Opm report Template version 5

3PASP assessment

In this section we use the generic PWP theory of change presented above to assess PASP performance and potential impact on resilience. We compare PASP processes as designed and implemented against the requirements for impact through wages, assets and skills presented above.

As with any other PWP, the performance of PASP depends on: i) its design being appropriate to the specific labour market and economic context, and consistent with institutional capacity and structures; and ii) effective implementation. This analysis draws largely on primary data collected during fieldwork in Gaza and is corroborated by findings from Irish Aid and IIED, 2016.

While PASP is an ‘incipient’ system in terms of its limited coverage as noted above, mapping of PASP districts and climate risks indicates that PASP covers higher risk districts better than the other SP programmes (Irish Aid and IIED, 2016).

3.1Impact through wages

As described below, the requirements for effective impact on resilience through wages have only partially been met, reducing the extent to which the programme is likely to be successful in increasing coping capacity. Furthermore, as section 4.1.2 shows, the effect on adaptive capacity is also unlikely to be significant.

3.1.1Effects on coping capacity

The requirements for PASP to have significant impact on coping capacity are only partially met. First, wage level is inadequate to meet consumption needs. Although it is not possible to calculate with confidence the contribution the PASP transfer makes to closing the household poverty gap due to data constraints, on the basis of 2008 data using the $1.25 and $2 PPP (purchasing power parity) poverty rates, the World Bank estimates poverty gaps of 30% and 50% respectively. Field research conducted for this study, confirmed by Irish Aid and IIED (2016), indicates that the PASP transfer of MZN 650 (£9) per month, or approximately $1.80 per capita, is not sufficient to close the household poverty, or even consumption gap. Moreover, the wage rate remains fixed in a context of increasing prices (with Figure 6 showing inflation having decreased the value of the transfer by a third since 2011).

Figure : Official Consumer Price Index, 2011–2016

This implies a significant real-term fall in the purchasing power of the transfer – which has remained constant since the introduction of the project – and the programme manual of operations does not indicate when and how its value should be updated. The wage should be recalibrated in line with the cost of the intended food basket/intended contribution to poverty reduction, and updated annually in line with the suggestion in the ENSSB II of the ‘introduction of a mechanism for the annual revision of the PASP transfer’.

The fact that beneficiaries work on a part-time basis suggests the programme’s intention is to supplement livelihoods and income earned through other sources. This would justify a wage that does not cover all consumption needs. Beneficiaries in Chibuto and secondary sources elsewhere however did not have access to alternative forms of productive employment, particularly during lean seasons or under the influence of climate shocks, indicating that they were primarily dependent on the PASP wage for consumption.

Payments were found to be regular and reliable in some, but not all instances, and were found generally to be not as frequent as intended in the manual of operations and as required by good practice (based on field study findings and research by Irish Aid and IIED, 2016). In Chibuto and other districts, wages are paid bimonthly instead of monthly as set out in the programme manual. This is the result of serious capacity constraints and a highly inefficient payment process. Technicians from INAS drive from district headquarters to communities to pay benefits in cash, and some communities are more than three hours’ drive away. Each payment involves INAS technicians, police and a vehicle. This process entails substantial costs in terms of daily subsistence allowances and fuel. Virtually all of the INAS district budget for PASP management is expended on cash delivery, leaving few resources for other processes and activities. As a result of this cumbersome process, the INAS delegation in Chibuto makes the PASP payments jointly with those of PSSB, to increase efficiency and make the best use of the scarce resources. This is why the PASP payments are only happening every two months. Direct cash payment represents a significant drain on staff and district official time, which is not efficient and limits the scope for programme expansion.

Some beneficiaries indicated that they preferred bimonthly transfers because the amounts received represents a total lump sum greater than they would be able to save if paid more frequently, enabling the purchase of a bulk quantity of food . However, in contexts of food insecurity, very scarce alternative economic opportunities and limited financial markets, particularly in the current drought scenario, an extended payment schedule could reduce the food security impacts of the programme, forcing beneficiaries to borrow against future PASP payments, or sell assets in order to meet consumption needs despite participation in the programme, undermining the programme’s food security, resilience and DRM impact.
Table : Analysis of requirements for PASP to impact on coping capacity through wages

Requirements for impact on coping capacity	Requirement met?	Comments
Wage level adequate to meet consumption needs	No	Wage rate is too low to meet basic consumption needs. By design, the programme assumes wages will be complementary to other income sources, although in practice this is not the case in all districts, particularly in the lean season or when facing shocks.
Low opportunity cost of wage collection	Yes	Given the extent of unemployment and underemployment during lean seasons, the opportunity cost of wage collection seems to be low although there may be transportation costs in some areas
Regular, reliable and frequent payment	Partially	Regular and reliable, but not as frequent as intended.
Employment duration sufficient to have a significant impact on consumption	Partially	In theory the employment duration covers the lean season, although if the programme is implemented early in order to address drought conditions, as in Chibuto, there is no guarantee that the programme will be extended into the following hungry season during which it was intended to provide support
Individual employment duration is not reduced by community sharing of employment opportunities	Yes	We found no evidence of community members in Chibuto sharing employment opportunities, although this has been reported in other areas.
Seasonal timeliness (in relation to food insecurity)	Partially	The requirement of seasonal timeliness is only partially met. This year PASP implementation has been brought forward to April in response to the drought, a decision made by INAS Central. INAS have indicated that this represents a shift in the schedule rather than an extension, and as such there will be an unmet need for additional support during the conventional hungry season, after the four month advance phase is completed. There is a need to consider how beneficiaries can be employed for a longer period in a year of climate shocks.
Seasonal timeliness (in relation to domestic and market labour demand)	No

Overall the impacts of PASP wages on coping capacity are limited as they meet few of the suggested requirements.

3.1.2Effects on adaptive capacity

Overall, the impact of PASP on adaptive capacity seems minimal at best. The two requirements for its effects on adaptive capacity are:

Regular, reliable, and frequent payments – see above;

The wage level must be adequate for investment into increased production and/or labour diversification in addition to immediate household needs (consumption, health, education, etc.). Although further research is needed, wage rates seem too low to enable significant investments, particularly in the context of increased climate shocks.