The World Bank Social Safety Nets System Strengthening (P175594) Program Information Documents (PID) Appraisal Stage | Date Prepared/Updated: 08-Feb-2022 | Report No: PIDA255901 Jan 31, 2022 Page 1 of 11 The World Bank Social Safety Nets System Strengthening (P175594) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Program Data Country Project ID Program Name Parent Project ID (if any) Cote d'Ivoire P175594 Social Safety Nets System Strengthening Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA WEST 28-Feb-2022 18-Apr-2022 Social Protection & Jobs Financing Instrument Borrower(s) Implementing Agency Program-for-Results Financing Republic of Côte d'Ivoire Ministry of Solidarity and Fight against Poverty Proposed Program Development Objective(s) The Program for Results Development Objective (PDO) is to increase access of poor and vulnerable households to safety nets programs and improve the performance of delivery systems. COST & FINANCING SUMMARY (USD Millions) Government program Cost 613.00 Total Operation Cost 363.00 Total Program Cost 357.70 IPF Component 5.30 Total Financing 363.00 Financing Gap 0.00 FINANCING (USD Millions) Total World Bank Group Financing 150.00 World Bank Lending 150.00 Total Government Contribution 213.00 Jan 31, 2022 Page 2 of 11 The World Bank Social Safety Nets System Strengthening (P175594) Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context 1. The COVID-19 pandemic translated into rising poverty in Côte d’Ivoire. With Gross Domestic Product (GDP) growth of 6.9 percent in 2019, Côte d’Ivoire continued to be one of the fastest growing economies in Sub- Saharan Africa (SSA). With the onset of COVID-19 in March 2020, GDP growth slowed down to 2.0 percent. The global pandemic has led to significant income losses for more than 70 percent of Ivorian households, worsening the living conditions of already vulnerable households. National poverty increased during the pandemic.1 Poverty is estimated to have reached 41.5 percent in October 2020 (up from 39.4 percent in 2018).2 2. Côte d’Ivoire’s fight against poverty slowed over the last few years and hides stark inequalities. Poverty decreased significantly between 2011 and 2015 (by 11.3 percentage points (ppt)) but slowed between 2015 and 2019 (decreasing by 4.6 ppt). Further to this, poverty reduction was not equally distributed across the country. Abidjan experienced the sharpest reduction in poverty reaching 10.2 percent in 2018/19- a 20 ppt decrease from 2011, while rural areas only experienced a 13.5 ppt decrease in that same period.3 With more than 68 percent of poor people living in rural areas in Côte d’Ivoire, poverty is mainly a rural phenomenon. 3. Côte d’Ivoire’s economic development did not translate into progress on human capital or gender equality. Côte d’Ivoire’s human capital index (HCI) score equals 0.38 in 20204, which is similar to that of poorer neighboring countries.5 Furthermore, Côte d’Ivoire has one of the highest gender inequality rates in the world: in 2019, it was ranked 162 out of 189 countries on the United Nations Gender Inequality Index. Women in Côte d’Ivoire continue to face inequalities at school, in accessing health care and in the labor market. They are overrepresented in non-agricultural self-employment as well as informal employment, and underrepresented in wage jobs, which makes them more vulnerable and without access to social protection programs.6 The inequality and discrimination against women have been further exacerbated by the COVID-19 pandemic.7, 8 4. Vulnerability to shocks, including climate related shocks, is a challenge for Côte d’Ivoire’s long -term poverty reduction. More than 60 percent of Ivorian households report having suffered from either an idiosyncratic (41.2 percent) and/or a covariate shock (32 percent) in 2018. Coupled with a high share of 1 World Bank, 2021. Côte d’Ivoire: Poverty Assessment Volume 1: Poverty and Inequality Dynamic in Côte d’Ivoire. Forthcoming. The country’s poverty rate fell from 44.4 percent in 2015 to 39.4 percent in 2019, with urban areas showing a decrease from 35.9 percent to 24.7 percent compared to rural areas’ more limited reduction from 56.8 percent to 54.7 percent. 2 Banque mondiale. 2020. Côte d’Ivoire 10e mise à jour économique : bilan et perspectives : la Côte d’Ivoire et la pandémie de COVID-19. 3 World Bank, 2021. Côte d’Ivoire: Poverty Assessment Volume 1: Poverty and Inequality Dynamic in Côte d’Ivoire. Forthcoming. 4 Côte d’Ivoire’s score of 0.38 effectively means that a child born today will be 38 percent as productive when she grows up as she could be if she had benefited from full education and health. 5 World Bank Country and Lending Group, FY21. 