Result achieved
Outcome summary
A micro-simulation model was developed and is now used for the execution and oversight of non-contributory programmes
Outcome achieved
During the 2018-19 biennium, the Government, in consultation with the Federation of Employers and Zambia Congress of Trade Unions have improved capacities of government institutions as well as national economic think tanks to refine and apply tax-benefit microsimulations in the execution and oversight of non-contributory social protection programmes. The simulations were used to demonstrate the effects of various cash transfer design options and to estimate their associated cost and are feeding into the planning and budgeting process for implementation of the 7th National Development Plan (7NDP). In this context, Ministry of Finance and Ministry of National Development Planning (MNDP) have now adopted the model to inform future inputs into budgeting and planning.
ILO's contribution to the outcome
The ILO, through the Social Protection Programmes, provided technical support by offering training to 19 participants (8 women, 11 men) from 22-24 May 2018 from MCDSS, MNDP and MoF, as well as national economic think tanks from22-24 May 2018 on the MicroZAMOD micro-simulation model developed with United Nations University World Institute for Development Economics Research (UNU-WIDER). In May 2018, the ILO co-organized a training for more than 20 Government officials and researchers on the MicroZAMOD model, which led to the simulation exercise undertaken between the institutions to examine options for financing a scale-up of the country’s social cash transfer programme. . In 2019, UN Wider published a working paper, co-authored by representatives from the Ministry of Finance (MoF), Ministry of Community Development and Social Services (MCDSS), national economic think tanks and the ILO, which demonstrates the simulated impact on poverty achieved through targeting children and through increasing the transfer values by raising additional domestic revenue.