Chile Solidario Scalable Graduation Model? Ruslan Yemtsov December 15, 2010
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1 Chile Solidario Scalable Graduation Model? Ruslan Yemtsov December 15, 2010
2 Features President Lagos launched Chile Solidario May 2002 Objective is to eliminate extreme poverty Currently reaches nearly 300,000 families Families identified though proxy means instrument Implementation shared between national level and municipalities (more responsibility to municipalities)
3 Chile Solidario Model Personalized Psycho-social support to families for two years with declining intensity (promotional, pro-active, change in attitudes) contract committing to participate in the activities identified via personalized assistance in 7 areas (health, education, employment, housing, income, family life, and legal documentation); about 50 targets in all (for example, get I.D. card, get children required vaccinations etc.). According to this contract government takes responsibility for supplying services families commit to overcome problematic aspects of their lives. Access to existing cash transfers (social pension, noncontributive family allowances) Preferential access to social programs and services. Small cash transfer (declining value) $21 per month for the first 6 months, $16 per month for the second 6 months of the program, $11 per month for the third 6 months, and $8 for the 30 months (called exit grant ). Time limit of 5 years
4 Innovation: customized psychological profiling/services Implemented through the outreach activities by a local social worker to each home. During these visits, the social worker goes with the family over its main problems, and the main steps they need to take to solve them. Family is defining a set of minimal critical barriers to attain a minimally acceptable level of well-being for that family On average, families have 8-12 minimum conditions that need to be complied with during the intensive phase of the program. Regular meetings with the social worker to monitor progress toward unmet goals: once month (week for 2m) in the final 12 months: every 3 months Once family meets all requirements, it graduates from the Program, but continues to receive programs/transfers to which entitled
5 Impacts for Panel Data Confirmed sustained gains in indicators of health and education Improvements in orientation towards future and in perceived capacity to activate actions (self-efficacy) on employment In urban areas, substantial gains across other dimensions (improved self-esteem, improved satisfaction with life, less depression) Significant gains in labor supply and income estimated in rural areas Employment of the head (10-14%), share of active members (26%) Poverty and extreme poverty incidence (-2%)
6 Is it too expensive? How capacity was created? The direct cost per family to access the Chile Solidario System (via the Puente Program) is estimated to be around $330, of which $275 (about 80%) correspond to the transfer itself. The social worker accounts for about 10% of the direct cost. Social workers: Half are current municipal employees; the rest have been contracted Receive special training at start Design of training program and support system for them while Program is implemented Special training to work with indigenous
7 Are other countries doing similar things? Yes, OECD (within activation policies) Australia- Cetrelink Netherlands: the Institute for Employee Benefit Schemes (UWV) UWV contracts, individual budgets and the role of the reintegration coach UK: Employment First system: Jobcentre Plus and the welfare market France: Trends towards customized social services Experiments in ECA
8 Summary Consistent pattern of impact on take-up of social services. Consistent pattern of impacts on employment and income. Effects of program on psycho-social outcomes, which indicate that impacts may be sustainable, by changing behavior to be more effective (family, public services, and productive worker). New entry points: Follow-up children over time, beginning at first pre-natal visit (early detection of risks, based on needs of family referrals to pertinent services)
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