EHNANCING SYNERGIES BETWEEN LIVELIHOOD PROTECTION AND PRODUCTIVE INVESTMENTS TO BOOST RWESILIENCE IN SOUTH SUDAN Ousmane Badiane Director for Africa

OUTLINE The growth and vulnerability challenge Typology and impact of livelihood interventions Scope for synergy between growth and protection interventions

THE SEARCH FOR INCREASED RESILIENCE STRATEGIC CHALLENGE Fighting vulnerability in the context of low growth, high poverty and tight budget Treating livelihood protection programs as investment, not entitlement POLICY RESPONSE Foster synergy between social services and productivity enhancing investments Understand complementarities and trade-offs Exploit growth effects of social services ULTIMATE GOAL Accelerate long term growth While meeting short term social needs

MITIGATING POVERTY IMPACT WHILE RAISING PRODUCTIVITY Productive but poor* (Chronic Vulnerability) Productive and non poor (Resilient livelihoods) Agricultural productivity Non productive and poor (Chronic vulnerability) Non productive but non poor** (Threatened livelihoods) Inverse of poverty or hunger ratio *) Producers of low value products or in constrained environment (short, rainfed productive season) **) Communities that relies on government or outside safety nets for their livelihoods

MITIGATING POVERTY IMPACT WHILE RAISING PRODUCTIVITY Strategy 4 Productive but poor Productive and non poor Agricultural productivity Strategy 1 Strategy 2 Non productive and poor Non productive but non poor Strategy 3 Inverse of poverty or hunger ratio Productive strategies 1 and 2 invest in productivity raising programs Livelihood strategies 3 and 4 invest in poverty / hunger safety nets

MITIGATING POVERTY IMPACT WHILE RAISING PRODUCTIVITY Strategy 4 Productive but poor Productive and non poor Agricultural productivity Strategy 1 Strategy 2 Non productive and poor Non productive but non poor Strategy 3 Inverse of poverty or hunger ratio Productive strategies 1 and 2 invest in productivity raising programs Livelihood strategies 3 and 4 invest in poverty / hunger safety nets Enhanced Strategy combines 3 and 2 or 1 and 4

Household Typology and Social Protection Programs Source: Getaw Tadesse (2018)

Farm Land Productivity and Changes In Health Status Elasticity of marginal productivity of land with respect to long term illness Tanzania Source: Allen, Badiane, Sene and Ulimwengu (2014)

Farm Labor Productivity and Changes In Health Status Elasticity of marginal productivity of labor with respect to long term illness Tanzania Source: Allen, Badiane, Sene and Ulimwengu (2014)

Health Services Expenditure and Changes In Health Status Elasticity of health status with respect to household health expenditures Uganda Source: Badiane and Ulimwengu (2013)

Health Services Expenditure and Farm HH Efficiency Uganda Effect of 10 % Increase in Health Expense Categories on Farm Efficiency Consultation expenses Drug Expenses Hospitalization expenses Malaria Control 1.08 0.60 0.63 Overall Disease 3.08 0.81 1.90 Source: Badiane and Ulimwengu (2013)

Effects of Health Insurance and Education Expenses on Farm Output Effect of 15% increase in expenses on household farm output Source: Ulimwengu and Makombe (2015)

Health Services Expenditure and Farm HH Efficiency Effect of 10% increase in health expenses on efficiency of poor and non-poor HH All Diseases - Uganda Source: Badiane, Sene and Ulimwengu (Mimeo)

Health Services Expenditure and Farm HH Efficiency Effect of 10% increase in health expenses on efficiency of poor and non-poor HH Malaria - Uganda Source: Badiane, Sene and Ulimwengu (Mimeo)

EFFECTS OF VOCATIONAL TRAINING ON PRODUCTIVITY AND POVERTY Source: Badiane and Ulimwengu (2010)

NON SYNERGISTIC / NON CONVERGENT PRODUCTIVITY INVESTMENTS 60 50 40 30 20 10 Community is faced with low productivity level (20) Goal is to double productivity through targeted investments to 40

Productivity Investments NON SYNERGISTIC / NON CONVERGENT PRODUCTIVITY INVESTMENTS Productivity 60 50 40 30 20 10 60 50 40 30 20 10 Productivity Investments

Social Sector Investments NON SYNERGISTIC / NON CONVERGENT SOCIAL INVESTMENTS Livelihood 60 50 40 30 20 10 Community is faced with low livelihood / resilience level (20) Goal is to double livelihood / resilience through targeted social investments to 40 Social Sector Investments

Social Sector Investments NON SYNERGISTIC / NON CONVERGENT SOCIAL INVESTMENTS Livelihood Livelihood 60 50 40 30 20 10 60 50 40 30 20 10 Social Sector Investments

NON SYNERGISTIC / NON CONVERGENT INVESTMENTS Livelihood Productivity Each set of investment may reach their separate goals But same outcomes could be achieved at lower cost Or better outcomes for same cost 60 50 40 30 20 10 60 50 40 30 20 10 Productivity Investments Social Sector Investments

SYNERGISTIC / CONVERGENT INVESTMENTS Livelihood Productivity More beneficiaries can be reached Progress achieved faster Fiscal resources stretched further 60 50 40 30 20 10 60 50 40 30 20 10 Scope for synergy

THE CASE FOR GREATER SYNERGY BETWEEN SOCIAL SAFETY NETS AND PRODUCTIVE INVESTMENTS The most effective way to reduce poverty and vulnerability is to raise the productivity of resources poor people depend on for their livelihoods 1 Protection without promotion is not sustainable Limited access to social services is the combined outcome of low household productivity, scarce fiscal resources, poor delivery, and obstacles to access 2 Social expenditures need to go beyond entitlement to aid growth ALL SAFETY NET PROGRAMS CAN BE DESIGNED TO DELIVER BUNDLES OF GOODS AND SERVICES THAT ENHANCE PRODUCTIVITY AND BOOST GROWTH FOR GREATER IMPACT, SCALE AND SUSTAINABILITY

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