In Practice Operational Considerations for Urban Economic Inclusion Programming By Puja Vasudeva Dutta, Timothy Clay, and Jorge Avalos 2 © 2022 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The find- ings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrep- ancies in the information, or liability with respect to the use of or failure to use the informa- tion, methods, processes, or conclusions set forth. 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Volume 2 February 14, 2022 In Practice The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming Contents Acknowledgments i About the In Practice series ii Introduction 1 Key adaptations to the urban context 3 Selecting and managing target groups 5 Design choices: defining eligibility 5 Delivery systems: managing beneficiaries 7 Using social safety net registries 8 Using demand-driven methods 8 Handling other aspects of beneficiary management 9 Tailoring program design to the needs of the poor 11 Objectives: facilitating self- and wage-employment 11 Customizing a package of support 12 Tailoring specific components to the urban context 12 Bundling components into a package of support 19 ng delivery systems to the lifestyles of the Tailori urban poor 22 Leveraging urban actors and policies 25 Conclusion 28 Annex A: Programs reviewed 29 Notes 33 References 37 The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming Boxes 3.1 Matching individuals to jobs and customizing the package of support: Lessons from five countries 10 4.1 Building women’s economic empowerment through gender- intentional design 13 Figures 3.1 Targeting of government-led economic inclusion programs, by location and level of poverty 6 3.2 Targeting of government-led economic inclusion programs, by target group and location type 7 4.1 Primary objectives of government-led economic inclusion programs, by type of location 12 4.2 Main components of government-led economic inclusion programs, by type of location 12 4.3 Number of components, sequencing of support, duration, and period of intervention of government-led economic inclusion programs 20 4.4 Sequencing of components in Senegal’s Yook Koom Koom program 20 Table 2.1 Potential adaptations of government-led economic inclusion programming in urban and peri-urban contexts 4 A.1 Programs reviewed 30 The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming Acknowledgements This note was written under the guidance of Colin Andrews, Program Manager of the Partnership for Economic Inclusion (PEI). It draws extensively on “Productive Inclusion Programs in Urban Africa,” by Jorge Avalos, Thomas Bossuroy, Timothy Clay, and Puja Vasudeva Dutta. The note benefited from feedback on the opportunities and challenges for urban economic inclusion from participants in the PEI Urban Clinic (December 2020), the 2021 PEI Global Learning Event (April 2021), the Brown Bag Lunch Discussion “A Conversation on Economic Inclusion in Cities” (May 2021), the PEI Open House (November 2021), and the PEI Task Team Learning Series (December 2021). The team is particularly grateful to Dean Cira, Joanna Mclean Masic, Judy Baker, Luz Stella Rodriguez, Maddalena Honorati, Michal Rutkowski, Roland White, Sameh Wahba, Somik V. Lall, Syud Amer Ahmed, Thomas Bossuroy, Wendy Cunningham (World Bank); Abdourahman Ali Ahmed (government of Djibouti); Demba Ndiaye (government of Senegal); Marlowe Popes, Julie Kedroske, and Lauren Whitehead (BRAC); Karishma Huda (MAHKOTA); Marvi Memon (PEI Advisory Committee); Rodolfo Beazley (GIZ); Wilfreed Gbessi (government of Benin); and Yéréfolo Mallé (Trickle Up). The team also benefited from feedback from the PEI team (especially Janet Heisey and Inés Arévalo Sánchez) and from invaluable inputs and resources shared by the following task team leaders at the World Bank: Ayuba Hussein, Benedicte Leroy De La Briere, Claudia Taibo, Federica Ricaldi, Foluso Okunmadewa, Hazem Abdelfattah, Ioana Botea, Julia Ravelosoa, Kalilou Sylla, Mack Capehart Mulbah, Nadia Salim, Nelson Gutierrez, Omobowale Ayoola Oni, Rebekka Grun, Saint-Martin Mongan-Agbeshie, Solene Rogeaux, and Victoria Strokova. The team is also grateful for the comments by peer reviewers Judy Baker, Julie Kedroske, Narae Choi, and Victoria Strokova. The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming i About the In Practice Series The Partnership for Economic Inclusion’s In Practice series features accessible, practitioner- focused publications that highlight learning, good practice, and emerging innovations for scaling up economic inclusion programs. This note is one of two designed to serve as a resource for policy makers and practitioners aiming to introduce or scale up economic inclusion programs in urban and peri-urban areas. The first note explores the potential of economic inclusion programs to promote the social and economic inclusion of the urban poor and vulnerable. It lays out a framework for such programming based on the current landscape and evidence and points to the central role economic inclusion programs can play in meeting the urban jobs challenge, facilitating a COVID-19 recovery, and building inclusive cities. This note addresses the question of how to operationalize these programs. It shows that a rethink is needed about the ways in which programs are designed and delivered to fit the needs and lifestyles of the urban poor. The emerging experience from a growing pipeline yields some important operational insights, but several questions remain to be answered in coming years, as programs continue to evolve and customize to the urban context. Guide to navigation The In Practice series is interactive and provides built-in technical features to assist readers as they progress, including a navigation bar, progress bar, and the ability to jump to endnotes and back to the text throughout. Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Context Managing Target Groups Design to the Needs of the Urban Poor Systems to the Lifestyles of the Urban Poor In Practice Actors and Policies Chapter navigation Progress bar Jump notes The navigation bar at the This bar orients readers to their Endnotes throughout the text are top of each page allows easy progress in each chapter and interlinked to allow easy navigation navigation with a simple click. through the document. from notes and the main text. The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming ii Introduction This note is the second of two notes on term goal of economic self-sufficiency. 2 fostering economic inclusion in urban areas. Governments looking to expand economic It addresses the critical question of how to inclusion programming can build on existing operationalize economic inclusion programs antipoverty and labor market programs. 1 in urban areas at scale. Although many They typically add economic inclusion efforts aspects of program to three types of existing programs: social Click to read note one, A Path to Jobs for the Urban Poor design remain the safety net, livelihoods and jobs, and financial same across settings, inclusion interventions. programs operating in rural areas cannot be transplanted directly into urban settings. The design of economic inclusion programs Successful programs are designed to address is based on the recognition that the poorest urban-specific opportunities and constraints and most vulnerable people face multiple to economic inclusion; delivery systems need constraints in integrating into the economy. to be adapted to the needs and lifestyles of They require a package of support to the urban poor. Practitioners looking to address multiple constraints simultaneously. introduce new programs or expand existing Economic inclusion programs therefore ones to urban contexts grapple with several provide a package of interventions rather than operational questions, such as identifying the one or two stand-alone interventions. For target group, tailoring design and delivery instance, many programs that aim to facilitate to the needs of urban beneficiaries, defining self-employment provide business capital, appropriate institutional arrangements, and in order to jumpstart economic activity, linking with urban planning frameworks. along with training, coaching, and access to finance (Andrews et al. 2021). Emerging An economic inclusion program is a evidence suggests that a comprehensive suite bundle of coordinated, multidimensional of interventions has a greater and more interventions that help poor individuals, sustained impact on income, assets, and well- households, and communities increase their being than stand-alone interventions. incomes and assets to achieve the long- The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 1 3 World Bank to draw operational insights. Emerging experience from a rapidly growing pipeline of programs and projects is The note is organized as follows. Section identifying promising approaches to adapting 2 summarizes the implications of the economic inclusion programs to urban urban context for the design, delivery, and contexts. This note examines the experience of institutional arrangements of economic government-led economic inclusion programs inclusion programs. Section 3 examines operating in urban and/or peri-urban commonalities with respect to target groups contexts, either exclusively or in addition and good practice with respect to delivery to rural contexts (referred to here as “urban systems for registering and enrolling scope” programs). As programs continue to beneficiaries. Section 4 examines the design of evolve