PROGRAM BRIEF 1 Employment Generation Program for the Poorest Bangladesh The food, fuel, and financial crisis in 2007-08 pulled over 4 million into poverty (3 percentage points increase in the poverty rate) in Bangladesh. Many poor households took their children out of school to get jobs and help the family cope with the crisis. A comparatively large share of food in the consumption basket of the poorest meant that their real incomes eroded faster than those of others. Moreover, devastating cyclones like Sidr (2007) and Aila (2009) exacerbated poverty even further. In response, the Government of Bangladesh allocated US$ 800 million in FY09 to mitigate the crisis, which included the largest public workfare program called 100 Day Employment Generation Program (EGP) by the then Ministry of Food and Disaster Management in partnership with local governments. Over time, the program evolved into the Employment Generation Program for the Poorest (EGPP) implemented by the Ministry of Disaster Management and Relief. This note discusses the main features and achievements of he EGPP, the country’s largest workfare program. 1 The Program Brief series discusses major safety net programs that the Government of Bangladesh implements. The series includes notes on the Old Age Allowance; Allowances for the Widow, Deserted and Destitute Women; and Allowances for the Financially Insolvent Disabled by the Ministry of Social Welfare; Employment Generation Program for the Poorest; Food for Work; Work for Money; Test Relief; and Vulnerable Group Feeding by the Ministry of Disaster Management and Relief; and the Child Benefit Scheme. Many of these programs are supported by the World Bank. 1 Employment Generation Program for the Poorest PROGRAM BRIEF BACKGROUND A large proportion of the population in Bangladesh live Despite the positive intentions and developments, the EGP around the poverty line, which means that a shock can did not fully achieve what it initially envisaged. Poverty map push millions into poverty and still many more into extreme based targeting somehow resulted in very limited coverage poverty. The food, fuel, and financial crisis of 2007-08 revealed of the program (only 5 percent of the poorest households the vulnerability of the poor to shocks in Bangladesh. Many per district). Identification of beneficiaries was entrusted households resorted to coping mechanisms that included to the community, led by locally elected representatives, cutting back on food consumption and taking children out of but in reality, the selection process was obscure and did school. Such response has serious longer-term implications not involve participatory processes, resulting in nepotism. on nutrition, health and education beyond the crisis, which Multiple layers of compliance verifications incurred significant likely increases vulnerability to poverty and other shocks in administrative costs, affecting the logistics and supervision the future.i of the work. Inadequate preparation of the urgent program had repercussions on program delivery and the program In response, the Government of Bangladesh allocated US$ was not able to address seasonal poverty. The new grievance 800 million in FY09 to mitigate the crisis, which included the mechanisms were hardly used for various reasons including largest public workfare program called 100 Day Employment lack of awareness.iii Generation Program (EGP) by the then Ministry of Food and Disaster Management in partnership with local governments. After the first phase of implementation, the EGP was Bangladesh has had a history of implementing large public discontinued and replaced by the Employment Generation workfare programs in rural areas during the agricultural lean for the Hardcore Poor (EGHP), under a new democratically seasons and the new 100 Day EGP had the advantage of elected Government in 2009. The EGHP adapted some of the building on that experience. features of EGP by incorporating some valuable lessons from the implementation of the EGP: (i) Narrow focus on highly In addition, the EGP introduced a few new measures as it vulnerable areas i.e. sixteen districts instead of nationwide placed a greater emphasis on pro-poor targeting, minimizing coverage (though from the second phase onwards, EGHP leakage, high accountability and improved transparency. The reverted to nationwide coverage); and (ii) Female quota of one program used the upazila level poverty map of 2004ii to reach third. those who needed it the most. To ensure transparency and minimize leakage the program required daily attendance and From 2009 onwards, a few other modifications emerged in payment sheets to be signed by multiple officials. At the same the design of EGHP as the World Bank made a commitment time, EGP put in processes to encourage grievance reporting to support with US$ 150 million. The newly named project, to Union Executive Officers (UNOs) and Deputy Commissioners the Employment Generation Program for the Poorest (EGPP), (DCs). would help cover one third of the program cost for three years and include the following measures for effective program The program was welcomed by poor individuals especially implementation: (i) bank account based payment of wages; those who were not able to mitigate the shocks in the (ii) introduction of 10-20 percent nonwage material cost; (iii) labor market. Among those were many poor women who nationwide targeting using the poverty map of 2010; and (iv) appreciated