EXPOSURE – Classification of risk (Cameroon) ENVIRONMENTAL RISK ECONOMIC RISK % over total risks % over total risks (HH) TOTAL 83.33% TOTAL 66.67% drought 27.78% harvest failure / losses 44.44% excessive rainfall 5.56% price fluctuations 50.00% high winds 22.22% inflation 16.67% deforestation 27.78% unemployment 11.11% pollution 16.67% financial crisis 22.22% landslides 5.56% resettlement 5.56% fire 5.56% income reduction 5.56% pests 5.56% SOCIAL & POLITICAL HEALTH RISK % over total risks % over total risks RISKS TOTAL 72.22% TOTAL 61.11% Illness 55.56% crime 16.67% injury 33.33% protests 22.22% old-age 22.22% death 31.58% conflicts 33.33% disability 16.67% domestic violence 11.11% epidemic diseases 5.56% terrorism 5.56% SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Classification of risk (Ivory Coast) ECONOMIC RISK % over total risks ENVIRONMENTAL RISKS % over total HH TOTAL 70.69% TOTAL 72.41% inflation 3.45% drought 63.79% economic crisis 12.07% deforestation 3.45% price fluctuations 29.31% high winds 3.45% high inputs cost 10.34% urbanisation 5.17% harvest failure 1.72% SOCIAL / POLITICAL RISKS % over total risks HEALTH RISKS % over total risks TOTAL 44.83% TOTAL 94.83% land related conflicts 18.97% illness 79.31% on farm damages 10.34% death 18.97% general insecurity 12.07% old age 6.90% theft 8.62% SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Classification of risk (Kenya) ENVIRONMENTAL % over total risks ECONOMIC RISKS % over total risks RISKS TOTAL 81.48% TOTAL 94.44% drought 53.70% crisis & income reduction 42.59% pollution 22.22% harvest failure 37.04% price fluctuations 35.19% heavy rainfall 12.96% unemployment 29.63% deforestation 11.11% inflation 1.72% SOCIAL / POLITICAL % over total risks HEALTH RISKS % over total risks RISKS TOTAL 81.48% TOTAL 50.00% illness & injuries 72.22% conflicts and crime 46.30% epidemic disease 7.41% old age 7.41% terrorism 9.26% SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Classification of risk (Malawi) ENVIRONMENTAL % over environmental % over total risks ECONOMIC RISKS % over economic risks % over total risks RISKS risks TOTAL 91.80% TOTAL 93.44% inflation 46.43% 42.62% drought 63.16% 59.02% income reduction 41.07% 37.70% deforestation 15.79% 14.75% price fluctuations 37.50% 34.43% high winds 31.58% 29.51% harvest failure 26.79% 24.59% excessive rainfall 45.61% 42.62% unemployment 12.50% 11.48% % over HH facing health SOCIAL / POLITICAL % over HH facing social HEALTH RISKS % over total HH % over total HH RISKS and political risks risks TOTAL 54.10% TOTAL 91.80% crime 81.82% 44.26% illness 98.21% 90.16% among which cases of death 23.21% 21.31% 39.39% 21.31% theft injury 7.14% 6.56% food insecurity 9.09% 4.92% old age 7.14% 6.56% domestic violence 6.06% 3.28% lack of drugs at the lack of land and 1.79% 1.64% 6.06% 3.28% health centre infrastructures SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Classification of risk (across) RISKS FACED (HH) Environmental and natural risks Economic risks Health risks Social and political risks 100% 94.83% 94.44% 93.44% 91.80% 91.80% 90% 83.33% 81.48% 81.48% 80% 72.22% 72.41% 70.69% 66.67% 70% 57.89% 60% 54.10% 50.00% 50% 44.83% 40% 30% 20% 10% 0% Cameroon Ivory Coast Kenya Malawi SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Classification of risk (across) AFFECTED BY NATURAL DISASTERS HEALTH PROBLEMS IN THE FAMILY (FG) (FG) 60% 80% 55.34% 70.51% 70.34% 50% 70% 50% 60% 39.73% 40% 50% 39.81% 30% 40% 26.27% 33.83% 30% 20% 20% 10% 10% 0% 0% Cameroon Ivory coast Kenya Malawi Cameroon Ivory coast Kenya Malawi SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Impact of risk (across) BELONGINGS LOST MONEY LOST 50% 40% 46.60% 36.89% 45% 35% 40% 35.61% 30% 27.97% 35% 25% 22.89% 30% 25% 20% 20% 15% 15% 10.26% 10% 6.41% 10% 5.08% 5% 5% 0% 0% Cameroon Ivory coast Kenya Malawi Cameroon Ivory coast Kenya Malawi SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Impact of risk (across) HEALTH PROBLEMS/ DEATH RELATED COSTS health death $1,400 $1,165.58 $1,200 $1,000 $800 $596.32 $600 $521.18 $522.45 $487.66 $433.36 $400 $312.85 $200 n/a $0 Cameroon Ivory coast Kenya Malawi SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Impact of risk (across) UNCOVERED COSTS health costs education fees food costs work injuries 80% 72.22% 70% 61.54% 60% 53.85% 50.00% 50% 37.50% 40% 29.41% 28.89% 28.57% 30% 22.73% 21.05% 20% 7.69% 10% 5.26% 3.77% 0% Cameroon Ivory coast Kenya Malawi SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Impact of risk - Cameroon Category examples of risks type of expenditure Caterpillar