FOOD SECURITY C oncepts, Basic Facts, and Measurement Issues

FOOD SECURITYFOOD SECURITYCConcepts, Basic oncepts, Basic

Facts,Facts,and Measurement and Measurement

IssuesIssues

June 26 to July 7, 2011June 26 to July 7, 2011

Dhaka, BangladeshDhaka, Bangladesh

Kazal 5f:Kazal 5f:Options for Raising Options for Raising

Entitlements & Reducing Entitlements & Reducing Vulnerability in BangladeshVulnerability in Bangladesh

LearningLearning: : Trainees will learn Trainees will learn about existing entitlements to about existing entitlements to social protection and available social protection and available safety net programs in safety net programs in Bangladesh. Evaluating policy Bangladesh. Evaluating policy options in raising total options in raising total entitlements and reducing entitlements and reducing vulnerability will be considered vulnerability will be considered on the basis of a number of key on the basis of a number of key planning and policy documents of planning and policy documents of Bangladesh. Bangladesh.

Brief ContentsBrief Contents• social protection framework and social protection framework and

interventionsinterventions• targeted social protection interventionstargeted social protection interventions• risk reduction, risk mitigation and risk risk reduction, risk mitigation and risk

coping measurescoping measures• social protection and the PRSPssocial protection and the PRSPs• social safety net programs in Bangladeshsocial safety net programs in Bangladesh• policies and institutional measures for policies and institutional measures for

reducing vulnerability and poverty reducing vulnerability and poverty • key challenges and policy options for key challenges and policy options for

reducing vulnerability and povertyreducing vulnerability and poverty

Social protection and Social Social protection and Social Safety NetsSafety Nets

Social protection is defined by the World Bank as “public Social protection is defined by the World Bank as “public interventions to assist individuals, households, and interventions to assist individuals, households, and communities better manage risk, and to provide support to communities better manage risk, and to provide support to the critically poor” (Holzmann and Jørgensen 2000:2).the critically poor” (Holzmann and Jørgensen 2000:2).

““Social protection refers to the public actions taken in Social protection refers to the public actions taken in response to levels of vulnerability, risk and deprivation response to levels of vulnerability, risk and deprivation which are deemed socially unacceptable within a given which are deemed socially unacceptable within a given polity or society” (Norton, Conway and Foster 2002:543). polity or society” (Norton, Conway and Foster 2002:543).

This definition is fairly similar to the World Bank’s, which This definition is fairly similar to the World Bank’s, which emphasizes the two elements of risk management (social emphasizes the two elements of risk management (social insurance), and support to the chronically poor (social insurance), and support to the chronically poor (social assistance): assistance):


Social safety nets aimed simply at “raising the Social safety nets aimed simply at “raising the consumption of the poor through publicly provided consumption of the poor through publicly provided transfers”, but more recently the focus has shifted to transfers”, but more recently the focus has shifted to “helping low-income households cope with income “helping low-income households cope with income fluctuations as well” (Morduch and Sharma 2002:569). fluctuations as well” (Morduch and Sharma 2002:569).

The World Bank identifies “two compelling reasons for The World Bank identifies “two compelling reasons for using public transfers to reduce risk: one is that the using public transfers to reduce risk: one is that the poor are often more susceptible to variations in poor are often more susceptible to variations in income and less able to withstand shocks and the income and less able to withstand shocks and the other is that some form of insurance may allow them other is that some form of insurance may allow them to take on the greater risk that leads to higher long-to take on the greater risk that leads to higher long-term income” (Smith and Subbarao 2003:12).term income” (Smith and Subbarao 2003:12).


Three key elements of social protection

Vulnerability

unacceptable levels of deprivation and

public action

Social protection framework and Social protection framework and interventionsinterventions

VulnerabilityCategories

Affected Groups Category ofInterventions

Types of Programs

ChronicallyPoor

•Severely disabled•Terminally ill•Ethnic minorities•Urban unemployed•Pastoralists

Social Assistance

•Disability benefit•Single parent allowances•Social pensions•Food aid•Food-for-work

Economically at Risk

•Cash crop farmers•Internally displaced persons•Orphans•Informal sector workers•Widows and the Elderly

Social Insurance

•Formalized pensions•Unemployment benefits•Health insurance•Maternity benefits•Accident insurance

Social Equity •Sensitisation campaigns•Changes to regulatory framework to protect vulnerable and minority groups against discrimination and abuse•Operationalising economic, social and cultural rights