the temporary work opportunities in local installation of information boards at project sites for improved areas as their mobility was limited. Even without any female disclosure. Additional technical support provided by the quota, the female share was as high as close to 30 percent. World Bank project were (i) digitization of beneficiary lists; (ii) Many participating households reported increases in food independent assessment of the program; and (iii) capacity consumption and investment in assets in some cases. Overall, building of of the Department of Disaster Management the program heralded a new approach to workfare for the (DDM) under the Ministry of Disaster Management and Relief poorest. (MoDMR) for improved targeting and benefit payment. In THE WORLD BANK 2 PROGRAM BRIEF addition, the 100 days program was reduced to 80 days of work per year to accommodate rising real rural wages and 18 16.50 help maintain the size of beneficiaries. 16 15.00 14 14.00 At present, the Safety Net Systems for the Poorest (SNSP) Budget in BDT Billion 12.00 Project, supported by the World Bank and implemented by 12 10.76 10.00 DDM, is extending support for improved administration of 10 9.26 DDM’s major safety net programs including EGPP. Along with 8 EGPP, the SNSP covers public works program (Food for Work 6 [FFW], Test Relief [TR]) and humanitarian relief (Vulnerable 4 Group Feeding [VGF], Gratuitous Relief [GR]). 2 0 The EGPP aims to create employment for the able-bodied, FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19* unemployed poor for 80 days per year in two phases during the seasonal lean period, to reduce poverty and enhance disaster resilience of vulnerable households. Figure 1: Annual Expenditure for EGPP, FY09 – 19 (*budgeted) Source: Budget Archives, Finance Division, Ministry of Finance Table 1: Key features of the Employment Generation Program for the Poorest (EGPP) as of FY19 Number of beneficiaries 967,051 Amount of daily wage BDT 200 (US$ 2.5) Number of beneficiaries Daily wage rate (BDT) Eligibility Means tested; casual labor by 1.2 250 occupation and owns less than 0.1 acre of land 1 200 200 200 175 Numbers of Beneficiaries Agency Department of Disaster 0.97 0.97 Daily wage rate (BDT) 0.8 Management (DDM), Ministry of 0.83 150 0.75 150 Disaster Management & Relief 0.6 120 100 0.63 100 0.4 Budget allocation to EGPP has been gradually increasing (figure 1). As of FY18-19, the budget allocation has been 50 0.2 about BDT 16.5 billion representing about 0.07 percent of GDP. Excluding Pensions to Retired Government Officials and 0 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19* Honorarium for Freedom Fighters that are not means tested, EGPP is among the largest anti-poverty programs along with the Old Age Allowance (cash transfer for the poor elderly) by the Ministry of Social Welfare. Figure 2: Growth of beneficiaries and benefits under EGPP The allowance has doubled from BDT 100 to BDT 200 and the Source: Budget Archives, Finance Division, Ministry of Finance; Department for Disaster number of beneficiaries has increased steadily to nearly a Management; World Bank; million individuals in FY19 (figure 2). Employment Generation Program for the Poorest 3 Employment Generation Program for the Poorest PROGRAM BRIEF PROGRAM DETAILS 1) Outreach Inadequate awareness of the available social safety nets, Table 1. Upazila poverty rates and budget allocations their eligibility criteria, entitlements and procedures for grievance reporting affect beneficiaries’ ability to identify Upazila Poverty Rates Budget allocations for EGPP programs relevant to them and claim payments and services they are eligible for. This may also lead to errors in targeting >=40% (A) 45% of eligible beneficiaries and create loopholes for inefficiency 29%-39% (B) 25% and leakage. 19%-28% (C) 20% The program guidelines for EGPP place the onus of <=18% (D) 10% awareness generation about the program on Ward Members, banks (as payment service providers) and local elites. Moreover, significant emphasis has been placed on well- The performance of geographic and pro-poor targeting has thought identification of projects, by Project Implementation been improving. Increased allocations to areas with higher Committees (PICs), consisting of five members including poverty levels were made with 45 percent EGPP budget flowing Union Chairmen, Ward Members, Female Members and into upazilas with poverty rates of 40 percent or higher. Also, community members, based on the community needs. At the EGPP covered over 40 percent of the population in the bottom same time, once a project has been identified, a signboard expenditure quintile; and over 40 percent of program benefits with the details of the project is required to be installed at the reaching the bottom quintile.iv This is in part due to poverty project site. targeted eligibility criteria and EGPP’s self-targeting. According The most popular tools of information dissemination, as to the eligibility criteria stipulated by the implementation revealed by spot checks, include repetitive public guidelines, an individual (male or female) is eligible if he or she is: announcements through a van that goes around the union • aged between 18 and 60 years; (commonly known as ‘mic-ing’), words of mouth through • able bodied; Ward Members, and village guards and information boards at worksites. Based on recent surveys under SNSP, for EGPP, • without over 0.1 acre of land, or a significant number of more than 70 percent of the beneficiaries are able to recall poultry or livestock; the eligibility requirements, entitlement and grievance • earning less than BDT 4,000 (US$ 47) per month; and reporting procedures. • not receiving benefits from any other safety net programs of the Government. 