invasions on crops due to climate pesticides change ENVIRONMENTAL AND NATURAL renovation of agricultural equipment & floodings purchase of water pumps ECONOMIC low quality inputs reduced incomes, new inputs agro-pastoral conflicts causing devastation of SOCIAL AND POLITICAL new inputs crops use of chemicals medical treatments HEALTH excessive work causing injuries or death health costs SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Impact of risk (Ivory Coast) Risks related expenditures examples of risks examples of consequences app 500000 FCFA of losses ($810.92) ENVIRONMENTAL AND NATURAL drought and consequent harvest losses (Yéfougnipinin) more than 15 ha of crops were lost ($7298.24 of ECONOMIC damaged crops losses) (Nanievogo) theft of equipment in the fields has caused bad Theft yields and administrative procedures (Coop society Femme,Paix et Dévéloppement Social) SOCIAL AND POLITICAL Conflicts with livestock farmers due to damages Conflicts to crops (Société Coopérative Wobingninan de Kasséré) had to pay 180000 for hospitalization, surgery HEALTH injury and drugs ($291.93) (coop Binkadi) SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Impact of risk (Kenya) risk related examples of risks Examples of consequences expenditures * family food budget increased as they have to buy almost everything in the shops * food insecurity: families cannot grow enough food to last the family through the season - most food is bought ENVIRONMENTAL drought AND NATURAL * death of livestock due to drought: many animals starved to death. Others died while being relocated to Tanzania for grazing. ECONOMIC * loss of production = loss of income * a member had to bear high cost of relocating to new house and schools for children relocation * a member had to relocate business and loss business income for some time SOCIAL AND POLITICAL Domestic violence Treatment HEALTH illness Unaffordable hospital bills SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Impact of risk (Malawi) risks related expenditures examples of risks examples of csqs • food insecurity QUOTE: "drought [forced us] to buy food for the household. [We spent] drought $372.03 for maize only." ENVIRONMENTAL AND NATURAL (Hara rice cooperative society ltd) • loan repayment failure strong winds loss of property ECONOMIC inflation increased farm inputs costs livestock losses theft income reduction SOCIAL AND POLITICAL domestic violence illness and reallocation costs hospital fees illness drugs HEALTH death of productive family member income reduction SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
EXPOSURE – Take away… • Literacy and access to basic education can be challenging • Vast majority of HH are self-employed; smallholders; informal workers (high % of landowners) • Economic vulnerability : very low % of regular wages (min 7% in Cote d’Ivoire to max 25% in Malawi; high % of indebtedness (83% in Kenya) • People unemployed / in the informal sectors / casual workers etc. (what needs?) • Consider people with reduced access to services (what risks/needs) • Specificity of risk is important: women (health); type of productive activities; types of employment • Contextuality of risk : natural disasters, climate change, extreme weather events • Consider idiosyncratic / covariant risks (affecting all community / cooperative) • Most recurrent risks : health; environmental related to agriculture; (macro) economic (inflation, prices, crisis) Lead to a variety of unexpected costs (assets, inputs, cures, etc.) • High % of uncovered costs (health; food; education) • Necessary to compare : average revenues / average debts / average losses (livelihood balance) / uncovered costs types of SP; entity of benefits; timing SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
Many thanks For more information on FAO’s work: Igor.vinci@fao.org http://www.fao.org/social-protection/en/
Survey results - Section 2 COPING WITH RISKS
