Uganda’s Experience in Social Protection: Integrating Social Protection in national

development planning

A presentation to the international conference on Social Protection: Building

Effective and sustainable systems for equitable growth.

Purpose of the presentation

• The aim of the presentation is to highlight key milestones in the design and integration of the Expanding social protection programme in Government planning systems.

• The presentation articulate the programme structure, operational framework, integration channels, and emerging impacts.

Outline1. Uganda at a glance2. Poverty and Vulnerability3. Overview of Social Protection in Uganda– Vision– Social Protection Framework – Social Protection Stakeholder Institutions

SP and National development planning4. Expanding Social Protection programme - SAGE

- Emerging impacts from SAGE- SP Policy

5. Lessons from integration of SP in Development Planning6. Conclusion

Uganda at a Glance

Demographic & Social (2014) • Population: 34.9 m• No. of Households: 7.3m • Average HH size: 4.7 • Total Fertility Rate: 6.2

• Annual Population growth rate: 3 %

• Children <18: 56.7% • Labour Force: 39.1%• Older Persons: 4.2%

Economy (2013)• GDP: $ 22.6 billion• Per capita GDP: $ 630 • Annual Growth rate: 4.7 % • Inflation: 5.5 %• Tax –GDP-ratio: 13.6%•

Poverty and Vulnerability• Uganda has had impressive economic performance over

the last 2 decades– Steady GDP growth at 7% on average – Poverty reduced from 56.4 % in 1992 to 19.7 % in 2013.

• But poverty , inequality of opportunity and vulnerability are still challenges to Uganda’s development!– Over 6.7m people live below the poverty line -- lack the

basics for survival; – Many more (43%) are vulnerable to falling into poverty

in the event of a shock.

Overview of Social Protection in Uganda

Overview of Social Protection

• Although Uganda has a strong tradition of extended family support this system is under strain due to: – persistent poverty – Rapid modernisation and urbanisation– HIV/AIDS

• Yet, access to formal social security is extremely limited e.g. only 5% of working population are covered by formal pension scheme and only 4.5% receive some form of direct income supporto NSSF: 400,000 memberso Public service pension: 51,000 memberso Public works: 500,000 beneficiaries per year

Overview of Social Protection• The draft SP policy defines SP as “public and private interventions

to address risks and vulnerabilities that expose individuals to income insecurity and social deprivation, leading to undignified lives”

• The SP system is comprised of two pillars:

1. Social security includes direct income support (tax-financed) and social insurance (contributory) insurance against life-cycle risks related to childhood, old age, loss of employment, disability, ill-health as well as other external economic and environmental shocks.

2. Social care and support services (SCSS) concerned with provision of care, support, empowerment and protection to vulnerable persons who are unable to fully care for themselves

Social Protection Framework

Key Stakeholders in Social Protection• The Social Development Sector led by the Ministry of

Gender, Labour and Social Development (MGLSD) is mandated to spearhead the formulation of the Social Protection Policy.– SP Sub-committee for stakeholder coordination.

• Office of the Prime Minister, Ministry of Finance, Planning, and Economic Development, Ministry of Public Service, Ugandan Retirement Benefits Regulatory Authority, National Social Security Fund, Ministry of Health, The National Planning Authority, Ministry of Local Government

• CSOs, private sector, development partners

SP and National development planning.

• SP first integrated into the PEAP 2 and SDIP in 2004.• Approved SDIP allowed creation of a SDS working group.

Under which was established the multi-Sectoral Sub committee on social protection.

• SP Sub committee instrumental in policy formulation, programme design, M&E but also capacity building on SP across Government.

• A special steering committee oversees ESP programme –Members MFPED, MGLSD, OPM, MoLG, MPS, NPA, DP’s, CSO’s etc.

SP and National development planning

• In 2010 NDP 1 formulated through a participatory approach-

• SP strongly reflected in NDP 1 and recommendation to have a comprehensive policy on social protection and testing direct income transfers.

• NDP 2 Draft in place informed by SDS issues paper. SP issues part of SD sector paper.

Key Social Protection challenge• The stakeholders have been implementing a range of social

protection interventions - contributory pensions schemes, unconditional cash transfer, public works, andsocial care and support services.

• However, these interventions have been implemented in isolation by different agencies leading to :– fragmentation, – gaps in coverage, – low budget allocations and – duplication.

• A large proportion of the poor and vulnerable households do not have access to these programmes. Consequently, the impact on poverty reduction is limited.

Expanding Social Protection Programme

• In June 2010, the Expanding Social Protection (ESP) Programme was established within the MGLSD in recognition of the need to establish a coherent policy and fiscal framework for the sector.