6 World Bank, 2021. Côte d’Ivoire: Poverty Assessment Volume 5: Gender Inequality and Poverty in C ôte d’Ivoire. 7 Chuku Chuku et al. May 8, 2020. Putting Women and girls’ safety first in Africa’s response to COVID-19. Brookings; IPA. 2020. Analyse de l’enquête RECOVR en Côte d’Ivoire. 8 World Bank, April 2020. Gender Dimensions of the COVID-19 Pandemic. Policy Note. Jan 31, 2022 Page 3 of 11 The World Bank Social Safety Nets System Strengthening (P175594) vulnerability to poverty9, shocks, such as the COVID-19 pandemic, can reverse progress in poverty reduction and worsen living conditions of not only poor households but also vulnerable ones. The poor are far more exposed to covariate shocks than the non-poor, are disproportionally affected and have fewer coping mechanisms to rely on.10 Sectoral and Institutional Context 5. The Government of Côte d’Ivoire’s strategic vision to fight poverty and reduce vulnerabilities is enshrined in the National Development Plan 2021-2025 (Plan National de Développement, PND) and operationalized by the newly adopted Multisectoral Social Safety Net System Support Program ( Programme Multisectoriel d’Appui au Système National des Filets Sociaux, PAFS). The two documents build on the achievements of the National Social Protection Strategy (Stratégie Nationale de Protection Sociale, SNPS, 2016– 2020) to increase pro-poor spending and coverage of social protection programs. While the SNPS ended in 2020, it is currently being updated under the leadership of the Ministry of Employment and Social Protection (Ministère de l’Emploi et de la Protection Sociale, MEPS) and will be aligned with the strategic directions given in the new PND validated in October 2021 by the Council of Ministries. The PAFS was formulated in October 2021 under the leadership of the Ministry of Solidarity and Fight against Poverty (Ministère de la Solidarité et de la Lutte contre la Pauvreté, MSLP) to operationalize Pillar 4 of the PND aiming to strengthen inclusion, national solidarity and social action. While the SNPS presents the government’s broad vision to build a social protection system that strengthens the capacities of the most vulnerable households and enables populations to better manage risks, the PAFS details the programs, activities and means needed to operationalize the vision. 6. Côte d’Ivoire’s social protection system has experienced important progress over the last five years as a result of strong government commitment to build the foundations of a safety net system and particularly its commitment to developing the country’s first large scale productive cash transfer program. Under the International Development Association (IDA)-funded Productive Social Safety Net project (Project des Filets Sociaux Productifs, PFSP) (P143332) and its Additional Financing (P167623), the government progressively rolled out a national productive cash transfer project, which is transitioning into an institutionalized productive cash transfer program. The productive cash transfer program (Programme de Transferts Monétaires Productifs, PTMP) is currently supported by the PFSP and benefits from significant government co-financing. The government financed 30 percent of the total costs of the PTMP during the period 2020-2021. The PTMP expanded significantly over the years, bringing the total number of beneficiaries to a cumulative 227,000 households in 2020, covering rural and urban areas across all regions. Besides quarterly cash transfers11, the program also provides economic inclusion measures to beneficiary households to support their income and build their resilience in view of their exit from the PTMP.12 In addition to financing the PTMP, the PFSP has also been supporting the development of foundational elements of an adaptive safety nets system focusing on the poorest households: a unique social registry (Registre Social Unique, RSU), the PTMP’s management information system (MIS), a digital payment system, and a Grievance Redress Mechanism (GRM). 7. While the social protection sector has gained prominence in Côte d’Ivoire, the lack of synergies and common delivery tools is hampering the system’s efficiency. The institutional landscape of Côte d’Ivoire’s safety 9 World Bank, 2021. Côte d’Ivoire: Poverty Assessment Volume 1: Poverty and Inequality Dynamic in Côte d’Ivoire. Forthcoming. 10 World Bank, 2021. Côte d’Ivoire: Poverty Assessment Volume 1: Poverty and Inequality Dynamic in Côte d’Ivoire. Forthcoming. 11 Beneficiary households identified through a combination of poverty targeting (Proxy means testing) and community validation) are enrolled in the program for 3 years. Quarterly cash transfers of 36 000 XOF are provided through mobile money. 