Strengthening and sustaining social protection systems

Second Meeting of Ministers of Social Development

2nd Plenary Session

Fiscal Sustainability

Pablino Cáceres ParedesMinister

Ministry of Social Action, Paraguay

Cali, ColombiaJuly 8 – 9, 2010

Poverty, the country’s most serious problem

Paraguay is a country of contrasts, rich in resources, but with large sectors of the population in poverty

Total population

Not poor62.1%

Poor37.9%

2,324,556 Extreme poor

50.1%

Poor population

In food poverty + ability poverty:1,165,384 personsor 208,104 families

Families under Social ProtectionJuly 2010: 116,000 families protected

December 2010: 150,000 families protected

December 2010: 200,000 families identified

CCTs in Paraguay

OBJECTIVEOBJECTIVE STRATEGYSTRATEGY COMPONENTSCOMPONENTS

Contribute to poverty reduction and breaking the inter-generational cycle of extreme poverty

Contribute to poverty reduction and breaking the inter-generational cycle of extreme poverty

Generate human capital in homes in extreme poverty through incentives for access to and use of health, nutrition, and education services and to improve consumption capacity..

Generate human capital in homes in extreme poverty through incentives for access to and use of health, nutrition, and education services and to improve consumption capacity..

PUBLIC OFFERPUBLIC OFFER

Guarantee the offer and the access of a package of services including health, nutrition and education according the life cycle of the beneficiaries, in co responsibility with the respective sectors of the national, regional and local government.

Guarantee the offer and the access of a package of services including health, nutrition and education according the life cycle of the beneficiaries, in co responsibility with the respective sectors of the national, regional and local government.

CASH TRANSFERSCASH TRANSFERS

Deliver cash transfers to participating households that fulfill their co responsibilities

Deliver cash transfers to participating households that fulfill their co responsibilities

Tekoporâ: “Live well”, Conditional (Co responsible) Cash Transfer Program (CCT)

The reality faced by

the beneficiaries of the Tekoporâ Program

Poverty is not neutralAbout the family members of Tekoporâ

beneficiary families:• 54% are children and adolescents under 18 years of age; • 40% are not in the civil registry and thus do not have an identity card. • 95% have no medical insurance.

Beneficiary households: 60% families live in overcrowded conditions (3 or more persons per room); 85% live in homes with walls made of wood; 74% live in homes with dirt floors; 96% of the households use firewood to cook food; Around 40% do not have a designated area in which to bathe; Only 1% have an electric shower; 92% use a common latrine; 18% have no access to electricity; 72% do not have a refrigerator; 90% speak only guaraní.

Nutrition deficiency and lack access to adequate food

Low health standards

+

Difficult access to financial services

High drop out rates and low matriculation rates in schools

TE

KO

PO

RÂ

Lack of identity

+

Unstable living conditions/infrastructure

+

+Scarce capacity of mothers in nutritional and hygiene practices

+

+

Low income

+

Lack of income

Basic needs unsatisfied

Lack of social and economic opportunities

Require a multidimensional approach

The poorest families suffer from:

Risks faced by the beneficiaries of the Tekoporă Program

Household Poverty Trap

Child labor

Illiteracy, low levels of education

Malnutrition and Illness

Lack of Identity

Crime and Violence

Lack of business/job

capital

SOCIAL PROTECTION NETWORK FOR OVERCOMING EXTREME POVERTY

Breaking the vicious cycle of poverty through a coordinated strategy

It is an integral intervention strategy and coordinated by the different entities and levels of state to improve the living conditions of families in situations of extreme poverty.

Consolidate all social programs in the selected families in order to reach a series of basic achievements.

Preferential access to state social programs.

Family Dynamic

Education sessions on nutrition, adequate family

hygiene, social development.

Banking services and

saving

Savings account and access to credit

SAS – Ministry of Social Action (Ministries of the

Presidency of the Republic)

BNF – Financing Agency for Development

Living conditions

Improvements to the kitchen, dining room, and bathroom

infrastructure. Sanitary infrastructure

CONAVI - SAS

Income and Work

Vocational Training; starting productive projects;

temporary work MAG – MOPC – MIC -

MJT

Make the offer of public services compatible with the demand created by CCT programs

Positive impacts in the quantitative and qualitative indicators of social programs

Reduction of extreme poverty.Reduction of malnutrition.Reduction of morbidity.Reduction of maternal and infant mortality. Rise in school matriculation.Rise in retention and reentrance in school.Rise in documented persons.Rise in number of community organizations.Women participating in families and communities.Families know of the existing resources and community

programs. Improvement in individual and community self-esteem

and confidence level.Change of attitude in the beneficiaries.

“Social Protection”, under permanent risk!

Social Protection

Transfer program with co

responsibility

Social Promotion

Preferential Access to Social Programs

Economic and Social Inclusion

Universal policies and programs

They do not encompass the situation of structural poverty in the short-medium term

Little emphasis on the accumulation of human or physical capital or in the productive capacity of adults.

Criticism of traditional CCTs

Address the Problem of Poverty in three areas:

Pasan de ser programas de Estado y no de Gobierno.

The IRP as a income generation strategy. Strengthen networks, to overcome prejudices

and stereotypes that hinder protection. Arrange the dissemination of successful

experiences of all the countries that make up the CIDES.

Prioritize the communication of best practices.

The need to reinforce social protection programs:

Stimulate private companies through a tax resolution; tax breaks for companies that donate annually of periodically to a social program.

Designate a percentage of the royalties from binationals such as Yacyretâ and Itaipú to state social programs.

Generate taxes on certain imported goods; as well as court fees and agribusiness.

Create a law for protection and food security that deems a percentage of the general national budget must go to social protection and food security programs.

The need to reinforce social protection programs: