Vouchers constitute an alternative to cash and in-kind benefits.

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Edith McCoy
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1 SOCIAL VOUCHERS TO IMPLEMENT EFFICIENTLY SMART SUBSIDIES SMART subsidies help to reach several needs. Fields of action can concern development, resilience, economic growth, social protection and food security. Such policy programmes are featured to be: S M A R T SPECIFIC MEASURABLE ACHIEVABLE RESULT-BASED TIME-BASED S M ART OB J E C T IV ES ARE EASILY REAC HABLE T H ROUG H S P E C I FI C M AN AGEM ENT IN ST RUM ENTS. SOCIAL VOUCHERS ARE : Designed in the framework of a dedicated programme or law Valid only on a predefined geographical area (territorial use) Increasing transparency in a specific sector of the economy without adding administrative burden Steadily tracked, giving access to complete data and overall assessment Bounded tools carrying a right for an individual to receive specific goods or services from an affiliated network of approved suppliers Delivering direct and indirect macro-economic impacts including job creation (notably on local markets) and fight against undeclared economy Transition programmes: Redeemable within limited time periods adjustable to the duration of a programme Designed within a detailed programme with a methodology, evaluation and exit strategy Edenred designs and develops social vouchers to meet different policies needs. Edenred is present within 42 countries worldwide and develops 50 social vouchers programmes in 13 of them. Opleidingscheque boosts the adaptability of workers on the market thanks to adapted trainings. Ticket Service tackles poverty by providing an easy access to staple goods for people in need. Punto Clave enables to control the ID of beneficiaries through biometrics. Junaeb programme facilitates students access to a healthy and affordable meal. Food programmes ease the distribution of public allowances dedicated to food for the most deprived. Ticket Agri ease farmers access to fertilizer to increase agricultural productivity and food security. Dote conciliazione encourages parents to go back to work while improving their worklife balance. School choice programme eases the access to education for girls by helping families to secure admission.

2 Vouchers constitute an alternative to cash and in-kind benefits. They are neither cash nor universal payment cards cannot be exchanged for money do not give access to Automatic Teller Machines It is not possible to receive cash as change while using give access to goods and services Tools to distribute allowances IN-KIND PROVISION SOCIAL VOUCHERS CASH Universal (used anywhere, anytime) Expectations to manage the subsidy Freedom of choice for beneficiaries Simple to distribute (no stock, transport and dieback of products) Promoting financial inclusion Transparent and trackable Easy data collection and monitoring Adaptable under different instruments: mobile, electronic, paper, card Guarantee of the destination of the funds In an affiliated network Targeted

3 : Who and why? TRANSACTION VALIDATION AND REDEMPTION VOUCHER ISSUERS Technical implementation of the social voucher programme Guaranty of the security and the reliability of the social voucher throughout ils cycle of life Monitoring, data collection and regular assessment of the programme VOUCHER ORDER AND DELIVERY + DATA HANDOVER SUPPLIERS Solvency of the demand Reimbursement guaranteed Regular income Increase business and possible investments INTERNATIONAL DONORS in coordination with public authorities Traceability, transparency and strict funds allocation Good governance spirit Result-based and targeted Monitoring and follow-up of the programme with precise data and statistics Positive collateral effects : market-based solution boosting local economy and initiating a prosperity cycle On the long-run an exit strategy conceivable IMPLEMENTATION PROGRAMME AGENCIES Tracking and monitoring expertise New technologies (internet, card, mobile for instance) Insurance of results and success of the programme Minimise logistic costs : no stock, no transport, no goods perishing EXCHANGE VOUCHER FOR PREDETERMINED GOODS OR SERVICES Purchasing power Freedom of choice in the affiliated network Respect dignity Simple and easy to use Strengthen social inclusion VOUCHER DISTRIBUTION

4 Steps to implement vouchers programmes The stakeholders in action Definition of the programme, targeted objectives and Exit strategy. Solution design and set up Communication tools adapted for all stakeholders and delivered all along the programme Listing of targeted beneficiaries. Digital identification of beneficiaries. Optimisation and consolidation of data Account management (for cards only) Delivery of vouchers to identified beneficiaries Creation of an affiliated network Use of the vouchers within the affiliated network Transaction validation and redemption Data management and reporting Monitoring and evaluation (MAE) INTERNATIONAL DONORS IMPLEMENTATION PROGRAMME AGENCIES SUPPLIERS