and customize to the urban context, urban scope programs with respect program new experience and evidence will continue to objectives, individual components, and the emerge, providing greater global and regional package of support. Section 5 identifies good insights. practice with respect to adaptations to the delivery system to address implementation This note draws on the urban adaptation challenges, especially for high-intensity of the State of Economic Inclusion 2021 components, such as coaching, training, framework, as summarized in the first and group formation, in urban contexts. note in this series (Avalos et al. 2021). The Section 6 explores opportunities for engaging analysis is based on the 2020 Partnership for with urban actors and policies. Section Economic Inclusion (PEI) Landscape Survey, 7 summarizes the note’s key operational a 2021 review of the World Bank portfolio findings. The annex provides details on the on economic inclusion, and insights from programs reviewed in this note. government-led programs supported by the The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 2 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Key Adaptations to the Urban Context The urban context shapes the ecosystem in which the poor live and work. It amplifies—or mutes—some of the constraints individuals face in accessing economic opportunities. The economies of urban areas offer a wide range of economic opportunities, but in many places the number and quality of jobs are limited and competition for opportunities is fierce. The urban poor also face multiple constraints Four factors stand out: at the community level, including limited access to infrastructure and services; inefficient • defining eligibility and systems land markets and shortage of affordable for registering, enrolling, and managing housing; weak social cohesion; and exposure beneficiaries to crime, health, economic, and climate risks. • tailoring program design to the needs of the The poor are also vulnerable to extortion and urban poor exploitation, with youth in particular at risk of • tailoring delivery systems to the lifestyles of exposure to illegal and dangerous livelihoods. the urban poor At the institutional level, spatial inequalities • leveraging urban policies and actors. and inequitable urban policy frameworks can constrain urban livelihoods (Avalos et al. 2021). This note examines these factors, focusing on government-led economic inclusion programs All of these factors mean that the urban operating in urban contexts. The focus is on context shapes program design, delivery, and “urban scope” programs—that is, programs institutional arrangements. All economic operating in urban and/or peri-urban areas, inclusion programs, regardless of location, must either exclusively or, more often, in multiple 5 select beneficiaries, match their profiles to locations (urban, peri-urban, and rural). appropriate economic activities, and design and Evidence on optimal design is still nascent. deliver an appropriate bundle of interventions This note identifies common approaches, in a cost-effective manner. In addition, urban summarized in table 2.1, based on the 6 economic inclusion programming faces Landscape Survey and the operational review 4 additional challenges. of selected programs. The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 3 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Table 2.1 Potential adaptations of government-led economic inclusion Interactive headers programming in urban and peri-urban contexts Item Description Target groups and beneficiary management Target groups • The poor (not just the extreme poor or ultra-poor) • Women, youth, and displaced people Beneficiary management • Use of existing or creation of new registries (using social safety net delivery systems) • Demand-driven registration systems (business plan applications, especially for youth-focused (typically through the foun- programs, randomized or lottery-based targeting, especially in public works plus programs) dational social safety net) Design Objectives and packages of • Facilitate self- and wage employment • Facilitate (rather than directly provide) access to information and referrals to services support • Tailor specific components to the urban context (spotlight on training, coaching, and wage employment facilitation) • Ensure adequacy of components (possibility of providing soft loans rather than grants in economically vibrant areas, for example, or covering commuting costs for job search) Provision of additional com- • Childcare facilities to enable women to work • Legal and psychosocial counselling for refugees, internally displaced people, and migrants ponents for some groups • Digital skills and Internet-based microwork for youth (through referrals or direct • Behavioral nudges that shift aspirations and social norms provision) Delivery Delivery of high-intensity • Restructure groups around a common issue to build cohesion (for example, savings groups organized by occupational groups, neighborhood groups for public works, youth clubs for components adolescent girls) • Substituting home visits with meetings at a central location or place of employment (or use ICT- based intervention) • Keep timing flexible (setting meeting times outside most participants’ working hours) • Identify affordable and safe spaces for group meetings Use of community structures • Delivery of coaching in cost-effective manner through digital or community structures • Greater choice of electronic payment mechanisms and opportunities for financial inclusion and digital delivery platforms • Use of messaging services and social media platforms for communication, outreach, and behavioral change • Use of digital platforms for remote training Urban policy and institutions Work with urban planning • Policy reform with respect to decent work, especially childcare facilities • Advocacy for livelihood zoning regulations to be more inclusive of the poor and local government to • Embed public works programs within broader local urban development plans embed operations in broader • Leverage high-capacity urban local governments and interagency coordination with central line urban policy frameworks ministries Potential for partnerships and • Link with training providers for customized options (tailored content, shorter duration, digital delivery, flexible hours) referrals through local service • Link with private sector employers for mentoring; demand-driven training; and jobs providers (instead of direct (placements, internships, apprenticeships provision) Source: Authors, based on review of urban scope government-led programs supported by the World Bank (see references) and insights from nongovernment-led programs (BRAC-UPGI 2021; Concern Worldwide 2018; Moqueet, Zaremba, and Whisson 2020). The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 4 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Selecting and Managing Target Groups The nature of urban poverty affects how programs define eligible groups and register and enroll beneficiaries. Several factors make beneficiary selection in DESIGN CHOICES: DEFINING urban areas complex: ELIGIBILITY • The poverty incidence is typically lower Many government-led economic inclusion in urban areas than in rural areas, and programs use geographic targeting to focus on socioeconomic differences between specific areas. In urban centers, the most common neighborhoods are narrower, making characteristics include a large population and geographic targeting challenging. a high risk of social unrest (Ethiopia), a high incidence of poverty (Mozambique), and high • Defining urban households is not youth unemployment (Burkina Faso). In large straightforward, complicating household-level cities, some programs also use poverty maps targeting. The commonly used definition of created from geospatial and satellite data to “people living under the same roof” does not identify geographical pockets of marginalization/ necessarily apply in urban settlements, where exclusion. These neighborhoods can serve as multiple families may share the same room, intake/registration entry points for identification housing unit, or building. People who live in of new program beneficiaries—as they do in insecure housing arrangements, particularly Djibouti, Ethiopia, Mauritania, Mozambique, migrants, may lack documents proving that Pakistan, and other countries (Gentilini et al. 2021; they live where they do. Ahmed 2021). An increasingly critical element is mapping neighborhoods in terms of exposure to • Urban areas are dynamic, with informal climate risks. settlements often rapidly contracting and expanding. Urban residents frequently change At the household level, government-led urban residence, with considerable movement in scope economic inclusion programs are more and out of neighborhoods. likely to focus on the poor than the extreme poor or ultra-poor. Indeed, 79 percent of • Urban communities are more anonymous and government-led urban scope programs target the less socially cohesive than villages, with access poor, with smaller shares targeting the extreme to resources often mediated by unofficial poor (56 percent) and ultra-poor (37 percent) local power brokers, especially in informal (figure 3.1). In contrast, 74 percent of programs settlements (Gentilini 2015; Gentilini et al. operating exclusively in rural contexts target the 2021). extreme poor, and 67 percent target the poor. It is possible that the lower incidence of poverty and the challenges