2) Targeting The guidelines specify that one third of all beneficiaries must Geographic targeting of safety nets progressed well in be women. In addition, like other public works, EGPP sets wage Bangladesh between 2005 and 2010 as it was closely rates lower than the market ratesv so those who are in greater correlated with divisional poverty levels. With the aim of needs can be selected into the program. improving geographic targeting, in 2013, the Government Compliance to the land ownership criterion has always been decided to use the Bangladesh Poverty Map of 2010 for very high and EGPP has consistently met and surpassed its allocations to EGPP based on poverty rates across divided gender quota. Surveys have revealed that lighter workload in areas. EGPP and the close proximity of EGPP projects to villages make 4 PROGRAM BRIEF it suitable for women; as opposed to other traditional public • Installation of bamboo footbridge; works in the country (e.g., Food for Work) that are physically more strenuous and suited to able bodied men. At the same • Construction/reconstruction of earthen structures as disaster time, having a gender quota also helped female household shelters for animals; heads and members participate in the program. • Mobilizing and piling up garbage for biomass; • Development of helipad; 3) Enrolment • Development of drainage for wet markets; Among individuals who expressed interest in EGPP participation, Ward Members identify beneficiaries, based on their assessment • Construction of reservoir to preserve rain water; of household poverty. The Union Committee then approves the list of beneficiaries and PIC-identified subprojects, followed by • Repair of rural roads; and the Upazila Committee. Finally, the approved lists are sent to the • Any other project recommended by the Ministry of Disaster DC’s office while arrangements are made in the union to inform Management and Relief. the beneficiaries, hand out job cards, open beneficiary bank accounts, procure non-wage materials and begin the works. A process review (first phase of FY17) shows that the subproject selection and approval processes tend to cause delays. This Following application, beneficiary authentication is a critical often prevents the timely implementation of public works during step, and EGPP is the only public workfare program to provide the lean periods (October –November and March-April) when enlisted beneficiaries with identity (ID) cards i.e. ‘job cards’. the need for employment among the poorest is most pressing. EGPP’s job cards serve as proof of enlistment as well as ID for withdrawal of benefits from banks. According to the program Daily attendance of workers is monitored in over 80 percent guidelines of EGPP, the PIC is responsible for updating the cases and mostly by Labor Leaders who report to PIC, as found attendance information of each beneficiary in her/his job card through SNSP surveys. However, supervision and monitoring and sign off on a weekly basis. capacities of DDM and the local government are low as they are unable to visit each sub project frequently. 4) Program implementation 5) Payment EGPP’s implementation (see figure 4 for EGPP implementation process) includes the identification and execution of public EGPP payments are made through bank accounts. Household works and compliance verification of workers’ attendance and surveys conducted on EGPP note significant reductions in participation in works. leakage following the shift of payments to banks as opposed to beneficiaries collecting payments from the worksite or the Public works undertaken by EGPP includes the following range Union Parishad. of sub projects to create seasonal employment for the poorest: According to the EGPP program guidelines, each Union • Excavation/re-excavation of canal for irrigation and alleviating Committee needs to open a ‘Child’ account for EGPP at a water logging; designated bank at the upazila level. A beneficiary should use • Construction/reconstruction of embankment (upon her/his job card to open a savings account in a bank branch recommendation by the Water Development Board); that has the child account of EGPP. The account opening documentation would include the job card, two photos, names • Excavation/re-excavation of Government/institutional pond of parents, contact number, address, signature or thumb print for community use; and a minimum balance of BDT 10 (US$ 0.12). The BDT 10 account is part of Bangladesh Bank’s initiative for financial • Landfill across educational community and religious institutions; inclusion, requiring only the minimum balance of BDT 10, and • Construction of latrine; is becoming a standard bank account for poor and vulnerable 5 Employment Generation Program for the Poorest PROGRAM BRIEF individuals. It is the responsibility of the Union Committee and is difficult for most beneficiaries. At the same time, banks may PIC to make sure that each beneficiary opens a bank account not agree to facilitate frequent payments as it is likely to inflict and faces no problem in doing so. Based on the PIC’s verification significant transaction costs. of the