SociallyVulnerable

•Ethnic minorities•People living with AIDS•Victims of domestic abuse•People with disabilities •Female-headed households•Abducted children

A framework for social protection analysis and interventions

Targeted social protection interventions Targeted social protection interventions in Bangladeshin Bangladesh

Arrangements and strategies

Informal Market-based Public

Risk mitigation-portfolio *drought resistant

varieties; multiple activities*micro-finance *research and

extension regarding drought resistant varieties

-insurance *marriage/family *rainfall and com-modity price based insurance

*mandating insurance, including old age pensions payments

*sale of assets*sending children to work

Risk coping *consumption credits *public works

Risk reduction *migration to less drought prone areas

*food market integration

*disaster prevention infrastructure

Social risk management matrix

Social protection interventions can be designed to address one or more of three broad objectives: risk reduction, risk mitigation, and risk coping

Social protection and the PRSPsSocial protection and the PRSPsA strong and expanded social safety net program (SSNP) is the A strong and expanded social safety net program (SSNP) is the

main emphases of Vision 2021, which will protect the poor main emphases of Vision 2021, which will protect the poor from all sorts of social, economic and natural shocks. from all sorts of social, economic and natural shocks.

The social safety net includes all kinds of cash and kind transfers The social safety net includes all kinds of cash and kind transfers to the poor, all welfare activities, unemployment benefits for to the poor, all welfare activities, unemployment benefits for retrenched workers, subsidized health care, shelters for the retrenched workers, subsidized health care, shelters for the homeless, and pension benefits, which prevent individuals homeless, and pension benefits, which prevent individuals from falling into poverty.from falling into poverty.

The major goals of SSNPs in PRSPs are:The major goals of SSNPs in PRSPs are:

(i) achieving the protection of all types of poor people and the (i) achieving the protection of all types of poor people and the prevention of chronic poverty as well as transient poverty. It prevention of chronic poverty as well as transient poverty. It will target the extreme poor first;will target the extreme poor first;

(ii) the government will encourage NGOs, CBOs and the private (ii) the government will encourage NGOs, CBOs and the private sector to augment their role and contributions to expand the sector to augment their role and contributions to expand the social safety net; andsocial safety net; and

(iii) attempts will be made to increase coverage through (iii) attempts will be made to increase coverage through increased budgetary allocation each year.increased budgetary allocation each year.

Social protection and the PRSPsSocial protection and the PRSPs

Poverty Reduction Strategy Framework

Social protection and the Social protection and the PRSPsPRSPs



Monitoring and Evaluation Indicators Monitoring and Evaluation Indicators

Social safety net programs in Social safety net programs in BangladeshBangladesh

Bangladesh has a wide spectrum of social safety net programs. Bangladesh has a wide spectrum of social safety net programs. There are 30 specifically designed social safety net programs There are 30 specifically designed social safety net programs directly operated by the Government of Bangladesh. In directly operated by the Government of Bangladesh. In addition to these, there are 15 funds to provide further addition to these, there are 15 funds to provide further assistance to improve the overall condition of the poor.assistance to improve the overall condition of the poor.

At least a number of 13 ministries are engaged in the planning At least a number of 13 ministries are engaged in the planning and implementation of these projects. These include: and implementation of these projects. These include:

•Ministry of Social Welfare•Ministry of Women and Child Affairs •Ministry of Liberation Affairs•Ministry of Food and Disaster Management•Ministry of Local Government•Ministry of Agriculture• Ministry of Fisheries and Livestock

•Ministry of Chittagong Hill Tracts Affairs•Ministry of Education•Ministry of Primary and Mass Education•Ministry of Finance•Ministry of Health and Family Planning•Ministry of Commerce•Ministry of Labor and Manpower

In addition to these ministries, the Bangladesh Bank and Palli Karma-Sahayak Foundation (PKSF) are also operating social safety net programs.