of fine-tuning household- The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 5 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor level targeting in urban areas encourages urban training, may lack the skills to put together a scope programs to focus on the poor rather business plan. than the poorest groups. The target group may also reflect program objectives and design. For Many programs define eligibility in terms instance, the surveyed programs include national of vulnerable groups. Most government-led business plan competitions focused on promoting urban scope programs target women, youth, entrepreneurship among disadvantaged youth. and people affected by displacement (refugees, This design is less likely to suit the needs of the host population, internally displaced people, poorest youth, who, without coaching and basic and people affected by conflict). For both Figure 3.1 Targeting of government-led economic inclusion programs, by location and level of poverty Poor Extreme poor Ultra poor Other vulnerable 0% 20% 40% 60% 80% 100% Urban scope (Urban,Peri-urban, Mix) Only rural Source: PEI 2020 Landscape Survey. Note: Poor: People whose consumption is below the national poverty line or who, because of their personal and/or community characteristics, face barriers accessing opportunities to earn sustainable livelihoods and have elevated risks of being/staying in poverty and/or being socially marginalized. Extreme poor: People whose consumption is $0.95–$1.90 a day (2011 purchasing power parity [PPP]); also defined as the bottom 50 percent of the poor population in a country or people who are unable to meet basic needs. Ultra-poor: People whose consumption is below $0.95 a day (2011 PPP); also defined as people experiencing the most severe forms of deprivation, such as persistent hunger and lack of sources of income. Other vulnerable: Other groups that do not meet any of the above criteria, such as people just above the poverty line and marginalized groups irrespective of their poverty level. government- and nongovernment led programs, training, may lack the skills to put together a women are a priority segment (figure 3.2). A larger business plan. Many programs define eligibility share of urban scope programs target youth (69 in terms of vulnerable groups. Most government- percent versus 49 percent in rural-only programs) led urban scope programs target women, youth, and people affected by displacement (29 percent and people affected by displacement (refugees, versus 3 percent in rural-only programs). host population, internally displaced people, and people affected by conflict). For both This design is less likely to suit the needs of the government- and nongovernment led programs, poorest youth, who, without coaching and basic women are a priority segment (figure 3.2). A larger The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 6 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Figure 3.2 Targeting of government-led economic inclusion programs, by target group and location type Women Youth Displaced-affected Children-elderly PWD Ethnic minorities 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Urban scope (Urban,Peri-urban,Mix) Only rural Source: PEI 2020 Landscape Survey. Note: Categories overlap, and a program may target more than one population group. share of urban scope programs target youth (69 Bangladesh, BRAC’s ultra-poor graduation model percent versus 49 percent in rural-only programs) uses a participatory approach in rural contexts and people affected by displacement (29 percent but a poverty scorecard approach and means versus 3 percent in rural-only programs). testing on locally defined income thresholds in urban contexts, with household verification DELIVERY SYSTEMS: MANAGING performed by program staff (BRAC-UPGI 2021). BENEFICIARIES Mozambique’s Productive Social Action Program (PSAP) uses a community-based approach in Many economic inclusion programs build on neighborhoods, with formal local neighborhood existing social safety net programs. In these structures used to identify potential beneficiaries. cases, the social safety net component usually Although targeting outcomes were progressive, registers and enrolls beneficiaries in the economic the community-based selection process did not inclusion program. Different approaches to work well: An assessment found that only 23 beneficiary enrollment and selection are needed percent of the potential beneficiaries selected by in urban and rural areas. Many nongovernment- local leaders were eligible (Gentilini et al. 2021). led programs in rural areas adopt participatory social mapping and wealth-ranking approaches to Government-led urban scope economic inclusion select ultra-poor beneficiaries. This community- programs often use social safety net registries or based approach is more challenging in urban demand-driven or randomized target methods to contexts, where the transiency of the population register and enroll beneficiaries. Both approaches results in limited social cohesion (Moqueet, are described below. Zaremba, and Whisson 2020). For this reason, in The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 7 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Using Social Safety Net Registries developments also highlight the need for About half of government-led urban scope urban registries to be dynamic, given fuzzy programs (51 percent) use existing registries to neighborhood boundaries (distinct from identify program participants—a much larger administrative boundaries), transient populations, share than in rural-only programs (28 percent). and the high level of relocation. In urban Senegal, Unsurprisingly, using an existing registry is for instance, using the social safety net registry more common in programs that have a social reduced implementation complexity and costs. safety net as an entry point (69 percent) than in The program nevertheless encountered challenges programs with livelihoods and jobs as the entry in locating about 10 percent of the households 7 point (32 percent). Use of registries is more identified from the registry, because some common in countries with robust social registries households had relocated, both within and outside that can serve multiple programs. In Colombia, the pilot areas, and the demarcation of district for example, an urban program used the social boundaries was not clear (World Bank 2020c). registry to provide livelihood support to victims of conflict who also received conditional cash Using Demand-Driven Methods transfers and a reparation cash grant (Fundación Several urban scope programs rely on demand- Capital 2018). In Brazil, an urban economic driven beneficiary registration systems. Variations inclusion pilot selected urban beneficiaries from depend on program objectives and target groups. among people registered in the Cadastro Unico, with priority given to people from households Programs that seek to promote youth receiving a conditional cash transfer (Government entrepreneurship often use business plan of Brazil 2021). This approach is common in competitions or other application-based Latin America. Several programs in other regions approaches. They are typically national programs follow a similar approach. The Yook Koom Koom that cover both urban and rural areas. A program program in urban Senegal used the government’s in Uganda used business plan competitions to social safety net beneficiary registry to identify screen high-ability applicants from the pool program participants (Ndiaye 2021). of disadvantaged, but not ultra-poor, youth (Blattman, Fiala, and Martinez 2018). A business Using existing systems reduces cost and facilitates plan competition in Mozambique allowed only 8 linkages with other social policy. But in many individuals from the social safety net registry to countries, these registries do not exist or are not apply, in order to focus on the poor (World Bank fit for purpose, with low coverage or outdated 2013b). data, especially as coverage of social safety nets has traditionally been biased toward rural areas. Programs also differ in terms of the support In some countries, government-led economic they provide in developing or implementing inclusion programs, especially programs with a the business plan and the evaluation process. social safety net entry point, are in the process In Uganda, local facilitators (usually a local of creating urban registries. For instance, the government employee, teacher, or community Urban Productive Safety Net and Jobs Project in leader) provided some formal advice in preparing Ethiopia is constructing a registry of its 604,000 the proposal, but successful applicants were urban beneficiaries (World Bank 2016a). provided no further coaching (Blattman, Fiala, and Martinez 2018). In contrast, in Azerbaijan, the The potential for economic inclusion programs project provided business training to help trainees to use such registries increased in the aftermath prepare a business plan. An evaluation committee of COVID-19, as several countries have rapidly (comprising government officials and local adapted delivery systems to include the urban business community representatives) assessed the informal sector (Gentilini et al. 2020). These plan to determine whether an additional month The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 8 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor of vocational training was required before the cash public work component, with a mean age of 25 grant was approved (World Bank 2020a). (Bertrand et al. 2017). Even where beneficiaries continue with a program, attendance in high- Some social safety net plus programs, especially intensity components, such as training, coaching, programs that include a public works component, and savings groups, may be less than required select applicants randomly or through a lottery. for effectiveness (see section 5 for approaches to Examples include programs in Burkina Faso, the reduce this risk). Democratic Republic of Congo, and Côte d’Ivoire (programs with a public works component) and Economic inclusion programs must match 9 Benin (a program without such a component). beneficiaries to appropriate jobs (self- or wage- This approach requires effective communications employment) and customize the package of and outreach to inform potential beneficiaries support. Doing so requires (a) market assessments of the temporary work opportunities, type of to understand the risk factors, cash flows, and contract, number of slots, selection criteria, and overall economic viability of the livelihood in date and time of selection. The lottery system the local context (including links to input, labor, is often supplemented by quotas for specific and output markets) and (b) assessment of the vulnerable groups, such as women or internally participants’ skills, preferences, and resources. displaced people. In Côte d’Ivoire, an evaluation Most programs in urban contexts promote petty found that an additional layer of categorical trading and other nonfarm activities. Some targeting for women and need-based targeting encourage income diversification through a could improve cost effectiveness, although doing mixed asset portfolio; others take a more flexible, so would make the program more difficult participatory approach, allowing participants 11 to implement (Bertrand et al. 2017). In the to choose. Although access to markets and the Democratic Republic of Congo, the program density of providers offer diverse option in urban deployed different approaches in urban and rural areas, it is effective coaching during the “ideation contexts. The urban variant selected beneficiaries phase”—the stage at which ideas and solutions using a lottery system supplemented by quotas; are generated—that helps match livelihoods to the rural variant used a participatory community- individual circumstances and market contexts based targeting approach. This method serves as (box 3.1). a transparent and socially acceptable assignment mechanism to allocate limited public works jobs or business grants that limit potential tensions within neighborhoods (Gentilini et al. 2021). Handling Other Aspects of Beneficiary Management Take-up can be low and drop-out high in urban contexts, partly because the opportunity cost of participating in a program is higher in urban than in rural areas. Urban public works programs, for example, have seldom been attractive to youth; in Ethiopia and Mozambique, the mean age of take-up in these programs was roughly 10 40 (Gentilini et al. 2021). By incorporating an effective outreach and communication strategy, a Côte d’Ivoire program reported strong take- up and limited drop-out for the labor-intensive The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 9 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Box 3.1 Matching individuals to jobs and customizing the package of support: Lessons from five countries In Argentina, a youth-focused program leveraged local municipal employment offices to register participants, provide orientation workshops, develop a work program for eligible participants, and refer them to available services, including training and job placement (Bersusky and Paz 2021). Although the density of service providers and potential employers provided opportunities, outreach to the poorest youth remained a challenge, and the intensity and quality of the orientation workshop used to match applicants to job profiles varied widely across locations. In Bangladesh, a new economic inclusion program is customizing the package of support for different groups: low-income, less-educated urban youth; low-income urban microentrepreneurs and self- employed people whose livelihoods have been affected by COVID-19; and returning migrant workers affected by COVID-19 (World Bank 2021a). The program is planning to conduct community outreach and a preliminary profiling for selection into the program. Participants that meet the eligibility criteria would then be profiled and counseled to identify an appropriate package of support. For low- income youth, support would include some combination of life skills training, business management training, informal apprenticeship, and access to microfinance. Informal microentrepreneurs affected by COVID-19 would receive only microfinance facilitation. Returnee migrants would be provided a separate package of support, to sustainably reintegrate them into the domestic labor market or help them access services to prepare for remigration. In addition, BRAC is piloting targeting climate migrants in Bangladesh and providing additional support in terms of training and coaching around climate resilience. In Benin, a new program—the Benin Youth Inclusion Project—is streaming participants into wage and self-employment pathways (World Bank 2020b). Participants will first obtain orientation, job counselling, and life skills training (in a format adapted to their low level of literacy), in order to help them develop a life and professional plan. Based on this plan, employment counsellors will stream participants into wage employment pathways, with short-term internships and stipends, or self-employment pathways, with business development services to expand their activity (explore new markets, diversify into a new product, develop a marketing strategy); meet business registration and licensing requirements; and connect with markets. Ethiopia’s Urban Productive Safety Net Project follows a similar approach, providing life skills training to all beneficiaries, who then opt for self-employment or wage-employment pathways (Gentilini et al. 2021). For beneficiaries that opt for self-employment, local centers offer livelihood advisory services to select a livelihood activity suited to participants’ skills, training, aptitude, and local conditions; develop a business plan; and provide subsequent training to implement the business plan. An urban resettlement program in Tamil Nadu, in India, is planning to tailor its package in terms of the components offered and the intensity of coaching to different segments (Kedroske 2021). Participants able to continue existing livelihoods but requiring support to access their previous customer base will receive some combination of asset transfers, training, and transport subsidies. Participants unable to continue their past livelihoods will receive diversified livelihood packages based on a market assessment and matching of their skills, resources, and interests. Note: Programs were Empleo Jóven (formerly Jóvenes por Más y Mejor Trabajo) in Argentina; the Recovery and Advancement of Informal Sec- tor Employment (RAISE) in Bangladesh; the Youth Inclusion Project (Azôli) in Benin; Urban Productive Safety Net and Jobs Project (UPSNP) in Ethiopia; Inclusive, Resilient and Sustainable Housing for Urban Poor Sector Project (ADB and BRAC) in Tamil Nadu, India. The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 10 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Tailoring Program Design to the Needs of the Urban Poor Program design needs to take into account the specific characteristics of urban poverty and the availability of alternative economic opportunities. Urban poverty is typically characterized by poor living conditions, insecure housing, market-mediated access to food, a high cost of living, exposure to crime and conflict, and vulnerability to health and economic risks. At the same time, urban areas provide the most common priorities are promoting self- greater access to markets and jobs, access to employment (59 percent of surveyed programs), information and communication technology facilitating wage employment and social (ICT), greater financial service infrastructure, inclusion (38 percent each), and diversifying and density of service providers. All of these income (32 percent) (figure 4.1). In contrast, factors have implications for decisions on among rural-only programs, the most common program objectives, components, and the objectives relate to increasing productivity, package of support. For instance, programs diversifying income, and building resilience. operating in urban contexts can offer a small Urban scope programs are also more likely package of direct support while facilitating than rural-only programs to prioritize women’s access to information and referrals to available empowerment (15 percent versus 5 percent) services. They can provide soft loans rather than and less likely to prioritize food security (12 business grants in economically vibrant areas. percent versus 31 percent). Promoting financial They may need to cover commuting costs for inclusion is a priority in both contexts. job search. Programs for youth, migrants, and displaced populations in urban contexts may These patterns are even more pronounced need to provide psychosocial coaching or other among the 10 government-led programs in support. the survey that operate exclusively in urban contexts. Almost all aim to facilitate wage OBJECTIVES: FACILITATING SELF- employment, about half aim to promote