WELFARE BENEFIT BOARD, MINISTRY OF SAMURDHI AND MINISTRY OF FINANCE

1
WELFARE BENEFIT BOARD, MINISTRY OF SAMURDHI AND
MINISTRY OF FINANCE

• FROM INSIGHTS TO IMPLEMENTATION
• Welfare Workshop
• Colombo, 16-17 November, 2003

2
WHAT EMERGES FROM THE WORKSHOP?

• Assembling the key policy decisions to be made
  that will trigger next steps and action plans
• Assuming January 2005 as the date for launching
  implies key policy decisions to be made by
  January 2004

3
WHAT IS THE APPROPRIATE TARGETING PRINCIPLE?

• Final decision on the formula is expected in a
  month by December 2003
• Policy decision on determining the cutoff point
  for Samurdhi eligibility
• We recommend a cutoff that covers 25 of the
  population (approximate poverty line)

4
WHAT IS A SUITABLE PAYMENT LEVEL FOR
BENEFICIARIES?

• Policy decision determining the best option
• We recommend the progressive transfer which can
  be achieved by defining the benefits per
  vulnerable members of the household (elderly,
  disabled, permanently ill, children and homeless)

5
WHAT IS AN EFFICIENT PAYMENT MODALITY?

• Policy decision on determining either cash,
  stamps or mixture
• We recommend carrying out a pilot to determine
  which option gives the maximum welfare gains
• The pilot can also be accompanied by innovative
  technological solutions for delivery of payments
  (smart cards)

6
SHOULD SAFETY NET BE ATTACHED TO SAVINGS AND
INSURANCE?

• Policy decision on determining the separation of
  Samurdhi transfers from savings, insurance and
  lottery programs
• We recommend separation to avoid compulsory
  deductions from the transfer
• In the client survey, 69 of current Samurdhi
  beneficiaries would like to remain Samurdhi
  members (voluntary savings, loans, insurance),
  even if they do not receive any transfer.

7
OUTSTANDING MIS ISSUES

• The MIS development is critical pre-condition for
  island wide implementation
• Previous decisions matter in determining the
  optimal design of the MIS
• Institutional arrangements for MIS
  implementation outsource or by WBB
• If WBB, then capacity building implications

8
GROUP RECOMMENDATIONS

• Targeting
• Cutoff of 30th percentile which leads to coverage
  of 25-27 of population (poverty headcount around
  25)
• Same form can be used to identify chronic poverty
  in the North and East manuals will be adjusted
  to reflect some of the special circumstances
• SLIS formula is acceptable

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GROUP RECOMMENDATIONS

• Enrolment
• Endorsement for the need for an enrolment pilot
• Independence of the appeals committee the
  development officer will assist the committee,
  but not influence the judgement
• As part of the pilot, include the simplified
  process of registration for the national identity
  card (adults and elderly)

10
GROUP RECOMMENDATIONS

• Payments
• Option 2 is preferable, only if a large group of
  households are missed, then consider a
  combination of the two.
• A pilot was endorsed to test the best option
  between food stamps, cash or mixture
• Separation between the transfer and savings,
  insurance and lottery was endorsed, provided
  adequate support is ensured for the Samurdhi
  movement through its banks

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IMMEDIATE ACTION PLAN
ITEM DATE
Final decision on the formula and cutoff point Nov 03 Jan 04
Enrolment pilot (policy decision on cutoff point) Dec 03 - Mar 04
Payment modalities pilot (pending agreement Ministry Samurdhi ) Feb 04 May 04
MIS tender contracting (based upon pilot results) May 04 - Aug 04
MIS development (all decisions on payment levels, modality, delivery system and separation of transfer made) Sep 04 - Mar 05
National campaign and training Jan 04 Nov 04
Island wide collection of information through application forms Apr 04 Dec 04
Island wide enrolment process for Samurdhi Jan 05 Mar 05
Gazette the operations manual and adaptations of the law as stated if needed Oct 04 Nov 04
Official launch ceremony Jan 2005