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.

Outline 1.Uganda at a glance 2.Poverty and Vulnerability 3.Overview of Social Protection in Uganda – Vision – Social Protection Framework – Social Protection Stakeholder Institutions SP and National development planning 4.Expanding Social Protection programme - SAGE - Emerging impacts from SAGE - SP Policy 5. Lessons from integration of SP in Development Planning 6.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 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 support o NSSF: 400,000 members o Public service pension: 51,000 members o 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 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 implemented 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: Livestock Agricultural inputs Hire of ox-ploughs Hire 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 schemes o 15,000 SAGE beneficiaries participating in VSLAs o 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 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 individuals 4.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