COPING – Structure 1. Preparation to risk 2. Response to risk 3. Individual vs. collective coping mechanisms 4. Knowledge of risk-coping collective schemes 5. Knowledge of insurance 6. Knowledge of contingency funds 7. Take home lessons Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Structure 1. Preparation to risk What measures would you choose to prepare to possible risks? Among this, what are the main purposes of savings? What are their advantages and disadvantages? Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation to risk (Cameroon) PREFERENCES on PREPARATION MEASURES (FGs participants) % insurance (health, risk, life) 42.11% saving 31.58% njangi finance 5.26% pest mgmt / biosecurity 10.53% health prevention 5.26% water storage 10.53% study climate patterns 10.53% enclosures 5.26% vaccinations 5.26% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation to risk (Cameroon) PURPOSES OF SAVINGS % FGs Illness 60.00% Injuries 26.67% Death 26.67% Education 33.33% Damages due to CC 6.67% Buy assets / Investment 46.67% Assistance to parents 6.67% General emergencies 40.00% Risk prevention 13.33% Cope with finance losses 6.67% To obtain loans 13.33% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation to risk (Ivory Coast) PREPARATION MEASURES (FGS PARTCIPANTS) women men total 120% 96.00% 100% 75.73% 80% 69.23% 60% 40% 23.08% 20.39% 20% 12.00% 2.56% 1.94% 0% insurance (health, death) savings loans Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation to risk (Ivory Coast) PURPOSE OF SAVINGS % FGs To protect the family from unforseen 64.29% developments (emergencies) To protect family in case of death or illness 7.14% T o have projects and make them become real 42.86% (investment) To ameliorate living standards/ expand activities 14.29% To secure a good future to children (education) 21.43% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation to risk (Kenya) WAYS TO PREPARE TO RISK WOMEN MEN % FGS RESP. Adopt different farming techniques 18.60% 31.03% 22.03% Better storage of food and water 34.88% 34.48% 29.66% Savings (and loans) 34.88% 29.31% 27.12% Insurance 11.63% 29.31% 18.64% Use of NHIF (National Hospital 18.60% 12.07% 12.71% Insurance Fund) Business diversification 46.67% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation to risk (Kenya) PURPOSE OF SAVINGS FGS Illness 35.71% Food 28.57% Education 42.86% Access to funds when needs arise and/or in times of crisis 35.71% Invest for future benefits/ development 35.71% Be able to take loans (guarantee) 42.86% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation to risk (Malawi) WAYS TO PREPARE TO RISK WOMEN MEN % FGS PART. Improving farming 15.63% 6.41% methods Saving 37.50% 82.61% 64.10% Subsistence farming 33.00% Expanding economic 15.63% 21.74% 19.23% activities Enhancing security & 6.25% 19.57% 14.10% transparency Education 6.25% 19.57% 14.10% Pest management 3.13% 30.43% 19.23% Good dietary habits 9.38% 13.04% 11.54% Livestock keeping 28.13% 8.70% 16.67% Environmental 6.25% 19.57% 14.10% conservation Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation to risk (Malawi) PURPOSE OF SAVINGS % FGS General risk management 33.33% Paying school fees 66.67% To be used in case of illness and/or death 66.67% Food purchase 50.00% Gain interest and/or buy assets 50.00% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation to risk (Across) ADVANTAGES OF SAVINGS DISADVANTAGES OF SAVINGS • • promptness of resources Scarcity of finances • • Weak in case of death of saver autonomy • Unfit for big problems • no frustration in emergency • No returns • might generate employmnent • Lack of knowedge on payment systems • voluntary • • Reduce life quality Can stand as collateral for loans (Kenya) • Mismanagement and misuse (transparency) • Reduces stress / gives sense of security • • Problems of inflation/ price fluctuation Support in old age ( form of pensions ) • • Opportunity to earn interest (Malawi) Bank charges • Accessibility and security of village savings banks • Theft (security) • Lack access to saving banks Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Structure 2. Response to risk What measure do you adopt to respond to risks? Among this, what are the difficulties associated with loans? And what the difficulties associated to other types of responses to risk? Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Response to risk (Cameroon) RISK RESPONSE (FGS) 92.86% 100% 90% 80% 71.43% 71.43% 70% 60% 50.00% 42.86% 42.86% 50% 35.71% 40% 30% 14.29% 20% 10% 0% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Response to risk (Cote d’Ivoire) RISK RESPONSE (FG) WOMEN MEN TOTAL 100% 88.00% 90% 80% 68.93% 65.38% 70% 62.82% 64.08% 60.00% 60% 48.72% 50% 40.78% 40% 30% 16.00% 20% 15.38% 11.65% 10% 4.00% 1.28% 0.97% 0.97% 0% Reduce other Selling Asking for Asking for Taking a loan Other (buy from expenses assets/livestock family’s help friends’ help wholesaler) Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Response to risk (Kenya) WAYS TO RESPOND TO RISK % WOMEN % MEN % YOUTH TOTAL put children to work 6,98% 20,69% 41,18% 18,64% Reduce other expenses (Specify) 51,16% 77,59% 58,82% 65,25% Selling assets/livestock 27,91% 58,62% 41,18% 44,92% Taking an extra job 41,86% 