Program Implementation
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regions? Are these regulations generally enforced? Are there significant differences in market wages between men and women? Is there labor market segmentation that prevents women from taking on jobs in the labor market? The assessment needs to collect (via a small survey, if necessary) and present market wage rates in select activities (such as farming, construction, etc.), disaggregated by sex, by rural/urban location, by season, and by skill level (skilled, semiskilled, and unskilled). 窶｢ Assessment of fiscal space. Information about the availability of fiscal space and what can be achieved with a given amount of resources will help determine program scope. Cost estimates can be derived from various simulations (see below, and the illustrative examples in box 5.1); these should give an idea of how much the country can afford, bearing in mind other critical needs for tax revenues. Box 5.1
Simulations to Assess Program Scope: An Illustration Policy makers in a small country (Country X) with a total population of 400,000 would like to implement a program that covers at least 10 percent of the poor, or 40,000 households. Country X officials use a simulation exercise to understand the different cost implications for the following program design conditions: 窶｢ 窶｢
If only one member of the household is covered by the program versus 1.5 (40,000 or 60,000 workers, respectively) If the workers are hired for a total of 120 or 60 days; assuming they work only 20 days per month, this would result in a 6- or 3-month program, respectively
The following table spells out the cost implications of three different scenarios. In each scenario, an extra 20 percent premium for nonlabor costs and a wage rate of $3 per day is assumed. The total cost of each scenario is calculated by multiplying the total number of beneficiary workers by the total transfer value per worker (per year). The number of people per project and the number of projects are also estimated (40,000 workers/100 people per project = 400 projects under the first scenario). Findings from the simulation exercise help to inform the overall scope of the program, balancing a range of parameters窶馬umber of workers and beneficiaries (coverage), duration of project, number of days of employment generated, and number of projects created. Scenario A requires the highest budget, but allows for a 120-day program. By reducing the program duration to 60 days under (continued next page)