Session Name: Public Works Plus: Evolving Agenda for employment, services, & asset creation Case Study: Temporary Income Support Program (El Salvador) Carolina Avalos, president of the Social Investment Fund for Local Development (FISDL, in spanish)
GENERAL INFORMATION OF EL SALVADOR 2 Officially the Republic of El Salvador is the smallest country in Central America with only 21.041 km ² and an estimated population of 6,213,730 in 2012.
El Salvador: Poverty indicators 3 Source: National Household Survey, 2011.
PLAN QUINQUENIAL DE DESARROLLO (Five Year Development Plan 2010-2014) Priority Areas PRIORITY AREAS Reduction of poverty, social exclusion and economic and gender inequality. Prevention and combat of delinquency, criminality and social and gender violence. Economic reactivation, and the substantial generation of decent employment. Creation of the bases of a model of growth and integral development, the extension and the strengthening of the enterprise base, and the reconstruction of the productive weave. Environmental risk management and reconstruction of the infrastructure. Universal Social Protection System (rights approach) Comunidades Solidarias Rurales: CCT, UCT, Social Infraestructure, family support Comunidades Solidarias Urbanas: PATI, CCT, UCT, Social Infraestucture Ciudad Mujer Integrated and Gender Based Model ( 4 Source: Five Year Development Plan of El Salvador (2010-2014)
COMUNIDADES SOLIDARIAS URBANAS - CSU Comunidades Solidarias Urbanas, takes an integrated approach to improve the conditions of human poverty, housing and social exclusion of the most precarious urban settlements, working in coordination with local governments and community organizations. 5 The Program s intervention is focused on precarious urban settlements (AUP) belonging to 50 of the most vulnerable municipalities in the country according to the Proposal for an Urban Poverty Program (UNDP El Salvador 2010) Urban Poverty and Social Exclusion Map (UNDP-FLACSO El Salvador 2010).
COMUNIDADES SOLIDARIAS URBANAS -CSU 1. TEMPORARY INCOME SUPPORT PROGRAM (PATI) A temporary program directed to protect the income of families in vulnerable situations through participation in community projects and professional training directed mainly to youth and unemployed women heads of households. Focused on 11 municipalities affected by Hurricane IDA and 25 urban municipalities according to urban poverty map. $100 a month for 6 months. 2. PRODUCTIVE INSERTION FOR THE VULNERABLE POPULATION STRATEGY. Promotes entrepreneurship and social insertion alongside other similar programs, as well as the execution of Community Projects to encourage Productive Processes throughout the duration of each PATI cycle (6 months). 3. BASIC PENSION FOR 70 years & older poopulation: UCT for 70 years & older population which lives in poverty in any of the CSU municipalities. 6 $50.00 a month on a permanent basis.
OBJECTIVES OF PUBLIC WORKS PROGRAM - PATI Primary objective of public works programa - PATI are: Grant temporary protection to the income of those more vulnerable in urban households by providing economic support and training for their participation in community projects. 7 Secondary objectives: 1. Improve the income of the poorest population which faces the harshest conditions and are most vulnerable within the context of the worldwide economic crisis. 2. Strengthen the abilities of those participating in the program so they can improve their know-how and their employability levels. 3. Strengthen the role and abilities of the local governments and their communities. 4. Strengthen coordination of Government Institutions both at a national and local level, as well as between the local and central Governments.
SUMMARY OF PATI 8 Status (Active, Closed) Active Year Started 2010 Coverage (most recent FY) 64,445 participants in 36 municipalities Budget (most recent FY) US$ 58 millions (2010-2014) Financing Sources Implementation Agency, and key partners The World Bank, USAID and National Resources Technical Secretariat of the Presidency (STP) through FISDL and INSAFORP, with the participation of municipalities
INTERVENTION COMPONENTS PATI is developed through 4 components: Component 1: Conditional Economic Support Component 2: Training Component 3: Strengthening of Institutions in charge of Execution Component 4: Strengthening of participating Municipalities. 9
CONDITIONAL ECONOMIC SUPPORT Objective: To support the monetary income of the participants. Characteristics: Cash transfers (USD 100/month), in exchange for work in municipal projects and participation in job oriented training. Job oriented training, 6 months duration per group. 10
TRAINING Objective: To contribute to improving the employability* and productive integration of the participants in paid employment, selfemployment or developing their own business. Characteristics: The courses are taught by INSAFORP from the analysis of territorial conditions and existing local production potential. 11 *Employability, encompasses the skills, knowledge and competencies that enhance the ability of the workers to secure and retain a job, progress at work and cope with change, secure another job if they want to or has been laid off, and enter more easily into the labor market at different periods of his life (Resolution on Human Resource Development. General Conference of the International Labor Organization, 88. session. Geneva, June 2000. Paragraph 9).
