# © UNICEF Madagascar/Gaby Guerrero © UNICEF Madagascar/Gaby This report has been elaborated by Elena Celada (International Consultant in social protection). The report has been prepared as commissioned by the Government of Madagascar (Ministry of Population, Social protection and Women’s Promotion and the National Office of Risk and Disaster Management) in coordination with the members of the emergency cash group and with UNICEF’s funding and technical support. The results of this report have been presented and discussed with the Government and the members of the emergency cash group. The author wishes to thank the Government of Madagascar and all the actors whom she met, for their collaboration and for sharing the information necessary to draft the report, especially the Ministry of Population, Social Protection and Women’s Promotion, the National Office of Risk and Disaster Management, UNICEF, WFP, FAO, UNDP, ILO, the World Bank, the Fund for Development Intervention, CARE, Catholic Relief Service, Welthungerhilfe, the Malagasy Red Cross and the Islamic Relief France. This report should be cited as: Celada, Elena. 2017. “Social Protection in Madagascar: The Case of Cash Transfers: Capacity to respond to shocks and options for harmonization”, Study of the cash working group. EMERGENCY CASH GROUP MEMBERS Acronyms BNGRC NationalOfficeforRiskand IGA IncomeGeneratingActivity PURSAPS EmergencyFoodSecurityand DisasterManagement ILO InternationalLabour SocialProtectionProgramme CERF CentralEmergencyResponse Organization RIASCO RegionalInter-AgencyStanding Fund INSTAT NationalInstituteofStatistics Committee CFSAM CropandFoodSecurity IOM InternationalOrganizationfor FSC FoodConsumptionScore AssessmentMission Migration SIF IslamicReliefFrance CFW Cash-For-Work IPC IntegratedPhaseClassification SISAV InformationSystemonFood CLS LocalSecurityCommittee LUL LetUsLearn SecurityandVulnerability CRM MalagasyRedCross MGA MalagasyAriary SMART StandardizedMonitoringand AssessmentofReliefand CRS CatholicReliefService MPPSPF MinistryofPopulation,Social Transitions CT CashTransfer protectionandWomen’s SOP StandardOperatingProcedures ECHO EuropeanCommissionfor Promotion HumanitarianAid NGO Non-Governmental SSN SocialSecurityNets ENSOMD NationalSurveyonMonitoring Organization TMDH CashTransferforHuman theMillenniumDevelopment OCHA OfficefortheCoordinationof Development GoalsIndicators HumanitarianAffairs UCT UnconditionalCashTransfer FAO FoodandAgriculture ONN NationalOfficeofNutrition UNDP UnitedNationsDevelopment OrganizationoftheUnited PSN ProductiveSafetyNet Programme Nations GDP GrossDomesticProduct UNICEF UnitedNationsChildrenFund FCS FoodConsumptionScore PDM PostDistributionMonitoring WASH WaterSanitationandHygiene FID FundforDevelopment PMT ProxyMeansTest WFP WorldFoodProgramme Intervention PNPS NationalSocialProtection WHH Welthungerhilfe HEA HouseholdEconomyApproach Policy HIMO HighIntensityofLabourForce Table ofContents Executive Summary . 1 4.2 Cyclones . 49 4.2.1 OverallhumanitarianresponsetocycloneEnawo . 49 Study Goals and Presentation . 5 4.2.2 MonetaryresponsetocycloneEnawo . 52 5. Getting close to building a shock-responsive social safety nets THE GOVERNMENT’S SOCIAL SAFETY NETS PROGRAMME system . 55 1. Background . 8 5.1 Capacities and limitations of expanding the State-run social safety nets program 1.1 Poverty and human development . 9 . 56 5.2 Roles and responsibilities of humanitarian stakeholders 1.2 Vulnerability to natural disasters . 10 . 61 6. Key steps for harmonizing the national social safety nets 2. The national contributory social protection system . 13 system in response to crises . 62 2.1 Current status of the social protection system . 14 6.1 Harmonizing the parameters . 63 2.2 The Government’s social safety nets programme – current 6.1.1 Targeting . 63 status . 16 6.1.2 Amountofthetransfer . 76 2.3 Long term vision . .. 20 6.1.3 Durationofthetransfer . 83 3. Recommendations for the long term vision . 31 6.1.4 Typologyofthemonetaryintervention(CFWor unconditionaltransfer) . 84 MONETARY TRANSFERS IN RESPONSE TO EMERGENCY 6.2 Designing the common management tools . .. 85 SITUATION ANALYSIS AND STEPS TOWARDS HARMONIZATION 6.2.1 Singleregister . 85 6.2.2 Othermanagementtools . .. 89 4. Humanitarian response to natural disasters . 35 6.3 Institutional framework for harmonization . 91 4.1 Drought . 36 4.1.1 Overallhumanitarianresponsetodrought . 36 Conclusions . 96 4.1.2 Monetaryresponsetodrought . 40 Bibliography . 98 Table 6 Mixed categorical targeting and PMT based on the regional peculiarity .............................27 APPENDIX Table 7 Number of beneficiaries and funding for the crisis related to the drought in the South – overall Appendix 1 Roadmap of the process to harmonize cash transfers humanitarian response ..........................36 in response to crises ........................... 