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SOCIAL PROTECTION
IN RURAL AREAS
Boosting growth to end hunger by 2025
The role of social protection
Social Protection: From Protection to Production
Natalia Winder Rossi
FAO Social Protection Team Leader – Senior Adviser
Washington, DC | 2 May, 2019
What is the issue?
Social Protection: From Protection to Production
1
Progress, but still a long way to go….
▪ 736 million people live in extreme poverty
▪ Increase in the number of extreme poor in Sub Saharan
Africa from 1990 (413 million) to 2015 (413 million)
▪ Most of the extreme poor are in rural areas:
▪ income depend on agriculture and natural resources
▪ Vulnerable to climate related risks and shocks
▪ Limited access to social services, infrastructure, financial
services
▪ Heterogeneous group (income, geographic location,
livelihood, age, gender)
What is the issue?
Social Protection: From Protection to Production
1
How to accelerate progress to achieve SDG 1 (1.1; 1.3; 1.5)?
▪ Political will as a pre-condition
▪ Macro dynamics- stimulation of economic growth and
generating employment where majority of poor live
▪ Enhancing social and productive capital (investing in rural
areas, access to services, including in extending social
protection to the poor)*
Social Protection: From Protection to Production
3Boosting growth to end hunger by 2025
The role of social protection
WHAT IS THE ISSUE?
Pathways to enhance social and productive inclusion
▪ Make processes of
structural, rural and
agricultural transformation
more inclusive
▪ Address inequitable
distribution of resources
and market failures
▪ Create employment and
economic opportunities
▪ Increase access to assets (including
land, natural resources, technology)
▪ Accumulate human capital
▪ Increase access to liquidity,
credit, markets and services
▪ Improve ability to manage risk
▪ Reduce burden of care
What is the role of social protection in this context?
Social Protection: From Protection to Production
1
▪ Research carried out by Transfer Project (FAO, UNICEF, UNC and
partners) focused exclusively in Africa, shows that:
▪ Social protection can have social and productive impacts among the
poorest; and
▪ Can generate multiplier impacts in the local economy
▪ How to sustain these impacts in the long-run?
▪ Coordinated and coherent agricultural and social protection policies and
programs can help break the intergenerational transmission of extreme
poverty
▪ Importance of this specific intersectoral coordination reflected in several African
policy initiatives and declarations (e.g.: CAADP, Malabo)
Enhancing productive capital: what do we know?
Social Protection: From Protection to Production
1
▪ Impact: National cash transfer programmes:
▪ Improvement of food security across the board
▪ Strong effects on school enrolment
▪ Mixed results in health
▪ Enhance risk management capacity, relax liquidity
constraints, and generate economic impacts even among
the poorest
▪ Generate multiplier impacts in the local economy
(impacts on non-participants)
→Transfer Project contributed to build and
strengthen the economic case for scale-up or
programmes at national level!
STRONG IMPACT ON PRODUCTIVE ACTIVITIES, WITH
VARIATION ACROSS COUNTRIES
Crop Livestock NFE
Productive
labor
Social
Networks
Risk
management
Zambia ✓✓ ✓✓ ✓✓ ✓✓ ✓✓
Malawi ✓✓ ✓✓ X ✓✓ ✓ ✓
Zimbabwe ✓ ✓✓ ✓✓ X X ✓
Lesotho ✓ ✓ X X ✓✓ ✓✓
Kenya X ✓✓ X ✓
Ethiopia ✓✓ X X X ✓
Ghana X X X ✓ ✓ ✓
Reduction in casual ag labor and increase in household economic
activities—no general work disincentive, elasticity of leisure is low
Synergies between cash and productive plus
Social Protection: From Protection to Production
Enhancing productive capital: what do we know?
Social Protection: From Protection to Production
1
▪ Adequacy of programmes:
▪ Take up, use and impact of programmes will largely depend on the
adequacy of such programmes in terms of size, regularity, but also socio-
cultural pertinence and livelihoods
→ TP contributed to shed light on the specific elements of design that
matter for economic impacts
→ TP raising issues on gender-sensitive design, implementation
→ Still gaps in terms of pertinence for indigenous peoples, livelihoods*
Enhancing productive capital: Coherence
Social Protection: From Protection to Production
1
How to maximize impacts: Coherence with agriculture interventions
“A systematic promotion of complementary and consistent policies and
programs across sectors, thereby creating synergies to combat rural poverty
and food insecurity more effectively”
▪ To maximize and sustain the gains over time, it is key to complement cash with
complementary interventions (existing or new)
▪ “To avoid/minimize conflicting interactions between policies/programs
▪ To be pursued horizontally (across ministries/agencies) or vertically (across different
levels of government)
▪ Different desired outcomes will determine the type of “coherence
Enhancing productive capital: what do we know?