AND WAGE-EMPLOYMENT AND social inclusion, and about 40 percent aim to SOCIAL INCLUSION facilitate self-employment. Three main policy drivers have provided the impetus for economic Urban scope programs are more likely than inclusion programs in urban contexts: (a) rural-only programs to focus on opportunities meeting the jobs challenge, especially for the for self- and wage-employment. Among urban poor, youth, and women; (b) spurring government-led programs with an urban scope, the COVID-19 recovery; and (c) helping create The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 11 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor 70% Figure 4.1 60% 50% 40% Primary objectives 30% 20% of government-led 10% 0% economic inclusion Women's empowerement Financial inclusion Diversi fi cation Resilience Self-employment Wage employment Environmental mgt Food security Productivity Social Services Market access Social inclusion programs, by type of location Source: PEI 2020 Landscape Survey. Note: Respondents were asked to report a maximum of three objectives. Production Consumption Social Urban/Peri-urban/Rural Only rural inclusive cities (Avalos et al. 2021). Many urban shapes the composition of the package to some scope programs are motivated by high rates extent. Urban scope programs include skills of urban youth unemployment and therefore training (96 percent), coaching/mentoring (84 target youth. This targeting likely prompts the percent), consumption transfers (75 percent), 12 focus on wage and self-employment. A focus and business capital (69 percent) (figure 4.2). on people affected by displacement in urban Most rural-only programs also include skills areas likely drives the focus on empowerment training and coaching, but there are some and social inclusion. differences. In particular, urban scope programs are more likely to provide cash transfers (75 CUSTOMIZING A PACKAGE OF percent versus 62 percent in rural areas) and SUPPORT facilitate wage employment (54 percent versus 21 percent) and less likely to include a market Tailoring Specific Components to the link component (59 percent versus 90 percent). Urban Context All economic inclusion programs share several These differences in components likely reflect core components, but the urban context differences in program objectives, priority Figure 4.2 Skills training Coaching Main components Transfer for consumption of government-led Business capital economic inclusion Financial services facilitation programs, by type of Market linkages location Wage employment facilitation Natural resources mgt Source: PEI 2020 Landscape Survey. Note: Respondents were asked to report a maximum 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% of three objectives. Urban,Peri-urban,Mix Only rural The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 12 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor groups, and entry points in urban scope 55 percent), financial services facilitation (69 and rural-only programs. Many urban scope percent versus 58 percent), and market linkages programs prioritize youth and people affected (61 percent versus 54 percent) and as likely to by displacement; these programs include provide business capital (69 percent versus 68 components that address specific barriers percent). for these groups. For example, urban scope programs for youth commonly include business Almost all economic inclusion programs capital (72 percent of such programs) and a prioritize women. In urban areas, these wage employment facilitation component programs must address gender-specific factors (64 percent). All programs that prioritize that constrain women’s economic activities, displacement-affected people include cash such as lack of childcare and the risk of gender- transfers, often building on humanitarian based violence (box 4.2). Ideally, they also assistance. Some also include psychosocial include behavioral interventions to shift social support. With respect to entry points, relative norms and link to broader legal reform efforts to programs that focus on livelihoods and jobs, to allow women to participate fully in the social safety net plus programs are more likely economy. to provide cash transfers (94 percent versus Box 4.1 Building women’s economic empowerment through gender-intentional design Informal workers in urban areas include street vendors, market traders, and informal recyclers, whose children often spend their days with them. Women also often bring their children to public works sites. To address this challenge, some programs have added childcare interventions to the package of interventions. In Burkina Faso, the Youth Employment and Skills Development Project includes a labor-intensive public works component in which many women could not participate because they affordable childcare. In response, the project piloted a mobile creche model that follows women from worksite to worksite. The mobile creche tents could host about 50 children. They offered nutritious meals (with contributions from parents), provided toys and learning materials (based on the national preschool curriculum) and parenting training materials, and established links with government agencies to support visits from education and health specialists. Using existing public service providers enabled some cost savings; the average cost per creche was about $833 a month. The pilot also created a new public works stream that trained women as childcare assistants, with pregnant women and women unable to participate in manual work given priority. Caregivers received the same program wage as other workers. Although this model has been replicated only in rural programs, it is applicable to urban areas. An upcoming evaluation will provide further insights (Ajayi 2019). Programs can also include specific interventions to counter the risk of gender-based violence, which has increased for urban informal workers in the wake of COVID-19. Two urban scope programs in Nigeria include these components. One is evaluating the impact of a messaging campaign focused on socio-emotional skills that can help individuals better manage intrahousehold dynamics (IPA 2020). Another is launching a social norm change campaign with outreach to women, enlisting the support of village elders and trusted community members to reduce the stigma associated with women’s empowerment, forming gender dialogue groups for nonviolent conflict resolution, and training selected group members as nonspecialized first responders. continues... The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 13 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Box 4.1 continued Other elements of gender-intentional design and delivery can enhance women’s economic inclusion. In Benin, for instance, a youth-focused economic inclusion program provided training, apprenticeships, and business grants. The program design included several elements for young women, including apprenticeship in nontraditional trades, a life skills training component, provision of on-site childcare facilities and separate wash facilities during training, and adjustment of training schedules to accommodate household duties. Several of these elements have been adopted in a new national program for youth inclusion that includes coaching for young women to find wage employment or start a business activity, training on the risks of gender-based violence, and links to broader efforts to address gender norms that hinder women’s access to and success in the labor force. Note: Benin: Youth Employment Project (Projet Emploi des Jeunes [PEJ]) and Youth Inclusion Project (Azôli); Nigeria: Agro-Processing, Productivity Enhancement and Livelihood Improvement Support (APPEALS); Nigeria For Women Project (NFWP); Uganda and Tanzania: Empowerment and Livelihood for Adolescents (ELA); Honduras: Project on Life Improvement and Livelihood Enhancement for Conditional Cash Transfer Beneficiaries through Financial Inclusion (ACTIVO). Spotlight A Closer Look at Customizing Components The experience of urban scope programs provides some insights on how components can be tailored to the urban context. This spotlight examines three of them: training, coaching, and wage employment facilitation. The first two components are the most common. The third is less common but is a feature of several urban scope programs. Training: Entrepreneurship, Technical, and Life Skills One of the key constraints to economic inclusion of the poor is low levels of human capital. To enter the labor market, youth need to acquire foundational skills (including basic literacy, numeracy, and soft skills); technical and vocational skills; and business and entrepreneurship skills. Poor women and youth also need role models and social networks to help them make informed decisions. Almost all urban scope programs (96 percent) provide some form of training, typically entrepreneurship and business management but also technical and vocational, financial literacy, and life skills. Some programs focus on one type of training; others seek to expand participants’ skills with a broad suite of training opportunities. For example, entrepreneurship training is usually combined with financial literacy training, in order to increase business management skills more broadly, particularly if program participants receive grants for establishing or developing businesses. Programs that prioritize youth and women also often include life skills training (Andrews et al. 2021), The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 