March 31st, 2021 NATIONAL REPORT ON THE PROGRESS IN THE IMPLEMENTATION OF THE NEW URBAN AGENDA MINISTRY OF HOUSING AND CITIES, COLOMBIA TRANSFORMATIVE COMMITMENTS • SUSTAINABLE URBAN DEVELOPMENT FOR SOCIAL INCLUSION AND ENDING POVERTY Social inclusion and ending poverty Items 1. Eradicate poverty in all its forms In the last two decades, there has been an accelerated reduction of monetary poverty (mainly due to the growth in per capita income) and multidimensional poverty in Colombia. Nevertheless, territorial disparities and disparities among different population groups persist. One of the global mandates represented in the Sustainable Development Goals adapted by the Colombian Government (CONPES 3918/2018) is to eradicate the extreme poverty and reduce by half poverty in all its forms. The National Development Plan 2018-2022 establishes that it is necessary to advance in equal opportunities through differentiated attention in the lagging areas and strengthen the mechanisms that contribute to the reduction of poverty, thus the following objectives are established: (1) recover the institutional framework and coordination of the poverty reduction strategy; (2) redesign and update the targeting mechanisms of social programs; (3) redesign the conditional cash transfer programs and the network for overcoming the extreme poverty (UNIDOS Network); (4) formalize and regularize the creation and redesign of social subsidies; and (5) create spaces for public policy coordination and formulate affirmative poverty reduction strategies for the most lagging territories In order to accomplish these objectives, Prosperidad Social as the responsible entity at the national level for designing, coordinating and implementing public policies to overcome poverty and social equity, together with other national entities as DNP and Minhacienda, has developed the following strategies: 1. Recover the institutional framework, coordination and monitoring the poverty reduction strategy Comitee for Equity “Mesa de Equidad” Calle 17 No. 9 - 36 Bogotá, Colombia Versión: 8.0 Conmutador (571) 332 34 34 • Ext: XXXX Fecha:15/02/2021 www.minvivienda.gov.co Código: GDC-PL-04 Código:GDC-PL-01 Página 1 de 80 The acceleration of the reduction of poverty and inequality based on the strategies requires a high-level and decision-making body summoned by the President of the Republic, to coordinate sectors and National Government entities in the design and implementation of actions, and in the allocation of resources. a. Route of Overcoming Poverty The objective of the Route is to increase the opportunities for social and productive inclusion of households living in poverty. To do so, Prosperidad Social brings closer to households the different programs of the national level in coordination with the territorial governments. In this way, it is expected, among others, to promote access to health, care and education services, to strengthen entrepreneurship and to improve living conditions and productive infrastructure, contributing to the generation of income. 2. Redesign and update the targeting of social programs In march 2021, the National Planning Department launched SISBEN IV, a tool designed with methodological, technological and operational improvements. In 2021 Prosperidad Social will adjust and update criteria for targeting population using SISBEN IV as a tool to analyze and prioritize population with social and productive exclusions. 3. Redesign the conditional cash transfer programs and the network for overcoming the extreme poverty (UNIDOS) Prosperidad Social redesigns conditional cash transfer CCT programs as Familias en Acción and Jóvenes en Acción, as well as UNIDOS in order of increase the social protection system, adjust to the poverty situation, increase financial inclusion and include recommendations of impact evaluations. 4. Formalize and regularize the creation and redesign of social subsidies In order to unify the guidelines for the creation and operation of subsidies that improve their quality in terms of efficiency and results compared to beneficiary population, the National Planning Department (DNP) develops of a protocol as a guiding tool to standardize the formulation of existing social subsidies and those in the process of design. 5. Create spaces for public policy coordination and formulate affirmative poverty reduction strategies for the most lagging territories. Within the framework of the “Mesa de Equidad”, its members will define the social offer, targeting strategy and articulation for Chocó, La Guajira, Buenaventura and San Andrés de Tumaco, in order to guarantee the efficient concurrence of programs. In the case of Chocó and La Guajira such coordination will emphasis on the food and nutritional security strategy. 