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In Bangladesh, where over 4.7 million elderly citizens live in poverty, the Old Age Allowance (OAA) program is a vital social safety net. Launched in 1998, the OAA aims to reduce economic dependency and improve the quality of life for the elderly. This project, conducted in collaboration with the ARCED Foundation, seeks to address this gap by evaluating the effectiveness of the OAA program and improving the beneficiary selection process to ensure it reaches the most vulnerable.

Tags: Old Age Allowance, Social Safety Net, Impact Assessment, Poverty Alleviation,Beneficiary Selection Process

Impact of the Old Age Allowance in Bangladesh.

Overview

Over the past few decades, the Government of Bangladesh has made significant investments in social safety nets targeting impoverished and vulnerable households. Among these initiatives, the Old Age Allowance (OAA) program is considered a landmark social security initiative, especially for the elderly population, which currently stands at 4,761,700 individuals aged 65 and above. The allowance is designed to reduce the economic hardships faced by older people and alleviate their dependency on family members. This study seeks to address this gap by focusing on the well-being of elderly beneficiaries receiving the OAA.

A state-capacity-building intervention for Bangladesh's national Old Age Allowance program is being evaluated through a Randomized Controlled Trial (RCT). In randomly selected municipalities, an intervention with two key components is either implemented or not. Developed in collaboration with the Ministry of Social Welfare, the intervention includes training local government representatives on national beneficiary selection guidelines and providing data on the target group. The empirical analysis focuses on comparing beneficiary selection in "treated municipalities" with that in the control group to assess the intervention's effectiveness.

ARCED's contributions include conducting the intervention, providing training on eligibility and priority criteria for OAA, and transferring relevant data to the union selection committees using Eligibility Information Cards (EIC), which helped ensure a more transparent and informed beneficiary selection process.

AEA Registry https://docs.iza.org/dp17365.pdf

Donors: German Science Foundation (Deutsche Forschungsgesellschaft, DFG)

Target Groups of the Intervention Components

  • Training: The intervention targeted 18 members of the union selection committee, including local government representatives, officials, and social workers. Additionally, elderly individuals in selected unions participated in the EIC card-filling process.
  • Training for Local Government Representatives: A 90-minute, one-on-one session was conducted using video and audio on tablets to explain eligibility and priority criteria.
  • EIC Card Filling: Public announcements invited elderly individuals to a designated space, where listing officers completed and distributed EICs to both the elderly and local government representatives.

An endline survey was conducted as part of this evaluation to assess the impact of the OAA beneficiary selection process across treated and control municipalities.

Objective

The primary objective of this project is to evaluate and enhance the beneficiary selection process for social pensions in rural Bangladesh, specifically targeting elderly individuals living in poverty. By testing interventions aimed at improving local government officials' targeting mechanisms, the project seeks to better align the beneficiary selection process with national eligibility criteria. The ultimate goal is to address challenges in current selection practices and ensure a more effective and transparent distribution of social transfers to vulnerable elderly populations.

Intervention

ARCED Foundation implemented a field-based intervention as part of the randomized controlled trial titled "The Challenge of Targeting Extreme Poverty: Evidence from a Field Experiment in Bangladesh", aimed at improving the selection process for the Old Age Allowance (OAA) program. This intervention was conducted across 38 upazilas in the Rajshahi and Rangpur divisions between December 2019 and February 2020.

As part of the intervention:

  • Training Delivery: ARCED provided structured training sessions to members of the Union Selection Committees. The training focused on clarifying the eligibility, ineligibility, and priority criteria used for selecting OAA beneficiaries. The goal was to equip local decision-makers with the knowledge required to make informed and equitable beneficiary selections.
  • Data Collection and Transfer: ARCED collected individual-level data using Eligibility Information Cards (EICs). These cards contained demographic and socioeconomic information on the target population—primarily older individuals either currently receiving or potentially eligible for the OAA.
  • Facilitation of Beneficiary Selection: The collected EIC data were shared with Union Selection Committees to assist them in the beneficiary selection process. By providing concrete and structured information, the intervention aimed to reduce discretion and potential biases in selection.
  • Field Implementation Team: The intervention was carried out by a team of 5 core ARCED staff, supported by 36 trained enumerators, who conducted fieldwork across the targeted upazilas.