14 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor as discussed below. In Senegal, the Yook Koom Koom pilot provided a package of life skills and microentrepreneurship training. Each type of training lasted three to seven half days. Microentrepreneurship training covered basic management skills that are relevant for both agricultural and nonagricultural activities. Life skills training covered 13 self-confidence, gender relations, communication skills, and risk-taking. Programs that provide entrepreneurship training face the challenge of adapting typically rural-oriented training materials to the urban context and target group. In the Sahel, Trickle Up adapted existing training materials by considering the local context (rural or urban), the education level of participants, the availability of partnerships with nongovernmental organizations (NGOs), and the skill levels of community coaches. The goal of the short-duration training (five to seven half-day sessions each for life skills and entrepreneurship) was to impart fundamental skills. Because the program targeted the poorest individuals, who were generally illiterate, the training was not related to any particular livelihood activity. It was basic and cross-cutting, including modules on how to manage accounts, set up a shop, and choose suppliers and target customers, for example. In Senegal, training included an urban-specific module that focused on access to markets, pricing, and advertising. Based on the findings of an evaluation, the program is condensing training content and reducing the duration in order to increase retention and completion (World Bank 2020c). In Benin and Azerbaijan, programs adapted the Start and Improve Your Business (SIYB) Program designed by the International Labor Organization for their target groups. The Azerbaijan program added socio-emotional and motivational elements as well as a module on financial literacy. An orientation day was added to the training program to strengthen beneficiary understanding of the program and local markets. The same challenge exists for programs that offer center-based technical or vocational training. Emerging operational experience—from programs such as the Employment Support Project in Azerbaijan and the Youth Inclusion Project Support for the Azôli system in Benin—highlight the need for shorter-duration training, delivered in small groups, focused on urban (rather than traditional rural) livelihoods) and livelihoods suitable for women and men, with a redesigned curriculum to add more practical training to supplement classwork. In Azerbaijan, the program introduced an online business training program, but participants faced challenges related to connectivity and lack of access to devices. Some emerging evidence suggests that personal initiative training may be useful. This psychology-based approach acknowledges that most program participants are not entrepreneurs by choice; the majority are self-employed by necessity. They operate at low levels of profitability, with little differentiation from other local businesses and few opportunities for growth. Personal initiative training and coaching (discussed below) can help develop personality traits for entrepreneurship, shifting interest in entrepreneurship outcomes. In urban Togo, for example, where traditional business training had no impact, teaching personal initiative to vulnerable microentrepreneurs increased firm profits by 30 percent (Campos et al. 2017). Although these microentrepreneurs were not the subsistence microentrepreneurs that economic inclusion programs typically target, this approach can inform the design The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 15 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor of entrepreneurship training. In Bangladesh, a new economic inclusion program in urban contexts is planning to include content that boosts participants’ psychosocial ability and personal initiative as part of the business management training curriculum. The disruptions caused by COVID-19 have highlighted the need for better risk management. The program is also planning to include training on how to incorporate risk management, coping, and business continuity following a shock. Labor force transitions are particularly challenging for young women. A number of urban scope programs deliver a package of life and vocational skills (along with other components) to adolescent girls. In urban contexts, life skill training needs to factor 14 in training on urban social issues, such as child labor, road safety, and urban safety. Adolescence is a crucial window of opportunity during which many life skills can be acquired. Economic inclusion programs have taken different approaches to deliver packages of support to this group: • In Liberia, the Economic Empowerment for Adolescent Girls Project provided center-based vocational and life skills training to adolescent girls and facilitated 15 their transition to productive work. The subsequent Youth Opportunities Project (YOP), which builds on the earlier project, targeting both male and female youth, incorporated additional elements, including peer support groups (the “buddy” system under the first project) to enhance success. Preliminary results show that the YOP’s urban-focused intervention of small business support increased rates of self- employment and paid weekly working hours for participants (Bengu 2021). • In Uganda and Tanzania, a nongovernment-led program—BRAC’s Empowerment and Livelihoods of Adolescents program—provided a similar package of interventions through community-based safe spaces or clubs (rather than training 16 centers). Four years post-intervention, Uganda’s program had significantly improved economic outcomes for participating girls, who were 48 percent more likely to engage in income-generating activities (almost entirely self-employment) 17 than nonparticipants. These impacts were similar across urban and rural communities, with one exception: Although the program shifted aspirations across location in the short term, these effects did not persist in the urban sites (Bandiera et al. 2020). The annual program costs were relatively low, at about $18 per girl— less than 1 percent of annual household income at baseline. The positive effects of the Uganda program were not replicated in Tanzania, possibly because of resource constraints that impeded implementation fidelity (Buehren et al. 2017). Coaching For many poor people, the hassles of day-to-day life deplete cognitive bandwidth, impairing their decision-making ability. Poverty can also result in low self-image and blunt aspirations. A qualitative study in Senegal, for instance, finds that 26 percent of respondents reported feeling pessimistic and helpless about the future (Bossuroy, Koussoubé, and Premand 2019). Low psychological agency limits the ability of people to identify and act on opportunities. A study in Ethiopia finds that many young people did not search for jobs because of low motivation and belief in their inability to change their circumstances (Mejía-Mantilla and Walshy 2020). Psychological support services are particularly important in urban contexts, where substance abuse, homelessness, The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 16 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor exposure to crime and violence, and the risk of involvement in illegal and dangerous livelihoods exist (Gentilini et al. 2021; BRAC-UPGI 2021;Concern Worldwide 2018). Most urban scope programs (84 percent) use coaching—defined as informal guidance provided in an informal way—typically for business support. Coaching on business development during the ideation phase can help participants identify and act on business challenges and opportunities and match livelihoods to individual circumstances and market context. More than half of programs facilitate access to wage employment; about 37 percent provide job placement counseling. Several programs use coaching to build soft skills, increase self-confidence, provide emotional support, and foster changes in attitudes and social norms. Nearly 40 percent of the surveyed programs provided psychosocial coaching. Some programs that prioritize refugees also provided psychological support services. The UN High Commissioner for Refugees (UNHCR) has added psychosocial and legal counselling to the package of support it provides refugees in several countries, including Zambia and Zimbabwe (UNHCR 2019). There is some evidence from other programs and experiments that even one-off, low-cost behavioral interventions at the individual or community level may have short-term benefits for participants’ outlook and overall mental health. This evidence prompted the use of community sensitization videos in the 18 urban Senegal pilot. Across locations, a primary concern for government-led programs is the ability to deliver coaching at scale. Three issues need to be considered: • There are trade-offs between group versus individual delivery. Individual coaching is particularly important in the initial stage of business set-up, when participants face specific and diverse challenges that require one-on-one sessions. But group coaching may be more cost-effective and easier to implement. It also enhances peer-to-peer learning and improves interpersonal relationships, teamwork, and trust, thereby helping participants establish networks in their communities that they can tap as they face challenges or scale their businesses. • Recruiting coaches with sufficient