56,90% 70,59% 53,39% Asking for family’s help 46,51% 70,69% 100,00% 66,10% Asking for friends’ help 41,86% 63,79% 58,82% 55,08% Taking a loan 88,37% 91,38% 64,71% 86,44% Other (eg: leave the area, fundraising) 11,63% 3,45% 5,93% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Response to risk (Malawi) RISK RESPONSE (FG) WOMEN MEN TOTAL 90% 78.13% 80% 70% 57.69% 60% 50.00% 50.00% 50% 43.48% 41.30% 37.50% 35.90% 40% 30.77% 30.77% 30.77% 26.09% 26.09% 30% 17.39% 17.39% 8.70% 15.63% 20% 11.54% 6.41% 10% 3.13% 3.13% 0% Put children to Reduce other Selling assets Taking an extra Asking for Asking for Taking a loan work expenses job family's help friends' help Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Response to risk (across) Difficulties associated with loans • Lack of collaterals / guarantees • High interest rates • Small amounts for short duration • Impossibility to pay back (especially before harvest) • “Difficulties in paying back the amount borrowed can lead to a state of constant anxiety and to psychological problems" • Legal issues if unable to pay • Lack of service providers in rural areas • Abiding by rules of microcredit organizations (e.g. no group credit) (COOPRANORD – Cote d’Ivoire) Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Response to risk (across) Other difficulties Fundraising and/ or asking for help (from family and friends) • Can only work for people with some income and willing to provide support • Amounts are usually not adequate • Low reputation Children involved in labour • “Child labour is wrong / abusive” • “Children do not realize their dreams” Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Preparation and response (across) PREFERENCES: SAVINGS & LOANS (FGS PART./ FGS) Cameroon Ivory Coast Kenya Malawi 92.86% 100% 86.44% 90% 75.73% 80% 64.10% 64.08% 70% 57.69% 60% 50% 40% 31.58% 27.12% 30% 20% 10% 0% savings taking a loan prepare respond Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Structure 3. Individual vs. collective coping mechanisms What measures do you adopt to cope with risk individually? Do you prefer to cope with risks alone? Do you have access to a collective scheme that can support in times of crisis? Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Individual coping mechanisms (Across) INDIVIDUAL COPING CAMEROON IVORY COAST KENYA MALAWI MECHANISMS (% HH) Use of savings 88.24% 94.83% 85.19% 59.02% Sale of crop stock 70.59% 60.34% 48.15% 72.13% Sale of land 5.88% 1.72% 11.11% 3.28% Sale of livestock 35.29% 39.66% 57.41% 78.69% Sale of equipment 17.65% 1.72% 18.52% 4.92% Sale of personal belongings 23.53% 5.17% 14.81% 8.20% Additional job taken 58.82% 6.90% 22.22% 34.43% Family loan 76.47% 46.55% 27.78% 32.79% Loan from moneylender 58.82% 15.52% 22.22% 24.59% Loan from cooperative 58.82% 27.59% 72.22% 36.07% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Individual coping mechanisms (across) Other examples of individual responses (observed by leaders): • Income diversification • NR mgmgt: biosecurity, water storage • Vaccinations (Kenya) • Plantation pawning (Kenya) • Improve skills (training, extension services) • Avoiding risky ventures (Malawi) • Overestimating food needs (Malawi) Cameroun Cote d’Ivoire Kenya Malawi % HH DECLARING TO COPE WITH 63.93% 18.75% 87.93% 35.19% RISK ALONE % HH DECLARING ACCESS TO 82,35% 17,24% 64,81% 49,18% COLLECTIVE SCHEME Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Individual coping mechanisms (across) !! 70% to 100% of FGs participants declare that collective responses might be more effective Advantages • Collective action is stronger : "It is good…because it will make large numbers be safe” (Maiziwa Taita - kenya) . • “Facilitate access to aid from government and NGOs” (Cameroun); “Gives a good image of the coop and its members” (Cote d’Ivoire ) • It is cheaper reduces costs • It enhances solidarity / social bonds (Cote d’Ivoire) • It will make some families gain more knowledge from the knowledgables (Maiziwa Taita – kenya) ( Knowledge exchange ) • It distributes the risks (Malawi) Disadvantages • Harder and slower to plan • Can create conflicts and misunderstandings Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Structure 4. Knowledge of collective risk-coping schemes Are you aware of other collective risk-coping schemes (including public)? Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Knowledge of collective schemes (Cameroon) AWARENESS OF EXISTING COPING % HH EXAMPLES MECHANISMS (HH) Input subsidies (seeds, fertilizers) & Cash transfers Technical assistance to coops Government schemes 58.82% Pension Minader, minepia, minprof 52.94% Farming equipment, subsidies NGO support schemes Trainings (GIZ) Farming equipment, subsidies (Occasional) assistance and insurance Cooperative schemes 82.35% Loans Regional coop service GIC including unions of GIC of women farmers (Occasional) assistance Loans Community association schemes 35.29% Mutuelle de santé Group solidarity 76.47% Family & friends Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Knowledge of collective schemes (Cote d’Ivoire) AWARENESS OF EXISTING COPING % HH EXAMPLES MECHANISMS Government schemes 0 Social assistance Technical support 8.62 % NGO support schemes Material support Capacity building Mutuelle de santé Cooperative schemes 22.41% Tontine (Savane) Assistance in case of need (Yagnigui de dianra) Tontine Community association schemes 37.93% Village association Religious community Youth association Group solidarity 84.48% Family & neighbors support Solidarity Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Knowledge of collective schemes (Kenya) AWARENESS OF EXISTING COPING % HH EXAMPLES MECHANISMS • WEF - women enterprise fund Government schemes • 33.33% NHIF, Pension scheme and other SP services • Free schooling, Soft loans, Subsidized inputs, infrastructures • World vision, Compassion international, Food for the hungry NGO support schemes • 3.70% Trainings, financial support to people in need, support for health, water & sanitation • prevention mechanisms against price fluctuation • L&S Cooperative schemes 64.81% • benevolence • inputs advances • Women group, Church, Micro finance, Merry go round/ self help Community association schemes 48.15% groups 68.52% • Group solidarity (family, friends, Family merry go round • neighbors) Neighbors Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Knowledge of collective schemes (Malawi) ACCESS TO GROUP COPING MECHANISMS % HH EXAMPLES (HH) FISP: farm input subsidies program Flood relief (food, tents) 28.81% Government schemes Cash transfers Employment in public works 20.69% Provision of farm inputs, food and medicines NGO support schemes Loans Funeral scheme 47.54% Cooperative schemes Food relief Donation of farm inputs Reafforestation VSL (especially women VSL) 32.79% Community association schemes Village assistance Water user association FBO (faith based organization) 47.54% Group solidarity Support from family, friends and neighbours: cash, common activities (tree planting), psychological Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Structure 5. Knowledge of insurance Do you know what insurance means? What risks can be covered through insurance? Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Insurance (Cameroon) HH KNOWLEDGE OF INSURANCE % HH Insurance knowledge 52.94% EXAMPLES OF RISKS THAT CAN BE COVERED BY AN INSURANCE (FG) ENV fire ECO resettlement harvest failure price fluctuation inflation Unemplyment / lost of job SOC conflicts HEA illness/ diseases injnury disability old age Death Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Insurance (Ivory Coast) FAMILIES KNOWLEDGE OF INSURANCE % HH Insurance knowledge 86.21% EXAMPLES OF RISKS THAT CAN BE COVERED BY AN INSURANCE % FGS Risks affecting the plantation 6.25% Assets (car, moto) 6.25% Illness/ diseases 100.00% Accident 18.75% Disability 18.75% Old age Death/ life insurance 43.75% Epidemic diseases 6.25% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Insurance (Kenya) FAMILIES KNOWLEDGE OF INSURANCE % HH Insurance knowledge 83.33% EXAMPLES OF RISKS THAT CAN BE COVERED BY AN INSURANCE % FGS Natural disasters 40.00% Economic risks mainly harvest failure 60.00% Health risks/ death 60.00% Property 6.67% Loans 6.67% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Insurance (Malawi) FAMILIES KNOWLEDGE OF INSURANCE PERCENTAGE OF HH insurance knowledge 70.49% EXAMPLES OF RISKS THAT CAN BE FG most cited COVERED BY AN INSURANCE High winds Livestock/crop Environmental and natural Drought Floods Money loss/ financial crisis Price fluctuation Economic Property Crime/ conflicts Illness/ diseases Health death Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Insurance (across) INSURANCE KNOWLEDGE (FGS) women men youth total 120% 100.00% 100.00% 100% 82.76% 82.20% 81.55% 75.64% 74.42% 80% 67.39% 64.10% 59.38% 60% 37.07% 40% 25.81% 20% 0% Cameroon Ivory Coast kenya Malawi Cameroun Cote d’Ivoire Kenya Malawi INSURANCE 52.94% 86.21% 83.33% 70.49% KNOWLEDGE (HH) Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Structure 6. Knowledge of contingency funds Do you know the meaning of contingency fund? What organization can offer such product? What risks can be covered through contingency funds? Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Contingency funds CONTINGENCY FUNDS KNOWLEDGE 35% 28.95% EXAMPLES OF RISKS THAT CAN BE 30% COVERED BY CONTINGENCY FUNDS 25% 22.62% ENV 20% 15.78% fire 15% drought 10% deforestation 5% 0% TOTAL WOMEN MEN Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Contingency funds (Ivory Coast) • % of f/m/total people declaring they know contingency funds (FGs): only 2 resp. (2.56% of FGs part.) (men) • Risks that can be covered by contingency funds (FGs): only 1 FGs answered: natural disasters • Providers offering contingency funds (FGs): no data Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Contingency funds (Kenya) CONTINGENCY FUNDS KNOWLEDGE EXAMPLES OF RISKS THAT (FGS) CAN BE COVERED BY EXAMPLES 120% CONTINGENCY FUNDS 100.00% Economic Financial crisis 100% Old age, disability, 80% Health related illness 55.08% 60% 51.72% 41.86% 40% 20% 0% women men youth total Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Contingency funds (Malawi) CONTINGENCY FUNDS KNOWLEDGE (FGS) EXAMPLES OF RISKS THAT CAN BE COVERED 45% BY CONTINGENCY FUNDS 39.13% 40% Environmental & Drought 33.33% natural 35% Illness/ diseases / 30% 25.00% Health disabilities 25% Death 20% 15% 10% 5% 0% women men total Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Insurance and contingency funds (across) CONTINGENCY FUNDS KNOWLEDGE (FGS PART.) women men youth total 120% 100.00% 100% 80% 55.08% 60% 51.72% 41.86% 39.13% 33.33% 40% 28.95% 25.00% 22.62% 15.78% 20% 2.56% 2.56% 0% Cameroon Ivory Coast kenya Malawi Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Insurance and contingency funds (across) MAIN PROVIDERS Cameroon Ivory coast Kenya Malawi Contingency Contingency Contingency Contingency Insurance Insurance Insurance Insurance funds funds funds funds Private Government Government Cooperative Cooperative Cooperative companies Community Private International Government Government based Government companies organizations organizations NGOs NGOs Cooperative/ member based Private companies organizations Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Take away… PREPARATION TO RISK • Preparation strategies exist but are limited savings are widely used (between 60 and 80% HH); men and women % are very different according to country • Other preferred options include diversification of income and Farm/NR mgmt • insurance preference as preparation measure is low (apart from Cameroun) • Awareness of the purposes of savings: response to shocks + fostering income generating activities • Main issues: finances; awareness; response to intense shocks Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Take away… RESPONSE TO RISK • Loans are widely used: between 72 and 100% HH • Detrimental strategies not widely used but robust evidence of their use in specific cases: ex. in Kenya 20% put children to work; 45% sell their assets; in Cameroun also many HH declared to put children to work • Members often recur to family’s (between 35 and 71%) or friends’ help INDIVIDUAL / COLLECTIVE RESPONSE • Preferences for collective coping usually high access to collective schemes • Good awareness of the advantages of collective mechanisms E.g. economies of scale; visibility / partnerships; social relations Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COPING – Take away… AWARENESS OF OTHER COLLECTIVE COPING MECHANISMS • Mostly informal and locally/community based INSURANCE • High % of awareness of the meaning of insurance and insurance products (apart from Cameroun around 30%) and risks that can be covered with it (they depend on context: e.g. environmental risks). • Health-related risks appear as the primary cover that insurance can provide; followed by risks related to agriculture affecting income generation • Mostly, private providers are cited, along with government schemes where available. Low awareness of micro-finance organizations (scattered cases of coops insurance and mutuelles) CONTINGENCY FUNDS • Much lower % of awareness and understanding of contingency funds. Needs covered do not differ much from insurance (despite the function is assistance) Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
Many thanks For more information on FAO’s work: http://www.fao.org/social -protection/en/
Survey results - Section 3 RISKS COVERAGE