This intervention directly supported the study's goal of evaluating whether improved information and training can enhance the targeting effectiveness of social safety net programs such as the OAA.

Endline Survey

As part of the study, data were collected and matched for approximately 8,000 individuals from 39 unions across 16 districts in the Rangpur and Rajshahi divisions of Bangladesh. The districts covered in this research included Thakurgaon, Rangpur, Panchagarh, Nilphamari, Gaibandha, and Dinajpur in the Rangpur Division, along with Bogra, Chapai Nawabganj, Joypurhat, Naogaon, Natore, Pabna, Rajshahi, and Sirajganj in the Rajshahi Division.

ARCED Foundation played a pivotal role in the successful execution of this research project, contributing to its design, implementation, and analysis. Our responsibilities began with the development of the research protocol, ensuring that the study adhered to rigorous methodological standards. We also designed and developed the SurveyCTO forms used for data collection, covering key modules such as household consumption (both food and non-food items), health, nutrition, and proxy interviews. These comprehensive forms facilitated a holistic approach to gathering relevant data.

In addition to designing the data collection tools, ARCED Foundation was responsible for field implementation. This involved managing logistics, training enumerators, coordinating with local authorities, and overseeing the smooth execution of surveys across all study locations. To ensure data integrity and accuracy, we implemented a robust data monitoring process, incorporating High-Frequency Checks (HFC) and regular monitoring procedures throughout the study. Following data collection, our team conducted an in-depth analysis to assess the impact of the Old Age Allowance (OAA) program on elderly beneficiaries, extracting meaningful insights to evaluate its effectiveness.

Once the data was collected, ARCED conducted a thorough analysis to evaluate the impact of the OAA program on elderly beneficiaries. The research examined key aspects of well-being, such as health, economic dependency, and beneficiaries' perceptions of the program. The findings provided valuable insights into the effectiveness of the OAA as a social safety net, helping inform future policy decisions.

ARCED Foundation is proud to have contributed to this vital research, which supports evidence-based policy-making and aims to enhance social safety net programs in Bangladesh.

Engagement

  • Sebastian Fehrler published the study Missing the Target: Does Increased Capacity of the Local Government Improve Beneficiary Selection? based on OAA in Bangladesh, examining whether strengthening local government capacity improves beneficiary selection through a randomized controlled trial.
  • Sebastian Fehrler published the study Contacts Matter: Local Governance and the Targeting of Social Pensions in Bangladesh aims to provide insights into improving the fairness and effectiveness of social transfers for the elderly poor in rural Bangladesh.
  • Heiner Salomon is working on the research project "Global Dynamics of Coverage and Generosity in Work-Injury Compensation, Unemployment, and Old-Age Pensions," which examines the evolution and distribution of social protection policies worldwide.
  • Sebastian Fehrler published "Selection of Receivers of Social Transfers to the Elderly Poor in Rural Bangladesh" examines how local officials select beneficiaries for social pensions and tests interventions to improve selection using state-capacity-building measures.
  • Sebastian Fehrler is working on the paper titled 'Missing the target: Does increased capacity of the local government improve beneficiary selection?'
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OVERVIEW

TOPICS
Old Age Allowance (OAA), Social Security Program, Impact Assessment, Elderly Population, Poverty Alleviation, Bangladesh

LOCATION
39 Unions of Rajshahi & Rangpur divisions, Bangladesh.

TIMELINE
2023 - 2024

SAMPLE SIZE
7956 Old Age People

PARTNER
ARCED Foundation, CHR. Michelsen Institute,Bremen University, Germany,University of Konstanz, Germany, University of Dhaka, Bangladesh.

PERSONNEL
Sebastian Fehrler, Atonu Rabbani, Viola Asri, Heiner Salomon, ARM Mehrab Ali, ARM Mehrab Ali, Sadia Sumaia Chowdhury, Sadia Sumaia Chowdhury, Zahirul Islam, Zahirul Islam, Sayed Jobaer Hasan, Shirsha Songshoptak, Kumar Biswas

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