Social Protection: From Protection to Production
1
▪ Typologies of existing of coherent interventions (lit review):
• Sustainable Livelihood Programs (SLP): single programs with multiple components
including both agricultural and social protection interventions;
• Complementary Programs (CP): programs from the two sectors that are designed
and/or implemented in a somewhat coordinated and/or aligned manner;
• Overlapping programmes (OP): programs from both sectors without alignment or
coordination which beneficiaries can partially overlap at the individual/household
and/or at geographical/community level only in an unplanned manner
Enhancing productive capital: Coherence
Social Protection: From Protection to Production
1
▪ Coherence with agriculture interventions (Example:
Cash+ in FSN and agriculture)
Social assistance interventions providing regular transfers
in combination with additional components or linkages
that seek to augment income/economic effects
• The “plus” components can be integrated into the cash transfer program
or can be externally linked
• Cash component allows beneficiaries: 1) to address their immediate
basic needs and 2) to invest in economic activities
• The “plus” components (productive assistance and training) protect,
restore, and develop livelihoods.
• Cash+ as part of a broader long-term vision of economic inclusion
strategies
Enhancing productive capital: what do we know?
Social Protection: From Protection to Production
1
▪ What does the evidence say?
• Mostly positive results on various domains (investment in productive assets,
financial inclusion, food security)
• Long-term implications not clear (sustainability)
• Reaching the poorest still challenging
• In addition to:
• Limited Institutional arrangements to facilitate coordination across different government
agencies
• A conscious effort needed to to select the beneficiaries of both types of interventions in a way
to increase the joint impact of both programs
• Goal of raising agricultural productivity vs. the goal of mitigating or reducing rural poverty
Enhancing productive capital: End goal…
Social Protection: From Protection to Production
1
▪ Comprehensive strategy of economic participation and inclusion of the poorest
▪ Gradual integration of households into broader rural and economic
development processes
▪ Identify processes to enhance inclusion of those left behind
▪ Graduation models provide some elements, but gaps in terms of
sustainability and linkages with broader processes
▪ CASH+ and SP/AG coherence work provided some additional elements on
sustainability on long-term impact, but still gaps on incentives to AG, labor,
production sectors to systematically engage
10
10
www.fao.org/social-protection
Boosting growth to end hunger by 2025
The role of social protection
THANK YOU FOR YOUR ATTENTION

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Social Protection in Rural Areas

  • 1. SOCIAL PROTECTION IN RURAL AREAS Boosting growth to end hunger by 2025 The role of social protection Social Protection: From Protection to Production Natalia Winder Rossi FAO Social Protection Team Leader – Senior Adviser Washington, DC | 2 May, 2019
  • 2. What is the issue? Social Protection: From Protection to Production 1 Progress, but still a long way to go…. ▪ 736 million people live in extreme poverty ▪ Increase in the number of extreme poor in Sub Saharan Africa from 1990 (413 million) to 2015 (413 million) ▪ Most of the extreme poor are in rural areas: ▪ income depend on agriculture and natural resources ▪ Vulnerable to climate related risks and shocks ▪ Limited access to social services, infrastructure, financial services ▪ Heterogeneous group (income, geographic location, livelihood, age, gender)
  • 3. What is the issue? Social Protection: From Protection to Production 1 How to accelerate progress to achieve SDG 1 (1.1; 1.3; 1.5)? ▪ Political will as a pre-condition ▪ Macro dynamics- stimulation of economic growth and generating employment where majority of poor live ▪ Enhancing social and productive capital (investing in rural areas, access to services, including in extending social protection to the poor)*
  • 4. Social Protection: From Protection to Production 3Boosting growth to end hunger by 2025 The role of social protection WHAT IS THE ISSUE? Pathways to enhance social and productive inclusion ▪ Make processes of structural, rural and agricultural transformation more inclusive ▪ Address inequitable distribution of resources and market failures ▪ Create employment and economic opportunities ▪ Increase access to assets (including land, natural resources, technology) ▪ Accumulate human capital ▪ Increase access to liquidity, credit, markets and services ▪ Improve ability to manage risk ▪ Reduce burden of care
  • 5. What is the role of social protection in this context? Social Protection: From Protection to Production 1 ▪ Research carried out by Transfer Project (FAO, UNICEF, UNC and partners) focused exclusively in Africa, shows that: ▪ Social protection can have social and productive impacts among the poorest; and ▪ Can generate multiplier impacts in the local economy ▪ How to sustain these impacts in the long-run? ▪ Coordinated and coherent agricultural and social protection policies and programs can help break the intergenerational transmission of extreme poverty ▪ Importance of this specific intersectoral coordination reflected in several African policy initiatives and declarations (e.g.: CAADP, Malabo)
  • 6. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1 ▪ Impact: National cash transfer programmes: ▪ Improvement of food security across the board ▪ Strong effects on school enrolment ▪ Mixed results in health ▪ Enhance risk management capacity, relax liquidity constraints, and generate economic impacts even among the poorest ▪ Generate multiplier impacts in the local economy (impacts on non-participants) →Transfer Project contributed to build and strengthen the economic case for scale-up or programmes at national level!
