Building Household Resilience through Productive Inclusion. Carlo del Ninno, Thomas Bossuroy, Patrick Premand, World Bank
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1 Building Household Resilience through Productive Inclusion Carlo del Ninno, Thomas Bossuroy, Patrick Premand, World Bank
2 Adaptive Social Protection (ASP) 1) Build household resilience, ex ante Household Wellbeing! 2) Protect wellbeing, ex post Ex ante Shock Ex post But how?. 8 March
3 Building household resilience Why it is important? Improve the ability to cope with shocks ex ante and manage future risks beyond the short-term Households use a variety of strategies to deal with risks of shocks Coping, income diversification, asset accumulation, formal and informal insurance But large welfare cost of risk and shocks remain Large and persistent welfare impacts on nutrition after drought in Southern Africa Adverse coping mechanisms can have long term welfare effects on education Potential expected profits are sacrificed for lower risk Cost from ex ante risk management might be higher than cost of shocks (Zimbabwe, Niger, Kenya, etc) The costs of not protecting the poor are high and last long into the future (Ethiopia, Burkina Faso, etc.) 8 March
4 The role of productive inclusion Boost resilience through livelihoods that support higher earnings and productivity among the poor The poor are mostly self-employed in agricultural or non-agricultural employment and face multiple constraints Constraints Vulnerability No Access to Finance Failing Credit Markets Shortage of Skills Lack of Information Psychosocial constraints Remedies Consumption support Savings promotion Capital injections training Coaching life skills workshop, community sensitization The Whole is Greater than the Sum of its Parts: tackling relevant constraints all at once build resilience for long lasting impacts 8 March
5 Integrated models can be effective Combining cash transfers and productive interventions can improve earnings, livelihoods diversification and resilience ( cash+ ): Encouraging evidence from Nicaragua (productive grant + training); Niger (cash support + savings) The CGAP/BRAC integrated approach (Evaluation - Science 2015) 3-day training + house visits over 24 mth Livestock (goats, chicken) 12 mth CT Impact on income after 2 years and after 3 years Pooled Ethiopia Ghana Honduras India Pakistan Peru Endline 1 Endline 2 8 March
6 Have long-term income and revenues impact (West Bengal) Beyond 2 or 3 years: what happens after 7 years? Does the impact dissipate? Plateau? Control TUP 2y 3y 7y 6.33 USD 2014 PPP Beneficiaries Nonbeneficiaries EL1 EL2 EL3 EL1 EL2 EL3 EL1 EL2 EL3 HH LIVESTOCK REVENUE, MONTH HH NON- FARM MICRO- ENTERPRISE INCOME, MONTH HH INCOME FROM PAID LABOR, MONTH EL1 EL2 EL3 SELF- REPORTED ECONOMIC STATUS 1/10 Differences between benef. and non benef. increase over time Beneficiaries seem to be on a trajectory to exit poverty 8 March
7 The Challenge How to design and implement programs to improve households resilience beyond the short-term Programs that complement cash transfers with complementary interventions INVESTING IN A MORE ADAPTIVE SOCIAL PROTECTION SYSTEM Adaptive Programs: building resilience, responsive to changed needs Social Protection programs designed to build the resilience of the most vulnerable to shocks, ex ante Flexible and scalable: capable of reaching the affected / target population through dynamic processes and systems ADAPTIVE PROGRAMS PROGRAMS Δ PROGRAMS DESIGNED PROGRAM FOR RESILIENCE DESIGNAND / OR RESPONSE THE DELIVERY CHAIN Δ DYNAMIC DELIVERY CHAIN 1) Δ ASSESS Flexible program rules 2) DECIDE and procedures 3) IMPLEMENT Δ Strategies for rapid assessment and enrolment, setting Outreach criteria in advance and Enrolment defining triggers Intake Choice of service Δ Flexibility in benefits package Assessment of needs package Δ Robust processes and systems for post shock implementation Transaction Case management 8 March
8 How to Design Programs? Identify the relevant constraints that need to be addressed Example of a poor household in the Sahel: video How can productive inclusion programs be implemented at scale through social protection systems? Niger: Ms. Yahaya Saadatou Mallam Barmou Bangladesh: Ms. Mahmuda Begum Peru: Federico Tong Hurtado 8 March
9 THANK YOU 9
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