social assistance pilots program sa pilots seminar social electronic cards: international experience...
TRANSCRIPT
Social Assistance Pilots ProgramSA Pilots Seminar
Social electronic cards: International experience
Viachaslau HerasimovichCASE Ukraine
March, 2010
1.1. Kinds of electronic social cards. Their advantages and disadvantagesKinds of electronic social cards. Their advantages and disadvantages
2.2. Example of advanced technologies application in the U.S.A.Example of advanced technologies application in the U.S.A.
3.3. Social card of Moscow residentSocial card of Moscow resident
4.4. Comparison of Odessa and Moscow projectsComparison of Odessa and Moscow projects
5.5. Conclusions. RecommendationsConclusions. Recommendations
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ContentContent
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Kinds of electronic cards used in the system of social protection
Bank cards. Currently being introduced in developing countries and accepted in developed countries as given. They are used to deliver monetized benefits and help to protect entitled beneficiaries from theft.
Discount Cards. Used to deliver non-monetized privileges usually in transportation and allow controlling of who is benefiting from privileges. Used all over the developed world.
Smart Cards. Rather sophisticated way of delivering monetized or non-monetized benefits and most importantly of controling the usage of funds. Best examples can be found in the USA and Moscow.
Bank cards
Source: Finance Ministry of Ukraine
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Advantages Drawbacks
Simplify and reduce the cost of assistance delivery (savings on administration)
Elderly population, is notnecessarily technically savvy and may have difficulty performing transactions
Protect the receiver from theft and loss of funds
Offer freedom of movement to the recipient
Increase volume of non-cash transactions
Discount cards
Source: Finance Ministry of Ukraine
Advantages Drawbacks
Provide significantly better protection against fraud
Expensive to implement
Facilitate creation of a register of beneficiaries
Difficulty of coordination between local and central budget
Enable to track the number of discounted and free journeys
Possible discrimination by place of residence
Monitor the flow of passengers
Mostly used in provision of transportation privileges. Discount cards enable the eligible passengers to have either free access to the public transport system and to pay less for their journeys.
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Examples of implementation of transport discount cards
Smart Cards
Source: Finance Ministry of Ukraine
Not only the amount of available funds are stored in the memory of smart cards but also a list of essential goods, which the recipient can purchase with these funds. Thus, the state both ensures the eligibility for social assistance and controls that this assistance is properly provided.
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Example of using smart cards in the USA - WIC program.
Federal grants to States for supplemental foods Objective is to provide supplemental foods, health.
care referrals, and nutrition education for low-income eligible who are found to be at nutritional risk.
Total number of beneficiaries is 8.7 million. Funding in 2008 – USD 6.2 billion.
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Conditions for successful smart cards implementation on example of WIC program
Participation of large retailers with a network of stores which are able to accept the benefit smart card
Awareness and acceptance of the rules by both the assistance recipients and its providers
Investments into building a suitable future proof smart card infrastructure
Focus on long-term goals
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Social card of the Moscow resident
Name,Benefits category
Bar code - discounts in trade
Contactless chip:Public transport
Magnetic stripe:Banking application
Card number, date of issue
Photo
Social card of the Moscow resident – is a personal (named) plastic card with photo, magnetic stripe and microchip, which is issued to a resident of Moscow having the right to receive social assistance.
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Social card of the Moscow resident
The actual registration of volume and quality of granted privileges Passenger flow monitoring Ability to get detailed report on all aspects of transport functioning
and provision of benefits Automatic bank transfer of funds Provision of social benefits in trade Payments and discounts for medical services Collecting of personal information from the Social Register and
other information systems
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Social card of the Moscow citizen. Purposes and participants
Project Participants: Moscow Committee for Social Security Moscow Underground Moscow Railway Moscow Compulsory Medical Insurance
Fund Department of Economic Policy and
Development Department of Consumer Market and
Services of the Moscow Government Bank of Moscow Visa Payments System State Enterprise “Moscow social
register”
Objectives: regulate the delivery of social benefits
to Moscow citizens - registration and targeted provision of social support
provide full control and accounting transparency of financial flows and control over the targeted use of budgetary funds in the field of social welfare
create a common electronic register to track down state benefit recipients
monitor the compensation of expenses to organisations that provide privileges
simplify budget preparation, analysis and forecasting of budget expenditures based on actual services consumption.
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Social card of the Odessa resident
Introduced 1 April 2008 Eligible :
Multi-children families Disabled of 1st group Pensioners getting minimum pension
Help provided Discounts for bread Hot food Medicines allowances Housing and utilities benefits
Comparison of Odessa and Moscow projects
Moscow Odessa
Funding source Local and central Local
Number of potential beneficiaries
5 million 60,000
Funding, 2008 RUR 20 billion(UAH 5.3 billion)
UAH 40 million
Functions integration Multipurpose use Subsidies on food, medicines, housing and
utilities services
Payment system Visa International Service Association
VISA
National system of mass electronic payments
(NSMEP)
Trade off between simplicity and effectiveness
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Integration of functions
Storage of personal information on the
card
Connection to the bank account
Costs distribution amongst partners
Cardholders awareness
Security, data protection
Simple procedure of issue and support
Accessibility and convenience of services
Card ownership
Different requests to security
Effectiveness Requirements Issues that challenge simplicity
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Conclusions. Recommendations
Electronic social cards may be successfully introduced at both local and national level.
While providing transportation benefits through electronic cards is crucial for effectiveness and success of their introduction at local level, significant value and variety of benefits provided through one card becomes important when the card is introduced across the country.
To increase attractiveness of SEC, cooperation of several benefit-providers with reliable processing system and other entities involved would be required.
A separate analysis will be needed to analyse technical particularities of SEC introduction as well as to evaluate costs and benefits of it.
Due to little experience of electronic cards usage among vulnerable groups of population in Ukraine, cardholders’ awareness may become a major issue, which may require well prepared information campaign.