JUST 17% OF POOR GETTING BENEFITS
By NEIL HARTNELL
Tribune Business Editor
LESS than 17 per cent of poor Bahamian households are receiving social security benefits, an Inter-American Development Bank (IDB) report highlighting a dysfunctional welfare system that is failing to reach those most in need, and where the potential for fraud and abuse is rampant.
The IDB report, which has been obtained by Tribune Business, also reveals that just 45 per cent of the Food Stamps issued by the Department of Social Services go to the poorest 20 per cent of Bahamian households, raising immediate questions of whether the system is being abused by wealthier persons and those with the right 'connections'.
Noting that there was no 'means testing' of applicants for social security benefit payments in the Bahamas, the IDB report said government officials found difficulty in accessing even the most basic information on welfare programmes, such as how may people were benefiting from them.
Evaluations of the Government's various social security initiatives, to determine whether they were functioning efficiently and reaching their targets, were described as "virtually non-existent".
The IDB report is part of an initiative to Strengthen Social Protection Programmes in the Bahamas, which is seeking to consolidate the various welfare benefits into a more streamlined package targeting the most vulnerable in Bahamian society.
It is also targeting waste, fraud and inefficiency in the system, in a bid to reduce the burden social security spending places on the Government's finances.
"The Bahamas has a range of non-contributory social protection programmes. However, there is considerable scope for consolidating, redesigning and strengthening programmes so that the safety net is better positioned to protect the poor and promote their human capital development," the IDB report said.
"The Ministry of Labour and Social Development implements over 10 cash-in-kind programmes, and households could potentially benefit from all of these."
These initiatives included the Food and Financial Assistance Programmes; the School Uniform and Footwear Programme; School Feeding Programme; Rent Programme; Water Programme; Electricity Programme; Disability Allowance; Emergency Assistance; Medical Care Assistance; and Residential and Non-residential Social Care Services.
Yet the IDB report warned: "Multiple small programmes are administratively burdensome, and increase possibilities for abuse. At the same time, gaps in coverage are present, with only 16.7 per cent of poor households in receipt of safety net benefits.
This suggests that the Bahamas' social security/welfare system is failing abysmally where it is most needed, in providing help to the poorest in society.
The IDB report said all the Government's benefits "rely on inefficient targeting mechanisms", with both those under the Ministry and the National Insurance Board (NIB) involving different applications and targeting procedures.
"Each programme has its own criteria for approval," the report added. "Applications for assistance to the Ministry of Labour and Social Development go through a labour intensive seven-step review process.
"Even with this multi-tiered approval process, only 45 per cent of Food Coupon benefits go to households in the poorest quintile, and this is despite the fact that the programme is ostensibly targeted to the indigent."
All of which suggests that the majority of Food Stamps, some 55 per cent, go to those who have no, or minimal need, for them - indicating the system is being abused.
"Information and monitoring systems are weak," the IDB report added. "Programme information is not fully computerised, and programme officials have difficulty accessing even basic programme information, such as how many programme beneficiaries there are, or beneficiaries' geographic and demographic composition.
"Programme evaluations are virtually non-existent. As a result, we do not know which programmes are achieving their objectives, and if they are efficient and cost-effective."
The IDB said the Government wanted to "improve the efficiency and effectiveness" of its social security spending. As a result, the project aimed "to help lessen, in the medium term, the fiscal burden of the welfare system by reducing leakages of transfers to non-eligible beneficiaries".
Administration was also targeted for improvement, and rationalising the Government's various benefit programmes "to avoid duplication, and restructuring to enhance efficiency and impact, is needed". Consolidation was a priority, along with expanding social security coverage "to a greater share of the poor".
"The consolidated programme should focus on protecting the most vulnerable and on promoting human capital development among children, including promoting healthy nutrition and keeping adolescents in school," the IDB report said.
Means testing, to ensure those actually needing social security support, are set to be introduced. The welfare programmes to be consolidated are the Food and Financial Assistance (rent, water and electricity) programmes; the School Uniform and Footwear programme; School Lunch programme; and Disability Allowance.
The IDB report acknowledged that the programme could be "politically sensitive" given the upcoming election, but the Government is moving to counter this by appointing a broad-based social protection reform working group.
January 06, 2012
tribune242
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Showing posts with label welfare Bahamas. Show all posts
Showing posts with label welfare Bahamas. Show all posts
Saturday, January 7, 2012
Thursday, August 11, 2011
Rethinking the modern welfare state in The Bahamas...
Rethinking the modern welfare state by whatever name
thenassauguardian editorial
Bahamians should monitor closely the economic events in Europe and the United States. Several European countries such as Spain, Portugal and Italy are having trouble managing their debts. Other European economies such as Ireland and Greece have already been bailed out; but may still need additional help again soon.
There are fears that a European debt crisis could emerge creating conditions similar to the financial crisis of 2008, which led to the most significant recession since the Great Depression.
