November 2016 Number 161 SOCIAL SAFETY NETS IN IRAQ: REFORM IN A TIME OF FRAGILITY, CONFLICT, AND VIOLENCE Ghassan Alkhoja, Ramzi Neman, and Sara Hariz1 Introduction2: Iraq, once a relatively skilled and economically prosperous society, has seen its development thwarted by decades of conflict and economic decline. Today it is an upper middle- income, resource-rich, yet fragile and conflict- riven country. Progress on the twin goals of ending extreme poverty and boosting shared prosperity is inevitably an uphill struggle in such a context. Indeed, there has been no overall MoLSA team registers Iraqi family for the movement towards either poverty reduction or poverty targeting program reduced income equality in Iraq since 2007; headcount poverty measured in 2014 has remained virtually unchanged at 22.5 percent. As a response to these many challenges, the What limited gains in poverty reduction were World Bank supported a series of learning visits achieved through 2012 had been reversed by for senior and technical Iraqi officials in 2012 to 2014, as a result of a resurgence in violence and explore other country experiences in a South- the worsening of the economic environment. South knowledge sharing mechanism, with visits More than four million Iraqis have been to Georgia, Turkey, Lebanon, and Indonesia. The displaced by the country’s various conflicts. purpose of these visits was to learn from other country experiences and adapt good practices to the Iraqi context. The learning process Social Protection Journey in Iraq: From culminated in a policy forum organized by the Learning to Policy Making to Implementation: World Bank in November 2012 which The social assistance cash transfer program in summarized the visit outcomes and identified Iraq has been inefficient and fragmented. The potential reform areas in Iraq which would Iraq Social Safety Net (SSN) had been providing benefit from international good practices. There cash transfers to close to 950,000 households were a number of lessons learned from these based on a categorical targeting system3. This has visits that were taken by the Government of Iraq led to significant leakages with only 11 percent of and that could fit into the local context. Key to the poor receiving benefits (Iraq IHSES 2012). these are (i) the proxy means-testing mechanism 1 Ghassan Alkhoja (Senior Social Protection Specialist), 3 These are orphans, married students, students that Ramzi Neman (Senior Social Protection Specialist), and Sara are orphans, those with disabilities caused by aging, Hariz (Operations Analyst) are in the MNA Social Protection those with disabilities caused by illness, the blind, the and Labor Unit. This note was cleared by Hana Brixi, MNA Social Protection and Labor Practice Manager. paralyzed, families of the imprisoned and missing persons and the unemployed (e.g., due to terrorism 2 Adapted from the draft Iraq Systematic Country and the internally displaced). Diagnostic 2016. October 2016 · Number 160· 1 employed in Georgia; (ii) the robust technology labor market policies”. For SSN specifically, the and conditional cash transfer programs of vision is to “An efficient Social Protection Turkey; (iii) the social workers component from Commission responsible for Social Safety Nets the national poverty targeting program in programs, adopting a scientific targeting Lebanon; and (iv) community driven and local approach based on clear criteria that improves development aspects in Indonesia. inclusion of the poor and vulnerable individuals and households, while coordinating with the The learning process led to the development of relevant governmental and non-governmental the new Social Protection Law (Law 11 of 2014), institutions in Iraq”. The involvement of which came into effect in April 2014, and which parliamentarians and the leadership and established the Social Protection Commission to presence of the Minister and senior Prime manage social assistance in Iraq. This quick Minister Advisors in this event ensured the passage of the law was possible because of a key highest level of ownership and political support best practice: government officials sat down with to the process. The Roadmap is now being members of parliament to draft the law, along implemented along its three main pillars, and is with senior advisors from the Council of Minister an umbrella piece for overall social protection and from the Shura Council, and with advisory policies in Iraq. support from the World Bank team. Thus, international experience were infused with local Social Workers: A Pillar on the Front Lines of context, and a stakeholder-inclusive Poverty Reduction in Iraq: The Ministry of Labor development model. This mechanism is now and Social Affairs started the process of being applied in Iraq for the development of the implementing the new law and the Social new social insurance legislation. Protection Strategic Roadmap. In November 2015, the World Bank social protection team The new Social Protection law, at its core, initiated the Iraq Social Protection Support established poverty as the main eligibility criteria Program Phase I, a technical assistance project for cash transfer (and overall social assistance), (with support from UK DfID and the replacing the ineffective categorical targeting Government of Japan) with overall objectives to with a more efficient method, adopting proxy support social protection reforms more broadly, means-testing and geographical targeting, and including support to targeting and the placing emphasis on social workers as the engine development of a welfare database supported by behind identifying the poor, and subsequently social workers. supporting human capital investment through proper case management. The move from categorical targeting to poverty targeting makes it necessary to identify the The process did not stop at passing the law. In welfare status of households. The use of Proxy November 2014, the World Bank convened the Means-Testing (PMT) targeting method, utilizing Social Protection Strategic Discussions for Iraq, data from Iraq’s excellent household surveys where the Iraqi delegation led by the Minister of (2007 and 2012), meant that a strong team of Labor and Social Affairs agreed on the Iraq Social social workers would be needed to undertake the Protection Strategic Roadmap 2015-2019. The household visits. MOLSA received approval, as Framework was developed within an inclusive part of the 2016 budget, to hire close to 1,300 process that gathered senior officials from key social workers, along clear and transparent ministries in Iraq, including Ministry of Labor & criteria, and conducted extensive competitive Social Affairs, Ministry of Planning, Ministry of interviews and selected the best amongst the Finance, civil society, parliament, and other applicants. This is an important factor and lesson related organizations. learned: the hiring process was merit-based and highly competitive, tapping into a large reserve The vision of the Framework is to have “a of educated youth, and who had a strong desire comprehensive social protection system for Iraq to work in the social sphere. Making such a covering social safety nets, social insurance, and recruitment take place, away from prevailing November 2016 · Number 161· 2 civil