Social safety net programs in Social safety net programs in BangladeshBangladesh

Budget 2010-11, 2010-11 (Revised) Budget 2010-11, 2010-11 (Revised) Budget 2011-12Budget 2011-12

(A.1) Cash Transfer (Allowances) Programmes & (A.1) Cash Transfer (Allowances) Programmes & Other Activities:Other Activities:

(A.2) Cash Transfer (Special) Programme(A.2) Cash Transfer (Special) Programme

(B) Food Security Programmes: Social Protection(B) Food Security Programmes: Social Protection

(C.1) Micro-Credit Programmes: Social Empowerment(C.1) Micro-Credit Programmes: Social Empowerment

(C.2) Miscellaneous Funds: Social Empowerment(C.2) Miscellaneous Funds: Social Empowerment

C.3) Miscellaneous Funds: Social EmpowermentC.3) Miscellaneous Funds: Social Empowerment

(C.4) New Fund: Social Protection(C.4) New Fund: Social Protection

(D) Development Sector Programmes: Social (D) Development Sector Programmes: Social EmpowermentEmpowerment

D.1 Running Development ProgrammesD.1 Running Development Programmes

D. 2 New Development ProgrammesD. 2 New Development Programmes

Major food social safety net Major food social safety net programs in Bangladeshprograms in Bangladesh

Open Market Sales (OMS). Essentially a self-targeted food subsidy scheme in urban areas, when operational, it allows any person queuing up for a fixed amount o f food grain per day at a fixed price, which i s lower than the prevailing market price.

Test Relief (TR) Food. Test Relief i s administered by the Ministry o f Food and Disaster Management. It operates much like the Government’s Food for Work program. Participants are largely self-selecting, with wages and labor requirements set to discourage the non-poor from participating. Workers are paid approximately 3.5 kilograms o f rice or wheat for every day o f work.

Major social safety net programs in Major social safety net programs in BangladeshBangladesh

Gratuitous Relief (GR) for Food. Gratuitous Relief (GR) for Food. Administered by Union Parishads Administered by Union Parishads (the lowest unit o f local Government) together with central (the lowest unit o f local Government) together with central Government officials based at the Upazila (sub-district), this scheme Government officials based at the Upazila (sub-district), this scheme provides immediate food grants to households following disasters. provides immediate food grants to households following disasters.

Food Assistance in CTG-Hill Tracts Area. Food Assistance in CTG-Hill Tracts Area. This program operates in This program operates in three districts of the Chittagong Hill Tracts area. The program i s three districts of the Chittagong Hill Tracts area. The program i s targeted to ultra poor women who get 3.5 kilograms o f rice or targeted to ultra poor women who get 3.5 kilograms o f rice or wheat on a daily basis for 30 days for doing public work. wheat on a daily basis for 30 days for doing public work.

Food for Works (FFW). Food for Works (FFW). FFW operates in rural areas. This fiscal year FFW operates in rural areas. This fiscal year the program will provide employment at a cost of Taka 5.84 billion the program will provide employment at a cost of Taka 5.84 billion for food. The beneficiaries are generally women selected by Union for food. The beneficiaries are generally women selected by Union Parishad who must be fit and willing to participate in the training Parishad who must be fit and willing to participate in the training provided and in the infrastructure projects in the area. The work provided and in the infrastructure projects in the area. The work includes planting trees, digging canals, building embankments, includes planting trees, digging canals, building embankments, developing ponds, road building and road maintenance.developing ponds, road building and road maintenance.


Vulnerable Group Development (VGD). Vulnerable Group Development (VGD). This program assists This program assists about 750,000 women with a provision o f 30 kilogram of about 750,000 women with a provision o f 30 kilogram of rice or wheat. These women are enrolled in two-year cycle. rice or wheat. These women are enrolled in two-year cycle. In collaboration with NGOs, it provides food for the poor as In collaboration with NGOs, it provides food for the poor as well as training for life-skills and for developing the skills well as training for life-skills and for developing the skills needed to undertake income generation activities. needed to undertake income generation activities.

Vulnerable Group Feeding (VGF). Vulnerable Group Feeding (VGF). Until recently the largest Until recently the largest safety net program in the country, VGF i s a means-tested safety net program in the country, VGF i s a means-tested program designed to provide food resources to a selected program designed to provide food resources to a selected number of women in a period of distress. Usually, the women number of women in a period of distress. Usually, the women selected by the Chairman of the Union Parishad receive a selected by the Chairman of the Union Parishad receive a card that entitles them to a given amount o f grain a month card that entitles them to a given amount o f grain a month for a period o f two months. Each VGF card holder is entitled for a period o f two months. Each VGF card holder is entitled to 10 kilograms o f rice per month. to 10 kilograms o f rice per month.