COVERAGE – Structure 1. Main cooperative services 2. Cooperative social protection services 3. Aspects of inclusion (contributions, S&L, inclusion mechanisms for the poorest) 4. Access to insurance 5. Access to other SP services (public, private, community, solidarity) Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop services (Cameroun) SOCIAL COOPS ACTIVITIES AGRICULTURE MAIN SECONDARY (CONTINGENCY (LEA) (PRODUCTION, FINANCE FUNDS, TRANSFORMATI (LOANS, INSURANCE, Crops production ON, PURCHASES, SAVINGS) (Cassava, coffee, beans OTHER SOCIAL MARKETING) fruit, vegetable, corn, 14 5 SERVICES) cocoa, plantains, staple products) 19 1 0 Transformation / 2 2 processing Raising livestock (cows, 2 7 pigs, chicken goat) Meat production 0 1 Marketing 7 2 Fishery 1 1 Purchase and 2 1 distribution of inputs Trainings 0 3 Financial services 0 1 Unspecified services 0 1 Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop SP services (Cameroun) COOPERATIVES' SP SERVICES COOP FUNCTIONING (LEADERS AND FGS) Insurance for members of board of directors and general assembly ($164 for UCCAO illness; $246 to family for death) Insurance SOCOPALEM Insurance on crops, livestock, death ($10/y) (4 COOPS) Agrohub Health insurance and education insurance through Njangi Insurance scheme SANAGA Insurance (health, crop) ($16) All members cheap in 10,000. These funds are used to support the schools SOCOPALEM Contingency funds (with equipment etc) (child education) (3 COOPS) Agrohub Contingency funds through Njangi UCCAO: social assistance: in-kind soft loans (seeds, pesticides, and agricultural UCCAO materials) Agrohub Agro-hub: "Njangi Finance": savings and loans inclusive finance (5 COOPS) PROAGROBA PROAGROBA: savings account generating some interests for the coop HiinYavili HiinYavili: inclusive finance such as savings and loans SANAGA SANAGA: savings Batouri Mutuelle Link to other providers (2 COOPS) SOCAF Tontine Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop services (Ivory Coast) SOCIAL AGRICULTURE COOPS ACTIVITIES MAIN SECONDARY (CONTINGENCY (PRODUCTION, FINANCE FUNDS, TRANSFORMATIO (LOANS, SAVINGS) INSURANCE, Production and commercialization N, PURCHASES, OTHER SOCIAL MARKETING) (cotton, cashew, corn, coffee, SERVICES) 20 5 cocoa, palm oil, other food crops and vegetables) Training and support 8 20 1 2 Renting vehicles for produce 1 transportation Soft loans 1 Havea marketing 1 Social assistance 2 Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop SP services (Ivory Coast) Cooperatives' SP services Functioning Solidarity fund E.G. In the case of coopalm each family contribute with (4 coops) 7500 fcfa/ month Donations (usually in cash) in time of disasters and/ or Social assistance (occasional) in case of death Advances for paying school fees (1 COOP) 6 HH refered to the mutuelle de santé that had been Mutuelle de santé developed through CIDR (jointly with the coops) (4 coops) Some coops make common subscription to Mutuelle’s health insurance • Observations : 3 lea mentioned that in the past their coops had a mutelle de santé but because of lack of funds they had to stop Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop services (Kenya) Coops activities Main Secondary Dairy farming 4 1 Agriculture Social Coffe production 2 (production, (contingency Finance Plant nursury & agri transformation, funds, 3 (loans, savings) inputs purchases, insurance, other marketing) social services) Microfinance & money 8 7 transfers 7 9 1 Extension services + 3 trainings & awareness SP services (health and 1 pensions) Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop SP services (Kenya) COOPERATIVES' SP SERVICES FUNCTIONING Coop insures with reputable insurance organization Loans insurance and upon death of a member, insurance pays up (5 COOPS) loan balance Medical and life insurance Only limited to some members (3 COOPS) Pension (1 COOP) Benevolent fund also used to take insurance cover Social assistance/ benevolent fund on loans in case of death; funeral schemes; other (4 COOPS) types of transfers In kind transfers and credit advances Often agri/ veterinary inputs (2 COOPS) E.g.: Loans for education Inclusive finance (5 COOPS) Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop services (Malawi) COOPERATIVES ' MAIN COOPERATIVE SECONDARY ACTIVITIES ACTIVITIES • Buying and selling cow feeds Bvumbe dairy farmers • Lending money to members Dairy milk production cooperative society • Providing cows medical care AGRICULTURE • Fish farming Phata sugarcane outgrowers SOCIAL Sugarcane production (PRODUCTION • Other crops (CONTINGENC cooperative , FINANCE Y FUNDS, TRANSFORMA (LOANS, INSURANCE, Ngolowindo/horticulture Horticulture (irrigated • Other crops TION, SAVINGS) OTHER SOCIAL cooperative society farming) PURCHASES, SERVICES) MARKETING) Chickwatula