International experiences on Integrating Social Protection with Sustainable Employment
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1 INTERNATIONAL CONFERENCE Developing Local Initiatives for Poverty Alleviation through Community Based Sustainable Livelihood in OIC Member Countries International experiences on Integrating Social Protection with Sustainable Employment Fazley Elahi Mahmud Social Protection Specialist, Social Protection Hub a DFAT initiative Ministry of Social Affairs Republic of Indonesia in Collaboration with the Standing Commitee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation (COMCEC) Jakarta, 8 th - 9 th November INDPOVER 141 is funded by the COMCEC
2 Outline Context Constraints, Pathways and instruments International experiences Conclusion 2
3 Context Objectives of Social Protection address life cycle risk, not employment Social transfer for working age people Ø Exit/Graduation to avoid creating dependency Ø Releasing funds for other poor families Challenge: Ø cut- off point/threshold Ø the risk of falling back. Towards a Solution: Graduation/integration with employment/livelihood 3
4 Constraints to Accessing the Labour Market Job related skills constraint (technical and soft skills/employability skills) Lack of labour demand Job search constraint Firm start- up constraints (lack of capital) Social constraints (e.g. social exclusion) Geographical (remoteness/isolation) Shocks e.g. illness. 4
5 Pathways to Integration Enterprise development (self employment) Formal and informal jobs Public works program? Can employ large number of people Short term May not be dignified/decent 5
6 Instruments Asset transfer Enterprise development skills Soft skills development Vocational skills development Provision of microfinance Provision of seed capital Integration with other departments 6
7 Putting them together Assess Market Assess Constraints Determine Pathways Job/enterprise Design Intervention (instruments)
8 International Experiences BRAC : Asset Transfer + Comprehensive support package Philippines : Employment through integration with other departments Colombia : Enterprise + link with other departments for larger funding Chile : Employment through soft skill training + accompaniment Colombia : CCT for higher level technical education 8
9 Bangladesh- Targeting the Ultra- poor (BRAC) Asset Transfer + Comprehensive package Addresses multiple constraints e.g. skills/capital But it is more than that: Ø Market assessment/beneficiary preference/mentoring/building linkages Over 90% come out of extreme poverty after 2 years and continue to improve without external support. Note : Not linked with regular social protection. 9
10 Philippines- Sustainable Livelihood Program Integrated with 4Ps, employed over 1 million beneficiaries in Micro enterprise pathways: Ø Skills training e.g. on food processing Ø Seed capital around U$200/beneficiary given to groups of a minimum of 5 people Ø Over 973,000 micro- enterprises, in Employment: Ø Skills training, pre- employment assistance fund Ø 133,000 employment in Ø Partnerships are remarkable, makes it different from other examples 10
11 Philippines- Sustainable Livelihood Program Partnerships for direct employment Dept. of Public Works and High Ways : allocates 40% of it labour requirements for SLP For six months (road maintenance works). Some are absorbed Dept. of Environment and Natural Resources plantation project. 1.5 billion trees by 2016 Department of Agriculture- natural resources management Department of Tourism tourism related projects Partnership of Job Facilitation Public Employment Service Office (PES) - Job matching through database of skills and demands from employers 11
12 Chile - Youth Employability Program Addresses job search and employability constraints. Integrated with Chilean social protection system - Solidario Implemented by Private sector companies and NGOs through bidding process Length of the program is 8 months. In 2014, around 75% trained sustainably stay in the jobs. 48% goes for job. Rest enterprise. On average 3000 youths are employed in a year. 12
13 Chile - Youth Employability Program Labour Insertion Plan (LIP): Strategy based on the capacity and need of each young person is prepared Training : Based on the LIP, training is provided for up to 3 months on interview skills, communications skills, team work, conflict resolution etc. even on clothing, haircut whatever is required to succeed in an interview. Accompaniment and other assistance : Accompanies each participants for up to 3 months and in job search, preparing CV, getting other legal documents and preparing application. Types of jobs: security guards, cashier, waiter, beauty stylists etc. 13
14 Colombia Mi Negocio Enterprise development model- skills and capital constraints Implemented by private sector Coverage 150,000 households Steps : Ø Soft, business skills and competency development Ø Develop and present Business plan Ø Cash grants $700 in kind Ø Accompaniment 14
15 Colombia Mi Negocio Link with other services. MOU with SENA. Ø SENA provides grants for enterprise development through open call Ø Bancoldex is a bank which provides credits. 20% of Mi Negocio participants access other services. Ministry of Social Development is looking for developing links with other agencies 15
16 Colombia Youth En Action Integrated with the CCT - Mas Familias en Action. Provides USD35/month to the youths of 16 to 24 years for higher level technical education (up to Bachelor level). Conditional to academic performance and is provided up to Bachelor degree or up to 5 years MOU with the National Training Service (SENA) and 49 public institutions higher education The courses have two parts: classroom training and internship , the program has supported over 196,000 youths. 16
17 Conclusion Scale : A single pathways is not enough; Ø Enterprise development has more potential in terms of number of jobs Ø Enterprise development is sometimes an additional option for families to existing occupation Soft skills development and mentoring : Common elements Private sector: Is an an innovative option Colombia, Chile Collaboration : Multiplies the impact Philippines, Colombia Two stories about shocks in poor people's lives. 17
18 Conclusion: Nasrin of Bangladesh 18
19 Conclusion: Ibu Tina of Bandung Ref. Poor Economics Abhijit Banarjee and Esther Dufflo) With husband ran a garments business; had 4 employees. Lost all capital due to receiving a false check of IDR 20 million. A loan of IDR 15 million to resume the business. Got a big order but was cancelled after making investment. After some days Ibu Tina was divorced with four children Moved to her brother s house who was a poor man himself. Ibu Tina had no energy to take the life forward and help the children I would like to highlight here: - Even a sustainable job or successful business is not an end in poor people s lives; - There is a need for a social protection system to support them to address shocks throughout their life- cycle. 19
20 Resources Social Protection for Employment Community (SPEC) at Forthcoming webinar: Sustainable Livelihoods Program of Philippines 18 November 2016; AM Jakarta time Register : Contact: fazley.mahmud@socialprotectionhub.org 20
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