Turkey - Social Development Project

Report No. PID8315 Project Name Turkey-Local Initiatives and Social (@) Assistance Project Region Europe and Central Asia Region Sector Social Assistance Project ID TRPE9090 Implementing Agency Address TBD Environment Category B Date PID Prepared February 26, 2001 Projected Appraisal Date September 17, 2001 Projected Board Date January 8, 2002 1. Country and Sector Background The sector contains a number of strategic issues:The social protection system in Turkey is extensive, including contributions-based pension provision, disability and short-term (maternity, occupational hazard) benefits; and non-contributory social assistance schemes that provide beneficiaries with support in cash and in kind. Still, the system is facing a number of challenges, and contains significant problems, which if not addressed, could undermine orderly implementation of the Government's economic reform program.While absolute poverty has been decreasing, some 15t of the population still is considered poor, and significant numbers of people (an estimated 30t of the population) remain vulnerable. Many are unemployed, and even more are employed but unable to earn enough to sustain themselves and their families adequately. These people are the most likely to be bypassed by economic growth and suffer the adverse effects of economic reforms, risking heightened social tensions and a social backlash to tough economic reform measures. They are also the people most vulnerable in case of natural disasters;Of particular concern are the employment prospects of those most directly affected by the privatization program - one of the serious risks to the reform process is the possibility of growing resistance as the public experiences the impact of job dislocations and reduced real incomes resulting from the divestiture of state-owned enterprises; critical for success is how well the Government manages to empower the popualtion to deal with social risks - through a more efficient safety net and, in particular, through access to new and better jobs;Significant regional disparities, lack of (adequate) education and skills, traditional social and income structures and limited access to resources impede integration of poor groups into mainstream employment opportunities;The effects of poverty and vulnerability are being felt and pose new challenges as migration from the countryside into urban areas surges, placing new demands on services to integrate migrants into an urban environment, to help children at risk, reflected in a spreading phenomenon of street children and in increasing numbers of working children;While social insurance is relatively extensive, it does not address the needs of poor and vulnerable groups that function outside the formal sector; social assistance should be expected to target such at-risk groups. However, while the Government devotes important resources to social assistance, these resources do not appear to have the requisite effect, as safety net schemes are dispersed  and disjointed, benefits are small, and moneys are not necessarily allocated to their most effective uses or to the neediest households.The Government recognizes the need to strengthen mechanisms that address population groups that fall outside the social insurance network. Emphasis is being placed on developing a safety net that not only provides protection, but also offers a springboard out of poverty. There is increased interest in introducing strategies that link poverty relief with social services, including in particular stronger community-based services, exploring the positive role that NGOs can play in poverty alleviation, and raising living standards in communities. There is also increased recognition of the importance of entrepeneurship and self-employment in creating new economic opportunities and stimulating privatization and economic development. 2. Objectives The development objectives of the proposed Local Initiatives and Social Assistance Project (LISA) are the following:provide income earning opportunities for poor an vulnerable population groups;facilitate the integration of rural-urban migrants and children at risk into the mainstream of the economy. 3. Rationale for Bank's Involvement The Bank's main value added in this project is its accumulated experience with social fund-type operations, and from its work on family welfare and street children issues in other countries. It will be in a position to adapt broad international "best practice" experience to the Turkish environment, which should serve to optimize design and impact of the services provided on their target groups. The Bank's recognized leadership position in social protection will also serve to facilitate coordination and harmonization with complementary initiatives that other donors are pursuing in the sector in Turkey. 4. Description The project will have three components: (a) micro-projects; (b) micro-credit; and (c) project management. These components are discussed below. Micro-projects: (i) socio-economic community works for temporary employment and income generation; (ii) productive community investment projects for sustainable employment and income generation; (iii) establishment of community centers to address socio-economic needs of rural-urban migrants and facilitate the transition of migrant families from rural to urban environments; and (iv) street children and working children initiative, targeting service provision at street children and working children Micro-credit schemes for small enterprise development Project Management 5. Financing Total ( US$m) Total Project Cost 120 6. Implementation The project will be implemented over a [three-year period], beginning in -2 -  April 2002.Executing Agencies. Project Coordination. Tentatively, the project team considers the following structure: The Project management Unit (PMU) in the SSF would also be the coordinating agency for the project on behalf of the Government, with oversight from a Steering Committee headed by [the Treasury]. It would be the focal point for all communications with the Bank. In addition to the staff for the management component, the PMU would need to contract expertise in procurement and financial management. The Steering Committee would consist of representatives of Treasury, ISKUR, SSF, Ministry of Interior, and NGO representatives. 7. Sustainability The sustainability of micro-projects will be achieved by ensuring maximum community involvement (including in-cash or in-kind contributions) during all stages of the project cycle (from identification, to execution through handover and operations and maintenance). Experience shows that the higher the community contribution, the higher the commitment to operations and maintenance of projects. 8. Lessons learned from past operations in the country/sector The primary lessons to draw on for successful implementation of micro-project-type operations relate to stakeholder commitment at all levels - central and local government, community - the availability of a strong project team and transparent administrative and operating procedures. Stakeholder commitment has also been signaled in the CAS as a particularly important element for project success, and care should be taken in addressing it, even if it may mean that progress would be slow in the early phases of project development. At a technical level, the Bank has extensive experience in the implementation of social fund-type projects, and the main elements of successful project implementation are well known: the need for transparent and predictable procedures, consistently applied; rigorous monitoring, evaluation and feedback mechanisms and readiness to apply lessons of experience; a management information system that responds to defined needs of decision-making; and well-trained staff.These considerations are being reflected in project design: relevant stakeholders will be engaged throughout the preparation process, and they will be part of the structures for implementation of the micro-project component. An external component preparation team will be recruited to work with SSF staff, and subsequently become the PMU.In the community center and street children subcomponents, the project preparation process will draw on best practice in providing the services intended by these subcomponents. 9. Program of Targeted Intervention (PTI) Y 10. Environment Aspects (including any public consultation) Issues : Overall, the project is expected to have positive environmental impact. The micro-project component will support basic infrastructure rehabilitation and upgrading through financing socio-economic projects requested by communities. These may range from rehabilitating community water supply systems, waste water treatment, solid waste management, community centers, markets, and rural roads. For productive projects, the environmental implications will be assessed as part of project appraisal. More generally, the small scale and simplicity of design of the majority of micro-projects will allow for effective - 3 -  environmental screening, review and assessment throughout the sub-project cycle. 11. Contact Point: Task Manager Hjalte S. A. Sederlof The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: (202) 473-2524 Fax: (202) 477-0711 12. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. This PID was processed by the InfoShop during the week ending March 2, 2001. - 4 -