ETHIOPIA BASIC SERVICE TRANSFORMATION PROGRAM
- Reference: P-ET-IZ0-002
- Approval date: 17/12/2015
- Start date: 23/05/2016
- Appraisal Date: 06/04/2015
- Status: OngoingOnGo
- Implementing Agency: GOVERNMENT OF ETHIOPIA
- Location: SELECTED FOOD INSECURE REGIONS
The Productive Safety Net Program (PSNP) is one of the instruments under the broader FSP of the Government. It is a major instrument geared towards reducing vulnerability and attaining food security for an estimated 5.1 million food insecure people by 2009. It replaces the annual emergency appeal system used by GOE for mobilizing resources for the chronically food insecure population with a more predictable and multi-annual framework. The inherent predictability in this new framework provides better insurance to beneficiaries, minimises asset erosion and encourages integrated local development planning. The program will address not only immediate food insecurity, but also contribute to addressing the underlying causes of food insecurity. In this regard, the program will provide financing for the building of productive community-based assets, and support towards inculcating productive behaviour within the targeted communities.
To achieve this, the Project will have three components:
(I) Public Works: geared towards the provision of cash transfers in the form of wages to labour active food insecure people working in community public works schemes. Under this component, funds will also be provided for the capital inputs and administrative costs of the public works sub-projects.
(II) Direct Support: geared towards the provision of cash transfers to food insecure people who cannot work in public works schemes due to verified genuine reasons (e.g. women at later stages of their pregnancy, the elderly, orphans, female-headed households with young children, etc.). The beneficiaries of this component would be encouraged to partcipate in other productive-oriented activities, such as functional literacy activities, environmental awareness, etc. A strict eligibility and selection criteria is already developed to guide the selection of those eligible for support under this component.
(III) Institutional Support: geared towards the provision of capacity building assistance to implementing agencies, espcially in enhancing community planning processes within the woredas, and also the establishment of an effective M & E system, facilitating the performace of the Grain Market, etc.
The overall development objective of the PSNP is to contribute to improving the productivity and reducing the vulnerability of the food insecure households. The specific objectives include:
Increasing the efficiency of transfers to food insecure households
Improving resilience to shocks
Increasing access to public services for the poor and vulnerable (e.g. schools, rural roads, markets, etc.)
Promoting sustainable community development
The PSNP is a major instrument for achieving the Government's clearly stated goal of reducing vulnerability and attaining food security for approximately five million chronically food insecure people by 2009. In this regard, it is a critical part of the country's rural development process, which the Bank has actively supported over the years. The Bank has been actively involved in policy dialogue issues relating to food security in the country, notably through its membership to the Food Security Technical Working Group and also its support to the bigger Coalition for Food Security. The Bank involvement in the country's rural development process is also evident in its current country portfolio and support to the country's SDPRP development process. Therefore, Bank support to this program is in line with the Bank support strategy for Ethiopia, and specifically, support to this program will increase the ability of the targeted beneficiaries to cope with both idiosyncratic and covariate shocks thus reinforcing the sustainability and development effectives of other Bank interventions geared towards the promotion of growth through enhanced rural development. In addition, the issue of addressing vulnerability is a central theme in the Bank's CSP, which is also in cognizance with the Bank's desire to mainstream social protection in order to enhance the sustainability of its poverty reduction interventions. This is in line with the Bank's broad definition of poverty, where poverty is not solely defined as lack of income and financial resources, but also includes the notion of vulnerability, human capabilities and lack of empowerment. This is further elaborated to include the lack of access to adequate food, drinking water, education, health, credit, infrastructure and good governance.
Furthermore, the Bank has in recent years made positive strides towards the promotion of the harmonization agenda. This includes harmonization among donors but also between Bank procedures and country processes. Ethiopia is a lead country in this harmonization agenda, and has recorded significant progress in this area. In this context, and in view of the wide donor support to the PSNP, the Bank is compelled to be an active player in it by providing capital and technical support towards the implementation of the program.
Improved overall living conditions of the poor and vulnerable through reduced hunger, poverty, malnutrition, etc.
Increased organisational and productive capacities of the beneficiary communities
Improved health indicators due to better access to basic health services and to safe water,
CHIKOKO Mulle - RDGE2