World Bank
Washington, D.C.

SSN programs present substantial implementation challenges.  The number of participants is relatively large, as is the volume of individual payments.  Program managers are often under considerable pressure to expedite payments because of a crisis, because of the poverty of the participants, or because of the political implications when a program reaches millions of beneficiaries, as successful SSN programs often do.  Day-to-day responsibility for program implementation is usually shared across different levels of government and several government departments.  The programs are typically high-visibility, flagship national initiatives, not ring-fenced Bank projects, and thus depend to a large extent on existing country systems in financial management, auditing, etc.

Having sufficient control and oversight mechanisms is critical to manage and minimize the political risks and to ensure effective implementation of these programs.  They are important for ensuring the efficient use of public resources (targeting and eligibility), contributing to program credibility and sustainability, and guarding against errors or potential political manipulation.  Improper payments could have an impact on the ability of a program to achieve its intended outcome.  Furthermore, public support is vital in order to maintain social assistance programs, and this public support depends, among other things, on SSN programs maintaining a reputation as effective at preventing fraud and controlling errors, especially given that cash is the main direct benefit.

Objective

The objective of the workshop was to document the control and accountability mechanisms that are currently being used in social assistance programs in the OECD countries and some Bank clients, and identify areas where clients’ systems could be improved.

In particular, some of the tools to control errors and fraud which are used in OECD countries seem to be “underutilized” by Bank clients.  These include: (a) sample-based reviews of eligibility decisions or other program aspects (as used in UK, Australia, New Zealand, and in the Food Stamp program in the U.S.); (b) data mining (analysis which aims to discover evidence of problematic payments); (c) educational activities and public communication; (d) setting of goals on errors/fraud and monitoring of performance; (e) easy mechanisms (on-line, for example) to report suspected fraud; and (f) procedures for beneficiaries to appeal eligibility or other decisions made by program administrations (an emphasis in ECA countries).

Day One of the seminar focused on filling this information gap, by presenting the mechanisms to reduce fraud and error used in nine OECD countries (based on a recent review by RAND Corporation), and an in-depth example from the UK.

During Day Two of the seminar, Bank staff presented various tools as used in client programs to control fraud and error.

Agenda, Presentations & Background Materials

Agenda (14kb pdf)

"Reducing Fraud, Error and Corruption in Social Protection Programs" (103kb pdf) by Margaret Grosh and Emil Tesliuc, World Bank

"International Benchmark of Fraud and Error in Social Security Systems" (132kb pdf) by Christian van Stolk, Rand Europe, UK

NAO Report - International Benchmark of Fraud and Error in Social Security Systems: References (53kb pdf) by Christian van Stolk, Rand Europe, UK

"Reducing Fraud and Error in the UK: What It Takes?" (770kb pdf) by David Barr, Head of Fraud and Error Strategy Division, UK Dept. for Work and Pensions

"Reducing Fraud and Error in Unemployment Insurance Programs" (122kb pdf) by Milan Vodopivec, World Bank

"Spot Checks - Sample-Based Site Monitoring: Application in Colombia Familias en Accion" (27kb pdf) by Polly Jones, World Bank

"Hotlines - Call Center in Argentina: Heads of Household Program" (19kb pdf) by Polly Jones, World Bank

"Case Study on Ethiopia’s Productive Safety Net Programme" (1.2mb pdf) by William Wiseman, World Bank

"Enhancing Accountability in a Federal Context: Brazil’s Bolsa Família Program" (119kb pdf) by Kathy Lindert, World Bank

"Strengthening the MIS in Social Protection Programs: A Toolkit" (1.2mb pdf) by Maria Dolores Arribas-Banos and Cesar Baldeon, World Bank

World Bank Institute Governance & Anti-Corruption website