12 Economic inclusion measures include coaching; training on life skills, family budget, and entrepreneurship; the establishment of savings and loan associations; a small business grant; and facilitation to market access. Jan 31, 2022 Page 4 of 11 The World Bank Social Safety Nets System Strengthening (P175594) nets system remains highly fragmented: there is limited coordination of policies, financing strategies, and delivery services. The PFSP has played a key role in developing the foundational elements of a social protection delivery system and promoting synergies. Potential common implementation mechanisms exist but need to be strengthened. A coordinated safety nets system could ensure better service delivery and more holistic interventions toward poor and vulnerable households. Such an approach would likely ensure greater impact on Côte d’Ivoire’s long term poverty reduction. 8. The Government of Côte d’Ivoire’s spending on social programs remains limited, despite an increase in recent years. Between 2014 and 2016, “social spending�13 and “other poverty-reduction spending�14 were on average 0.7 and 0.2 percent, respectively, of total government public expenditure.15 In 2019, PTMP spending represented only 0.05 percent of GDP, which is lower than the 1.2 percent spent on average on social safety nets in African countries.16 An increased interest from donors on the safety nets system in recent years, contributed to the government’s increased spending in the area. The African Development Bank (AfDB) provided a budget support of around US$29 million directly linked to the PTMP extension and the European Union (EU) provided US$4.5 million for the adoption of the PAFS. PforR Program Scope 9. The structure of the PforR result areas follows the PAFS’ pillar organization, supporting specific outputs of the government program. The PforR will focus on strengthening the key building blocks of the safety nets system, including programmatic elements and the delivery system to increase the operational capabilities of the government to deliver the various social programs, particularly its flagship PTMP, included under the PAFS. Each Result Area is briefly described in the following paragraphs. The proposed PforR will support the government until 2026 to allow sufficient time for results to materialize and to bridge the gap with the next PND planning cycle (2026-2030). PforR Result Area 1: Strengthened targeting mechanism and delivery systems for social programs 10. Result Area (RA) 1 aims to strengthen the social safety net system instruments to ensure they respond to social programs’ needs, can support the government deliver large scale interventions and increase synergies between social programs. To this end, the PforR will support government activities to strengthen the RSU and improve the effectiveness of social centers to effectively deliver services to beneficiaries. This RA builds on the foundations of the targeting and delivery mechanisms of the safety net system initiated by the PTMP in 2016. 11. The government will operationalize the RSU to cover the entire poor population of the country and to become a core targeting tool for social programs. The foundations of the RSU have been established by the ongoing PFSP through the PTMP and the National health insurance coverage (Couverture Maladie Universelle- CMU), that collected socio-economic data for 800,000 poor households in the country. The government is, however, committed to expand the coverage of the RSU to the entire poor population estimated at 2.12 million households by 2025. The RSU coverage will be national and thus go beyond the PTMP covered areas, to serve all social programs. The 2019 decree creating the RSU establishes it as the primary source for targeting for every social program. The Program will support: (i) the further development of the RSU-MIS, which is under 13 Primarily social centers yearly costs, as well as in-kind and in-cash social assistance programs. 14 Youth employment programs and other poverty reduction programs. 15 Policy Note, World Bank, 2018 - Côte d’Ivoire: Modernizing Social Protection and Labor policy for inclusive growth – financing and institutional overview. 16 Beegle, Kathleen, Aline Coudouel, and Emma Monsalve. 2018.Realizing the Full Potential of Social Safety Nets in Africa. Africa Development Forum series. Washington, DC: World Bank. doi:10.1596/978-1-4648-1164-7. License: Creative Commons Attribution CC BY 3.0 IGO. Jan 31, 2022 Page 5 of 11 The World Bank Social Safety Nets System Strengthening (P175594) construction (currently supported by the ongoing PFSP); (ii) the identification and registration of poor and vulnerable households in the RSU; the (iii) continuous update of their socio-economic data; and (v) data sharing with other social programs to increase efficiency and coordination. 