Workers' Welfare Fund in Pakistan

Poverty & Social Impact Analysis of Worker’s Welfare Fund in Pakistan

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Dr. Vaqar AhmedSustainable Development Policy Institute

21st December 2012

Outline

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• Literature Review• Methodology & Data• Program Evolution• Discussion on Process Review• Results• Housing • Education

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Country ProgrammeTitle

Number of Beneficiary Household

Monthly Disbursement(in US $)

Population Targeted

Argentina ProgramaFamilias 500,000 40 to 80 per child Household heads, females and children

Brazil BolsaFamilia 11,100,000 30 per household,7 per child

Extremely poor and poorhouseholds

Chile Chile Solidario 256,000 14 per child Extremely poor households

Ecuador Bono-de-DesarrolloHumano

1,060,000 15 per household Households and children

Guatemala MiFamiliaProgresa 250,000 For education and health:20 per household

Extremely poor householdsand children

Jamaica Program ofAdvancement

100,000 100 per household Poor households

Mexico Oportunidades 5,000,000 Education:12 to 23 per household

Extremely poor households

Peru Juntos 454,000 33 per household poor households and children

Evidence from Scientific Literature

Methodology and Data

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• Review of Existing Information• Past studies not easy to find• Aggregate evidence from existing surveys such as PSLM

• Qualitative • Focus Group Discussions• Key Informant Interviews

• Quantitative• Household-level Survey

Methodology and Data (cont..)

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• Design of Focus Group Discussions– Participation was provincially representative – Representation was also ensured in a manner that most

income groups of industrial sector workers are available– In terms of educational attainment we ensured maximum

possible representation from each levels i.e. primary, secondary and tertiary

– In terms of sectoral distribution we had fair amount of representation from several sub-industrial sectors e.g. textile, leather, oil and gas, consumer goods etc.

– Majority participants have near 20 years of affiliation

Methodology and Data (cont..)

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• Design of Key Informant Interviews• Specific enquiries regarding process review of:

• Housing Schemes• Educational Grants• Medical Grants• Vocational Trainings• Marriage Grants• Death Grants

Results & Discussion

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Evolution of WWF 1971 - 2002

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1971

• Housing

1995

• Cycles,• Sewing Machines

1997

• Marriage Grants

2000

• Death Grants

2002

• Educational Grnats

Beneficiaries Self-Assessment

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• Given that inflation is increasing at a much faster pace than incomes, WWF instruments are of substantial relief in overall terms

• Significant improvement in claiming of rights• 1990s processing time could go up to 12 months• Long wait due to political approval

• 92 percent of educational grant beneficiaries (in FGD) report having children now serving at incremental positions• Reported increase in household’s own literacy level

Individual Vs. Community

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Community-level Self-Assessment

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Complain of Discrimination

Within one’s organization

Liaison with WWF

Case Study in Process Review

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Grievance Redressal Mechanism

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Factorty worker

Union leader/

caretaker

Provincial Governm

ent

Federal Government

Grievance Redressal Mechanism

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Grievance Redressal Mechanism

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• Workers not aware of documentation on grievance

• Access to grievance channels• Provincial office not easy to access

• Reporting related to grievances addressed weak and not publically available

• Most frequent grievances• Frequently asked questions• Time delays

Instrument-wise Discussion

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Housing Facility

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• Procedural issues• Management of records• Forecasting of demand• Synchronization between planning and budgeting• Preference for factories located in area (what

about growth in peri-urban areas)• New construction• Irregular due to funding shortages• Repair & maintenance

• State of drainage may be a separate case study• Contamination of drinking water

Total Residential Schemes (Numbers)

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Plots Developed Houses Flats0

5000

10000

15000

20000

25000

30000

35000

40000

4500039938

13852

8092

Annual growth rate of labour force in the medium term: 3.5 percent annually

Housing Facility

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• Manpower Issues• Security Arrangements• Management of common spaces• Quantity Factor !• Almost 60,000 industrial workers have benefited to date

from the WWF housing scheme. 114 housing schemes are completed and some 26 schemes are under process of completion.

• To much emphasis on brick and mortar and less on improving governance of existing assets

Educational Facility

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Educational Facility

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• Workers’ children had access to some of the very prestigious universities in Pakistan– Quaid-I-Azam University Islamabad, – University of Engineering and Technology Taxila, – National University of Science and Technology, – Ghulam Ishaq Khan Institute of Science and Technology, – Fatima Jinnah Women University, Foundation University, – Riphah International University, – Islamic International University and – COMSATS Institute of Information Technology Lahore

Educational Grants (Numbers)

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5695815213

21711

385 2971

Punjab Sindh KPKBalochistan Islamabad

Trends in Educational Grant (Numbers)

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2004 2005 2006 2007 2008 2009 2010 2011 20120

100020003000400050006000700080009000

10000

PunjabSindhKPKBalochistanIs-lam-abad

A case for building capacity post-devolution/Disparities in performance across provinces

Improvements in Educational Grants

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• Started with tuition fee

• Now tuition fee + monthly stipends

• Access to any HEC recognized institute (public or private)

• However…noted delays in fee disbursement

Requisite Documentation for Educational Grants

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• Computerized National Identity Card attested by the employer. • Copy of factory registration certificate under the Factories Act 1934, Mines Act 1923,

and the Shops and Establishment Ordinance 1969.• Copy of Factory Card duly attested by the employer.• Worker job description duly attested by the employer.• Social Security card (R-5) or EOBI card duly attested by the employer.• Copy of Appointment letter duly attested by the employer or a certificate of service

in original bearing complete contents of employment.• Copy of student card attested by the head / authorized officer of the educational

institution.• CNIC/B Form of the student issued by NADRA and attested by the employer• Certificate of enrolment issued by the head of the educational Institution.• A copy of notification regarding registration or affiliation of the institute concerned

with government, directorate, HEC, etc.• An affidavit by the student on a stamp paper of Rs.20, duly attested by the Oath

Commissioner• Original payment vouchers, or copies thereof duly attested by the head of

educational Institute / authorized officer regarding educational expenses /boarding charges/mess charges or other expenditure.

Policy Recommendations

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Policy Recommendations

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• Streamlining operations in line with Results Based Management• Key Performance Measures• Efficiency Indicators

• Alignment with other social protection programs• Synergies may involve linkages with BISP, Zero-Hunger

Program and provincial cash transfers

• Biometric systems for evasion checks

Policy Recommendations

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• E-governance• Case of NADRA/BISP, Emergency Relief Cell • Reduction in red-tape through unique identification

• Demand-side forecasting• Labour statistics• Research Wing at Islamabad Office

• Grievance Redressal Mechanism• Learning from Punjab Government combating Dunge• Role of technology NDMA using sms messaging service

Policy Recommendations

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• Enabling Feedback for Improvement• Reverse channels to counter check the complaints• Dissemination of grievances addressed

• Learning from experiences• Capacity building of dedicated staff• BISP training on Latin American case studies• Need for greater coordination between provinces and with

center intranet portal

• Funds Management• Risk Assessment

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Thank You