6. Additional actions of the National Government The challenge of accelerating poverty reduction remains simultaneously with the emergence of new challenges as COVID-19. For that reason, in 2020 the National Government creates two new unconditional cash transfer programs to cope with households affected by the social and economic effects of the pandemics: i. Ingreso Solidario (Solidary Income) (3 millon households, $ 515 million USD) and Calle 17 No. 9 - 36 Bogotá, Colombia Versión: 8.0 Conmutador (571) 332 34 34 • Ext: XXXX Fecha:15/02/2021 www.minvivienda.gov.co Código: GDC-PL-04 Código:GDC-PL-01 Página 2 de 80 ii. Compensación del IVA (Value Added Tax compensation) (1 million households, $97 million USD), Also, there was a relocation of the program Colombia Mayor for elderly, from the Ministry of Labour to Prosperidad Social Department, in order to centralize all cash transfers in one single entity and therefore improve efficiency. 2. Address inequality in urban areas by promoting equally shared opportunities and benefits During the last 12 years, the estimated total population in Colombia grew by 6.2 million people, from 43.2 million in 2008 to 49.4 million in 2020, and the working-age population grew by 6.3 million people, with an interannual growth rate of 1.3%. The percentage of the working-age population went from 77.8% in 2008 to 80.6% in 2020. For its part, the labour force maintained a year-on-year growth rate of 1.4% with an absolute increase of 3.9 million people between 2008 and 2019; In this period, the participation rate went from 58.5% in 2008 to 63.3% in 2019. The generation of employment between 2008 and 2019 was approximately 4.8 million new jobs; however, in the last year an absolute loss of 179 thousand jobs was observed. The occupancy rate went from 51.9% in 2008 to 56.6% in 2019. The unemployed population showed a decreasing behaviour between 2008 and 2014; This period coincides with the sustained reduction in the unemployment rate, which went from 11.3% in 2008 to 9.1% in 2014. Between 2015 and 2019, the unemployed population increased by 464 thousand people. For its part, the unemployment rate went from 8.9% in 2015 (this being the lowest unemployment rate in the period analysed) to 10.5% in 2019. 2020 was characterized as a year of absolute decline in the main indicators of the labour market as a result of the impact of the Covid-19 pandemic. The unemployment rate increased by 5.4 percentage points in relation to that observed in 2019 and became the highest figure since 2002 (15.6%). The total number of unemployed increased by 1 million 141 thousand people and around 2 million 444 thousand jobs were destroyed. The population groups most affected by this situation were young people (between 14 and 28 years old) and women who saw their unemployment rates increase by 6.4 pp. and 6.8 pp., respectively compared to 2019 (See Table 1). One of the main consequences of this situation was the widening of the gaps in the unemployment rates of these two population groups. The gap between the youth unemployment rate and the total unemployment rate increased by 8.2 pp., indicating a reversal to the gap that was in 2010. And, the gap between female and male unemployment rates widened by 7.7 pp. Total national. Unemployment rate of young people (14-28 years old) y of men and women. Annual Average 2008-2020 Year Youth Men Women Gap 1 Gap 2 2008 19.5 8.9 14.8 8.2 5.9 2009 20.1 9.3 15.8 8.1 6.5 2010 19.9 9.0 15.6 8.2 6.6 2011 18.6 8.2 14.4 7.8 6.2 2012 17.7 7.8 13.7 7.3 5.9 2013 16.4 7.4 12.7 6.8 5.3 Calle 17 No. 9 - 36 Bogotá, Colombia Versión: 8.0 Conmutador (571) 332 34 34 • Ext: XXXX Fecha:15/02/2021 www.minvivienda.gov.co Código: GDC-PL-04 Código:GDC-PL-01 Página 3 de 80 2014 15.8 7.0 11.9 6.7 4.9 2015 15.2 6.7 11.8 6.2 5.1 2016 15.9 7.1 12.0 6.7 4.9 2017 16.1 7.2 12.3 6.7 5.1 2018 16.9 7.4 12.7 7.2 5.3 2019 17.7 8.2 13.6 7.2 5.4 2020 24.2 12.7 20.4 8.2 7.7 Fuente: DANE-GEIH During 2008 and 2020, it is observed that the five cities with the highest unemployment rates for women were Quibdó, Riohacha, Ibagué, Cúcuta and Armenia. For their part, the five cities with the lowest unemployment rates were Bucaramanga and Metropolitan area., Bogotá, Barranquilla - Soledad, Pasto and Tunja. Calle 17 No. 9 - 36 Bogotá, Colombia Versión: 8.0 Conmutador (571) 332 34 34 • Ext: XXXX Fecha:15/02/2021 www.minvivienda.gov.co Código: GDC-PL-04 Código:GDC-PL-01 Página 4 de 80 Unemployment rate of women by cities and metropolitan area. Annual average 2008-2020 Cities and Área 20 20 20 20 20 20 20 20 20 20 20 20 20 metropolitana 08 09 10 11 12 13 14 15 16 17 18 19 20 28.