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Model has spread from Mexico

“Going to Scale” Conditional Cash Transfers (CCT) Potential for ECD Programs Marito Garcia , Ph D The World Bank, Washington DC ECCD Going to Scale Workshop Zanzibar , October 27, 2009. Turkey Palestine. Mexico Jamaica Dominican Republic

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Model has spread from Mexico

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  1. “Going to Scale” Conditional Cash Transfers (CCT) Potential for ECD ProgramsMarito Garcia, Ph DTheWorld Bank, Washington DCECCD GoingtoScaleWorkshopZanzibar, October 27, 2009

  2. Turkey Palestine • Mexico • Jamaica • Dominican Republic • Nicaragua Honduras Costa Rica • Colombia • Ecuador Brazil • Peru • Chile Paraguay Sri-Lanka Bangladesh Pakistan Cambodia Kenya Burkina Faso Swaziland Mozambique Model has spread from Mexico Total Countries: 21 since 1997 ! Source: Garcia and Mulaa (World Bank) 2005

  3. Objectives of Presentation • Lessons from Mexico Progresa-Oportunidades • Lessons as Mexico model applied in 21 countries since 1997: Customize! • Challenges as we think of applying to ECD programmes

  4. Progresa-Oportunidades “has gone to scale !” YearBeneficiariesBudget (families) (million pesos) • 300,000 363 • 1,500,000 3,398 • 2,306,600 6,899 • 2,476,000 9,518 • 3,116,000 12,296 • 4,240,000 18,608 • 4,300,000 20,002 • 5,000,000 24,000 (US$2.6billion) Source: SEDESOL, Mexico 2005

  5. What is CCT? • Monthly Cash Payments to Women in Eligible Families • IF Member of Families Use Education and Health Services

  6. Mexico CCT---what benefits were given? • $26 per Month for Each Child in Grades 3 – 9 • IF Child attends 85% or More of Classes

  7. What is the CCT Benefit? • $15 Monthly Cash Transfer per Family • IF Each Child Receives 2-4 Checkups annually, Adults Receive One Annual Checkup, Pregnant Women Receive Seven Pre- and Post-natal Checkups • If mothers attend parenting classes

  8. Specifically, To Obtain Cash… • Pregnant women must go to public health clinic for • prenatal care beginning in 1st trimester • nutrition monitoring & supplements • 100% of daily required micronutrients & 20% of protein • Mothers attend parenting education classes • nutrition monitoring & supplements • Children 0-5 must got to public health clinic for • Well baby & nutrition monitoring visits • Given nutritional supplements • For age 0-24 months • For 24-60 months if poor nutrition detected

  9. Four components: Mexico CCT Average monthly cash transfer to the mother in the family Scholarships (higher for girls than for boys) conditional on school attendance $25 Education + In kind Regular check-ups in health clinics Health + Cash transfer + Nutritional suplement conditional on women training Nutrition $15 Total $40 Savings account, conditional on graduation $8 Assets

  10. PROGRESA-Oportunidades Targeting Households Eligible to Receive Benefits through a Three-Step Process: • Step One: Geographic Targeting - Identification of poor villages • Step Two: Proxy Means Testing – Identification of poor households in the poor villages, on the basis of Survey Information about factors related to income • Step Three: Local Validation Local meetings to incorporate eligible families, and resolve disputed cases

  11. Vulnerabilities Vary Based on the Stage of the Life Cycle Risks for all age groups: disabilities, poor health, poor living conditions (housing, basic infrastructure), conflicts, natural disasters, economic downturns Risks: Orphanhood, malnutrition, infectious diseases Risks: low human capital (nutrition, education) Risks: low human capital, inactivity, substance abuse, early pregnancy Risks: poverty (unemployment or underemployment), chronic illness Risks: poverty, illness

  12. Over 40 Percent of CTs in SSA Address Childhood-Related Risks; Another 30 Percent Focus on the Elderly n=57

  13. PROGRESA-Oportunidades Overall Accomplishments: • Serves Over 20 Million People, Around One-Fifth of Mexico’s Population • Provides 20% of Income of Participating Families • Keeps Administrative Expenses under 10% of Total Program Cost • Has Survived a Landmark Shift in Power Away from the Political Party that Established It (Zedillo to Fox)

  14. Assessing PROGRESA’STargeting and Impact: • Baseline household surveys immediately before and two years after PROGRESA Initiation • In 506 Randomly-Selected villages qualifying for PROGRESA participation, of Which • 206 Began Participating in PROGRESA Shortly After Baseline Survey • 186 Did Not Begin Participating in PROGRESA until After Follow-Up Survey

  15. PROGRESA Targeting Accomplishments Reaching Bottom 20% of National Population Percent of Total Program Benefits

  16. 33% female students 16% male students Education Impact ! Increase in secondary school enrollment 25% general enrollment

  17. Impact on Morbidity is Cumulative

  18. 12% reduction in child morbidity Health Morbidity under 2 years of age

  19. Nutrition Malnutrition under age 3 16% increase in height and weight

  20. Successful, why? Transparent mechanisms to identify beneficiaries • Before • No clear rules (discretionary) • Driven by political demands • Now • Transparency : Means test to each family • Systematic procedures to identify eligible households • Creation of the first beneficiary registry

  21. Successful, why? Better sectoral coordination and convergence of services to families • Before • Independent actions by each ministry • Now • Coordination of : • Education • Health • Nutrition

  22. Successful, why? Shared responsibility between government and family • Before • Short term support through assistance • and welfare • Now • Shared responsibility between govt and family: • A) change in family behavior to trigger • long-term effects • B) Self-targeting of the poor

  23. Success factors, as viewed by Mexicans Rigorous evaluation Addressed both short term household needs, and long-term human capital development goals Consolidating disperse budgets International support Central coordination across sectors Building on success Political support (Even with the change in political party, and President from Zedillo to Fox)

  24. Plus----efficiency in delivery to target groups! PETS—public expenditure tracking surveys in Uganda, in 1994 showed that: “For every $1 education non-salary budget at Treasury Level----Only 16 cents reached the schools!! “ In Mexico Progresa and Colombia Familias en Accion, for every $1 budget at Treasury Level---about 90 cents received by deserving families !! Only 10 cents per $1 is cost of administration!

  25. Cash transfers programs: Africa Source: Garcia and Moore 2009

  26. Countries with Cash Transfers Programs in Africa, 2000- 2009 Countries in which cash transfer programs have been discussed, planned, or implemented Countries with no known dialogue surrounding cash transfer programs Countries excluded from the study Source: Garcia and Moore 2009

  27. CCT Programs in Africa: NEW programs emerging !! • Kenya Conditional Cash Transfers for OVC $180 million • Nigeria CCT Program $300 million • GHANA LEAP Cash Transfers $30 million • Ethiopia Productive Safety Nets (Cash transfers) $450 million • South Africa Child Grants $1 billion

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