Emerging Directions in Safety Networks. Addis Ababa Ethiopia, May 30.

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1 Emerging Directions in Safety Networks States the WB forum LDC and Fragile States, Addis Ababa Ethiopia, May 30.

2 We want to make sure that this time the burden of the economic crisis i will not fall on the less protected: the urban youth living in slumps. President Mauricio Funes June INVESTMENT IN POVERTY ALLEVIATION THROUGH THE YEARS 180,000, ,000, ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Investment in human capital Infrastructure 2011 = 186 MILL USD

3 Successful CCT in rural areas: (100,000 families) 1. 3 rd best focalized in Latin America % comply with school obligations. 3. Enrolment up 6 points % increase in income in households. 5. Decrease in maternal mortality. Combined with basic infrastructure: safe water supply up from 60% to 80% Recently started: minimal pension for the elder Since Expansion of the rural program to half the municipalities. 2. Reaching into the urban poor, specially the most vulnerable the young, and more so young women.

4 Cash transfers ( USD 100 /mo), in exchange for work in municipal projects and participation pat in job oriented training. 6 months duration per group. Total duration; 3 yrs. Afterwards productive insertion phase. Participants selection made locally (60,000). Project selection made locally with community participation. Impact on income, and violence. Which municipalities: Two criteria, violence (homicides), and number of severe poverty settlements Funding USAID = $14 mill US, WB = $37.3 mill US for the program itself, and $10.2 mill.usd, for afterwards job placement program. Preference given to young participants (16 to 24 yrs), and females. Must be unemployed and not a full time student

5 Age Ranges % 78 6% 48 4% 19 2% 6 0% % Getting cash into violence ridden areas, is complicated and risky. Electronic cash transfer mechanisms are being considered, but they also have disadvantages d (lack of or resistance to provide legal ID) % % Most of the payment money goes to young women ( 69 %), and men ( 31% ). Sta. María Ostuma

6 All central government interventions are coordinated at the local level. Despite Political Implications. Local government have become the most relevant of all actors. Validating decisions on : participating p communities, projects to be implemented, and individual participants. Municipal p government are responsible for project administration, but the program assigns US 2500 for administration expenses per project. Municipal governments manages all community relationships. Municipal governments are the prime responsible for conflict management at the local level.

7 The project was originally designed only as temporary support for income The demand grew for an exit strategy: what comes after the six months. After 6 mos: without subsidy, but with assistance. Local governments have realized they did not have an adequate view of the economical potential of their territory. Participants are being oriented on empirical basis. Training and project design, needs to be flexible: market, but also survival oriented. Main difficulty: making money available, y g y, on time, for micro and small entrepreneurs.

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9 PATI is the acronym in Spanish for Temporary Income Support Program Making PATI, PRODUCTIVE : CHALLENGES: 1.Lack of a diagnosis of the economical potentials of the municipalities and communities, by local l authorities. 2.Gangs and violence. 3.Funding and organization for an exit strategy, specially interagency coordination.

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11 The h local l government frequently decides more on the basis of what is good for the local administration and not for the youngsters economical future. Flexible l training, becomes hard. Training on what is needed, d rather than: what we have always done

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13 Placement in government temporary jobs. Government job training and placement program, for both public and private jobs. Credit and technical support for small businesses. Participation in permanent community improving projects (income limitation). Partnerships with Salvadorian emigrants in starting a new business, (SALEX web page).

14 Type of Projects (in implementation): 1.Public Works. 2.Food preparation and distribution. 3.Tourism. 4.Household food production. 5.Fish and shrimp production. 6.Arts and crafts. 7.Shoes and garment production. Participating agencies: FIA (USA), GIZ (Germany), Carana Corporarion (USA), and UNDP. Participating government agencies: Labor Department, Public Works Department, Labor Training, Economic Department, end Foreign Office, The Social Investment Fund. Private partners: Spanish Phone Co. TELEFONICA and local buisnesses.

15 The Coca rute. The 10 countries with the highest homicides rate in the world, are located between the Coca production site in Coca production site the Andes, and the consumption place in the USA. El Salvador Author w./ information from :UUNN, HDI 2010, CH 8 El Salvador: 21,000 sq. km HDI mill habs. GNP /p 6,972 UNDP HDI ES 2010

16 The gangs have territories and it is a mistake try to pretend that is not a reality; mixing youngsters from one territory with youngsters from a different one, has been a fatal mistake. The program must work in coordination with the police at different levels (local and central), but must not work together in the field. It is a terrible mistake to try and share information about the participants with the Police. The program can not, and must not try to, compete with the Economical Advantages of drug dealing in the street. Drug business pays more, but you risk getting killed, the social integration factor and, an alternative for decent living.

17 from position No10 to position No.24ª 14 The program has an important impact in local violence. ional Rank king Nat

18 Muchas Gracias!!!!