12. Moreover, under RA1, the government will undertake a pilot to test a results-based financing approach in 10 social centers.17 Social centers, which are essential access points to social services for populations at local level, face several shortages, including geographic limitations, human resources and budget allocation constraints, equipment shortages, etc. These constraints limit their capacity to serve as the delivery mechanism at local level and reach the most vulnerable. The pilot will inform the revision of the service delivery model of social centers to strengthen their local capacities and transform them into the centerpiece of the safety nets delivery system at local level. PforR Result Area 2: Expansion and sustainability of the productive cash transfer program 13. The first activity under RA 2 will support the government’s efforts to sustain the PTMP over time, maintaining its quality. While the second pillar under the government program includes the expansion and strengthening of 15 safety nets programs, the PforR focuses exclusively on the PTMP as the largest safety nets program in the country.18 The World Bank has a comparative advantage to support it considering its past engagement through the PFSP. With the PAFS, the PTMP is transitioning from an IPF-funded project to an institutionalized national program. Accompanying institutional and administrative reforms supported by the PforR will allow the PTMP to become a core national program fully owned by the government with appropriate, efficient and sustainable delivery packages and implementation models. 14. The second activity under RA 2 will support the PTMP’s impact on gender inequality and poverty reduction in the country. With the evolution of poverty numbers in the country, the PTMP does not currently have proportional coverage across the regions and coverage in the poorest areas is uneven. Also, while the proportion of female recipients of cash transfers increased over the years, it remains nonetheless limited with less than half (42 percent) of cash transfer recipients being women in 2021. There is thus room for improvement in coverage, both in terms of scale, but also in terms of regional distribution. 15. Finally, the last activity of RA 2 will support the development of synergies between the PTMP and other social programs. The PTMP has not yet developed many partnerships with other social programs and is not yet positioned as a gateway to reach the poorest households. Partnerships with other social programs, and especially agricultural programs, could increase the impact for beneficiaries and increase cost efficiencies. PforR Result Area 3: Developing a shock response mechanism 16. RA 3 will support the government’s ability to respond to covariate shocks. The focus of this RA is twofold: (i) support the government’s pilot shock response to floods, and (ii) support the government in developing an institutional framework for the shock response mechanism through the adoption of the proper legislative or policy framework to ensure the perennity of the mechanism. Such a mechanism can be beneficial to respond to multiple shocks as protocols and tools can be leveraged. 17. The government will pilot a response to climatic shocks, specifically to floods. The objective of the pilot is to test the mechanism proposed for shock response. The pilot will act as proof of concept of the developed 17 The Government of Côte d’Ivoire already has experience with a results-based financing approach through its health centers. A pilot funded by the World Bank and the Global Fund covered 21 sanitary districts between 2015 and 2019, was a success and the model is now adopted at national scale. 18 The social health insurance for vulnerable households RAM-CMU has a larger scope in the near future, but the actual coverage of the PMTP is larger. In addition, the RAM-CMU is supported by the ongoing SPARK project (P167959). Jan 31, 2022 Page 6 of 11 The World Bank Social Safety Nets System Strengthening (P175594) operations manual and allow for better adaptation of the defined process. The intention is to be able to reach households affected by climatic shocks just before or within days of the shock with cash transfers, while avoiding overlap with ongoing initiatives but encouraging synergies. In fact, the Program will support coordination between sectors and ministries which have not historically coordinated. The pilot will target 5,000 beneficiaries with shock responsive cash transfers. The shock response pilot will include a post-distribution survey (as part of the shock response process) to assess the effectiveness of the response. 18. The second activity under RA 3 will be on the policy framework concerning the shock response process and ensuring its institutionalization. The government of Côte d’Ivoire intends to develop a permanent shock response mechanism which can be deployed for climate but also other covariate shocks. While the adoption of text and legislation is not a sufficient condition to ensure sustainability or ownership it is nonetheless a necessary one. Defining clear institutional arrangements and coordination mechanisms and a risk financing strategy will contribute to the establishment of an institutional framework for shock response which can be built on. Disbursement link DLI Amount (US$) RA DLI #1: National coverage of the 12million 1 RSU reached DLI #2: RSU data up to date 5 million 1 DLI #3: Social centers service 23 million 1 delivery model enhanced DLI #4: Increased sustainability of 29.5 million 2 the PMTP DLI #5: Equity and inclusion of the 49.2 million 2 PTMP increased DLI #6: Increased synergies 12 million 2 between the PTMP and social programs DLI #7: Shock response framework 14 million 3 defined and operationalized 19. The PforR includes an IPF TA component which will support strategic investments in technical, fiduciary, and M&E capacity to the Safety Nets Coordination Bureau (Bureau de Coordination des Filets Sociaux, BCFS) and other implementation stakeholders to operationalize the Program. The IPF component will provide specific technical support to the different RAs outlined above. Under RA 1 it will develop the operations manual and the protocol of the pilot to be implemented under the PforR as well as the evaluation. For RA 2, the IPF component will particularly focus on process evaluations and an impact evaluation as well as an evaluation of the targeting methodology. While under RA 3 the IPF component will support the government develop the institutional framework and operational guidelines for their shock responsive safety net, which will be tested through the pilot under the PforR. Finally, the IPF component will also provide overall capacity building to the BCFS. C. Proposed Program Development Objective(s) Program Development Objective(s) Jan 31, 2022 Page 7 of 11 The World Bank Social Safety Nets System Strengthening (P175594) 20. The Program for Results Development Objective (PDO) is to increase access of poor and vulnerable households to safety nets programs and improve the performance of delivery systems. The following PDO level results indicators are proposed to monitor the achievement of the PDO: Increased access of poor and vulnerable households  Beneficiaries of social safety net programs (Number) o Beneficiaries of social safety net programs- Female  Shock response institutional arrangements and tools in place and operational (DLI) Improved the performance of delivery systems  Number of households in the RSU  Number of social programs using at least 2 of the safety nets system tools (Grievance Redress Mechanism (GRM), payment system, social centers, RSU)  Share of PTMP quarterly payments made on time D. Environmental and Social Effects . 21. The activities planned under the Program will focus, inter alia, on strengthening mechanisms for targeting social inclusion interventions; the sustainability and extension of the coverage of major social programs; the strengthening of harmonized mechanisms and tools for shock responses. Overall, it is highly foreseeable that the activities of the Program will have beneficial environmental, social and economic effects on the environment and the population (fight against poverty, reduction of unemployment, improvement of the living environment). These positive effects are numerous and should be maintained over the long term. However, the Program will directly or indirectly finance small agricultural production activities, small livestock farming, small local trade activities in the form of income generating activities, the risks and negative environmental and social impacts of which will generally be limited, from low to medium. magnitude, reversible and easily controllable and manageable. Potential impacts and risks include: (i) water pollution due to the use of pesticides for market gardening and rice farming; (ii) soil toxicity due to the use of chemical fertilizers; (iii) deterioration of human health and animal infection; (iv) poisoning due to the storage of phytosanitary products; (v) COVID-19 infection; (vi) conflicts due to the scarcity of land suitable for the establishment of IGAs; and (vii) the destruction of the microfauna and microflora due to sedentarization on the land. In addition, several social impacts and risks have been identified, in particular: (i) the failure to take into account the specific needs of vulnerable or disabled people (blind people, people with reduced mobility, etc.); (ii) weak consultation of local communities; (iii) the risk of increasing indebtedness at the household level following the delays observed in the provision of allocated funds; (iv) disagreements between beneficiaries and landowners; and (v) the risk of conflicts between farmers and herders. . ESF_LEGAL_T BL Jan 31, 2022 Page 8 of 11 The World Bank Social Safety Nets System Strengthening (P175594) Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Assessment of Environmental and Social Risks and Impacts (With IPF Component for PforR) . 