Country Presentation Tunisia

Office of Legal and Procurement Support

UNDP, NY

Mitigating vulnerabilities and promoting sustainable

growth: Sequencing, cost-efficiency and fiscal

sustainability of social protection.

Tunisia Case Study

M. Sadok Elamri Program Specialist

Environment, Energy and Sustainable Development

UNDP Tunisia

Tel : (216) 71 903 586

[email protected]

mailto:[email protected]



Scope of Presentation

Introduction

The contributory system

The non contributory system

Challenges and recommandations

2

Introduction

Total population : 10.674 Millions (2011).

Population growth rate : 1.29% (NSI 2010)

Poverty rate (based on national poverty line): Absolute poverty rate : 4.6 % ; Poverty rate : 15,3 %.

Unemployment :

National : 18,9 %; inter-regional range : 9-32 %.

Youth unemployment : 42 %

university graduates : 30.5%

GDP/Capita (PPP) : $ 8940 (WB, 2011)

HDI : 0.698 (2011); Ranked 94/187

Regional and social disparities : poverty, unemployment,

access to education and health services,…

3

Introduction

Social Protection System

Contributory pillar

Retirement System

CNRPS (for public sector) -

1976

CNSS (For private

sector) - 1960

Heath System : CNAM (One

Common System)

Non contributory pillar

Medical assistance

(1987)

PNAFN - Assistance to needy

families (1987)

General Compensation Fund (1970)

AMAL Program

for unemplo

yment (2011)

Other social

protection

programs

No nationally agreed definition of social protection!

Concretely 2 main pillars :

- Contributory system: insurance / social security.

- Non contributory system : social assistance

4

1.1 The pension regime (Retirement system):

3 branches:

Elderly benefit

Disability benefit

Survivors’ benefit

2 pension funds: •CNRPS : for public sector employees

•CNSS : for private sector employees

Based on different legislation between private and public sector : retirment age, contributive rate.

5

1/ The contributory system :

Insurance / social security

1.1 The pension regime (Retirement system): • Benefits for a long while from favorable demographic

evolution (notably due to the family planning program introduced in early sixties).

• But ,Tunisia finished its demographic transition and is actually facing demographic trends of an ageing population : increase in life expectancy (70.3 in 1990; 74.7 in 2010), increase of the part of over 60 population, decreased in fertility rate.

• Important impacts on the “PAY AS YOU GO” retirement system (intergenerational transfers) and on elders related health services expenditures (increase of incidence of chronic diseases).

• Dependency ratio (number of contributors for one retiree) falls from 16.6 in 1980 to 4.5 in 2010.

• Demographic change and high unemployment are creating important financial deficit which will be completely unsustainable if no reform in undertaken quickly.

6



1.1 The pension regime (Retirement system):

Different regimes managed by CNSS.

Progressevly integrated new categories of

beefeciairies. Recently new regime created for

domestic workers.

High global coverage (73.7%). Low caverage of

agricultural sector employees (12%)

But, 60 % of retires receive a pension amount

under the minimum wage. Only 35% of elderly

declare receiving pensions.

7



1.2 The health insurance system (CNAM):

Recently established (2007) unifying public and private

sector health insurance systems

No client satisfaction survey / cost effectiveness

evaluation yet

Weaknesses :

- long reimbursement delays,

- low annual maximum reimbursement amount (128$ vs

an average of 22$ per medical visit).

- Positive consolidated balance result of CNAM regime.

- But, health insurance regime continuously in deficit,

compensated by positive results of «the work accidents

and occupational diseases » regime. 8



Social transfers increasing in recent years (17.1

% of GDP in 2006; 18.4 % of GDP in 2010)-

Ministry of social affairs.

Tunisian authorities attempted to alleviate

poverty through 3 types of safety net programs:

i) Food subsidies (cereals, vegetal oil, fuel,…);

ii) direct transfer in kind and cash targeted to the

needy (elderly, handicapped, schoolchildren and

needy families);

iii) “active labor market” and “public works” programs

(short term jobs for unskilled workers, in both urban

and rural areas, wages below the minimum wage,

locating predominantly poor areas ).

