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  • Slide 1
  • Social Protection: Building Effective and Sustainable Systems for Equitable Growth Social Protection: Building Effective and Sustainable Systems for Equitable Growth International Conference December 15-17, 2014 Arusha, Tanzania
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  • Towards Universal Pension in Tanzania Evidence on opportunities and challenges from a remote area A case study of the Kwa Wazee Pension Programme Smart Daniel, HelpAge International December 15-17, 2014 Arusha, Tanzania
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  • World population trend There are over 868 million over 60s in the world (12% of the global population). By 2050, there will be as many people 60 and over as children under 15. Africas population of over 60s is expected to be 10% of its population
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  • Human right to old age social security Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control. Article 25, Universal Declaration of Human Rights (1949) Reaffirmed by endorsement of social protection floor ILO Recommendation 202 (2012) Guaranteed income security and access to basic services across the life course Social transfers: prioritise the big risks Childhood Active age Old age Health
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  • RECOGNITION OF SOCIAL PENSION Countries with state financed non- contributory social pensions increased from around 50 in 1990 to over 100 today
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  • Old Age poverty & vulnerability Old age poverty and vulnerability a growing challenge in most African countries Poverty rate among older people is greater than in general population, e.g. in (Kakwani, Son, Hinz) A disproportionately high incidence of poverty among older women (Choudhury and Leonesio) Primary & secondary consequences of high poverty rates, e.g. on HIV/AIDS- orphaned children support
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  • Key information about Tanzania Demographics: Total population: over 45 million Older people: over 2.5 millions (5.6% of the total population) Only 4% of all older people covered by pension Almost 25% of all households have older person(s) over 40% of orphans are with OP Poverty level in households with OP and children is 22.4% higher than the national average 2014 Global AgeWatch Index Tanzania stands at 94 out 96 income security Pension coverage
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  • Evaluation of Kwa Wazee Pension Programme May 2014
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  • Kwa wazee Pension Programme Started - in 2003 By June 2013 - 1096 pensions & 608 child grant were paid to older people. Each OP receives TZS12,000 (US$7.50) plus TZS7,000(US$4.40) for each child in their care
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  • Methodology used Structured questionnaire -survey of income & expenditure in 181 households, 156 receiving the pension. (139 pensioners at the three pay points in Ngenge ward, and 55 in Nshamba, as a point of comparison. Focus group discussions with village committee members and other village representatives. Case studies and interviews - Older People not able to collect their pension themselves & stakeholders at all levels including: representatives of the Ministry of Labour
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  • KEY FINDINGS The pension has had a dramatic impact on the income of recipient households. Increased the average income of recipient households by almost 80%. Increased income from the pension leads to higher expenditures on food, (51% pensioner-58 non P) but also higher spending on investments ( P 22% versus Non -P 8%), household items and healthcare (P 5% versus NP 2%). The pension has had important impacts on the livelihoods of many older women, allowing them to invest in their own subsistence Over 30% female pensioners registered expenses for purchasing day labour Againist none for Non P The survey findings indicated that social pensions positively impacted on the whole community
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  • Family connect to other services Social + Spiritual + Economic gains Labour education Church/m osque Pension Support family to access other services Health
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  • POLICY AND PROGRAMME IMPLICATION 1. Lessons from Kwa Wazee suggest poverty targeting would be a huge challenge at a national scale Why ? There is little difference between the income of pensioner and non-pensioner households, as revealed by the household surveys The perception that targeting is unfair (which seems to be justified) was found to create obvious unease among recipients and non- recipients. Poverty dynamics
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  • Poverty dynamics and targeting Monthly Income in Tsh Month 1month 2Month 3Month 4Month 5 6000 Salum 5000 Salum 4000 3000 AshaSalum 2000 Asha Salum Asha 1000SalumAsha
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  • 2. Mobility, eyesight and age verification challenges Mobility: 40% of all pensions had to be collected by a registered person or delivered by a committee member Eyesight: just over half were not able to recognise the animal on the banknote. Documentation: 90% have documents that confirm their age. i.e Voting card (82%) or baptism cards (48%) around 10% have no identification at all. Older people want the system of transfer that will be as direct as possible from the sources of fund to the intended recipients
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  • 3. Uses of electronic payments only 15% older people in Nkenge owned a phone or had a phone in their home, compared to 46% older people in Nshamba ward. 66% of older people in Ngenge ward (82% in Nshamba) had access to a mobile phone in their vicinity. Poor network in some area and lack of agents to organize payment. Electronic payments seem to be an acceptable approach for people in Ngenge if the current barriers will be addressed
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  • Conclusion Substantial errors in Targeting are less due to methodology, but more to the inherent challenge of trying to identify those most in need in the context where most households live in poverty Approach for national social pension programme should be universal. Universal pension could start at 70 years and ensure covering all OP at that age and above. Older people themselves are consulted in the design and the implementation of a universal pension
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  • Thank you for listening


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