• The ESP is responsible for rolling out the Social Assistance Grant for Empowerment (SAGE) programme, a five-year pilot in 15 districts that is jointly funded by the government and development partners (the UK Department for International Development, Irish Aid, and UNICEF).

PURPOSE: To embed a national social protection system that benefits the poorest as a core element of Uganda’s national

policy, planning and budgeting processes

Output 1:

Skills, structures

and systems strengthened for effective

cross-government leadership &

implementation on social protection

Output 2:

A coherent and viable policy and

fiscal framework for social protection developed

and implemente

d

Output 3:

Delivery of regular and predictable

social grants to poor

households to generate

evidence on impact and

delivery mechanisms

Output 4:

Improved information

and knowledge of

social protection

among policy makers and the public

Goal: Reducing chronic poverty and improving life chances for poor men, women and children in Uganda

15

Social Assistance Grant for Empowerment- (SAGE)

• SAGE has two components:o Senior Citizen Grant (SCG)for persons 65 years and above

(60yrs for Karamoja)o Vulnerable Family Support Grant (VFSG)for households

with limited labour capacity• A transfer of Shs 50,000 approx. US $ 20 every two

months is paid to each older person in case of SCG and to a household in case of VFSG.

• The programme currently has 108,135 enrolled beneficiaries in total benefits 550,000 ‘pple.

SAGE Coverage

15 districts 113 sub-counties 20 town councils 5,714 villages

108,135 beneficiaries

Emerging impacts• Exit point surveys consistently suggest that 20-30% of

beneficiaries are regularly investing in agricultural production:LivestockAgricultural inputsHire of ox-ploughsHire of day-labourers

• Qualitative research confirms that beneficiaries are more able to wait until crops reach full maturity before selling and are in a better negotiating position with buyers, resulting in increased profitability

Emerging impacts • Improved food security, frequency, quantity and

quality of meals• Increased uptake of health services• Increased uptake of education services• Increased participation, social inclusion, self esteem

and empowerment, particularly amongst older women

• The SCG “has improved capacity to meet not only beneficiaries’ basic needs but also those of children under their care, such as household nutrition and school expenses” (ODI, 2013)

Emerging Impacts

SAGE Impact Evaluation (qualitative component) findings:• “Many elderly beneficiaries have experienced enhanced

voice and respect in community meetings.”

• “In SCG areas SAGE is generally seen to contribute to improved cohesion between households.

• Cash transfers enhancing elderly beneficiaries’ appearance and self-esteem, decreased dependency and there is new ability to support their households and friends.”

• “Some female beneficiaries have experienced increased influence in household decision making due to their new status as ‘breadwinners’.”

Emerging impacts • Improved access to credit through SACCOS• Access to credit further enhanced by village savings

and revolving schemeso 15,000 SAGE beneficiaries participating in VSLAso cumulative savings of UGX 808m(USD 323,000)o cumulative loans of UGX 206m (USD 83,000).

• Increased participation in local markets and economies• Improved elderly participation in community affairs and

decision making• Communities perceive the SCG as a direct reflection of

the government’s increasing commitment to support the poor and vulnerable.

Policy development component• The Uganda Social Protection Policy outlines the Government of

Uganda’s vision and commitment for social protection for the coming period.

• The policy was developed to promote effective coordination and implementation of social protection interventions and in recognition of the key role social protection can play in Uganda’s development and aspiration for a high standard of living for its citizens by 2040.

• The vision of the Policy is “a society where all individuals are secure and resilient to socio-economic risks and shocks”.

• The mission is: “provision of comprehensive social protection services to address risks and vulnerabilities” and the Goal is “to reduce poverty and socio-economic inequalities for inclusive development by 2024”.

SP policy objectives

1. To expand the scope and coverage of contributory social security 2. To scale up the provision of direct income support to individuals and households with inadequate livelihood options and limited economic opportunities 3. To enhance the capacity of formal and informal institutions to provide holistic social care and support services to socially vulnerable individuals4. To strengthen institutional framework for delivery of coordinated social protection services

Conclusion• The Multi- sectorial Social protection sub committee

has provided a platform for building SP capacity in government and engaging the national planning process

• evidence from piloting direct income transfers has been instrumental in Creating awareness and stressing the importance of SP as a key measure to address poverty and vulnerability.

• strong coordination has rallied development partners resources to support the SP policy development and programming geared towards implementation of the NDP

Conclusion

• Government is yet to approve the comprehensive social protection policy which will incorporates all reforms in contributory social security, pensions and non contributory direct income transfers.

• Despite having SP integrated into the NDP allocations of resources for implementation have been inadequate.

Thank You

www.socialprotection.go.ug