99 Table 8 Cash transfer projects in response to the emergency Appendix 2 Statistical tables ...............................102 in the South ....................................42 Principles for coordinating emergency cash Appendix 3 Table 9 Number of beneficiaries compared to estimated interventions . .109 needs – examples for the district of Ambovombe and Tsihombe ...................................... Appendix 4 Strategic axes of the social protection policy .....110 45 Parameters of the cash transfer programmes which Appendix 5 Cash transfert program per commune-district of Table 10 provide support to consumption and to other sector- Amboasary and Bekily. 111 specific goals. 47 Appendix 6 Cost of the payment agencies for cash transfers .. 114 Table 11 Parameters of the cash transfer programmes in support to livelihoods ...........................48 TABLES Table 12 Budget and number of beneficiaries of the different Table 1 The Government’s social safety nets programme – cash transfer projects in response to Enawo .......52 annual figures ..................................17 Table 13 Type of Intervention, amount of transfer and location Table 2 Geographical coverage of the Government’s social – response to Enawo ............................53 safety nets program. 18 Table 14 Strategy for extending the Government’s social safety Table 3 Average amount of transfers in the Government’s nets programme in view of past shocks (2016-2017) 57 social safety nets programme - TMDH/LUL ....... 20 Table 15 Limitations of extending the Government’s social Table 4 Coverage of the social safety nets programme with an safety nets programme in the face aux shocks .... 58 investment of 1.5% of GDP and a transfer equivalent Example of resource distribution among districts to 16% and 20% of target households’ consumption .23 Table 16 based only on IPC (in the absence of data to build a Table 5 Cost of an only categorical national programme composite IPC/malnutrition index) .............. 65 based on a transfer equivalent to 20% of poorest Percentage of households belingong to different households’ consumption. .25 Table 17 categories .....................................72 SOCIAL PROTECTION IN MADAGASCAR: THE CASE OF CASH TRANSFERS: CAPACITY TO RESPOND TO SHOCKS AND Table OPTIONS FOR HARMONIZATION of Contents Table 18 Consumption deficit and emergency transfer ......75 Figure 11 Elements to consider as part of the geographical targeting. 67 Table 19 Generosity of the emergency programmes in the Androy and Sava regions (in MGA) ................79 BOXES Box 1 Note on the terminology used ....................15 FIGURES Box 2 Best practices in defiing the amount of transfer in development programmes .......................22 Figure 1 Social nets programme and extension during the crisis. 30 Box 3 Categorical cash transfer based on life cycle .......24 Figure 2 Humanitarian response in the South per sector (% of Box 4 Other cash transfer development programmes ....28 total budget) - overall humanitarian response .....37 Box 5 Social nets as prerequisite mechanism for building Figure 3 Total amount received by recipient of the households’ capacity in the face of foreseeable and humanitarian aid (in Ml US$) – overall humanitarian repeated crises ................................ 68 response .......................................38 Box 6 The household economy approach (HEA) ..........82 Figure 4 Total amount received per type of implementing agency (in Ml US$) – overall humanitarian response 39 Box 7 The emergency cash working group in Madagascar .93 Figure 5 Amount allocated per donor (in Ml US$) – overall humanitarian response ......................... 40 Figure 6 Budget of the monetary projects per agency (% per agency). .43 Figure 7 Number of beneficiary households (% per agency) ..44 Figure 8 Main donors of the humanitarian response to cyclone Enawo - overall humanitarian response ...........49 Figure 9 Funding received per sector (% of total) – overall humanitarian response ......................... 50 Figure 10 Funding received by the different organizations (% of total) – overall humanitarian response ............51 SOCIAL PROTECTION IN MADAGASCAR: Table THE CASE OF CASH TRANSFERS: CAPACITY TO RESPOND TO SHOCKS AND of Contents OPTIONS FOR HARMONIZATION © UNICEF Madagascar/Gaby Guerrero Executive Summary As more than 70% of Madagascar’s population These choices will in turn be largely dictated live below the poverty line, the island is one by budgetary constraints. If, in the long of the world’s poorest countries. The country run, the Malagasy Government plans to is also systematically exposed to extreme