MEXICO

September 2016

Strengthening Social Protection Systems

“Takaful and Karama” Presented by H.E. Minister Ghada Waly

FORMS OF SOCIAL PROTECTION IN EGYPT

Health care for poor people

Ration cards

Conditional Cash Transfer

Slum Development Fund

Upgrading poor villages

Labor-intensiveprojects

School Feeding

Social Housing

Insurance & Pensions

3Source: WDIs, 2014

(2005-2011) Economic Growth only is not Enough

• Egypt has been following the “Growth first”model of Economic growth.

• This led to 5-7% growth rates without enough social inclusion

0

5

10

15

20

25

30

2000 2002 2003 2004 2006 2008 2010

Pe

rce

nt

Persistent trends of Poverty

Wages/GDP

Poverty Rate

GDP Growth

Higher growth but higher Poverty

4Source: WDIs, 2014

Egypt’s growth has not been inclusive; Poor Targeting

The Old Cash Transfer Programs is Poorly Targeted with Less than

one third of the beneficiaries being poor

5

Poorest

Source: MOF, 2014

Fuel subsidies (6% of GDP): were not only higher than health and education public expenditures combined, but also mainly benefiting the rich

DEVELOPMENT OF SOCIAL SAFETY NET

The Ministry of Social Solidarity (MOSS) is mandated to reformthe Social Safety Net and expand its coverage, with a long-termplan to reach 3 million poor HHs with emphasis on building

effective targeting and efficient systems.

HEADING TOWARDS SOCIAL INCLUSION

The plan is to set aside nearly 15% of savings from subsidyreforms for social investments including:

• Safety net programs• Targeted food subsidy• Free health insurance for the poor• Improving basic services especially in poor villages• Other social programs to mitigate economic risks and

alleviate poverty.

ASPECTS OF IMPROVING SOCIAL PROTECTION SYSTEMS

IN EGYPT

1. Moving to the approach of “Conditionality to invest in children and fulfill their basic rights (health, education, nutrition and protection).

2. Automation of the social protection system, to enhance transparency

and to eliminate human error and potential corruption.

3. Maximize coordination between government services to adopt an integrated approach and to boost collective efforts.

4. To expand better outreach efforts and ensure that remote and deprived areas and to people who lack knowledge about their social rights.

5. Strengthening verification and grievance mechanisms and improve measures to build trust and accountability.

6. To limit the period of unconditional cash transfer to 3 years liable for revision and re-support poor & vulnerable groups and empower “abled” people to seek income-generation opportunities.

PRINCIPLES OF TAKAFUL AND KARAMA PROGRAMS

Human Rights-based

EquityNational

ownershipSystematic &

integrated

Develop-mental

Approach

TAKAFUL AND KARAMA ELIGIBILITY

Takaful is a family income support program to families withchildren (0-18 years), and is aimed to produce humandevelopment outcomes, specially nutrition, maternal and childhealth, and school enrolment and retention.

Karama is a social inclusion program to persons, specificallythe elderly 65+ and the disabled who cannot work, and isaimed to provide social protection and decent life for the mostvulnerable persons.

ACHIEVEMENTS OF “T&K” PROGRAM

1. Completion of targeting tools and of system automation.

2. Signed protocols of partnership with ministries of Education, Health, Interior, Planning and Administrative Development.

3. 4000 social workers & researchers had their capacities developed to fill questionnaires (1250 from MoSS and 2750 independent researchers).

4. Launched the program in 18 Governorates (including 100 districts and 1800 villages), while having 1,776,500 HH enrolled (7,7800,000 individuals) out of which 941,000 HH proved to be eligible (4,480,000 individuals).

5. TK budget is funded at 80% from MoF and 20% from WB loan.

6. Verification was done and 10% is freezed to verify their ineligibility.

7. Developed verification and grievance mechanisms.

8. Started developing social accountability committees at the community level to enhance collective responsibility.

9. Formed T&K Ambassadors from media people to promote T&K and raise community awareness.

TKP’s 226 Roll Out Districts in the 27 Governorates

15

10

18

97 7 7

11

15

67

4

8

11

4

22

76

11

8

13

3 2 1 15

8

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Be

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Kaf

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Po

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aid

Me

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Shar

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Daq

ahlia

Ale

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dri

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Ism

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Gh

arb

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Dam

iett

a

Sue

z

Red

Sea

Sou

th S

inai

Wave One 71 Districts

(Poverty 50%)

Wave Two 64 Districts

(Poverty 30%)

Wave Three 91 Districts

(Poverty 17.9%)

Trend Graph of TKP’s Enrollment Across Quarters

Mar, 2015

90,603

Jun, 2015

133,657

Sep, 2015

201,638

Dec, 2015

396,895

Mar, 2016

897,000

Jun, 2016

1,485,323

Sep, 2016

1,776,532

53,154 63,880123,638 165,707

506,502

706,297

941,256

Registered

Enrolled

Distribution of TKP’s Enrolled Beneficiaries by Type

879,307

49,870

11,911 168

Takaful Beneficiaries

Karama Disabled Beneficiaries

Karama Elderly Beneficiaries

Karana Disabled&Elderly Beneficiaries

Profile of TK Beneficiaries

Illiterates63%

(591,797)

Health Insured1%

(8,476)

Rations Card Holders,62%

(586,151)

Disabled,1,3%

(50,038)

Seasonal & Informal employment

96% (902,121)

Gas Connected2%

(14,179)

DRIVING FORCES TOWARDS SUCCESS

1. Presidential and Prime Minister decrees legalizing the program and legitimizing its national identity.

2. Budgeting TK as a major national social protection program (MoF).

3. Social Justice Committee and its positive role towards government coordination.

4. Readiness of non-government entities to positively collaborate (MoH, MoE, MoI, MoF, MoPMAD, MoA).

5. Developing Unified National Registry on national basis.

6. Focusing on community participation and mobilizing public accountability… thus community as actors not receptors.

7. Opening channels for grievances and building trust between state and society.

Equitable development

and Social Justice….

Towards the change for

the Egypt we want.