9

2/ The non contributory :

social assistance system

2.1 The program for Need families (PNAFN)

Created in 1986. To address negative effects of potential

economic chocks due to Structural Adjustment Program.

Most important “social transfer program”.

Targeted Group : Poor families, Poor aged people, Poor

handicapped persons.

Benefits : Fixed Cash transfer (monthly $ 61 + $6/ children) .

Demand for social assistance significally increased after

January 14th revolution : 185 000 families in 2010; 235 000 in

2012.

Recent assessment (WB):

- highly politicized quota based program.

- Covers only 17.3 % of poor's.

- Cost efficiency : each $ used reduces poverty by 0.12 to 0.23.

10



2.1 The program for Need families (PNAFN)

PNAFN beneficiaries benefit also from Free medical

assistance (AMG1 Card).

But required regional/local/decentralized health

infrastructure is insufficient. Sick people bear additional

costs of transportation and risk delayed to access to

emergency services.

50.7 % of women in rural areas declare having limited

access to health centers due to remoteness.

11



2.2 The General Compensation Fund (GCF) Created in 1970

Benefits : Subsidies for selected products (cereals, sugar, vegetal oil,

fuel,.…).

Important and increasing pressure on state budget resources (1.4 %

of GDP in 2007; 1.87 % of GDP in 2011).

No targeted groups. Inefficient targeting needy families. Benefits more

for high and middle income households……

2.3 AMAL (hope in Arabic) program for the unemployed

Introduced in 2011. Covers 50000 young university graduates.

Benefits : Cash transfer ($ 123) + professional training to enhance

employability.

First descriptive report : only 3.6 % succeeded to find a job.;

Side effects : reluctance of some beneficiairies to accepts $180-250

paid job.

12



Other social and development programs, indirectly linked to social protection, focusing on

improving standard of living. Definition of social protection programs ??

Overlapping ? Cumulative benefits ?

13

Name Date of

creation

Targeted group Actions

Assistance to unmarried

mother with no resources

1993 Unmarried mother Cash transfer

Public works programs 1995 Short term jobs for unskilled

workers

Cash for work

Regional program for

development (Rural and urban

areas)

1973

1984

1992

Groups with low revenue in rural

and urban area

Infrastructure improve and

job creation

National program for

eliminating rudimentary

housing

1986 Low and Middle-income groups Create decent housing

Grant / loans

National Solidarity Fund 1993 Groups with low revenue in rural

and urban area

Infrastructure improve and

job creation

………………….



No reliable cost efficiency studies undertaken. Authotiritan

regime tried to control data and was reluctant to any

evaluation (social protection = cost of social peace !).

Social protection system challenged by demography,

poverty, unemployment , January 14th Social uprising,…

Strong institutional capacity and well developed basic

administrative tools.

But clear problems of technical design and

fragmentation.

Assistance and active labor market programs managed by

different ministries operating with little coordination.


14

Necessity to move gradually to a :

• system view of social protection (definition, clear vision,…),

to exploit positive interactions, improve efficiency and

effectiveness, respond to different population groups..

• More harmonization/ integration of social assistance transfers

and more coordination/interaction with other relevant

programs (Service continuum ).

• Develop basic tools : beneficiaries identification systems and

registries, targeting schemes, M$E arrangements (entry point for

more systemic reform to improve program design and expand

coverage).

New initiative : creation of social protection programs

e-platform with great challenges : (social protection

definition? reluctance to share information,..)

Revolutionary process : opportunity and challenge.

15


M. Sadok Elamri

Program Specialist

Environment, Energy and Sustainable Development

UNDP Tunisia

Tel : (216) 71 903 586

[email protected]

16

Thank you for your attention.

Photo from manifestations for Tunisian revolution.




Documents

Country Presentation Tunisia