macadamia Macadamia nuts production and marketing • Other crops cooperative ltd 6 2 1 Phoka coffee growers coop • Beekeeping Coffee marketing society ltd Hara rice cooperative society ltd Rice production and • Loans marketing Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop SP services (Malawi) NAME COOPERATIVES’ SP SERVICES FUNCTIONING • Covers coffin for husband and wife and in case of death of a child the Bvumbe dairy • Funeral fund farmers family gets a compensation . There is a social welfare committee • Participating to VSL cooperative which provides leadership and makes decisions related to this social society welfare scheme. Ngolowindo/h • Title deed on the land orticulture • Funeral fund cooperative • Pest and disease control society • Soft loans Phoka coffee • Advanced payments growers coop • Assistance in time of natural society ltd disaster and other emergencies • Help improving children learning Hara rice • Support to school feeding • Reduce absenteeism cooperative program • One way of advertising the coop society ltd Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop services (across) COOPERATIVES SERVICES Agricultural services Financial services Social services 25 2 0 1 20 1 1 15 9 10 20 19 1 2 5 7 6 0 Cameroun Cote d'Ivoire Kenya Malawi Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Coop services (across) COOPERATIVE SP SERVICES Insurance Contingency funds Savings with interests and soft loans Other forms of risk mgmt 20 0 5 15 6 10 2 2 2 1 4 3 5 4 8 1 4 3 2 0 0 Cameroun Cote d'Ivoire Kenya Malawi Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Inclusion within coops (Across) FINANCIAL OBLIGATIONS (we have figures) Ownership!! • One time entry fee Cameroun Cote d’Ivoire Kenya Malawi 15,70 USD 6,62 USD 7,86 USD 1.80 USD • Minimum capital share to buy • (Normally) annual contributions Other : • Audits • Trainings Mechanized labour; maintenance of equipment; phytosanitary treatment • Trainings • Fees on services (e.g. collective purchase/sales) • Contribution to common projects (infrastructure) • “Solidarity”: social funds, insurance • Debts / interests (financial services) Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Inclusion within coops (Across) % HH DECLARING ACCESS TO COLLECTIVE Cameroun Cote d’Ivoire Kenya Malawi SCHEME 82,35% 17,24% 64,81% 49,18% Kenya Malawi ASPECTS OF INCLUSION REGARDING Cameroun Cote d’Ivoire COOPERATIVES SP SERVICES (f/m/y) (f/m) Members involved in the design of the scheme 21% 45% 66% 100% 43,48% / Members covered by the scheme 15% 55% 74% 75,86% 34,78% / Members satisfied of the scheme 9% 20% 66% 58,62% Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Inclusion within coops (Across) ACCESSIBILITY TO NON-MEMBERS (examples from Kenya) • Kasinga Factory, Biashara & Nyala covers subscriber, spouse and children in their insurance / inclusive finance schemes • Mudete Factory opens benevolent fund to non-members that are willing to subscribe IMPACTS • Positive impacts under many domains: stable livelihood and incomes; new economic activities; • Spill over outcomes such as better education, health; access to food. • Some coops report that commons schemes have increased solidarity and bonds among the group members Société Coopérative Yagnigui de Dianra: “it helps from a psychological point of view, knowing that you can get support ” • Positive impacts both short term (response to emergencies) and long term (stable livelihoods). Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Inclusion within coops (Across) ISSUES • small capacity of members to contribute ; small financial turnover (financial services) • Limited capacity to re-pay debts • limited collective resources to cover for severe shocks and co-variant risks (affecting the whole group) • Lack of awareness regarding the importance of preventing and responding to risks, and relative measures. • In some cases, services are limited to the board , or a small number of members (UCCAO in Cameroun) • Frauds, transparenc y of members and leaders, which could be solved by applying fines and selecting new leaders Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
COVERAGE – Access to loans (Cameroun) HH THAT ALREADY Total: 17 % HH: 94,44% TOOK A LOAN Average loan taken Average $ min max $1,346.76 $25.35 $5916.54 average interest rate 9.81% cases of inclusive rate rate < 5% 5 Duration 1 month 4 years Social Protection - From Protection to Production SPIREWORK initiative – Findings of a survey on the role of cooperative in social protection
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