education, experience, and ability to engage with the target group can be challenging. In the programs for adolescent girls in Liberia, Tanzania, and Uganda, coaches were young women from the local community who could connect with participants. In Colombia’s Transforming My Future, coaches were themselves victims of armed conflict (like program participants). Coaching eligibility requirements included minimum levels of technical or vocational education, two years of work experience, and residence in the target areas. The fact that coaches have similar backgrounds encourages take-up, as participants view them as examples of self- improvement (Centro de Estudios Sobre Desarrollo Económico 2017). • Using existing government case management systems can be an ideal way to scale up coaching, because it establishes linkages with other aspects of social policy, such as social assistance, social care services, and labor market intermediation (see, for example, Abramovsky et al. 2015 for Colombia and Chile). The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 17 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Facilitation of wage employment Over half of urban scope programs include a component that seeks to facilitate wage employment. Most of these programs prioritize youth and attempt to foster linkages with prospective employers. The biggest constraint to wage employment is the dearth of job opportunities. Most programs with a wage employment component provide assistance to participants in accessing job placements, internships, and apprenticeships. For instance, the Youth Employment and Opportunities Project in Kenya (World Bank 2016b) and the Youth Employment and Skills Development Project in Burkina Faso (World Bank 2013b) included on-the-job training for unskilled or low-skilled youth through apprenticeships with master craftspeople and involved the private sector in the design and implementation of the training programs. In Liberia, the Economic Empowerment of Adolescent Girls and Young Women Program provided six months of job placement support (following six months of skills training for self-employment or wage employment). The program led to a 47 percent increase in employment and 80 percent increase in earnings relative to nonparticipants. However, participants in the business skills track had markedly better outcomes than participants in the job skills track, likely reflecting the scarcity of good jobs even in urban areas (Adoho et al. 2014). Some programs complement the package with wage subsidies to employers. In Papua New Guinea, youth who received the full package of services provided by the Urban Youth Employment Project were substantially more likely to be in formal employment in the short term than participants who received only income support through public works. This positive employment impact was achieved by screening candidates on ability and combining job-matching assistance and on-the-job training with wage subsidies to employers. Less than 15 percent of employers reported willingness to keep the same number of placements without a subsidy (Hoy 2018). Argentina’s Empleo Jóven Program also provides wage subsidies to encourage private sector employers to hire program participants. Programs in urban areas often also include components that address informational, spatial, and other binding constraints to job search and matching, such as transport subsidies to cover job search costs, job application workshops, referral letters to help job seekers signal their ability, and psychosocial interventions to shape aspirations. In urban Ethiopia, a transport subsidy and job application workshop increased the probability of finding stable and formal jobs for young jobseekers, especially women and the least educated youth. Both interventions were relatively inexpensive (Abebe et 19 al. 2017). Another intervention found that encouraging young job seekers to include reference letters from past employers with their job applications improved employment of higher-ability candidates, with women driving the effect (Abel, Burger, and Piraino 2020). Interventions that improve job search planning, help create peer networks, and provide access to information may also be useful. The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 18 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Bundling Components into a Package than direct provision, an economic inclusion of Support program in urban areas is piloting referrals to Ideally, an economic inclusion program would entrepreneurship training and assistance for select its components based on an analysis of the application to the microcredit program the binding constraints to sustainable income ((JICA 2020). In Ecuador, another program generation, which differ across locations. In also explored options for referral services, but Senegal, for example, surveyed communities for business development and labor market cited psychosocial and aspirational constraints, intermediation services (World Bank 2019b). lack of access to capital, inadequate technical Setting up a referral system requires technical and business skills, and social norms as the and institutional capacity to manage partners primary constraints. Access to markets and and service providers as well as functioning inputs was not cited as a binding constraint; information systems to facilitate interagency the cost of production factors (rent, utilities) coordination. was (Bossuroy, Koussoubé, and Premand 2019). Senegal’s Yook Koom Koom Program was Program components are usually provided in designed to address these constraints, through sequence and in a time-bound period. In urban a package of interventions that included scope programs, 82 percent of beneficiaries community sensitization, facilitation of access components in a specific order, community savings and loans groups, coaching, which is often designed to address barriers life skills trainings, microentrepreneurship participants face during the course of program training, access to markets, and a business implementation (figure 4.3, panel b). This grant (Andrews et al. 2021). Midterm reviews sequencing may also influence the duration of of youth-focused economic inclusion programs the intervention, which is one to three years in in Burkina Faso and Nigeria identified lack most programs (57 percent of programs with an of financing as the key obstacle preventing urban scope) (figure 4.3, panel c). About two- participants of labor-intensive public work thirds of programs, including those operating programs from starting their own businesses. in urban contexts, provide all or some of the In Burkina Faso, the program was able to program components over a time-bound period course correct by introducing a business plan (figure 4.3, panel d). However, urban scope competition that provided business grants programs tend to be shorter than rural-only to selected youth (Hassan 2020; World Bank programs. About a quarter of urban scope 2020e). programs and just 5 percent of rural-only programs provide support for a year; 18 percent Economic inclusion programs typically of urban scope and 33 percent of rural-only provide an integrated package of interventions. programs provide support for more than three Government-led urban scope programs tend years. to provide smaller packages than rural-only programs. Among rural-only programs, 59 In its Yook Koom Koom program, Senegal percent provided five or six components. sequenced the provision of components over In contrast, only 40 percent of urban scope a period of 18 months. Figure 4.4 displays the programs provided five or six components, with sequencing of the Yook Koom Koom program 31 percent providing three to four components components over an 18-month period. 20 (figure 4.3, panel a). These differences may reflect the fact that other programs and services Ensuring that the components of a package are available in urban but not rural areas, are implemented and that the sequence is where beneficiaries may need a comprehensive maintained is critical. Failing to do so is package. In Honduras, for example, rather a particular risk in fragility, conflict, and The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 19 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Figure 4.3 Number of components, support sequencing, duration, and period of intervention of government-led economic inclusion programs 4.3a Number of components provided 4.3b Sequencing of support 70% 100% 60% 90% 80% 50% 70% 40% 60% 50% 30% 40% 20% 30% 20% 10% 10% 0% 0% 2 components 3 or 4 components 5 or 6 components 7 or 8 components Urban/Peri-urban/Mix Only rural Urban/Peri-urban/Mix Only rural No Yes 4.3c Duration of intervention 4.3d Period of intervention 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Urban/Peri-urban/Mix Only rural Urban/Peri-urban/Mix Only rural < 1 year 1-3 years 3 years > Time bound Mixed Open ended Source: PEI 2020 Landscape Survey. Figure 4.4 Sequencing of components in Senegal’s Yook Koom Koom program Source: Ndiaye 2021. Note: All program participants were also beneficiaries of a cash transfer program. The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 20 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor violence contexts and in government-led program, and an additional 6 percent received programs in which multiple agencies are their compensation during the program involved in delivery. In Mozambique, for (Fundación Capital 2018). instance, the Productive Social Action Program implemented the