service traditional hiring practices (with important to note that the selection of the 80 core political interventions), required strong support social workers also followed a very rigorous from the minister, who had to weather political process, with very clear criteria to identify these pressures to ensure the right recruitment was candidates, who will not only be the trainers for taking place. the rest of the social workers, but also the catalysts for change. The role of social workers is critical in a delicate environment governed by fragility and conflict The training program consisted of two parts: : (i) such as Iraq. Technically, their role exceeded data “master trainer” capacity development for the 80 collection. They are expected to undertake case core social workers, which was very interactive management devise intervention plans linked to and “role-based”; and (ii) the development of the human capital preservation and investment, and Social Worker Operational Manual and a follow-up with each household to support Training Guide. Four intensive training sessions graduation from poverty, and eventually were delivered in April and May 2016. Right after towards activation in the labor market. these sessions, the core master trainers started the process of providing the training to all social The more important aspect is the social workers across governorates, using the detailed integration function entrusted to social workers manual and guide developed by the World Bank in Iraq. They will interact with people of all in English and Arabic. The social worker backgrounds. They will emphasize the program was launched formally in Baghdad on government’s efforts to improve service delivery August 9, 2016, with presence of the Minister, in an attempt to reinstitute trust between citizen parliament members, civil society, and and state. They will help promulgate a message international organizations. of social reconciliation and national cohesion, and work on integrating the marginalized and Cash Transfers: Expanding Coverage, Reducing the destitute. Recognizing the importance of Leakages: The 1,300 social workers hired by investing in social workers, the World Bank team MOLSA have been very instrumental in the dedicated a key component of its support implementation of the new PMT targeting program to the empowerment of social workers, program. From September to December 2015, focusing on capacity building and skills they surveyed all pre-Law 11/2014 beneficiaries, development. and a significant number of households were found ineligible under the new law (around 43 Capacity Building: Equipping Social Workers percent). This was a necessary first step in the with Knowledge, Skills, and Attitude : As a first process, essentially to clean up the current roster step in developing the social worker program, of beneficiaries, and to free up resource for the MOLSA asked the World Bank to build the newly covered beneficiaries under the new capacity of a core group of social workers, to criteria. In early November 2016, the Council of move them from the more mundane form-filling Ministers took the decision to exclude the processes. Social workers had not yet perceived ineligible beneficiaries and redirect the sources the strategic role that they might be able to towards new coverage. The approval of the assume. The World Bank team designed a Council of Ministers was a necessary step to structured five day training program to support ensure highest level political support to the this group of over 80 core social workers. The reforms. With the launch of the new PMT objective of the training was to help social program in April 2016, around one million workers realize the importance of their role households have applied (through an online which transcends beyond simple filling out of application process), of which about 750,000 were questionnaires towards reaching out to assessed to be eligible for household visits. households in a process of case management, Eligibility was undertaken through documentary thus influencing positively the life spectrum of verification, but most importantly through online the family. Social workers were to understand checking of potential income and asset that they were catalysts for change. It is ownership database, such public sector November 2016 · Number 161· 3 employment, social security payment in the private sector, pension salaries, tax records, and vehicle ownership. This is now an automated process that produces results at the touch of a button. To-date, over 75 percent of these households have been visited by the social workers and assigned the PMT scores, while the remaining households are expected to be concluded by end of November 2016. Then, the PMT database will be the one to use when it comes to decisions on other social transfers. Moving Forward: Building on these impressive achievements, MOLSA is planning to advance Iraq has journeyed along an impressive road steadily the reform process by further supporting towards reforming social safety nets, with people its social workers, establishing a clear, at its core, be it the social workers themselves, or transparent and efficient Grievance Redress the households they are trained to support. This Mechanism, and developing a comprehensive is the core of work needed in such a fragile communication strategy to raise the public environment, particularly in the post-conflict and awareness and mobilize support at the policy and liberated areas, and will go a long way towards program levels. recovery and reconstruction, and renewing the social contract through building trust and better Social workers will play the pivotal role of being governance. The World Bank is fortunate enough the anchor of new social assistance programs, to have been part of this journey, and will assessing household welfare status, but more continue its support to ending extreme poverty importantly being the advocate and enhancer of and boosting shared prosperity in Iraq. human capital development. Social workers will look at education and health outcomes at the All in all, if MENA economies could take level of households, provide advice, and offer advantage of the opportunity provided by low oil guidance to households to improve these prices to implement reforms that are planned, it outcomes. They will be the first line in terms of could improve economic performance in the the grievance redress mechanisms being region. institutionalized. They will also support households towards income-generating Contact MNA K&L: activities, and support activation in the labor Antonella Bassani, Director, Strategy and market and improving livelihoods, and Operations. MENA Region, the World Bank eventually breaking the inter-generational cycle Sajjad Ali Shah, Manager, MNADE of poverty. In the medium-term, social workers Regional Quick Notes Team: will support identification of projects and Omer Karasapan and Mark Volk Tel #: (202) activities at the community-level within the 473 8177 proposed Iraq social fund for development. The MNA Quick Notes are intended to summarize lessons learned from MNA and other Bank Knowledge and Learning activities. The Notes do not necessarily reflect the views of the World Bank, its board or its member countries. November 2016 · Number 161· 4