El Salvador: Income Support and Employability Project (PATI)

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1 El Salvador: Income Support and Employability Project (PATI)

2 Context: FFF Crisis GDP: Annual % Change I 2008 II 2008 III 2008 IV 2008 I 2009 II 2009 III 2009 IV 2009 I 2010 II 2010 III 2010 Poverty Headcount Ration (%) Total GDP Manufacturing GDP Total Urban Rural

3 Government Response Government set up in 2009 its Global Anti-Crisis and Five-Year Plan to help lower-income citizens in vulnerable areas. It also set the basis for a Universal Social Protection System, with its core strategy Comunidades Solidarias in both rural (CCTs, social pension, access to services) and urban areas (slum upgrading, scholarships, PATI). Within this context, the Temporary Income Support Program PATI (in Spanish) was designed as one of the temporary response to reduce the impact the economic crisis on urban Salvadoran families. 3

4 The PATI Project Innovative program designed by the Salvadoran Government to respond to the FFF crisis. Core objective: Program aims to guarantee a minimum level of income support to vulnerable individuals as well as to enhance beneficiaries employability by providing them with labor market experience and a technical and life skills training component. Characteristics: Beneficiaries work on projects identified and managed by local communities. Benefit: $100 a month during 6 months, 80 hours of training. Targeting: Most vulnerable and violent urban settlements in 36 municipalities. Unemployed individuals. Prioritizing young people and female household heads.

5 Community Projects and Training + 6-month community project 90 hours of technical training + 16 of labor market orientation

6 Targeting Geographic Targeting: Urban Poverty and Social Exclusion Map Aspects considered: Employability levels of each household s economically active members. Educational levels. Access to social basic State services. Settlements (AUPs) are classified into precarious status (PATI only applies to severe and high poor) Individual Targeting: Self-Selection + Prioritization formula (female HH head, low-skilled unemployed youth, etc),6

7 Key factors for implementation Decentralized structure: Social Development Fund is main executing agency Municipalities and Municipal Committees are strategic partners in the territory: Formulate projects Coordinate local dissemination in urban settlements Support registration and validation of participants Manage and provide counterpart funding for the implementation of community projects. Training component: Training provided by national public training institution: Ample experience in technical training; funding guaranteed (payroll taxes) First time working in these communities/participant profiles Opportunity to better link with local employment opportunities, and evaluation of training performance 7

8 Program as of today Program has reached 35,000 beneficiaries (of 56,000 by end of 2014): From 17% of households in targeted urban settlements 37% of young people between % of women. 35% of female household heads. 62% of those enrolled have never worked before (only 7% were unemployed) 9% victim of violence/assault in the previous 6 months. 91% of the initial registered participants finalized the program.. 8

9 Program as of today Program has reached 35,000 beneficiaries (of 56,000 by end of 2014): From 17% of households in targeted urban settlements 37% of young people between % of women. 35% of female household heads. 62% of those enrolled have never worked before (only 7% were unemployed) 9% victim of violence/assault in the previous 6 months. 91% of the initial registered participants finalized the program.. 9

10 MDTF Support: Evaluating PATI s effectiveness With MDTF support, an Impact Evaluation (IE) has been designed to rigorously assess the impact of the program on beneficiaries income and employability. MDTF was used to: Develop the design of the prospective impact evaluation and oversee the implementation of its first phase. Produce a report to analyze the targeting effectiveness of the program Supervise data collection Build capacity in the area of monitoring and evaluation, jump-starting national M&E institutions

11 Evaluation Status March 2010: Delivery of National Impact Evaluation Training Event (attended by 75 policy-makers, academics and think thank staff) January 2011: hiring of local think-thank (FUSADES) to design evaluation and oversee implementation of activities. May 2011: approval of final design and implementation plan by Government November-December 2011: Baseline data collection (for project 2 nd round) June 2012: Delivery of report on targeting effectiveness July-November 2012: First follow-up data collection (short-term impacts) May 2013 (expected): Report on short-term impact evaluation results and in-country dissemination July-November 2013 (expected): Second follow-up data collection (medium-term impacts) March 2014 (expected): Report on medium-term impact evaluation results and in country-dissemination

12 MORE THAN JUST A PROGRAM FOR URBAN UNITED COMMUNITIES Working towards local productivity.. 12

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