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National Financing of Social Protection: Commitments & country
examples in practice
Alexandra Yuster, Associate DirectorChief, Social Inclusion and Policy
6th SPIAC-B Meeting, New York, 3 Feb 2015
1. Context: Finance of the SDGs and Children
2. Social Protection National Financing: Commitments and Practice· Increased allocation for expansion in SSA· Evaluating re-allocation of energy subsidies in MENA
3. What is our role as development partners?
Overview
Context: Financing of the SDGs
Example Sub-Saharan Africa:Remittances FDIODA
All other SSA Government expenditures
SSA LDC government expenditures
(Financial resources by source, years 2000-12. ONE data report)
· Domestic resources increasingly dominate over ODA in developing countries
· ..but ODA still important for LDCs
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UNICEF’s key FFD messages
1. Improve equitability of public spending Use public $$$ to complement private $$$ for those
underserved by private sector Provide universal basic services and social protection
floors Focus on poor groups, e.g. $1.25 poverty line, poorest
40%, disabled.
2. Ensure adequacy of spending on children Link economic growth to more and better spending
on children, especially in underfunded sectors with large proven impacts on children (e.g. ECD, RMNCH, nutrition, child protection, sanitation, etc.)
Ensure non-retrogression of spending on children
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Four key messages
3. Strengthen international collaboration to improve child wellbeing
Better target ODA and concessional finance to countries with greater needs
Increase amount of ODA for children, including through better monitoring and prioritization of climate finance co-benefits, south-south cooperation, etc.
Use ODA to leverage domestic and private resources
4. Improve reporting on child related spending Report on revenues and expenditures that benefit
children Refine and harmonize child reporting standards
internationally
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Social Protection National Financing: Commitments and Practice
Commitments to national SP financing
Increasing recognition of need to provide adequate and predictable national financing:• AU Ministerial Declaration of the Ministers of Social
Development (May 2014)• Allocation (and ring-fencing) of national resources to SP• To support expansion of comprehensive SP systems
• ASEAN Declaration on Strengthening Social Protection (2013): • Allocate adequate financial resources in line with national
targets and subject to the capacity of each Government• As strategy to extend coverage, availability, quality,
equitability and sustainability of SP
Some examples of country practice
Increasing allocations to support expansion in SSA
• Ghana : Used portion of the savings from fuel subsidy removal to scale-up LEAP programme – Budget allocation - 4 million USD in 2012 to 15 million USD in 2013
(increase of more than 300% of national contribution)
• Zambia - massive expansion of CT coverage, predominantly funded through tax revenue– US$4 million in 2013 US$30 million in 2014– expected: US$40 million in 2015, US$50 million in 2016
• Kenya: Progressively increasing government funding of the National Safety Net Programme – 47% of the total costs 2012/13 70% in 2013/14.
Some examples of country practice
Evaluating options in re-allocation of energy subsidy spending in MENA• Context of high spending on energy subsidies, and 8 countries
engaged in or considering reform• UNICEF has supported a set of countries to examine the impacts
of energy subsidies on children and policy options in partial re-allocation to social protection– Working closely with government and other partners, but maintain
neutrality and be clear about child-sensitive and equity principles– Research & analysis on benefit incidence, including HHs with children– Simulation of poverty impacts of re-allocation to cash transfer
programmes– Impact analysis of existing transfers on children– Technical support to governments in design/modification of transfer
programmes
UNICEF Social Protection Work an overview
Show and Tell on Social Protection Bonn, 2011
What is our role as development
partners?
Role of Development Partners: Reflections on UNICEF experience
• Providing evidence is necessary but not sufficient– Costing exercises, benefit incidence, impacts (poverty &
economic contribution!)– Putting information in the right hands – the messenger
matters
• Working with governments to ID financing options and other country practice
Role of Development Partners: Reflections on UNICEF experience• Politics and perception of affordability driving factor –
how do we support partners to build support within national context– address myths, e.g. dependency– engaging and making case with MoF, exec office– role of public communication – members of parliament, civil
society, and general public– supporting countries, but also regional bodies
• Aligning strategies between development partners critical, including joint mechanisms, e.g. SWAPs
UNICEF Social Protection Work an overview
Show and Tell on Social Protection Bonn, 2011
Thank you!
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