  • 7. STRONG IMPACT ON PRODUCTIVE ACTIVITIES, WITH VARIATION ACROSS COUNTRIES Crop Livestock NFE Productive labor Social Networks Risk management Zambia ✓✓ ✓✓ ✓✓ ✓✓ ✓✓ Malawi ✓✓ ✓✓ X ✓✓ ✓ ✓ Zimbabwe ✓ ✓✓ ✓✓ X X ✓ Lesotho ✓ ✓ X X ✓✓ ✓✓ Kenya X ✓✓ X ✓ Ethiopia ✓✓ X X X ✓ Ghana X X X ✓ ✓ ✓ Reduction in casual ag labor and increase in household economic activities—no general work disincentive, elasticity of leisure is low Synergies between cash and productive plus Social Protection: From Protection to Production
  • 8. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1 ▪ Adequacy of programmes: ▪ Take up, use and impact of programmes will largely depend on the adequacy of such programmes in terms of size, regularity, but also socio- cultural pertinence and livelihoods → TP contributed to shed light on the specific elements of design that matter for economic impacts → TP raising issues on gender-sensitive design, implementation → Still gaps in terms of pertinence for indigenous peoples, livelihoods*
  • 9. Enhancing productive capital: Coherence Social Protection: From Protection to Production 1 How to maximize impacts: Coherence with agriculture interventions “A systematic promotion of complementary and consistent policies and programs across sectors, thereby creating synergies to combat rural poverty and food insecurity more effectively” ▪ To maximize and sustain the gains over time, it is key to complement cash with complementary interventions (existing or new) ▪ “To avoid/minimize conflicting interactions between policies/programs ▪ To be pursued horizontally (across ministries/agencies) or vertically (across different levels of government) ▪ Different desired outcomes will determine the type of “coherence
  • 10. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1 ▪ Typologies of existing of coherent interventions (lit review): • Sustainable Livelihood Programs (SLP): single programs with multiple components including both agricultural and social protection interventions; • Complementary Programs (CP): programs from the two sectors that are designed and/or implemented in a somewhat coordinated and/or aligned manner; • Overlapping programmes (OP): programs from both sectors without alignment or coordination which beneficiaries can partially overlap at the individual/household and/or at geographical/community level only in an unplanned manner
  • 11. Enhancing productive capital: Coherence Social Protection: From Protection to Production 1 ▪ Coherence with agriculture interventions (Example: Cash+ in FSN and agriculture) Social assistance interventions providing regular transfers in combination with additional components or linkages that seek to augment income/economic effects • The “plus” components can be integrated into the cash transfer program or can be externally linked • Cash component allows beneficiaries: 1) to address their immediate basic needs and 2) to invest in economic activities • The “plus” components (productive assistance and training) protect, restore, and develop livelihoods. • Cash+ as part of a broader long-term vision of economic inclusion strategies
  • 12. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1 ▪ What does the evidence say? • Mostly positive results on various domains (investment in productive assets, financial inclusion, food security) • Long-term implications not clear (sustainability) • Reaching the poorest still challenging • In addition to: • Limited Institutional arrangements to facilitate coordination across different government agencies • A conscious effort needed to to select the beneficiaries of both types of interventions in a way to increase the joint impact of both programs • Goal of raising agricultural productivity vs. the goal of mitigating or reducing rural poverty
  • 13. Enhancing productive capital: End goal… Social Protection: From Protection to Production 1 ▪ Comprehensive strategy of economic participation and inclusion of the poorest ▪ Gradual integration of households into broader rural and economic development processes ▪ Identify processes to enhance inclusion of those left behind ▪ Graduation models provide some elements, but gaps in terms of sustainability and linkages with broader processes ▪ CASH+ and SP/AG coherence work provided some additional elements on sustainability on long-term impact, but still gaps on incentives to AG, labor, production sectors to systematically engage
  • 14. 10 10 www.fao.org/social-protection Boosting growth to end hunger by 2025 The role of social protection THANK YOU FOR YOUR ATTENTION