Using Evidence to Inform Program Reform in the Malawi Social Cash Transfer Program
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The document discusses policy options for strengthening the Malawi Social Cash Transfer Program's approach to addressing lifecycle vulnerabilities. It summarizes that: 1) While the program indirectly reaches vulnerable groups like the elderly, disabled, and female-headed households, children under 5 are not directly supported. 2) Two recent impact studies suggest the program could be more effective in addressing school retention and lifecycle vulnerabilities. 3) Policy options presented include directly targeting vulnerable categories through a categorical approach or providing additional support for children under 5 and young mothers within beneficiary households.
Using Evidence to Inform Program Reform in the Malawi Social Cash Transfer Program
- 1. Using Evidence to Inform Program Reform in the Malawi Social Cash Transfer Program Nairobi , Kenya June 2023
- 2. The Malawi Social Cash Transfer Program has been in existence since 2006 • Poverty reduction • Improve health condition of beneficiaries • Improve school enrollment for children belonging to beneficiary households 3 main objectives
- 3. Target: ultra-poor and labour constrained households in all rural districts of the country. The Malawi National Social Support Program (MNSSP II) explicitly recognizes social, demographic and life-cycle vulnerabilities in the population, and uses these vulnerabilities to develop a framework for action
- 4. The Malawi SCTP indirectly reaches many individuals who display social, demographic and life-cycle vulnerability as identified in the MNSSP II. These include the elderly, the specially-abled, and female headed households. However, none of these are explicit eligibility criteria of the program.
- 5. Age and sex composition of SCTP households versus IHS4 Rural Ultra-Poor SCT Households Malawi rural ultra poor Malawi poverty context
- 6. From the figure above. SCTP households (left hand panel) have more females, more elderly more adolescents while the generally rural ultra poor (right-hand panel) fewer prime-age adults. On the other hand, an important vulnerable group as identified in the MNSSP, children under age 5 years, are neither indirectly nor directly reached through the SCTP. Among the rural ultra-poor 16 percent of household members are children under age 5, compared to just 8 percent among SCTP households.
- 7. Impact studies A summary of the main impacts and related policy implications generated by Malawi’s Social Cash Transfer Program between 2013-2015, include positive impacts on poverty, income multipliers, food security, productivity, education and health. Two recent studies however, which were conducted in 2020 suggest that the program could be more impactful if the it went further in addressing school retention and lifecycle vulnerabilities.
- 8. Policy options to address lifecycle vulnerabilities of beneficiaries in the Malawi Social Cash Transfer Program Objective: Provide policy options on how the SCTP can strengthen its approach to addressing lifecycle vulnerabilities as mandated by the MNSSP II.
- 9. The typical SCTP recipient is elderly, with a chronic health condition or physical disability. Children under five years in SCTP households are typically not the child of the main recipient, and so do not receive direct support from the program. Caregivers of children under age 5 in SCTP households are young mothers who have dropped out of school and lack financial or emotional support SCTP households with specific vulnerabilities have significantly lower food and total consumption relative to other SCTP households Key findings
- 10. The key conclusion of the empirical analysis is that not all SCTP households are the same, and the program is significantly less protective for households with specific vulnerabilities.
- 11. Key strategic decision Maintain the SCTP as a narrowly targeted, small program aiming to reach about 10 percent of the population, or transition to a broad-based social protection program that addresses lifecycle vulnerabilities as envisioned in the MNSSP II, and become the center piece of social protection in Malawi
- 12. Policy options Directly target lifecycle vulnerability – categorical targeting Support specific vulnerabilities within the current targeting approach Nutrition bonus for children age 5 years and under Support to mother-child sub-families within SCTP households
- 13. Categorical Targeting Pilot Operational research Efficiency, acceptability and feasibility of the using the categorical approach over the current Labour constraints approach
- 14. Malawi has set out to explore a new SCTP Targeting approach, along Categorical lines. Working hypothesis : Simple categorical identification by communities, followed by a simplified Proxy Means Test to exclude the non-poor.
- 15. People with severe disabilities Child- headed households Children aged 3 and below The elderly aged 65 and above Chronically ill Key categories to be tested Ultra poor households with a member/s in the following categories
- 16. Policy shift issue The majority of the under-five children belong to the young and productive population which has labor capacity. They can be targeted in other programs.
- 17. Thank You!