Vulnerable Group Development (VGD). Vulnerable Group Development (VGD). This program assists This program assists about 750,000 women with a provision o f 30 kilogram of rice about 750,000 women with a provision o f 30 kilogram of rice or wheat. These women are enrolled in two-year cycle. In or wheat. These women are enrolled in two-year cycle. In collaboration with NGOs, it provides food for the poor as well collaboration with NGOs, it provides food for the poor as well as training for life-skills and for developing the skills needed to as training for life-skills and for developing the skills needed to undertake income generation activities. undertake income generation activities.

Vulnerable Group Feeding (VGF). Vulnerable Group Feeding (VGF). Until recently the largest Until recently the largest safety net program in the country, VGF i s a means-tested safety net program in the country, VGF i s a means-tested program designed to provide food resources to a selected program designed to provide food resources to a selected number of women in a period of distress. Usually, the women number of women in a period of distress. Usually, the women selected by the Chairman of the Union Parishad receive a card selected by the Chairman of the Union Parishad receive a card that entitles them to a given amount o f grain a month for a that entitles them to a given amount o f grain a month for a period o f two months. Each VGF card holder is entitled to 10 period o f two months. Each VGF card holder is entitled to 10 kilograms o f rice per month. kilograms o f rice per month.


Budget allocation in social safety Budget allocation in social safety net programsnet programs

Bangladesh Safety Net Programs: Bangladesh Safety Net Programs: Objective and Beneficiary Objective and Beneficiary

Selection CriteriaSelection Criteria

Bangladesh Safety Net Programs: Bangladesh Safety Net Programs: Objective and Beneficiary Selection Objective and Beneficiary Selection

CriteriaCriteria






CriteriaCriteria


CriteriaCriteria

Policies and institutional measures Policies and institutional measures for reducing vulnerability and for reducing vulnerability and

poverty poverty The Policy Framework The Policy Framework

Poverty in Bangladesh needs to be addressed through Poverty in Bangladesh needs to be addressed through different channels. The strategic elements of anti-poverty different channels. The strategic elements of anti-poverty policies and institutions cover four broad avenues. policies and institutions cover four broad avenues.

The first set of policies expands the scope for pro-poor The first set of policies expands the scope for pro-poor economic growth for increasing income and employment of economic growth for increasing income and employment of the poor. the poor.

The second fosters human development of the poor. The second fosters human development of the poor. The third provides social safety net to the poor against The third provides social safety net to the poor against

various anticipated and unanticipated income various anticipated and unanticipated income (consumption) shocks. (consumption) shocks.

The fourth set favorably influences participatory The fourth set favorably influences participatory governance and enhances voice of the poor by governance and enhances voice of the poor by strengthening women’s empowerment, by improving the strengthening women’s empowerment, by improving the performance of the existing anti-poverty institutions and by performance of the existing anti-poverty institutions and by removing the institutional hurdles that stand in the way of removing the institutional hurdles that stand in the way of social mobility of the poor. social mobility of the poor.

Policies and institutional measures for Policies and institutional measures for reducing vulnerability and poverty reducing vulnerability and poverty

A.A. Increasing Pro-Poor Economic Growth Increasing Pro-Poor Economic Growth Macroeconomic Stability : Macroeconomic Stability : The strategy of non-inflationary pro-The strategy of non-inflationary pro-

poor economic growth requires a stable macroeconomic poor economic growth requires a stable macroeconomic framework. framework.

New Technology for Agricultural Growth : New Technology for Agricultural Growth : Agricultural growth Agricultural growth may be encouraged through various policies, ranging from new may be encouraged through various policies, ranging from new technology to credit for small farmers. technology to credit for small farmers.

Agricultural Diversification : Agricultural Diversification : Crop diversification with Crop diversification with considerable potentials for employment generation has failed to considerable potentials for employment generation has failed to take off in Bangladesh. take off in Bangladesh.

Credit Access : Credit Access : If the poor had access to credit, they could have If the poor had access to credit, they could have financed educational expenses of their children as a way of financed educational expenses of their children as a way of climbing out of poverty. climbing out of poverty.

Rural Non-Farm Activities and Urban-Rural Links : Rural Non-Farm Activities and Urban-Rural Links : Rural Rural non-farm activities have played an important role in generating non-farm activities have played an important role in generating new sources of employment for the poor, but the productivity new sources of employment for the poor, but the productivity growth in the sector has been modest.growth in the sector has been modest.

