1. Economic Research Center The project on estimating of factors that affect Targeted Social Assistance (TSA) system 24 april, 2008

2. The name of project: “; The project on estimating of factors that affect targeted social assistance system The purpose of project: To explore the quality of new mechanism’s application, perceiving its importance, to determine the factors that influence errors of inclusion and exclusion that can affect coming consumption of poor population, preparing Recommendations' Packet Interrogatory during the project: The interrogatory among 200 TSA determined person, 200 person who denied to be TSA determined and 400 casual picked person in Mingachevir city. The organization hold the project: Economic Research Center; Donor of the Project: The Oxfam (Novib) Organization of Netherlands The sum of grant intended for project : 25.000 euro The passport of project

3. 1. General information – family members of responders, education, the occupied status, age, the information about area of economic that he or she is occupied 2. Estimating of population’s intelligence; 3. The process of applying for targeted social assistance and about officials’ behavior; 4. About officials’ abusing during determined TSA and about estimating of corruption condition, about families’ income and expenditure; 5.. Estimating influence of TSA to real home economy level The structure of interrogatory form

4. Gene coefficient 0.313 Just division of incomes

5. Foster-Greer-Thorbecke (FGT) poverty index ( headcount ratio) – 25,8 faiz (poverty gap) – 7,9 faiz (average squared normalised poverty gap) 3,6 faiz Depth of poverty in Mingachevir

6. Composition of minimum consumption basket Name of productMeasure unity AzerbaijanRussiaLatvia Bread and bread products kq15022088 Potatokq4015084 Vegetable and water melon products kq809263 Fruit and berrykq382532 Meat and meat products kq303556 Milk and milk products kq190125350 Fish and fish productskq51413 eggnumber127180217 Sugar and confectionery kq172026 Oil, margarine and other fats kq10.мар135 Animal fatkq06.май2,612 Other product (tea salt) kqапр.75 Whole basket 1,7%

7. Employment status’s influence to probability getting TSA s Employment statusProbability getting tsa (coefficient) 1Hired worker0.564 2 Self working0.164 3 Individual labour activity0.006 4 In a holiday for a long time0.472 5 Working pensioner0.516 6 Nonworking pensioner0.233 7 Does not work, does not search for work0.728 8 Does not work, searches for work0.817 9 Does not have a working ability0.914 10 Upper of working ability age0.361

8. Sorğu nəticələri  People who got TSA picked 7 documents. Responders could get TSA by presenting maximum 16 minimum 1 document.  People from Mingachevir who got TSA spent 5,1 day on it. From responders one person for 40 day 22 people for one day picked all documents.  In order to get an aid from state 94 people(49%)1 time, 52 people (25,7%) 2 times, 38 people (18,8%) 3 times, and 8 people tried much more times for “registering their documents”.  Last time during presenting documents responders lost 43 minutes in turn. 25,7% of responders informed that there was not any turn. ----------- Results of interrogatory

9. “ How do you estimate official’s behavior who admitted your documents?” distributing answers to this question Attitudenumber of situations percentage Good18591,6 Middle94,5 Bad10,5 I have difficulty in responding 10,5

10. Bureaucratic hindrance while getting tsa “in which organization you have faced with much more problems” distributing answers to this question OrganizationsPercentage Apartment exploitation area 87,5 Notary 2,3 Executive Power 1,1 Other 9,1

11. “ Do you have any information that people who do not need aid got TSA?” the structure of answers given to this question with percentage) 46,4 53,6 Yes No

12. Inclusion error  Families who got TSA income for per person was 21 AZN  Among the surveyed TSA applied households, the percent of households with an income of 40 AZN of above per person made up 12,9%

13. “ Do you have any information about people who need but can not get TSA?” responders answers to this question 38% 62% Yes No

14. Exclusion probability  Average measure in denied families was 3,8 person and average income per person was equal to 27,4 AZN. Statistic analysis showed that despite of refusing to determine TSA, 79% of such responders’ per man average benefit was lower than need criterion(40 AZN) -----

15. Reasons of rejection People who refused to determine tsa based their repudiation with below arguments:  Rejection from work suggested by employment-81,4%  Benefit is higher need criterion-14,2%  Wrong showing benefit’s and familie members’ number-3,8%  Other-0,5%------

16. Rejection from employment mainly connected with below factors  63,5% rejected from employment because suggested work was not suitable with profession.  34,6% rejected because of unsuited salary  Thus, based on rejection from work from employment, refusing to determine TSA disorders social justice Rejection from employment

17. “ Which of below arguments play main role in determining tsa?” distribution answers to this question Economic Research Center

18.  During preparing prognosis for TSA in 2008, it was based on 2006 year’s information and population’s benefit admitted as unchanged, there was not considered increasing observed in 2007 and prognosticated for 2008 ;  Considering little increasing of need criterion in 2008 we can say that, prognosticated sum was not based enough;  Prognosticated sum of social guarantee expenditures per person is not correspond to life level in some regions;  Population's lower knowledge about TSA;  Expensiveness of “ application cost” for getting TSA;  Plenty of demanded documents for getting TSA;  Problems in counting household benefit;  TSA surrounds only 30% of poor population;  Existing inclusion and exclusion errors Results

19.  Need criterion by stages has to be attained to living minimum;  Poor population has to be supplied with tsa widely as possible;  TSA prognosis have to be worked out according to level of poverty in the country and regional features;  TSA has to be given for one year;  During giving TSA counting household benefit has to be prompt and real;  During giving TSA the factor of considering family’s property has to be softened;  Appeal for TSA has to be put into practice in method “one window” Recommendations

20. Baku, Azerbaijan J.Jabbarli 44, Caspian Plaza 3, floor 9 Tel: (+99412) 437 32 30 Fax: (+99412) 437 32 40 web-site: www.erc-az.org e-mail: office@erc-az.org, erc-az@azeurotel.comwww.erc-az.orgoffice@erc-az.org erc-az@azeurotel.com We express our gratitude! Economic Research Center