22. An Environmental and Social Systems Assessment (ESSA) has been conducted by the Bank for the proposed PforR to ensure consistency with the basic principles described in Policy and Directive for the Program- for-Results Financing. The findings are summarized below, and details are provided in the publicly disclosed ESSA. The ESSA focused on the social and environmental risks, benefits, impacts and opportunities of the PforR program has been carried out. It covered social and environmental checks and balances that exist in the national and State policy, legal and regulatory framework governing the program; and mapped the corresponding risks and gaps. The ESSA recommendations offer suggestions to further enhance inclusion, access, participation, accountability within the overall program. 23. Environmental Assessment: The assessment confirmed consistency with the environmental Core Principles, and the exclusion of activities ineligible for PforR financing. The assessment concluded that the environmental risks of the proposed program are low, the national and State policy, legal and regulatory framework related to addressing the environment concerns of the program are adequate and stakeholders concerned with the implementation of the Program have adequate capacities to manage the attendant risks. Measures have been recommended to address the risk of the lack of human and material resources capable of adequately handling environmental monitoring and follow-up. 24. Social Assessment: The assessment concluded that the social risks of the proposed program are moderate, the national and State policy, legal and regulatory framework related to addressing the social concerns of the program are adequate and that the agencies concerned with the implementation of the program have adequate capacities and experience to manage the social risk associated with the program. 25. Stakeholder engagement, Consultations, and disclosure: For the preparation, (i) mapping of stakeholders (direct and indirect) was undertaken; and (ii) consultations with interest groups across all sectors was carried out. The first round of ESSA consultations was held during the preparation of the draft ESSA. A second round on the draft ESSA will be planned for its finalization. Any changes will be incorporated in the ESSA before approval of the Program by the Bank’s Board of Executive Directors. 26. Communities and individuals who believe that they are adversely affected as a result of a Bank supported PforR operation, as defined by the applicable policy and procedures, may submit complaints to the existing program grievance redress mechanism or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address pertinent concerns. Affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/GRS. For Jan 31, 2022 Page 9 of 11 The World Bank Social Safety Nets System Strengthening (P175594) information on how to submit complaints to the World Bank Inspection Panel, please visit http://www.inspectionpanel.org. E. Financing Program Financing (Template) Sources Amount % of Total (USD Million) Counterpart Funding 213.00 58.90 Borrower/Recipient 213.00 58.90 International Development Association (IDA) 150.00 41.10 IDA Credit 150.00 41.10 Total Program Financing 363.00 . CONTACT POINT World Bank Name : Solene Marie Paule Rougeaux Designation : Senior Social Protection Specialist Role : Team Leader(ADM Responsible) Telephone No : 5331+3463 Email : srougeaux@worldbank.org Name : Raphaela Beatrice Karlen Designation : Social Protection Specialist Role : Team Leader Telephone No : 5220+34509 / Email : rkarlen@worldbank.org Borrower/Client/Recipient Borrower : Republic of Côte d'Ivoire Contact : Title : Telephone No : Email : Implementing Agencies Jan 31, 2022 Page 10 of 11 The World Bank Social Safety Nets System Strengthening (P175594) Implementing Ministry of Solidarity and Fight Agency : against Poverty Contact : Abdoulaye Bamba Title : Directeur de Cabinet / Chief of Staff Telephone No : 2250749642108 Email : abdoulbeche@yahoo.fr FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects Jan 31, 2022 Page 11 of 11