WELFARE BENEFIT BOARD, MINISTRY OF SAMURDHI AND MINISTRY OF FINANCE FROM INSIGHTS TO IMPLEMENTATION Welfare Workshop Colombo, 16-17 November, 2003 2/19/2019

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 2/19/2019

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) 2/19/2019

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) 2/19/2019

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) 2/19/2019

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. 2/19/2019

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 2/19/2019

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 2/19/2019

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) 2/19/2019

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 2/19/2019

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 2/19/2019