Dr. Miguel Székely, Deputy Minister for Social Developement Cape Town, South Africa, 2005

1. Dr. Miguel Székely, Deputy Minister for Social Developement Cape Town, South Africa, 2005

2. Objectives • Provide poor families with immediate assistance, • while investing in human capabilities • to break the poverty circle in the medium run

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

4. Impact evaluation Certify family conditions Monitoring Cash transfers every two months Community level targeting Certify existence of schools and health clinics Families comply with conditionality Identification of possible beneficiaries Families Incorporate into the program Oportunidades: operational aspects

5. Contents 1.-Change of paradigm 2.- Strong effects on education, health and nutrition outcomes 3.- Strong effects on poverty reduction 4.- Five Phases of Oportunidades

6. Change of paradigm • Targeted benefits to individual families Transparent mechanisms to select beneficiaries Integrality Shared responsibility Cash transfers vs in kind benefits Evaluation

7. 1. Targeted benefits to families • Before • universal coverage • benefits for groups (constituencies) • communities vs families • Now • 1st stage : Geographic targeting • 2nd stage: Family targeting

8. 2. 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

9. Targeting of poor households Registry of beneficiaries Socioeconomic information Address Family code Information on other social programs

10. 3. Integrality • Before • Independent actions by each ministry • Now • Coordination for : • Education • Health • Nutrition

11. Integrality in Oportunidades Education Scholarships Human development. Health Health care and Training in better health practices Nutrition Cash transfer + supplement Savings accounts

12. 4. Shared responsibility • Before • Short term support through assistance and welfare • Now • Shared responsibility: • A) change in family behavior to trigger long term effects • B) Self-targeting

13. Nutrition + Education Savings Health School attendance Graduating from high school Health check ups: Preventive care Nutritional check up Training for hygiene and health practices Family Children and youth (family) Woman h of h Youth 4. Shared responsibility by families

14. Before • Occasional transfers with no shared responsibility • Food packages • Construction Implicit assumption: governments know what the poor need 5. In kind vs cash transfer • Now • Women receive $ • Certainty • Firms vs bureaucracy Implicit assumption: People know what they need and they are responsible

15. Food 71% Clothing 5% Hygiene 7% Health 2% Education 1% Other 14% Use of cash transfers

16. 6. Evaluation • External evaluation by renowned international academic centers • Rigorous scientific evaluation • 3 benefits from evaluation: • Knowing the effect of the program • Transparency and accountability • Improved information for budget allocation

17. Contenido 1.- Change of paradigm 2.- Strong effects on education, health and nutrition outcomes 3.- Strong effects on poverty reduction 4.- Five Phases of Oportunidades

18. 33% women 16% men Education Increase in secondary school enrollment 25% general enrollment

19. 12% reduction in child morbidity Health Morbidity under 2 years of age

20. 19% number of days not working due to sickness Health Morbidity for adults

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

22. Contenido 1.- Change of paradigm 2.- Strong effects on education, health and nutrition outcomes 3.- Strong effects on poverty reduction 4.- Five Phases of Oportunidades

23. Effects on poverty reduction between 2000 and 2002 3.5 3.5 3.5 28% 28% 28% Precios Precios Prices 36% 36% 36% Other Otros Otros 4% 4% 4% 3.0 3.0 3.0 4% 4% 4% 2% 2% 2% Procampo Procampo Procampo 6% 6% 6% 2% 2% 2% Remittances Remesas Remesas 2.5 2.5 2.5 33% 33% 33% 2.0 2.0 2.0 Oportunidades Oportunidades Oportunidades 48% 48% 48% 14% 14% 14% 1.5 1.5 1.5 2% 2% 2% 10% 10% 10% 12% 12% 12% 1.0 1.0 1.0 40% 40% 40% 0.5 0.5 0.5 72% 72% 72% 44% 44% 44% Remuneraciones Remuneraciones Wages 0.0 0.0 0.0 3% 3% 3% - - - 10% 10% 10% 5% 5% 5% Businesses Negocios Negocios - - - 0.5 0.5 0.5 - - - 40% 40% 40% - - - 1.0 1.0 1.0 Pobreza Alimentaria Pobreza Alimentaria Food poverty Pobreza Pobreza Asset Poverty dePatrimonio dePatrimonio Pobreza de Pobreza de CapabilitiesPoverty Capacidades Capacidades ( 2 points ) ( 5.4 points ) ( 3.9 points )

24. Contenido 1.- Change of paradigm 2.- Strong effects on education, health and nutrition outcomes 3.- Strong effects on poverty reduction 4.- Five Phases of Oportunidades

25. 4. Four phases Breaking through paradigms 2. Consolidation in 2000 and “surviving” into the new Administration 3. Improving design and scaling up 4. From structural poverty to the dynamics of poverty

26. Success factors Rigorous evaluation Consolidating disperse budgets International support Avoid political use Beneficiaries as partners Centralized coordination across sectors Building on success Political support