OPINION: Safety-Net Programmes

Most Poor And Marginal People Stay Out Of It!

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Dr. Forqan Uddin Ahmed :
Bangladesh is a developing country, where poverty and inequality among the households are common. This is not only in this country. Other developing countries also suffer from these types of social and economic problems. Developing countries moved to open market policies, which led to increasing the disparity particularly in the low-income and poor households. Over the last twenty years they have tried to improve the situation through minimizing socio-economic disparities and deprivations.
The safety-net programmes usually aim at preventing the poor or the vulnerable Section of population of poor status. The authority of the safety-net programmes may be the donors to the government or even the private sector like non-government organizations, agencies. The total gamut of safety net programmes, therefore, may be classified in to the following types (SSN 2009): 1. Food programmes like feeding programmes, vouchers or stamps for food, 2.Public works in lieu of substantial cash support, 3. Exemption of costs for healthcare, schooling and utilities, 4. Transfer in-kind like school supplies, school uniforms, 5. Cash transfers, 6. Subsidies for price of food, power or any service.
The role of safety-nets programmes in low income countries has grown a lot during the last few decades. Such programs include Productive Safety-net Programme (PSNP) in Ethiopia, Food Stamp Program (FSP) in Pakistan, Vulnerable Group Development in Bangladesh, and these experience provide an example draw lessons on safety net interventions. The UN can play a major role in building capacity of Governments to design and implement effective social safety nets to alleviate hunger and poverty within a considerable time to protect vulnerable groups through various measures including food or other in-kind distribution, cash transfers, public works and market interventions/general price subsidies.
Two identification measures namely poverty analysis and risk and vulnerability analysis together with their appropriate application are very important for identifying population groups. The poverty analyses include understanding the level of poverty, characteristics of the poor, trends and duration of poverty. Risk and vulnerability assessment again includes sub-factors like threat faced by the poor and hungry, and the nature of their vulnerability. These complex analyses therefore will require development of new skills in interpreting poverty and vulnerability data.
The design of safety-net programme is very important. Also the implementation and delivery, determine the general effectiveness and efficiency of such a programmes. Similarly, the country situation and political environment also matter and programs that work well in another context need to be adapted to specific local circumstances. Cash transfers are found more efficient than transfer or subsidies for consumption of particular goods, provided deviations can be controlled. If markets are perfect, conditional transfers are less efficient than unconditional transfer. Conditional cash transfer programmes should be directed to correct a market that results in sub-optimal investment in human capital.
Performance monitoring of safety-net programmes should focus on inputs (costs and staff time), outputs (goods and services), outcomes including quality (immediate and end) and efficiency (amount of input per unit) and amount of input per unit of outcome. Performance indicators must be related to the programme goal, reliably measurable, timely, clear and fully defined, cost effective and cover inputs, outputs, outcomes and efficiency. Performance indicators for possible negative and unintended effects safety-net programmes are also useful.
Safety nets in low-income countries can work when it is embedded in the broader growth and poverty reduction strategies, programme type (s) matched to the objectives of the safety-nets and implementation thought from the perspective of both the provider and the beneficiary.
 
(Dr. Forqan Uddin Ahmed, Former Additional Secretary)

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