MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

SOUTH-SOUTH LEARNING ON CCT TRAINING WORKSHOP

Mongolias experience on provision of Child Allowance

MUNKHZUL LKHAGVASUREN, DIRECTOR OF DEPARTMENT, MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION, MONGOLIA

Manila, Philippines 2013.04.15-16

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Introduction
Total population -2,8

million
Number of families -

Population pyramid, Mongolia, 2010 Male Female

759,9 thousand
Children under 18 years

34.5 percent of total population.

The government of

Mongolia pursue a policy to support the growth of population and have been reflecting this policy on social protection issues.

Population

Social welfare expenditure and cash assistance /as % of GDP and government budget /
24.0%

7.18%

1.21%
0.04%

0.85%

2.8% 0.1%

2.8%

Expenditures from social fund, as % of GDP - , -assistance %-

as Cash Assistance, % of GDP , - %-

Social Assistance to vulnerable % of Goverment -group, , budget expenditure %- to , Social Assistance vulnerable group, % of Government % budget expenditure

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

The targeted Child Money Program, January 2005 to June 2006: a new form of social transfer
Child benefit of Tog 3,000 ($2.60) per child for Households (HH)

below Minimum Subsistence Level (MSL)

Initially only for HH with 3 or more children (extended to all HH

with children below MSL in July 2005)

Targeting based on proxy means test Behavioural conditionality for receipt of child benefit:
Up-to-date vaccinations Living with parents or guardians Not engaged in harmful forms of child labour Enrolled in school or NFE (if aged 8 or over)

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

The universal CMP, since July 2006

End of proxy means testing: child benefit extended to

all HH with children meeting conditions

Conditions reduced to 2: Children living with parents or guardians Children (aged 8+) in school or NFE

Accompanied by 2 new benefits:

For newborn children (Tog 100,000 or $85)
For newly married couples (Tog 500,000 or $430)

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Child Money Program

Years Size of CM Number of children covered 350,000 Targeting and conditionality 01.06.2005 01.07.2006
01.07. 200601.01.2010
01.01. 2007 01.01. 2010 Since 01.10.2012

01.01.200501.06. 2005

3000 MNT per month

Households living in poverty identified using proxy means testing Households with 3 or more children Vaccination Not engaged in worst forms of child labour Enrolled in school Living with parents Households with 3 or more children

3000 MNT per month 3000 MNT per month 25 000 MNT per quarter 20 000 MNT per month / (14.3US$)

650,000

932,000
932,000 967,900

Enrolled in school Living with parents All children

All children

CMP coverage and expenditure

Year Percent of total children 2005 2006 2007 2008 2009 Oct, 2012

35%

65%

91%

92%

93%

95%

Amount of payment per child

2.6 USD monthly

2.6 USD monthly

2.6 USD monthly + 20 USD quarterly

2.6 USD monthly + 20 USD quarterly

2.6 USD monthly + 20 USD quarter ly 105.6 mill USD

14.3 USD monthly

Expenditure

15.1 mill USD

21.8 mill USD

103.4 mill USD

104.4 mill USD

37.8 mill USD /for 3 months/

Eligibility

Poor households with 3 or more children

Poor househol ds

All households

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

UNICEF Analyses of CMP, 2007

Targeted child money: High leakage High exclusion Universal child money: Greater contribution to poverty reduction

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Effectiveness and efficiency: Leakage and exclusion

Targeted programme

showed:
huge leakage to non-poor

Exclusion rate and leakage (children)

100 80
% 55.9 65.3 80.2

households (56% of beneficiary children were non-poor)

exclusion of some poor

60 40 20 0
10.4

households (10% poor children did not benefit)

Universal programme

slightly increased leakage but eliminated exclusion error (almost entirely)

Targeted, actual ($2.60)

Universal, ex Universal, ex ante ($2.60) ante ($4.30)

Exclusion error

Leakage

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Effectiveness and efficiency: Reduction in child poverty

Universal
50 40 30
19.8 38.5 34.7

programme further reduces child poverty headcount, gap and severity

20
12.5 10.6 5.1 4.1 3.2 1.3

10 0 Child poverty headcount

Child poverty gap

Child poverty severity

Targeted, actual, at $2.60 Universal, at $4.30

Universal, at $2.60

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Effectiveness and efficiency: Value of benefits to the poor

Child benefits as % of HH expenditure

Both targeted and

12 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10

universal benefits mainly of value to poorest deciles

Deciles

Targeted (Tg 3,000) Universal (Tg 3,000) Universal (Tg 5,000)

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Cash allowance to all citizens

Child money program was stopped since Jan, 2010, and,

amount equivalent to 18 USD transfer has being extended to all citizens (even to adults) of Mongolia from revenue of mineral resources accumulated in Human Development Fund. This measure comes from political commitment. Amount of 550 million USD has been spent annually for this program. However, this program has been terminated too since Jul, 2012.

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Universal Child money program, 2012

After 2012 Parliamentarian election, new Government has issued a resolution to to provide monthly cash transfer to all children under 18 years.
a. Name of the program - Child money program b. Year program started October 01, 2012 c. Number of beneficiary households 572,541 /75% of the total HHs/ d. Yearly budget annual budget is 157 mln US$ in 2013 e. Objectives - Households would invest in human capital accumulation
reducing structural long-term poverty assisting in covering the more transitory needs.

Beneficiary target group- All children under 18 years are eligible f. Institution responsible for implementing the program Administered by the Government Social Welfare Agency

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Lessons learned from previous CMP targeting

Child money program started as a targeted CCT using a proxy means test in 2005. Due to the following reasons CCT hadnt fulfilled its objectives formula used during the targeted phase of the CMP deeply flawed there was exclusion error associated with proxy means testing program management and monitoring was weak behavioral conditions such as mandatory immunizations, living with parents, and not being engaged in worst forms of child labor requires extra documentations and leads to the exclusion of the most poor households

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Lessons learned from the implementation of the CMP

Program management, evaluation and monitoring is

essential Integrated management information system for all social welfare programmes is needed Cash transfer cannot substitute for the delivery of quality services. Need for stronger government role in providing protection services for children in situations of extreme vulnerability Even it is universal, documentation requirements barriers to access by very poor and vulnerable, including migrants

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

Policy recommendations
Retain the universal program, dont return to

targeting: Targeting leads to corruption & manipulation Less exclusion errors Universal benefit further reduced poverty Universal benefit was progressive along HH expenditure distribution Strong public support for universal benefit

MINISTRY OF POPULATION DEVELOPMENT AND SOCIAL PROTECTION

THANK YOU FOR YOUR KIND ATTENTION