Road, Power and Telecommunication Road, Power and Telecommunication Technology Policy Technology Policy


B. Increasing Human Development of the B. Increasing Human Development of the PoorPoor

Human Development Human Development First, considerable quantitative expansion of education, health First, considerable quantitative expansion of education, health

and nutritionand nutrition

Second, the introduction of National Nutrition Program (NNP) Second, the introduction of National Nutrition Program (NNP) to address the malnutrition of children under two as well as to address the malnutrition of children under two as well as pregnant and lactating mothers through the provision of pregnant and lactating mothers through the provision of food supplements, nutrition and health counseling is a food supplements, nutrition and health counseling is a positive step to address the problem positive step to address the problem

Third, incentives that are currently provided for enrollment of Third, incentives that are currently provided for enrollment of children from the poor households as well as for girl’s children from the poor households as well as for girl’s education need to be strengthened in the future. education need to be strengthened in the future.

Fourth, more emphasis needs to be given to vocational and Fourth, more emphasis needs to be given to vocational and technical education, including dissemination of improved technical education, including dissemination of improved agricultural practices. agricultural practices.


C. Strengthening Social Safety Nets C. Strengthening Social Safety Nets First, providing access to credit to the poor in times of emergency to First, providing access to credit to the poor in times of emergency to

ease the burden of shocks, reduce distress sales and “negative” ease the burden of shocks, reduce distress sales and “negative” methods of coping.methods of coping.

Second, ensuring good public health services to reduce health Second, ensuring good public health services to reduce health hazard related income and consumption shocks. hazard related income and consumption shocks.

Third, strengthening disaster preventing and mitigating mechanisms Third, strengthening disaster preventing and mitigating mechanisms to enhance the coping capability of the poor in times of natural to enhance the coping capability of the poor in times of natural disasters. disasters.

D. Enhancing Participatory Governance D. Enhancing Participatory Governance The first group of measures focuses on empowering the women. The first group of measures focuses on empowering the women.

The second group of measures relates to strengthening the system The second group of measures relates to strengthening the system of good governance, especially decentralization at the local level.of good governance, especially decentralization at the local level.

A third group of measures are also needed for building grassroots A third group of measures are also needed for building grassroots level initiatives—outside the domain of local.level initiatives—outside the domain of local.

E. Policies and Institutions for Reducing E. Policies and Institutions for Reducing Inequality Inequality

Key challenges and policy options Key challenges and policy options for reducing vulnerability and for reducing vulnerability and

povertypoverty

Year Upper Poverty Line Lower Poverty Line

Rural

Urban National

Rural Urban National

1991-1992

59.0 42.6 56.8 44.0 23.6 41.3

1995-1996

54.5 27.8 50.1 39.4 13.7 35.1

2000 52.3 35.2 48.9 37.9 19.9 34.3

2005 43.8 28.4 40.0 28.6 14.6 25.1

2010 35.2 21.3 31.5 21.1 7.7 17.6

Incidence of Poverty in Bangladesh

BBS: Household Income and Expenditure Survey, various yearsThe overall incidence of poverty in the country

has been declining though the rate of decline is slow at less than 2 per cent per year

Poverty Trends (Head Count Poverty Trends (Head Count Rates)Rates)

Key challenges and policy options Key challenges and policy options for reducing vulnerability and for reducing vulnerability and

povertypovertyDirect efforts to reduce poverty cover several routes e.g. Direct efforts to reduce poverty cover several routes e.g.

capability–raising of the poor by education, health and capability–raising of the poor by education, health and nutrition interventions; targeted employment, and safety nutrition interventions; targeted employment, and safety nets programs; and improvements in non-material nets programs; and improvements in non-material dimensions of well-being including gender gaps, dimensions of well-being including gender gaps, insecurity, powerlessness and social exclusion. insecurity, powerlessness and social exclusion.

In short, the approach sets three broad imperatives in the In short, the approach sets three broad imperatives in the fight against poverty: fight against poverty:

First, opportunities for employment and productivity First, opportunities for employment and productivity growth are created so that incomes rise and the poor are growth are created so that incomes rise and the poor are able to move out of poverty; able to move out of poverty;

Second, measures are put in place to ensure that access Second, measures are put in place to ensure that access to basic services is equitable so that the poor can benefit; to basic services is equitable so that the poor can benefit; and and

Third, special measures are taken to reduce the Third, special measures are taken to reduce the vulnerability of the poor to unforeseen events and shocks. vulnerability of the poor to unforeseen events and shocks.

Documents

FOOD SECURITY C oncepts, Basic Facts, and Measurement Issues