Globalisation in welfare to work: modern challenges, new solutions, and what emerging markets can teach us

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2 Globalisation in welfare to work: modern challenges, new solutions, and what emerging markets can teach us

3 Overview 1. Understanding the main challenges in welfare to work in the UK 2. Identifying some key innovations in emerging markets 3.Exploring how these innovations might be translated into new programme design

4 Welfare to work- Modern Challenges Finding the right incentives to motivate people into employment Having the flexibility to meet to clients varying needs Finding opportunities for collaboration Providing a personalised approach in an overworked sector Creating a targeted, localised approach to welfare to work provisions

5 Current Trend The UK has one of the most output focused Welfare to Work sector in the world Developing markets have a trend of looking to the UK for models, the current focus being on outsourcing and payment by results But something is getting lost in translation Maybe the answer is take a new perspective...

6 REVERSE INNOVATION The new reality is that the future is far from home. If rich nations and established multinationals are to continue to thrive, the next generation of leaders and innovators must be just as curious about needs and opportunities in the developing world as they are about those in their own backyard. Govindarajan and Trimble, 2012

7 Case Studies YOUTH OPPORTUNITIES PROGRAMME - UGANDA MLABS AND MHUBS-EAST AFRICA SOUTERN AFRICA, ECA, SOUTH ASIA, EAST ASIA, NEPAL, VIETNAM, KENYA, UGANDA KPMG DISABILTY PROGRAMME- KINGDOM OF SAUDI ARABIA STADTTEILMUTTER- NEUKÖLLN, GERMANY

8 Youth Opportunities Programme, Uganda AIMS 1.To raise youth incomes and employment 2.To improve community reconciliation and reduce conflict. TARGET CLIENT GROUP: Youth ages 16 to 35, Northern Uganda

9 Social Security/Protection Overview 0% There are no form of unemployment benefits or severance policy in place for those experiencing worklessness within Uganda Social Protection policy targets elderly, vulnerable and poor, at monthly allowance of /= worth approx 5 to chronically poor (2011) The limited social protection covers basic education and provision of water, thus no housing, food and clothing. 15% of the population are entitled to social Protection = vulnerable people ( households, approximately Although national poverty fell from 56 % in 1992 to 31.1 % in 2006 and 24.5 percent in , in the northern region 46.2% of citizens remain poor.

10 Young adults from the same town or village to organize into groups and submit a proposal for a cash transfer to pay for: (i) fees at a local technical or vocational training institute of their choosing, and (ii) tools and materials for practicing a craft. Project Overview The average applicant group had 22 members Due to vast oversubscription, the 535 eligible groups were selected at random, using a lottery, to either receive the YOP program or be part of the comparison group Group cash transfers averaged nearly UGX 12.8 million (approx. 2,887), the average member transfer was more than 20 times the average monthly wage for youth at the time of baseline survey.

11 YOP Uganda-Results beneficiaries of the YOP program had 41% higher income They were 65% more likely to practice a skilled trade, such as carpentry, metalworking, tailoring, or hairstyling. The effects were particularly strong for women. Women who received the cash grants four years later had 84% higher incomes than women who did not 17% Increase in hours worked, nearly entirely accounted for by new professions 40% more likely to keep records, register their business, and pay taxes. Within the sample, gains were highest for those who had the highest initial credit constraints, those with fewest initial assets and access to loans

12 High Incentive Key Innovations Trust and Responsibility Group work

13 Mlabs and Mhubs- Africa and Asia Aim To alleviate poverty and increase employment though setting up of mobile entrepreneurship enablers called Mhubs and Mlabs Target Client group Entrepreneurs interested in mobile technology

14 Social Security/Protection Overview Public investment in most countries in the region for example, Ethiopia, Ghana, Namibia, Niger, Nigeria, South Africa, Tanzania, Uganda, and Zambia focus on basic infrastructure, such as power generation, roads and port facilities are only countries who provide any form of Employment protection scheme in the African continent at present.

