SSL-CCT: Country Presentation_Mongolia

7/30/2019 SSL-CCT: Country Presentation_Mongolia

1/18

SOUTH-SOUTH LEARNING ON CCT

TRAINING WORKSHOP

MUNKHZUL LKHAGVASUREN, DIRECTOR

OF DEPARTMENT, MINISTRY OF

POPULATION DEVELOPMENT AND

SOCIAL PROTECTION, MONGOLIA

Mongolias experience on

provision of Child Allowance

Manila, Philippines

2013.04.15-16

MINISTRY OF POPULATION DEVELOPMENT ANDSOCIAL PROTECTION


2/18



3/18

Introduction

Population pyramid, Mongolia, 2010 Total population -2,8million

Number of families -759,9 thousand

Children under 18 years 34.5 percent of totalpopulation.

The government ofMongolia pursue apolicy to support thegrowth of populationand have beenreflecting this policy onsocial protection issues.

Population

Male Female



4/18

Social welfare expenditure and cash

assistance /as % of GDP and government budget /

1.21% 0.85%

0.04%

7.18%

- , - %-

, -%-

Expenditures from social assistance fund, as % of GDP

Cash Assistance, as % of GDP

2.8% 2.8%

0.1%

24.0%

- , %- , %-

Social Assistance to vulnerable group, % of Govermentbudget expenditure

Social Assistance to vulnerable group, % of Governmentbudget expenditure


5/18

The targeted Child Money Program,

January 2005 to June 2006: a new form

of social transfer Child benefit of Tog 3,000 ($2.60) per child for Households (HH)

below Minimum Subsistence Level (MSL)

Initially only for HH with 3 or more children (extended to all HH

with children below MSL in July 2005) Targeting based on proxy means test

Behavioural conditionality for receipt of child benefit:

Up-to-date vaccinations

Living with parents or guardians

Not engaged in harmful forms of child labour

Enrolled in school or NFE (if aged 8 or over)



6/18

The universal CMP, since July 2006

End of proxy means testing: child benefit extended toall HH with children meeting conditions

Conditions reduced to 2:

Children living with parents or guardians

Children (aged 8+) in school or NFE

Accompanied by 2 new benefits:

For newborn children (Tog 100,000 or $85)

For newly married couples (Tog 500,000 or $430)



7/18

Child Money ProgramYears Size of CM Number of

childrencovered

Targeting and conditionality

01.01.2005-01.06. 2005 3000 MNT permonth 350,000 Households living in povertyidentified using proxy means testing

Households with 3 or more children Vaccination Not engaged in worst forms of child

labour

Enrolled in school Living with parents

01.06.2005 -

01.07.20063000 MNT per

month650,000 Households with 3 or more children

01.07. 2006-01.01.2010

3000 MNT per

month 932,000 Enrolled in school Living with parents01.01. 2007 -

01.01. 2010 25 000 MNT perquarter 932,000 All childrenSince

01.10.2012 20 000 MNT per

month / (14.3US$)967,900 All children



8/18

CMP coverage and expenditure

Year 2005 2006 2007 2008 2009 Oct,

2012

Percent

of total

children

35% 65% 91% 92% 93% 95%

Amount ofpayment

per child

2.6 USD

monthly

2.6 USDmonthly

2.6 USD

monthly +

20 USD

quarterly

2.6 USD

monthly +

20 USD

quarterly

2.6 USD

monthly

+ 20

USD

quarter

ly

14.3USD

monthly

Expen-

diture

15.1 mill

USD

21.8

mill USD

103.4 mill

USD

104.4 mill

USD

105.6

mill

USD

37.8

mill

USD/for 3

months/

Eligi-

bility

Poor

households

with 3 or

more

children

Poor

househol

ds

All households

MINISTRY OF POPULATION DEVELOPMENT AND


9/18

UNICEF Analyses of CMP, 2007

Targeted child money:

High leakage

High exclusionUniversal child money:

Greater contribution to poverty reduction


MINISTRY OF POPULATION DEVELOPMENT


10/18

Effectiveness and efficiency:

Leakage and exclusion

Targeted programmeshowed:

huge leakage to non-poorhouseholds (56% ofbeneficiary children werenon-poor)

exclusion of some poorhouseholds (10% poorchildren did not benefit)

Universal programmeslightly increasedleakage but eliminatedexclusion error (almostentirely)

Exclusion rate and leakage

(children)

10.4

0 0

55.965.3

80.2

0

20

40

60

80100

Targeted,

actual

($2.60)

Universal, ex

ante ($2.60)

Universal, ex

ante ($4.30)

%

Exclusion error Leakage

MINISTRY OF POPULATION DEVELOPMENTAND SOCIAL PROTECTION



11/18


Reduction in child poverty

Universalprogramme further

reduces childpoverty headcount,gap and severity

38.5

12.5

4.1

34.7

10.6

3.2

19.8

5.1

1.3

0

10

20

30

40

50

Child povertyheadcount

Child povertygap

Child povertyseverity

Targeted, actual, at $2.60 Universal, at $2.60

Universal, at $4.30




12/18


Value of benefits to the poor

Both targeted anduniversal benefitsmainly of value topoorest deciles

Child benefits as % of HH

expenditure

0

2

4

6

8

10

12

1 2 3 4 5 6 7 8 9 10

Deciles

Targeted (Tg 3,000)

Universal (Tg 3,000)

Universal (Tg 5,000)




13/18

Cash allowance to all citizens

Child money program was stopped since Jan, 2010, and,amount equivalent to 18 USD transfer has being extendedto all citizens (even to adults) of Mongolia from revenue ofmineral resources accumulated in Human DevelopmentFund.

This measure comes from political commitment.

Amount of 550 million USD has been spent annually for thisprogram.

However, this program has been terminated too since Jul,2012.




14/18

Universal Child money program, 2012

After 2012 Parliamentarian election, new Governmenthas issued a resolution to to provide monthly cash transfer to

all children under 18 years.

a. Name of the program - Child money programb. Year program startedOctober 01, 2012c. Number of beneficiary households572,541 /75% of the total HHs/d. Yearly budgetannual budget is 157 mln US$ in 2013e. Objectives - Households would invest in human capital accumulation reducing structural long-term poverty assisting in covering the moretransitory needs.

Beneficiary target group-All children under 18 years are

eligible

f. Institution responsible for implementing the program -

Administered by the Government Social Welfare Agency




15/18

Lessons learned from previous

CMP targeting

Child money program started as a targeted CCT using aproxy means test in 2005. Due to the following reasons CCThadnt fulfilled its objectives

formula used during the targeted phase of the CMP deeplyflawed

there was exclusion error associated with proxy meanstesting

program management and monitoring was weak

behavioral conditions such as mandatory immunizations,living with parents, and not being engaged in worst formsof child labor requires extra documentations and leads tothe exclusion of the most poor households




16/18

Lessons learned from the

implementation of the CMP

Program management, evaluation and monitoring isessential

Integrated management information system for all socialwelfare programmes is needed

Cash transfer cannot substitute for the delivery of qualityservices. Need for stronger government role in providingprotection services for children in situations of extremevulnerability

Even it is universal, documentation requirements barriers to access by very poor and vulnerable, includingmigrants




17/18

Policy recommendations

Retain the universal program, dont return totargeting:

Targeting leads to corruption & manipulation

Less exclusion errors Universal benefit further reduced poverty

Universal benefit was progressive along HHexpenditure distribution

Strong public support for universal benefit




18/18

THANK YOU FOR YOURKIND ATTENTION


Documents

SSL-CCT: Country Presentation_Mongolia