5 SOCIAL CARE FOR CITIZENS INVESTMENT GDP FINANCIAL INCLUSION TAX COLLECTION SOCIAL DIALOGUE BOOSTING LOCAL ECONOMY DEDICATED PURCHASING POWER JOBS BUILDING RESILIENCE RESPECT AND DIGNITY FIGHT AGAINST BLACK ECONOMY COMPETITIVENESS INCREASE OF CONSUMPTION STRICT ALLOCATION OF THE ALLOWANCE EDUCATION JOB CREATION JOBS created in Belgium further to the implementation of services vouchers system. ADDITIONAL TAX COLLECTION US$ in additional taxes for various local and central government authorities generated by the WFP food voucher programme in Lebanon in DIGNITY OF (citizen with specific social difficulties, among them young people, elderly people, isolated people, etc.) receive Ticket Service for an average of 150 per household per year, corresponding to 3 million of vouchers issued yearly. US$ 7.5 in annual wages and 400 jobs created through the WFP food voucher programme in Jordan. US$ 5.9 in additional taxes for the Jordanian authorities through a comparable programme in Jordan. APPROXIMATELY of the vouchers and 15 million TL distributed in 2014 through food programmes for refugees in Turkey enabling them to buy and cook the food they know. THE ADVANTAGE OF THE TICKET SERVICE IS THAT IT IS NOT STIGMATISING, SINCE ITS USE IS BACK IN MANNERS. THERE IS NO PARTICULAR ETIQUETTE REGARDING THE POVERTY OF THE USER OR HIS SOCIAL PROBLEMS WHEN USING A TICKET SERVICE NOW TO BUY FOOD Jean-Paul Raymond, Solidarity Deputy Director, General Council of Essonne, France PROMOTION OF CULTURE ATTRACTIVENESS WOMEN EMPOWERMENT BETTER NUTRITION PRODUCTIVITY LOCAL INVESTMENT US$ 7.4 injected by the WFP into the egyptian local economy through partner supermarkets within 6 months in 2013, thanks to voucher assistance. STIMULATING LOCAL ECONOMY is key to reach resilience. In Burundi, the average income increased of 18% after the 1st year of PNSEB, farm holders benefit each year of vouchers and agridealers have returned in the country. VOUCHER PROJECTS CAN HELP TO REVITALIZE LOCAL ECONOMIES BY INCREASING THE VOLUME OF TRADE AND NUMBER OF TRADERS, THUS DEVELOPING LOCAL MARKETS. THIS IN TURN CAN STIMULATE PRODUCTION, DYNAMIZE TRADE, HELP TRADERS ESTABLISH NEW LINKS WITH OTHER MARKETS AND STIMULATE LABOUR MARKETS DG for Humanitarian Aid and Civil protection, European Commission, 2013 DATA COLLECTION AND MONITORING IMPACTS of social vouchers systems REQUIRING THE PROVIDER TO PRESENT A VOUCHER IN ORDER TO RECEIVE THE SUBSIDY CAN PREVENT IRREGULARITIES AND FALSE CLAIMS. IF DESIGNED WELL, THE VOUCHER CAN SERVE AS A RECEIPT AND A DATA COLLECTION FORM, AS WELL AS TOKEN OF EXCHANGE The World Bank, 2005

6 7 key points of interest Strategy for designing, implementing, and ending external support in a manner consistent with the objective of producing sustainable development outcomes. EXIT STRATEGY Strategy for designing, implementing, and ending external support in a manner consistent with the objective of producing sustainable development outcomes. ASSESS THE NEEDS Analyses of the needs of all the stakeholders to develop a programme accordingly and to find the adequate and easy to use solution. DEVELOP A SIMPLE SYSTEM Any beneficiary should be able to access and use the programme easily. Total transparency in the scheme for all the stakeholders, to get their full involvement. IMPLEMENT AN EVALUATION SCHEME To measure the benefits with a regular evaluation of the impacts according to the identified needs. SMART SUBSIDY PROGRAMME WITH VOUCHERS DESIGN A LARGE BUT DEDICATED NETWORK To build a qualitative network which should be large but targeted. Suppliers should be registered to be part of the network. COMMUNICATION ABOUT THE PROGRAMME Regular and up-to-date information to all stakeholders. Enhance quality of the services through close cooperation with the affiliated network. VOUCHERS CANNOT BE EXCHANGED AGAINST CASH Very important asset to guarantee the destination of the funds. Vouchers are not payment instruments. For any further information, please contact: Nathalie Renaudin, Public Affairs Director nathalie.renaudin@edenred.com Nolwenn Bertrand, Public Programme Manager nolwenn.bertrand@edenred.com

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