dedza safety nets pilot project dsnpp learning lessons about direct welfare transfers for malawi’s...

Dedza Safety Nets Pilot ProjectDSNPP

learning lessons about direct welfare transfers

for Malawi’sNational Safety Nets

Strategy

What is the DSNPP?

A ‘pilot’ designed to test a system of Direct Welfare Transfers to the work-constrained rural poor: Elderly, orphans, disabled/sick, etc

The M&E component is key, since the point is to learn lessons for scaling up.

Types of transfer

1. Cash: MK550 per household per month; 2. Vouchers worth MK550 per month to

buy goods at selected retailers; and 3. In-kind transfers: a package of goods

worth MK2,750 in September followed by maize flour worth MK550 between October and April – and nothing from May to August.

Distribution dates so far: 23 September; 2 November; 3 December; 19 December; 30 January

CU delivers to distribution centres 5-person village committees collect the transfers &

distribute them

Distributions

Village committees

There are three types of village committee: Led by the Village Head with members

nominated by the VH Democratically elected at a meeting of the

whole village Formed by the beneficiaries or their carers

Concern Universal

Village Committee

Beneficiary

Retailer

Transfer of cash

Delivery of cash at Distribution Centre

Distribution of cash to beneficiaries and administration and control including de-registration and registration of new beneficiaries

Concern Universal

Village Committee

Beneficiary

Supplier

Transfer of goods and food

Delivery of packs to Village Committee

Administration and control including de-registration and registration of new beneficiaries

Procurement of goods and foodaccording to CU specifications

Contract to supply goods

Concern Universal

Village Committee

Beneficiary

Participating Retailer

Transfer through vouchers

Return of vouchers and receipts

Payment on submission of vouchers and receipts Delivery of vouchers at Distribution Centre

Distribution of vouchers to beneficiaries and administration and control including de-registration and registration of new beneficiaries

Use of vouchers at retailers

Learning the lessons (1)

The impact on beneficiaries, using: baseline and a final impact survey quarterly monitoring of a smaller sample

Aim: To find out what is the impact of the different transfers on beneficiaries’ well-being – especially food security and other basic needs.


The process, as managed by the village committees, using: self-monitoring by committee members; external monitoring by CU

personnel/local government officers. Aim:

To find out whether village committees can manage the transfers, and which type of committee is best.


The logistics/costs, as managed by CU, using: Project Officers’ records of their interactions with

village committees, retailers, suppliers, ADCs, etc.

– including problems & solutions CU’s accounts for the project, with expenditure

divided into budget categories.

Aim: To assess overall management and logistical requirements, including costs.


The expenditure pattern associated with the transfers, using: a section on expenditure in the survey

questionnaires; analysis of voucher receipts.

Aim: To study the pattern of expenditure associated with DWTs to inform retailers about consumer demand under a scaled-up DWT programme.


The impact of the project on the local economy (especially retailers), using: Project Officers’ notes Analysis of voucher receipts

Aim: To find out what is the impact of different types of transfer on the retail sector.

Level of monitoring

Closely monitored villages Regular visits by Project Officers and

local government officers Quarterly monitoring surveys

Hands-off villages Visits after 9 months/1 year to simulate

‘real life’ situation in which village committees would manage transfers on their own, with spot checks

Interventions under trial

Transfer

Management Committee

Monitoring

VouchersCashIn-kind

Village headDemocraticBeneficiary/Carer

Closely monitoredHands-off


Hands-offBeneficiaries

Closely monitored

Hands-offDemocraticVouchers

Closely monitored

Hands-offVillage Head

Closely monitored



Closely monitored

Hands-offDemocraticVouchers

Closely monitored


Closely monitored


Closely monitored

Hands-offDemocraticCash

Closely monitored


Closely monitored


Closely monitored

Hands-offDemocraticIn-kind

Closely monitored


Closely monitored

18 different interventions

3 villages with each type

54 villages

Sampling

386 villages in Linthipe and Kabwazi 54 villages selected at random for the

study Restrictions:

27 villages from each EPA 18 villages for vouchers within 10 km radius

of participating retailers The rest selected at random from the

remaining villages.

Sampling

Vouchers

Cash In-kind

Total

Linthipe 12 6 9 27

Kabwazi 6 12 9 27

Total 18 18 18 54

Village committee

Village Head Committees Nepotism Transparency and accountability problems Cases of theft of transfers

Democratically elected committees Most effective and efficient Demanding to be paid allowances Cases of theft of transfers (less than VH)

Village committee

Beneficiary/carer committees Don’t need allowances No cases of theft Not so capable – need external support

Our recommendation: Beneficiary/carer committees with support

from VDCs Definitely avoid VH committees

Cash transfers

Choice of what to buy and where Easy to understand Don’t have to travel long distances Balanced development of the local retail

sector Simple to manage and low cost Security is a problem, but not difficult to solve Theft by village committees is a problem but

not if beneficiary/carer committees

In-kind transfers

Simple to manage Cheap to deliver Popular with the beneficiaries – in

particular the maize flour Cash cannot necessarily buy flour if supplies not available

BUT don’t contribute to balanced

development of the local retail sector

Voucher transfers

Advantages security – can be traced using serial

numbers

Voucher transfers

Disadvantages Restricted choice of goods to buy Retailers raise prices Try to make beneficiaries spend all at once The most vulnerable – find vouchers difficult

to use Few shops meet requirements, so:

some beneficiaries have to walk long distances congestion

And…

Voucher transfers

Disadvantages A division between ‘included’ and ‘excluded’

retailers leading to… uneven development opportunities for rent-seeking

staffing requirements: retailer liaison officers, accountants

Delivery costs are high Forgery is possible when programme scaled up Vouchers do not prevent stealing by village

committees………...!!

Delivery costs not including overheads

E.g. transport, security, printing of vouchers and receipts, commission to retailers.

Cash MK 14In-kind MK 29Vouchers MK 103

% of total project cost – including overheads - that gets to

beneficiaries

In-kind 69% Cash 71% Vouchers 63%

- but this would be lower in expansion phase

Our recommendationNot vouchers!

Type of transfer

Go for:CashOR

In-kindOR

A combination of both

Well-being of beneficiaries

DWTs make a major contribution to food security and other basic needs

Well-being of beneficiaries

Eating around two meals per day (nsima and snacks) - at time of Q2 survey

Not much difference between type of transfer

But: sub-set of beneficiaries have not avoided

serious food insecurity

Consumer demand

We can predict consumer demand as project expands:

Cash (vouchers similar) maize and maize milling, salt and soap seed in the planting season sugar, fish, paraffin and cooking oil

In-kind items in transfer, e.g. maize flour, blankets,

soap

Impact on the local economy (retail sector)

Cash spread the benefits locally

Vouchers benefit certain shops locally, but others

excluded In-kind

concentrate the benefits with big suppliers in Dedza or Lilongwe

Village heads did not do a good job – over-registration

We recommend: democratically elected committees

ORopen village meeting

Selection of beneficiaries

We recommend:Sliding scale

Multiple beneficiary households

It is possible – but we register name of household head AND name of beneficiary/ies

Careful monitoring would be needed to prevent abuses

dedza safety nets pilot project dsnpp learning lessons about direct welfare transfers for malawi’s...

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