As Europe tries to fix itself, and there is no easy solution, a bitter debate in the United States over debt and spending rages. The U.S. has a debt to GDP ratio of around 100 percent that is growing. Conservatives want to see deep cuts to entitlement spending. Liberals want to maintain the social programs they think support a just society
The U.S. and Western European countries had high levels of debt before the financial crisis. The amount of money states used to support their economies after the crisis, however, significantly increased those debt levels. Now, tough decisions have to be made. The old levels of spending can no longer be supported. If they are maintained, collapse will eventually be the result.
The problem is that in modern states people have come to believe that they have the right to every benefit under the sun. Many think they should have free health care, free education, unemployment benefits, pensions, etc. In previous good times when these things could be afforded, politicians kept piling on benefits and giving subsidies to appease voters and financiers.
The time has now come in the Western World to roll back these ‘gifts’ and rethink the role of government.
In truth, people do not have the right to any benefit or gift from the state. The whole idea of rights is too based on religious thinking and assumptions on what ought to be bestowed to humans by a mysterious divine source.
Countries, communities and social groups can only provide the level of entitlements that can be afforded. Governments can and ought to act as back stops for the downtrodden if they can afford to so do, and not otherwise. So, if you live in oil rich Norway, then the sky is the limit. That state can afford to spoil its citizens.
When you live in a developing society with a debt to GDP ratio approaching 100 percent, there is little the state can do for you.
Government should function first and foremost as a regulator. Its job should be to ensure that fair and open marketplaces exist, through which citizens can make a living. Government should also work to ensure the safety of the common area from internal and external threats.
Beyond this, all the other benefits a state could offer should be based on the resources at its disposal, after consultation with the people.
Under this mindset, it becomes easy for a country to make decisions as to the cuts necessary for growth in the economy to return. Wasteful programs and subsidies, to the poor, as well as to the rich, must be cut across the board in the West in order for taxes to be reduced and for the private sector to have more space to expand. Unnecessary and onerous regulations also need to be removed, creating a more favorable atmosphere for entrepreneurs to take risks.
Here in The Bahamas we are burdened by more and more regulations and by a large and inefficient public service. Our solution, it seems, to the down times is to continue to impose more regulations and to pay the public sector come what may and to borrow and borrow to so do. We cannot keep this up forever.
It is obvious what needs to be done. But it will not be done until people here abandon the idea that a welfare state, by what ever name, is the answer.
Aug 10, 2011
thenassauguardian editorial
thenassauguardian editorial
Bahamians should monitor closely the economic events in Europe and the United States. Several European countries such as Spain, Portugal and Italy are having trouble managing their debts. Other European economies such as Ireland and Greece have already been bailed out; but may still need additional help again soon.
There are fears that a European debt crisis could emerge creating conditions similar to the financial crisis of 2008, which led to the most significant recession since the Great Depression.
As Europe tries to fix itself, and there is no easy solution, a bitter debate in the United States over debt and spending rages. The U.S. has a debt to GDP ratio of around 100 percent that is growing. Conservatives want to see deep cuts to entitlement spending. Liberals want to maintain the social programs they think support a just society
The U.S. and Western European countries had high levels of debt before the financial crisis. The amount of money states used to support their economies after the crisis, however, significantly increased those debt levels. Now, tough decisions have to be made. The old levels of spending can no longer be supported. If they are maintained, collapse will eventually be the result.
The problem is that in modern states people have come to believe that they have the right to every benefit under the sun. Many think they should have free health care, free education, unemployment benefits, pensions, etc. In previous good times when these things could be afforded, politicians kept piling on benefits and giving subsidies to appease voters and financiers.
The time has now come in the Western World to roll back these ‘gifts’ and rethink the role of government.
In truth, people do not have the right to any benefit or gift from the state. The whole idea of rights is too based on religious thinking and assumptions on what ought to be bestowed to humans by a mysterious divine source.
Countries, communities and social groups can only provide the level of entitlements that can be afforded. Governments can and ought to act as back stops for the downtrodden if they can afford to so do, and not otherwise. So, if you live in oil rich Norway, then the sky is the limit. That state can afford to spoil its citizens.
When you live in a developing society with a debt to GDP ratio approaching 100 percent, there is little the state can do for you.
Government should function first and foremost as a regulator. Its job should be to ensure that fair and open marketplaces exist, through which citizens can make a living. Government should also work to ensure the safety of the common area from internal and external threats.
Beyond this, all the other benefits a state could offer should be based on the resources at its disposal, after consultation with the people.
Under this mindset, it becomes easy for a country to make decisions as to the cuts necessary for growth in the economy to return. Wasteful programs and subsidies, to the poor, as well as to the rich, must be cut across the board in the West in order for taxes to be reduced and for the private sector to have more space to expand. Unnecessary and onerous regulations also need to be removed, creating a more favorable atmosphere for entrepreneurs to take risks.
Here in The Bahamas we are burdened by more and more regulations and by a large and inefficient public service. Our solution, it seems, to the down times is to continue to impose more regulations and to pay the public sector come what may and to borrow and borrow to so do. We cannot keep this up forever.
It is obvious what needs to be done. But it will not be done until people here abandon the idea that a welfare state, by what ever name, is the answer.
Aug 10, 2011
thenassauguardian editorial
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