CONTRACTING PROCESS TRAINING COURSE Since the determination of training, hours, location, educational level and the number of people attending, the INSAFORP proceed to conduct the process of purchasing training services, according to the procedures set forth in the approved Shopping Guide by the World Bank. 1. Identify the location where the training will take place. 2. Register participants of the training (Minimum of 15 participants required). 3. Perform training courses Start from the beginning of the third month of community projects. Duration 80 hours of technical training, including 16 hours of orientation and business management. During continuous days, in days of a minimum of 6 hours per day and a maximum of 8 hours in consultation with the participants. 12
CONTRACTING PROCESS TRAINING COURSE 4. Check in of participants of the training courses (through completion of forms revised by FISDL, will served as proof for payments to INSAFORP). 5. Each participant receives a certificate of participation, only if the participant has satisfied the criteria: Be considered as products of training PATI participant trained Achieve a minimum overall score of 7.0 6. Make a final report of the course taught 7. Supervision and monitoring of training activities. 13
PATI COMPONENT COMPONENTS AND MAIN ACHIEVEMENTS DESCRIPTION EXECUTION START-UP DATE ACHIEVEMENTS TARGET IN USD$ MILLIONS ECONOMIC SUPPORT Provide temporary income relief to vulnerable households February, 2010 35,331 participants $ 19,722,700 $ 41.2 TRAINING Improve employability of target population February 28, 2010 30,461 trainees $ 4,735,650 $ 10.5 STRENGTHENING OF INSTITUTIONS IN CHARGE OF EXECUTION Strengthen FISDL s operative capacities in the areas in which the Program intervenes February 2, 2012 -- $ 2.6 STRENGTHENING OF PARTICIPATING MUNICIPALITIES Strengthen municipalities in social project management techniques March 2012 $2,277,100 management funds spent $ 3.7 14
FORMS OF COORDINATION Inter-sectorial coordination. Technical Secretary of the Presidencystrategic coordination Implementing agencies FISDL, Labor Ministry, and INSAFORP (Institute for labor and Skill Formation and Taining) Local coordination Municipalities Monitores Social Promoters Communities Community Leaders of the AUP PATI Municipal Commission 15
PATI PROGRAM'S FINANCIAL RESOURCES Salvadorean government, will assume administrative costs Local governments will pay for all materials that the projects require 13 PROGRAM FINANCING SOURCES AMOUNT IN USD$ MILLIONS TARGET POPULATION PERIOD OF EXECUTION Guadalupe EXECUTED TO SEPTEMBER 2012 USD$ MILLIONS URBAN PATI WORLD BANK 37.3 40,000 March 2011- July 2014 14.6 PATI IDA USAID 20.7 24,455 Nov/2010- sep/2013 12.2 TOTAL 58.0 64,455 26.8
IMPACT EVALUATION Currently, the program has an impact evaluation process: o Base Line results (April 2012): The comparison groups are similar, in average, and sufficiently balanced to be used for the impact evaluation. Impact can be detected in most of the desired indicators (income, preparation for the labor market, job search, Selfesteem and mood, employment and social convivence). The program is attracting mainly the most vulnerable: less human capital (education, additional skills and use computers and speak other languages), with a job placement in precarious occupations, from households poorer than similar people who did not register to participate in the PATI. o The first follow-up survey is developing. 17
PRODUCTIVE INSERTION STRATEGY An effort from FISDL within PATI s guidelines to search for new opportunities to earn a permanent income for PATI s participants/ target population. TARGET POPULATION At Risk or precarious Urban Settlements AUP (in Spanish) Youth between the ages of 16 and 24 years of age as well as Female heads of household (primarily) Men and women over 24 are not excluded 18
STRATEGIC GUIDELINES TOWARDS PRODUCTIVE INSERTION 1. Establish alliances with Government Institutions, and existing initiatives from national and international agencies. 2. Promote PATI participants amongst the local network of local entrepreneurs. 3. Promote PATI participants amongst the productive agricultural/entrepreneurial networks. 4. Promote PATI participants amongst Government Institutions and Privately owned businesses as viable service providers. 19
PRODUCTIVE INSERTION: LA PAPALOTA CASE 20 In the community La Papalota, a group of women decided to learn the craft of shoemaking as part of their participation in PATI, because the municipality does not have a workshop that manufactures shoes to school children. The group began with 20 women, ages ranging from 17 to 33 years, who have committed to make this learning opportunity to start their own production project. After graduating from the PATI, the group was reduced to 8 women (7 are single mothers, only one is single without children and 17 years). They joined with the prospect of making concrete the idea. Forming a production chain, each of them has its specialty in the shoemaking process. After PATI, the women prepared a project profile for find some support for realizing the idea and get a special machine to ensure quality and product durability. Months later, a Salvadoran resident in the U.S., gives a contribution of US$ 1,800 to finance the project, making it a reality.
San Pedro Perulapán 21 We learned to cast the net!
22 PATI product market Patimanía La Libertad
Municipality of Guadalupe 23 PATI product market
PATI EXPERIENCES "There is a widespread development in the town, not only in infrastructure, also in social, sport, the coexistence between communities and participants "This town is known for its low crime rate, and the PATI has dropped more, people starting in Pati are very busy, do more daily activities, people have become more responsible" "Women are not given jobs in the formal sector in the Pati they have the opportunity to work and care for their children" "The value of the infrastructure that is made as part of the project, is not in what they cost, if not how to change the image of town" 24
PATI S STRENGTHS 1. A greater proximity of the Local Governments with poor and vulnerable communities 2. The program prioritizes AUP in conditions of extreme and high vulnerability as well as poverty. 3. The program has managed to motivate local productivity within the sectors of communities considered vulnerable. 4. Priority criteria to include participants in tune with PATI s objectives. 5. Promotes a sense of identity and belonging of the participants to their corresponding communities. 6. Plays a preventive role keeping participants busy and with appropriate guidance. 25
THE ROLE OF LABOR AND SOCIAL ASSISTANCE POLICIES (Temporary Income Support Program - El Salvador ) Carolina Ávalos, President Social Investment Fund for Local Development, FISDL November, 2012 26