15 MLabs and MHubs tend to focus on three main areas of activity: start-up creation support, skills development Project Overview and community building. MLabs are specialized mobile app business incubation and acceleration service providers MHubs focus on mobile tech community building by convening stakeholder groups at informal gatherings. They have assumed a broader function as ecosystem builders, focusing on activities that contribute to the enabling environment for mobile entrepreneurs at large.

16 MHubs and MLabs- Results By June 2013, over 500 apps were brought to market; more than 200 generated revenue. About 2,500 individuals were trained in mobile technology and entrepreneurship topics About $2.6 million in investments has been raised by the supported start-ups; together they generated over $1.1 million in revenue and created about 280 direct jobs. (June 2013) Nearly 100 start-ups were created 2.6 million 5, million app downloads and more than 5,700 organizational app customers were reported.

17 Key Innovations Holistic approach to supporting SMEs Capitalises on accessible resources Specifically targeted towards enterprise.

18 Tawafuq Programme- Kingdom of Saudi Arabia Aim To get 100,000 people with disabilities into employment in the The Kingdom of Saudi Arabia Target clients People with any form of disability with the ability to work

19 Social security/protection overview Total public social expenditure as a percentage of GDP 3.64% (2011) Employees contribute 9% of their income to GOSI which provides a lump sum if an employee experiences severe injury or death (to be paid to family members) Saudi Arabia's gross domestic product (GDP) is 536,855,289,919 Saudi Arabia's GDP per capita is 18,523, which is 3.1 times higher than the world average of

20 Project Overview Pre-employment scheme provided to provide training for both client and employer Collaboration between The Ministry of Labor, private sector employers, medical groups and training providers allowed policy and practice to be created in unison. Financial Incentives offered to the private sector to increase employment of people with disabilities looking for work in the Kingdom of Saudi Arabia form

21 Key Innovations Job fairs Virtual collaborative approaches Disability confidence Certification and recognition drive employability. Automation Uses technology to meet the needs of all jobseekers and target groups.

22 Key Considerations What factors do the carrot of social security and the stick of poverty have on welfare to work success? Is the key driver for success found in money, training or empowerment? How can government/providers create work programmes with enough flexibility to root themselves firmly in a local context without compromising quality? Is reverse innovation the new movement to unlocking a new wave of welfare to work provision?

23 Stadtteilmutter- Neukölln, Germany AIMS 1. Educating migrant families and connecting them with public structures 2. providing unemployed migrant women with the opportunity to earn income, and obtain pedagogical qualifications 3. Gradually reducing the number of individuals who rely on unemployment pensions from the government TARGET CLIENT GROUP Women living within particular neighbourhoods in Neukölln, possessing a migrant background who show a tolerance toward different lifestyles and bilingualism

24 Context: Germany Total public social expenditure as a percentage of GDP- 26.2% (2013) With a Gini coefficient of 0.78, Germany has a high degree of wealth inequality compared to other countries and there is still a wide gap between western and eastern Germany, almost 25 years after unification. In 2012, the average net worth of eastern Germans was less than half that of western Germans

25 Project Overview Two funding streams, primarily by Neukölln Job Centre. If client does not meet requirements of job centre, or chooses not to claim benefits, option to be funded by organisational contract Women were separated in three languages, Arabic, Turkish and Russian Women undertake a 6 month course on topics like: day nurseries and the German educational system, bilingual education, children s rights, preventive healthcare, sexual development and education, physical development, German media, nutrition, addiction prevention, and household safety. These women select other families from their communities and visit them ten times, usually for several hours.

26 Stadtteilmutter - Results The Metropolis organization of world mayors awarded it first prize for its contribution to peaceful coexistence in the city, enhancement of equality of opportunity and gender perspective. Berlin touts the project as one of its best practices. 69% By early 2010, about 166 women had started working as a district mother since the start of the project, and 110 of them are active today in Neukölln

27 Could this type of provision be affective in the UK? Targeted to the specific needs of a local community Is backed up by substantial financial incentives Empowers those most vulnerable in the community through trust and responsibility

28 High Incentive Key Innovations Trust and Responsibility Specifically focused on community need

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