PROJECT BRIEF
BACKGROUND: The 2001 Country assistance Strategy (CAS) for Turkey is based on a three-pronged approach: (i) structural policies aimed at correcting the weaknesses underlying the crisis and establishing a sounder basis for disinflation and growth over the medium term; (ii) strong social policies including enhanced social dialogue to achieve price and wage policies consistent with macroeconomic stability, and increased emphasis on the protection of the most vulnerable groups of society; and (iii) fiscal and monetary policies geared towards restoring financial stability and resuming the disinflation process. The key CAS elements supported by the SRMP are to:
• reduce poverty in Turkey and strengthen the institutional environment for monitoring poverty; and
• strengthen social protection for vulnerable groups through new social assistance initiatives, including introducing new targeted social assistance programs for groups affected by economic crises.
PROJECT OBJECTIVE: The development objective of the SRMP, is to mitigate the impact of the February 2001 economic crisis on poor households and to improve their capacity to cope with similar risks in the future. The SRMP is achieving this objective through:
i) an adjustment portion, providing immediate support to the poorest affected by the crisis;
ii) an investment portion, which consists of three components:
a) building up the capacity of state institutions providing basic social services and social assistance to the poor;
b) implementing a social assistance system (Conditional Cash Transfers - CCT) targeted to the poorest 6 percent of the population conditional on improved use of basic health and education services; and
c) increasing the income generating/employment opportunities and access to social services of the poor.
PROJECT DESCRIPTION: The SRMP as a hybrid loan has an adjustment portion (Rapid Response) and an investment portion, the latter with three strongly complementary components:
• Adjustment Portion - Rapid Response (US$ 100.0 million, of which the Bank Loan US$100.0 million): The adjustment portion of the SRMP provided quick-disbursing budget support against the Bank's standard negative list, and was fully disbursed in April 2002. The Turkish Lira equivalent funds were used to support key programs of the General Directorate of Social Assistance and Solidarity (SYDGM) targeted to the poorest households through a single disbursement, namely: (i) school attendance packs (uniforms, shoes, stationery, textbooks); (ii) pharmaceuticals and medical supplies for poor people who are not able to pay for their health expenses; and (iii) expansion of existing social assistance programs (primarily family food and heating support) to meet the increased real needs generated by the crisis. The Government signed a Letter of Sector Policy (LSP) on August 15, 2001 on social risk mitigation, social assistance and poverty reduction. Conditions for the release of this adjustment portion of the SRMP were: (i) satisfactory macroeconomic framework; and (ii) satisfactory progress in the carrying out of the program as defined in the LSP.
• Institutional Development (US$ 36.6 million, of which Bank loan US$ 30.0 million): The SRMP will strengthen the institutional capacity of key government agencies, namely the SYDGM, its 931 affiliated Foundations (SYDV) and the Social Services and Child Protection Organization (SHCEK), to improve the coverage and targeting of the social safety-net for the poor. Key elements include strengthening the:
i) policy research, monitoring and evaluation (M&E) capacities;
ii) management information system (MIS) and information technology development;
iii) staff development and training; and
iv) public information campaigns.
The capacity of the Turkish Institute of Statistics (TURKSTAT) to monitor poverty through more frequent household income and expenditure surveys is being enhanced. This includes the provision of technical assistance, training, computer and other equipment for the MIS to the SYDGM, SYDVs, SHCEK and TURKSTAT.
• Conditional Cash Transfers - CCT ( US$ 360.0 million, of which Bank US$ 260.0 million): The CCT is a highly targeted social assistance transfer to families with children, requiring positive family behavioral change with respect to health and education. The SRMP is financing the introduction through the SYDGM/SYDVs of an expanded social safety-net targeted to the poorest 6 percent of families linked to positive behavioral changes such as keeping children in school and ensuring children receive adequate immunization coverage in a timely manner, basic health care and nutrition. This requires the introduction of an improved and systematic targeting system using “points” for household characteristics linked to poverty. The loan is financing education grants and health/nutrition grants (both paid every two months) to the mothers of children who are eligible in accordance with criteria set forth in the Project Operations Manual. The CCT is now functional in all 81 provinces of Turkey, reaching 2.3 million children as of March 2006, some 76% higher than the appraisal target of 1.30 million.
• Local Initiatives (US$ 133.9 million, of which Bank US$ 110.0 million): The SRMP is strengthening and financing key programs of the SYDGM/SYDVs as proposed by provinces, districts, NGOs and the local community, designed to provide enhanced sustainable employment opportunities and social services for the poor, thereby reducing poverty. Such programs are:
(i) income-generating sub-projects (which will receive improved technical assessment);
(ii) employability training (including adult literacy - especially for women), technical and life skills training for unemployed youth - including how to get a job, start a small business);
(iii) temporary community employment, which will support workfare activities linked to the rehabilitation of local infrastructure and community assets;
(iv) expansion of cost-effective social services for children, youth, disabled and the elderly (including through SHCEK and NGOs); and
(v) community development which can combine all of the above and include community-based infrastructure. A total of 6,350 sub-projects are under implementation benefiting over 0.3 million people.
IMPLEMENTATION and MONITORING: The SRMP is being managed by the SYDGM, which has created a small Project Coordination Unit (PCU) to perform the following functions: project management, procurement, financial management & disbursement, MIS, and M&E. The SRMP components are being implemented and monitored as follows:
(a) Rapid Response: This component has been successfully completed by the SYDVs, benefiting 1.05 million children in late 2001 and over 0.4 million households over the winter of 2001/2. A beneficiary assessment was undertaken on this component demonstrating its positive impact, but also highlighting areas for future improvement which are being addressed by the other components of the SRMP.
(b) Institutional Development: The PCU is overseeing this component, and is undertaking procurement on behalf of the SYDGM, SYDVs, SHCEK and TURKSTAT. Each agency is responsible for developing terms of reference and equipment specifications for its respective sub-components.
(c) CCT: The CCT is being implemented by the 931 SYDVs under the oversight of the SYDGM. Data on eligibility – e.g. school attendance and participation in health programs – are being confirmed by local level entities of the Ministries of National Education and Health respectively. The target group is being identified by using the proxy-means test scoring formula with stringent criteria (a lower score) to determine the poorest 6 percent of the population.
(d) Local Initiatives: The Local Initiatives components CCT are being implemented by the 931 SYDVs under the oversight of the SYDGM. Specific sub-projects may be implemented by government ministries, municipalities, NGOs or small producers groups, depending on the category of sub-project. The target group while (the economically vulnerable) will be identified by using the same proxy-means test scoring formula as the CCT, qualifying within the 36 percent of the poorest households in Turkey.
BENEFITS: The SRMP has different target groups for the various components of the operation. For the adjustment portion, the target group consists of the poorest of the poor who had already been identified by local community committees of the SDYVs. A second target group is children in those households with expenditures under the absolute (food) poverty line--some 6 percent of the population. The CCT component will be focused on this group and the beneficiaries will be identified by a proxy-means test scoring formula developed from household data. The third target group is the economically vulnerable-- the consumption of approximately 36 percent of the Turkish population is low enough such that this population is at risk to slide into absolute poverty. This group is the target group for the Local Initiatives component, since the income-generating activities are not suitable for the poorest of the poor (who may not have the basic skills to develop small income-generating activities), but are highly relevant to those employed casually in the informal sector, for enhancing their income-generating potential.
PROJECT STATUS: The SRMP was approved by the Board on September 13, 2001 and is being implemented. Activities under the Rapid Response portion have been completed. The Institutional Development component is well advanced, whilst the CCT and Local Initiatives components started in January 2003. The loan will close on December 31, 2006.
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