Supérate Combating Extreme Poverty in Tlaxcala, Mexico
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Supérate Combating extreme poverty in Tlaxcala, Mexico Tlaxcala 2019 – 2021 Poverty is defined via the official multidimensional poverty rating system of Mexico Poverty in Mexico • Earnings less than $2,014.72 Mexican pesos in rural areas or $3,104.57 pesos in urban areas per month, as well as at least one social risk factor (per family ACCESS TO EDUCATION ACCESS TO BASIC ACCESS TO FOOD member). AMENITIES HEALTH SERVICES Extreme Poverty in Mexico • Earnings less than $1,117.4 Mexican pesos in rural areas or $1,569.36 pesos in urban areas per month, as well as at ACCESS TO DECENT HOUSING SOCIAL SECURITY least three social risk factors (per family member). SOCIAL RISK FACTORS 2 Poverty levels in Mexico have decreased at a very slow pace • The reduction of the percentage of people living in poverty (from 44.4% a 41.9%) has not resulted in fewer Mexicans living in poverty. The absolute number of Mexicans living in poverty was, in fact, greater in 2018 (+2.9 millon), than it was in 2008. • The reduction of the percentage of people living in extreme poverty (11% to 7.4), has reduced the absolute number of people living in this condition (-3.0 million people). POVERTY AND EXTREME POVERTY IN MEXICAN STATES 2018 (%) Source: CONEVAL, 2018. 3 Poverty levels in Tlaxcala have decreased at a faster pace • In Tlaxcala, between 2008 and 2018, the percentage of those living in poverty declined by 11.2 percentual points (from 59.6% to 48.4%). From 2016 to 2018, poverty declined by 5.5 percentual points, from 53.9% to 48.4%. • Extreme poverty decreased, from 5.7% to 3.1%. • Poverty reduction in Tlaxcala was the third highest among all Mexican states and this rate of reduction was more than three times greater than the national rate. It means that almost 90,000 people improved their social and economic conditions. POVERTY IN MEXICO AND TLAXCALA (%) Poverty Extreme Poverty Source: CONEVAL, 2018. 4 Inequality in Tlaxcala is the lowest in the country • Although inequality in Tlaxcala is the lowest in the country, there is a long way to go to ensure all residents have a decent standard of living. In 2018, the Gini coefficient of Tlaxcala was 0.373, the lowest in the country. • Inequality is more evident via other indicators. For example, the Gini coefficient for salary in Tlaxcala ranked 20th highest in the country (0.365). GINI COEFFICIENT FOR MEAN INCOME IN MEXICAN STATES IN 2018 Source: CONEVAL, 2018. 5 Overall, Tlaxcala has the lowest rate of inequality in Mexico, but this varies by municipality • None of the Tlaxcalan municipalities are PERCENTAGE OF PEOPLE IN EXTREME POVERTY, BY MUNICIPALITY, IN TLAXCALA (2015) ranked lowest or highest for poverty rates Municipalities with the highest rate of in the country, however, in two thirds of extreme poverty: Tlaxcalan municipalities (42) the majority of the population live in poverty. Tlaxcala average: 48.4% • In addition, 52 Tlaxcalan municipalities have a higher percentage of people living Range Total of in poverty than the national average municipalities (43.6%) and in 39 municipalities this rate is higher than the state average (53.9%). Source: CONEVAL. 6 There are gaps in other markers of social inequality in Tlaxcala • Social inequality markers in Tlaxcalan municipalities confirm poverty and income findings. The data demonstrate that there is great inequality between municipalities in access to education, health, and basic services. SOCIAL MARKERS OF INEQUALITY IN TLAXCALAN MUNICIPALITIES IN 2015 (%) Lack of access to basic Lack of access to Educational Lack of access to Lack of access to Lack of decent amenities food backwardness health services social security housing MIN MAX TLAXCALA AVERAGE 7 Half of population in extreme poverty live in just 13 municipalities • There are people living in extreme poverty in all 60 municipalities, however 26% of this population is concentrated in three municipalities: San Pablo del Monte, Huamantla and Ziltlaltépec. • Another 24% of the population in extreme poverty is concentrated in 10 others: Contla, Chiautempan, Tlaxco, Tlaxcala, Apizaco, El Carmen Tequexquitla, Calpulalpan, Nativitas, Papalotla and Zacatelco. PERCENTAGE OF POPULATION LIVING IN MUNICIPALITIES CONTAINING HIGHEST RATES EXTREME POVERTY PER MUNICIPALITY IN 2015 OF EXTREME POVERT y Municipalities with the highest rate 26% of population in extreme of extreme poverty: poverty lives in: 24% of population in extreme poverty lives in: Tlaxcala average: 3.1% Range Total of municipalities Source: CONEVAL. Source: CONEVAL. 