attendance information in the job card of each beneficiary, the bank will transfer the amount receivable to that beneficiary’s • Banks are far from where beneficiaries live: Banks are account from the Child account of EGPP. Each beneficiary must usually located in upazilas - almost twice as far and infer 1.5 collect her/his payment personally using the job card and check times the travel time compared to the worksites or Union book issued by the bank. Parishad offices. While the majority of EGPP beneficiaries receive payments • Banks have long queues: Beneficiaries have to spend almost through banks, some individuals still prefer receiving benefits thrice as much time standing in queue at a bank compared to from sources outside the bank as revealed through SNSP’s their worksite or the Union Parishad office. household survey of FY15. Typically, Labor Leaders or other • Bank payments are delayed: Nearly half of EGPP beneficiaries representatives of Union Parishad (UP) or the PIC Chair collect reported payment delays in the spot checks of Phase 1 FY17. job cards from beneficiaries, withdraw checks or vouchers This points towards delays in the bank-based payment on their behalf, and disburse the payment in the UP office or system especially, delay in ‘clearance of bill from the Project worksites. The bank disburses the total amount owed to those Implementation Officer (PIO)v’s office’. beneficiaries upon verification with the muster roll. The reasons of preferring non-bank options listed as below (table 2) suggest areas of improvement in payment through banks: 6) Grievance • Frequent withdrawals, which beneficiaries prefer, are According to the program guidelines, the official grievance desk not often feasible through banks: EGPP beneficiaries are is at the upazila level with the UNO. However, the guidelines among the poorest and a majority of them often need money also state that complaints can be filed anywhere in the chain. on a daily basis instead of waiting for a week to withdraw Eventually, if unresolved, the grievance gets escalated to the wages from the bank. Travelling to the bank on a daily basis district and national levels. Though grievance reporting under EGPP is better than in other Table 2. Travel and time costs by payment modality programs, evaluations suggest that complaints are few and those filed are usually lodged with Ward Members or Union Chairmen. Point of Distance Travel time Queue time There is little evidence of their resolution. People are often afraid payment (km) (minutes) (minutes) of complaining against local representatives in fear of being excluded from the program or other negative consequences. Bank 4.53 - 5.1 34 79 – 106 At the same time, poor people often lack confidence and have Worksite/ 2.31 - 2.47 22 25 – 41 limited access to the UNO or other neutral Government bodies to Union voice grievances; in many cases, the aggrieved are apprehensive Parishad of overstepping the Ward Members or Union Chairmen to lodge Source: SNSP survey, FY15 a complaint at a higher level of the administration. THE WORLD BANK 6 PROGRAM BRIEF Fund transfer to the upazila level mother account UNO’s letter to Union Parishad (UP) Chairperson to start the selection of subprojects and beneficiaries First meeting at ward level on the selection of sub projects and beneficiaries Lists of sub projects and beneficiaries sent to the Union Committee • Union Committee’s review of sub projects and beneficiaries and analysis of environmental and social impacts • Finalized sub project design and budget sent to the Upazila Committee • Upazila Committee’s approved list of sub projects and beneficiaries sent to the District Office; the DC approves. • Second meeting at the Ward level, formation of Project Implementation Committee (consisting of 5-7 Ward Members) and distribution of job cards Implementation and supervision • Installation of billboard/sign board and Union Parishad notice to inform the community about the program • Procurement of non-wage items, tools and skilled labor Wage payment Monitoring and reporting Figure 3: Delivery process of EGPP Source: Implementation Guidelines of EGPP, DDM, MoDMR Employment Generation Program for the Poorest 7 Employment Generation Program for the Poorest PROGRAM BRIEF PROGRAM ACHIEVEMENTS • Implementation and monitoring capacity needs significant support in terms of manpower, division of roles and Despite challenges, EGPP has managed to yield a number of responsibilities as well as coordination between field officials significant outcomes: and elected bodies. This is an ongoing process and DDM plans to undertake rigorous training of PIOs and Sub Assistant • Improved household resilience: More than half the EGPP Engineers (SAEs)ix and orientation to elected representatives beneficiary households were found to have savings and to improve capacity and strengthen field communication to many had been able to reduce outstanding loans. Improved improve coordination. consumption is noted in terms of the quality of protein intake as well as investment in health.vii Typical coping mechanisms • Payment: Bank based payments is one step forward from during the lean season including school dropout, loans, and the existing informal hand-to-hand payments. As the country reduction in food intake were not observed. gradually moves towards electronic modes of payment, biometrically authenticated digitized payment systems • Local infrastructure built and maintained: Through public are being piloted at various levels using multiple channels: works, local infrastructure such as roads and ponds are agent banking, postal cash cards, mobile banking and repaired and refurbished. potential national payment platform. DDM has begun to pilot • Poorer households benefit more from EGPP: This is ensured digitized payments to enhance efficiency, accountability and by setting wages below the market rate so that only the poorest transparency besides catering to beneficiary convenience opt to participate in this program. in terms of distance and cost to reach payment points and frequency of withdrawal. • Women’s employment: EGPP has succeeded in providing temporary employment for poor women who have lesser • Access to information remains an area with scope for options to migrate during lean periods.viii improvement especially with regard to grievance redressal systems. Improved awareness would be a critical instrument to strengthen the ‘demand-side’ that would help enhance CHALLENGES AND WAY FORWARD ‘supply-side’ measures of SSNs including focus and coverage as well as stronger systems and accountability across beneficiary • Targeting: Due to combinations of geographic targeting, targeting, payments and grievance reporting and redressal eligibility criteria, gender quota and self-selection, targeting systems. performance of EGPP has been better compared to that of other safety net programs in the country. However, there is room to improve. A more updated and robust mechanism for WORLD BANK SUPPORT geographic and household targeting can take place – both are expected to be addressed when the National Household The World Bank has been providing financial and technical Database (NHD) currently under development with the support support to the DDM of the Ministry of Disaster Management of the World Bank is completed. and Relief from 2009 to present. Initially the design and implementation of the EGPP program was supported, and • Beneficiary selection: Influence of local politicians and later, the program coverage was expanded to other safety net elected representatives is generally significant in selecting programs under DDM as part of the SNSP Project. beneficiaries in safety net programs in Bangladesh; and EGPP is not an exception although the program guidelines The SNSP Project aims to enhance efficiency and transparency formally define their roles. This implies that a poor household’s of EGPP and other major public works and humanitarian relief access to a local leader affects that household’s chances of programs under DDM with modernization of systems and participation in the program, especially when the program business processes. Apart from support to the implementation is oversubscribed.vii Appropriate safeguards, in line with the of the safety net programs, the World Bank provides support to targeting discussion, could be considered to minimize the the Bangladesh Bureau of Statistics to construct the NHD which discretion in terms of beneficiary selection in EGPP. would contain key information on household’s socio-economic wellbeing. Once completed, the NHD would enable various anti- poverty programs to use various targeting methods for objective eligibility and beneficiary selection criteria and procedure. 8 PROGRAM BRIEF i EGPP Project Appraisal Document, World Bank, 2009 ii World Bank and World Food Program iii BRAC, 2009, Study on the first phase of the 100-Day Employment Generation Programme iv Household surveys of Safety Net Systems for the Poorest Project v The market wage rate in agriculture is estimated about BDT 250 a day based on the Labor Force Survey 2016. The wage rate of EGPP (BDT 200 per day) is also lower than that of other traditional workfare programs (8 kg of rice, equivalent to BDT 256 per day). vi PIOs are upazila level employees for the supervision of all DDM programs. vii Cho, Yoonyoung; Ruthbah, Ummul; 2018; Does Workfare Work Well? The Case of the Employment Generation Program for the Poorest in Bangladesh viii Sharif, Iffath; Ruthbah, Ummul; 2017; Politics, Public Works and Poverty Evidence from the Bangladesh Employment Generation Programme for the Poorest ix SAEs were recruited under the SNSP Project and support PIOs in technical supervision of DDM programs. Impacts of EGPP: Cho, Yoonyoung; Ruthbah, Ummul. 2018. Does Workfare Work Sharif, Iffath; Ruthbah, Ummul. 2017. Politics, Public Works and Well?: The Case of the Employment Generation Program for the Poverty: Evidence from the Bangladesh Employment Generation Poorest in Bangladesh. Policy Research Working Paper; No.8395. Programme for the Poorest. Policy Research Working Paper; No. 8178. World Bank, Washington, DC. World Bank, Washington, DC. https://bit.ly/2AMdskd https://bit.ly/2AMdIjb For more information: Overview on Bangladesh’s safety net program: This Program Brief has been prepared World Bank. 2016. Bangladesh Social by Rubaba Anwar and Yoonyoung https://bit.ly/2TOa2Vb Protection and Labor Review: Towards Smart Cho, Social Protection & Jobs Global https://bit.ly/2VaQz1F Social Protection and Jobs for the Poor. Practice, World Bank, with kind Bangladesh Development Series,no. 33;. World support of the Korea-World Bank Bank, Dhaka, Bangladesh. © World Bank. Partnership Facility (KWPF). https://bit.ly/2TWVVx9 World Bank Office Dhaka Plot- E-32, Agargaon, Sher-e-Bangla Nagar Dhaka-1207, Bangladesh Tel: 880-2-5566-7777, Fax: 880-2-5566-7778 www.worldbank.org/bangladesh 9