Government in 2006, embarked on the formulation of the National Social

Protection/Support Programme

Rationale Cont’d

The National Social Support Policy has been formulated to provide a holistic framework to address chronic poverty and vulnerability.

Objectives– To provide welfare support to those that are unable to construct a viable

livelihood

– To protect the assets and improve the resilience of poor and vulnerable households

– To increase the productive capacity and asset base of poor and vulnerable households to move them above the poverty line

– To establish coherent and progressive social protection synergies by ensuring strong positive linkages to influence economic and social policies, and disaster management

Policy Development Process

• The Social Protection Stock take/ Review was finalised by April, 2007. The World Bank supported this process following the Road Map (Plan)

• The Social Protection Framework was produced and discussed by the Steering Committee on 13th April, 2007. DFID supported this process

• A sub committee of the National Social Protection Committee produced the 1st Policy February, 2007

• The Technical Committee discussed the Draft from 2007 through 2008

Policy Development Process Cont’d

• Three regional workshops were conducted from November, 2007 through December 2008;

• International NGOs with communities December, 2007;

• Local NGOs in early 2008;

• The Community Services and Social Development Committee of Parliament was consulted in April, 2008;

• Chairpersons of all Standing Committees of Parliament were consulted in April, 2008;

• Principal Secretaries were consulted on 7th May 2008; and

• The Development Partners were consulted on 15th May 2008.

‘‘The Social Protection Policy was discussed at Cabinet on 17th October 2008’’

Main Actors

– National Social Support Steering Committee (NSSSC) -To provide policy direction and resource mobilization;

– Ministry of Development Planning and Cooperation – is the custodian of the Policy, Programme and Basket Fund arrangement as coordinating secretariat;

– Line ministries – Policy direction, resource mobilization and supervision.

– Ministry of Local Government and Rural Development (MLG&RD) – Implementation through Local Councils (LCs)

– NGOs – Implementers, advocacy, awareness raising, M&E

– Development partners – Technical and financial assistance, capacity development, advocacy

Financing SP ProgrammesA Social Support Fund (SSF) will be created to contribute to the Local

Development

Fund;

• Government revenue

• Long-term donor support through budget support, pool funding or

earmarked funding;

• Private sector or private foundations contributions;

• (NGOs parallel funding);

Budget = (ORT + Devpt i.e. PSIP),

(1)Devpt – (2)Social Services (Social Justice) - (3)SP will be for five years

9

EmploymentSkill buildingCapitalProductive AssetsProtection from asset/capital erosion

SurvivalProductive AssetsEmployment

PROTECTION AND PROMOTION

Agricultural inputs subsidy Public works programmes Insurance programmes (Social, Crop & Livestock)Village savings & loansMicro-credit / Micro-finance

PROMOTION

Public works programmes School Meals ProgrammeCash and food for assets combined with skills building and cash for consumption/ Adult literacy training

PROVISION

Social cash transfers School Meals Programme

CATEGORIES AND THEIR SOCIAL

SUPPORT NEEDS

POTENTIAL SOCIAL SUPPORT

PROGRAMMES/

INTERVENTIONS

Draft Suggested Outline Under Discussion

5*%

10%

25%

SurvivalInvestment in human capital

Ultra Poor with

Labour Capacity

Ultra Poor & Incapacitated

Moderately Poor

40% MALAWI POVERTY LINE

15%

Ultra Poor

Existing Social Protection Measures, Coverage and Impact2009

Social Protection Measures

Direct Beneficiari

es

Approximate Cost (USD)

Financial & Technical Support

Supporting Framework

Public Works Programmes (MASAF - 2 Weeks)

1,000,000 7.6 World Bank, DFID (Awaits Policy Approval)

Agricultural Input Subsidy Programme

1,600,000 136.0 Malawi Government, DFID, Norway,

ADB, Irish Republic, World Bank

The Food and Nutrition Security Policy and Agriculture

Development Plan

School Feeding 623,000 24.0 WFP, Marry Meals, UNICEF

Supported through the Cabinet Directive for Universal

School Meals programme

Social Cash Transfer (Pilot)

24,000 (hhs)

4.1 NAC (Global Fund), UNICEF, Irish Aid,

Malawi Government

Pilot was endorsed by Cabinet on 8th

November, 2006

Village Savings and Loans

1000,000 1.0 NGOs (Awaits Policy Approval)

Challenges

• The delay in passing the SS Policy is creating difficulties to bring development

partners on board;

• Short term nature of existing SP programmes;

• Inadequate financing;

• Unavailability of meaningful and efficient SPP and linkages for different categories of

the poor;

• Difficulties in targeting eligible beneficiaries due to insufficient systematic data on

number of households in villages (with demographic & economic details);

• Inadequate Government human capacity at national and district levels; and

• Unavailability of National Identification system.

Lessons learned

• Advocacy support from partners is helping raise the profile of SP programmes

(Global, Regional and in country meetings are important);

• Strong relationship with the Civil Society and Development Partners, including wide

consultations , transparent, participatory and well documented processes are

necessary;

• Create linkages with other programmes to maximize opportunities (This will help ease

targeting);

• Provide appropriate and long term capacity building assistance.

End of Presentation

Thank You For Your Attention!!