8 Eliminating extreme poverty in municipalities in Tlaxcala will likely take more than two decades • Historically, eliminating extreme poverty in Tlaxcala has been a slow process. In 57 municipalities it has taken more than two decades to reduce extreme poverty to the level of Nuevo León (0.6%). • Two extreme cases serve as exemplars: Atlangatepec and Zitlaltépec. YEARS TAKEN TO REDUCE EXTREME POVERTY IN TLAXCALAN MUNICIPALITIES TO 0.6% (SELECTED CASES) Source: Original graphic based on information from CONEVAL. For municipalities where there was no reduction in poverty population from 2010 to 2015, mean data from the state was utilized 9 The pace of poverty reduction suggests many complexities • At the reduction rates observed, it would take 22 entities over 100 years to reduce poverty to the state with the lowest current poverty (Nuevo León, with 14.2% in poverty and 0.6% in extreme poverty). • It would take 20 municipalities longer than Tlaxcala to reduce poverty levels to those of Nuevo León. ESTIMATED NUMBER OF YEARS TO REDUCE THE MARKERS OF SOCIAL INEQUALITY IN TLAXCALA PERCENTAGE OF POVERTY AND EXTREME POVERTY (%) AND ESTIMATED YEARS TO REDUCE TO THE LEVEL OF NUEVO LEÓN INEQUALITIES TO MINIMAL NATIONAL LEVELS Lack of access to social security Lack of access to food Lack of access to health services Educational backwardness Lack of access to basic amenities National average Tlaxcala Coahuila Lack of decent housing Poverty Extreme Poverty Source: Original graphic based on information from CONEVAL. For municipalities where there was no reduction in poverty from 2008 to 2016, mean national data was utilized 10 Supérate aims to facilitate the process of poverty reduction TECHNICAL RIGOR IN DIAGNOSIS, DESIGN AND EVALUATION TRANSPARENCY PILLARS SUSTAINABILITY MID-TERM RESULTS IN LINE WITH SDG (SUSTAINABLE DEVELOPMENT GOALS) 11 Supérate is based on intervention programs from more than 20 countries COUNTRIES THAT SERVED AS REFERENCE POINTS IN THE DESIGN OF SUPÉRATE • Programs from more than 20 countries served as direct reference points for Supérate. • 26 countries from countries in Latin America and the Caribbean provided evidence for the program. • The program was also modelled after successful programs in China : China reduced the proportion of people living in extreme poverty from 66.2% in 1990 to 0.7% in 2015 ( from 752 to 10 millions people). • Supérate is also based on prior experience specifically from Mexico. 12 The objective of Supérate is to cut extreme poverty rates by half by the year 2022 1. Monthly Monetary Support. 2. Life and Housing Insurance 4. Skill training program to 5. Monetary transfer to • Of $ 743 pesos for urban beneficiaries and Policy ensure the sustainability of facilitate skill development $ 516.4 for rural beneficiaries, with caps • The second component the productive activities of • During approximately the per household of $ 4,177.9 and $ 2,237.8 received by beneficiaries is low the beneficiaries. 5th month of program respectively. * cost insurance. • On-site training provided in participation. • The amount will be to complete, on • The insurance will cover all airconditioned spaces. • A maximum of two transfers average, the value of a consumer (foods) household members. • Training will< begin during the per household.< basket. third month of the program. • This value is equal to $ 1,569.36 pesos in • Training will be provided to all urban areas and $ 1,117.4 in rural areas. household members between • The female heads of household will 15 and 64 years. receive the total amount. • This represents the first support that the beneficiaries will receive. WEEKLY STAFF VISITS * Calculations based on Total Current Income Per Capita of people in extreme poverty living in Tlaxcala, according to the 2016 National Survey of Household Income and Expenditure (ENIGH) 2016 13 Supérate has seven components 5. Accompaniment, support and monetary 6. Attention to early childhood (0 to 5 years). 7. Targeted interventions to identify and incentives to open a savings account in a • Workshops for parents on socio-emotional address specific household issues as well public institution. skills, education and health. as facilitate household access to federal • Financial education. • Special health care for this age group. and state social programs. • Individualized savings incentives: for • On-site training for parents on early example, 1 to 1 rewards from saving a stimulation activities to improve children's < certain amount. cognitive and language skills (for mothers • Account opening at a bank branch. and their children between 12 and 24 • To begin approximately in the sixth months of age). month of program participation. • To begin in the second month of program participation. WEEKLY STAFF VISITS 14 Supérate is a graduation program 1. Monthly Monetary Support The program aims for “Graduation from 2. Insurance extreme poverty” • Duration of24 months maximum 3. Skills Training • Subject to income sustainability above the extreme poverty threshold. 4. Monetary Transfer • Selction based on housholds having at least 4 social risk factors. PROGRAM DESIGN 5. Savings Training AND PLAN 6. Attention to Early Childhood BENEFICIARY IDENTIFICATION 7. Household access to federal and state social programs 0 2 3 5 6 MONTH OF PROGRAM OPERATION 24 15 The program will have two stages of operation BENEFICIARY IDENTIFICATION • Approx. 56,560 tlaxcaltecas life in extreme poverty • Extreme poverty: Income below $ 1,117.4 or $ 1,569.36 1. Coverage of approximately 449,559 people (101,528 pesos per month in rural and urban areas, respectively + households).