SSL-CCT: Governance Issues on CCTs

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    Institutions and governance

    Administrative capacity of central and sub-national governments

    Marco Stampini,

    IDB-ADB South-South learning event on Conditional Cash Transfers

    Manila, 16-19 April 2013

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    Alternative frameworks

    Vertical model: the central government retains most

    operational responsibilities through the setup of dedicated

    program structures at various subnational levels

    e.g. Jamaica, Peru, Mexico (the national coordination ofOportunidades established 32 state delegations)

    Horizontal model: program implementation is largely

    performed through subnational governments e.g. Colombia and Brazil (most of the implementation ofBrazils

    Bolsa Familia is performed by the 5,700 municipal governments,

    based on contracts signed with the federal government)

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    Vertical Vs Horizontal model

    Vertical Horizontal

    Faster and more

    homogeneous program

    implementation

    More centralized

    institutional memory

    Easier to implement in small

    countries

    May reduce administrative

    conflict between the federal

    and subnationalgovernments

    Reduces competition with

    overlapping local programs

    Increases local ownership

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    Central government responsibilities

    Defining the policy agenda

    Planning (design and evaluation)

    Regulating

    Budgeting

    CCT programs tend to be housed either in strong social

    development ministries or in lighter ministriescomplemented by strong program agencies (e.g. in

    Mexico)

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    Institutional coordination

    CCT implementation requires a complex web of

    institutional actors

    Sector coordination with education and health is key to

    ensuring that CCTs achieve their human capital

    development objectives Creation of a national steering committee

    E.g. Oportunidades National Council comprises secretaries

    of state for education, health, social security, social

    development as well as state governments

    Regional and local coordination committees

    In many cases, strong coordination links with

    municipal governments

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    Key operational functions

    (1) Beneficiary selection and registration

    (2) Delivering complementary services (e.g. edu and health)

    (3) Monitoring and evaluation

    (4) Customer care and case management

    (5) Monitoring beneficiary co-responsibilities

    (6) Payment of cash transfers

    (7) Auditing

    (8) Recertification and graduation

    Can be shared between central and local governments

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    Delivering complementary services

    (e.g. education and health)

    CCT programs housed in social protection ministries Traditionally in charge of smaller social assistance programs

    Most staff with social work background

    CCTs have unprecedented scale, in terms of both budget

    and number of beneficiary households

    They require multi-sector skills that are usually available

    only across ministries

    Bringing on board education and health is a big

    challenge and requires full support from the highest

    government hierarchies

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    Delivering complementary services

    (e.g. education and health)

    In many countries, limited service coverage has weakened theefficacy of the conditional transfers and produced a relaxed

    interpretation of the conditionalities

    In Mexico:

    Eligible people living in localities without adequate supply of schools andhealth services are directed to the unconditional cash transfer program PAL

    Also due to difficult access to schools, in 2011 over 4 million children and

    youths (8 to 21 years old) from Oportunidades beneficiary families did not

    receive the education benefit

    In Brazil: To support Bolsa Familia conditions, over the period 2012-13 the country is

    building 2,100 new basic health facilities and implementing a full-time

    study policy for 17,500 primary schools

    li i l i

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    Delivering complementary services

    (e.g. education and health) What has not worked:

    Plans to expand network of education and health-care facilities

    jointly with the rollout of the CCT program

    Hopes that increased service supply would be fostered by bottom-

    up political pressure from the communities of beneficiary

    households (driven for example by beneficiary mothers and local

    leaders)

    Lesson:

    It is important to design program co-responsibilities consideringthe existing network of services, and the budget available for its

    expansion

    Strong political support from the highest government ranks is

    needed to produce the required inter-sectorial coordination

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    Customer care and case management

    A customer service is required to handle the relationship between

    the program and beneficiary households

    Most interactions regard requests of information and guidance,

    the application process, complaints on program malfunctioning

    The Brazilian relationship center responsible for providing

    information and collecting feedback on all MDS social protection

    programs

    It operates via telephone (24-hours a day service), mail, e-mail, fax, and

    face-to-face assistance; a chat service is forthcoming The center employs 232 contractual staff

    In 2012, it attended 3.8 million calls and replied to 108,000 messages. Most

    calls were related to registry verification (43%), payments (9.8%) and value

    of the benefit (9.7%)

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    Customer care and case management

    Lessons:

    Customer services play an important role in connecting programmanagers to the base of beneficiaries, providing useful feedback

    for program improvement

    The early phases of beneficiary registration and transfer paymentsare likely to generate high demand for clarification and case

    assessment Early setup of support units aimed to help

    customers understand procedures, request status verification and

    channel complaints

    Customer services are more efficient when separated from basic

    operations (such as beneficiary registration and payment), as they

    can give clients full attention and focus on improving responsetime

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    Monitoring beneficiary co-responsibilities

    Education and health service providers are usually tasked

    with the collection of data on compliance with program

    co-responsibilities

    Data is either delivered to: Local authorities for consolidation and transfer to the national

    health or education authorities (e.g. Brazil)

    Local staff of the CCT program (e.g. Mexico), that is responsible

    to consolidate and deliver to the national coordinator of theprogram

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    Monitoring beneficiary co-responsibilities

    Conditionalities monitoring routine of Bolsa Famlia (Brazil)

    Source: MDS

    MSD

    defines the roster of

    beneficiaries MoH / MECIdentify the beneficiaries to be

    monitored through specific IT systems

    Municipalities collect and imputedata on conditionality compliance

    in specific IT systems

    MoH / MECconsolidate the data collected by the

    municipalities

    MSDIdentifies those that are not

    complying and the triggered

    consequences

    MSD informs the families about the

    implications (through letters and

    payment receipts)

    Municipalities and States

    Assess the case and the need for

    special social services

    Municipalitiesimpute data on families

    assisted by special social

    services

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    Monitoring beneficiary co-responsibilities

    Bolsa Familia:

    Failure by a member to comply with its co-responsibilityeventually triggers the interruption of the payment for the

    whole family

    The interruption is not immediate, being preceded by

    warnings (delivered also through the bank receipt when thefamily representative attempts to cash the transfer) and

    verifications by local authorities

    Oportunidades:

    Failure to comply with schooling conditionalities does nottrigger the interruption of the payment. Beneficiary

    households stop receiving the beca (i.e. the scholarship

    component of the CCT) but keep cashing the base benefit,

    unless they fail to comply with healthcare co-responsibilities

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    Monitoring beneficiary co-responsibilities

    Lessons:

    Monitoring of co-responsibilities must be integratedwith social work

    Although the incentive to comply is important, the

    suspension of the transfer may further aggravate

    beneficiaries difficulties

    Important contribution to M&E, in relation to

    performance of CCT complementary services

    Foster innovations, such as the adoption of specific

    education records for CCT beneficiaries, or the payment of

    transportation for pregnant women attending antenatal

    consultations (Brazil)

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    Auditing

    Effective audit requires a combination of top-down and

    bottom-up approaches.

    Intensive use of information technology

    Bolsa Familia: data matching with national formal employmentand wages registry, death registry, retirement and pensions

    registries

    Publishing of full roster of beneficiaries on the internet

    Brazil, Honduras, Mexico

    Promotion of social accountability

    Mother beneficiaries in Colombias Familias en Accin

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    Recertification and graduation

    Hot topic in LAC policy

    debate, due to

    simultaneous CCT and GDP

    growth

    Exit Versus Graduation

    Exit can be determined by: Failure to comply with co-responsibilities

    Loss of categorical targeting condition (e.g. children end school)

    Graduation is the consequence of the household no longer

    requiring CCT assistance (sustainable independence). It

    depends on many external factors

    Source: Stampini and Tornarolli (2012)

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    Recertification and graduation

    Exit mechanisms:

    The beneficiary declares loss of eligibility criteria (effective only

    if combined with sophisticated audit)

    In Brazils Bolsa Familia, a beneficiary declaring that her income is now

    above the eligibility threshold can retain the bank card and accelerate

    re-entry if income drops. Failure to declare triggers expulsion

    Recertification

    In Mexicos Oportunidades, recalculation of the proxy means score

    every six years, triggering either/or:i. Permanence in the program

    ii. Transition to Esquema Diferenciado de Apoyos (EDA), a reduced

    support scheme including education benefits for intermediate

    and high school students as well as access to a basic health care

    iii. Exit

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    Recertification and graduation

    Country and program RecertificationBrazil Bolsa Familia Every 2 yearsColombia Ms Familias en Accion Every 4 yearsHonduras PRAF -Jamaica PATH Every 4 yearsMexico Oportunidades Every 5 yearsPeru Juntos Every 4 years

    Lessons:

    Increasing coverage is easier than implementing effective graduationpolicies (identifying the poor and transferring the money is easier than

    ensuring exit from poverty)

    Periodic recertification has been useful to limit leakage, and to adjust

    the value of the benefits to changes in demographic characteristics and

    socioeconomic status

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    Thank you

    Questions and comments:

    [email protected]

    [email protected]@iadb.org