labor-intensive Even when all components are implemented, public work component in urban areas; five a time lag between sequenced components years later, complementary skill training and can potentially reduce synergies. For instance, livelihood activities—which had been part of Burkina Faso’s Youth Employment and Skills the package—had still not been implemented Development Project provided income support (Zapatero et al. 2017). In Colombia, the through public works and training to youth Transforming My Future Program was in urban areas. But delays in implementing designed without a separate business grant the training programs potentially reduced any component, because the participants—all income impact from composite labor-intensive victims of conflict—were entitled to financial public work and training (World Bank 2020e). compensation as part of their reparation. However, only 7 percent of participants had received compensation at the start of the The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 21 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Tailoring Delivery Systems to the Lifestyles of the Urban Poor Training, coaching, and group formation are core elements of economic inclusion programs. They are essential to address the human capital, financial, and social network constraints the urban poor face. The urban context introduces several challenges in delivering these components effectively.21 First, the higher opportunity cost of participation potentially be addressed. These factors contribute makes it harder to ensure continuous to good program design regardless of location; participation in program with high-frequency they are particularly important in the urban components; activities need to be scheduled to context, where participation costs (in terms of accommodate participants’ earning opportunities. alternative opportunities, time, and commuting) Programs also need to mitigate the risk of increase the risks of program attrition. program attrition, as access to a wide range of economic opportunities may reduce take-up of the Urban scope programs need to be flexible in program, limit attendance, or result in program terms of meeting location and times, especially drop-out unless the program is attractive relative for women, adolescent girls, and youth. Youth- to alternatives. Second, although many of the poor focused programs in Benin (the Projet Emploi des live in urban slums and informal settlements, the Jeunes [Gbessi 2021]) and Liberia (the Economic dispersion of beneficiaries across neighborhoods Empowerment for Adolescent Girls Project makes it harder to organize group activities. [Adoho et al. 2014]) offered flexible timing, with Third, greater anonymity and less social cohesion both morning and afternoon training sessions, in (coupled with dispersion across neighborhoods) order to allow participants to continue with their can make group formation harder to sustain. educational, housework, and income-generating Population density and low social cohesion can activities. Trainings were held in the communities also pose security risks, and high rents and the cost where the participants resided, and every site of living can force beneficiaries to use business offered free childcare. In Liberia, the training grant to meet basic needs. Finally, affordable venues were selected to meet “girl-friendly” venues for community mobilization or group criteria, including safety (the buildings were not meetings—especially safe spaces for adolescent isolated); accessibility to girls from various parts of girls and women—are often not available. There the community; proximity to a community center may be limited locations for training in the and to security posts, such as police stations; and neighborhoods where beneficiaries live, and a conducive atmosphere and space for learning, coaches may not live near beneficiaries. with access to water and latrine facilities (Adoho Emerging operational experience provides et al. 2014). some insights into how these challenges could The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 22 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Finding appropriate venues for group activities They were required to sign a commitment form is important for program success, especially at the start and provided free childcare at every for programs targeting women. In Senegal, a training site (Adoho et al. 2014). community sensitization video and training were key components of the package. Implementation Using local community structures and existing challenges included difficulty renting spaces that government systems can reduce delivery costs were not too small or too noisy and mobilizing in both urban and rural areas. With growing participants, who were often busy with other coverage and efforts to set up delivery systems to activities (World Bank 2020c). Finding safe reach and serve the poor, social safety net systems spaces for adolescent girls was critical for the provide a platform for delivering economic success of the Empowerment and Livelihood for inclusion measures efficiently at scale. In the Adolescents Program in Uganda and Tanzania. Sahel, for instance, the existence of established In Uganda, clubs were set up in one-room delivery systems (and the scale of the program) houses, which the program rented. The club helped reduce the unit costs of identifying space provided privacy, allowing members to beneficiaries, the constitution of groups, and the discuss sensitive topics and build strong peer delivery of high-intensity services, such as savings support networks. In contrast, in Tanzania, local facilitation and coaching. In urban Senegal and implementers had to identify shared public spaces, rural Niger, where community volunteers were leaving little flexibility with respect to the timing trained and supervised by local program staff, of sessions (Banks 2017). the savings and coaching components cost less than $20 per beneficiary. In Mauritania, where With respect to group-based components, qualified NGO workers provided those services programs build cohesion by structuring groups and the ratio of beneficiaries to providers was around common issues, such as source of income, much higher, the same activities cost $180 per vulnerability, residence, or goals (Concern beneficiary. Administrative costs, which include Worldwide 2018). Examples include occupation monitoring and evaluation and targeting costs, and business groups, support groups and life clubs were lower where programs used existing systems for adolescent girls, neighborhood groups, and (Andrews et al. 2021). savings groups. In theory, programs should be taking advantage The role of groups may differ in urban and rural of the greater penetration of ICT in urban areas areas. In Senegal, saving groups in urban areas relative to rural areas; in practice, urban scope helped pool risk but did not build social networks programs do not seem to be doing so. Among (Demba 2021). Membership in a group represents government-led programs, the use of ICT is a significant time investment. For savings and equally widespread in urban scope programs (87 producer groups, potential economic benefits may percent) and rural-only programs (82 percent). be sufficient to retain members. In contrast, it However, this finding is driven by the use of may be necessary to offer incentives to convince information systems for program management participants to attend meetings of groups and monitoring. A much smaller number of linked to psychosocial support. The Economic programs use digital technologies to deliver Empowerment of Adolescent Girls and Young components, with little difference between all Women Program in Liberia used a combination programs (31 percent) and rural-only programs (28 of incentives and gender-intentional delivery to percent). ensure high retention (95 percent) and attendance (90 percent) rates during the classroom training The ability of economic inclusion programs to phase. Trainees were given small stipends and a deploy digital solutions depends on the context completion bonus contingent upon attendance. and whether the COVID-19 response has The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 23 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor prompted a renewed shift to digital platforms.22 • Digital payments and savings products. Nearly Three innovations hold promise: 96 percent of urban scope programs use digital solutions for payment of cash transfers • E-training and e-coaching. Only 8 percent of and business grants, savings, and other digital urban scope programs use digital solutions financial services. Some programs—such as to deliver training or coaching. The Nigeria Benin’s Projet Emploi des Jeunes and Liberia’s for Women Project and the Agro-Processing, Youth Opportunities Program (YOP)—also Productivity Enhancement and Livelihood paid business grants using mobile money. Improvement Support (APPEALS) projects This trend has likely increased with the shift take advantage of Nigeria’s high mobile phone to digital solutions for social safety nets penetration rate to deliver components in in response to COVID-19. Liberia’s YOP peri-urban and rural areas through digital provided beneficiaries that had completed technologies. Nigeria for Women delivers the training and had their business plans training and financial support digitally approved with low-cost mobile phones with to women. APPEALS delivers market mobile money accounts to receive their Pre- information digitally to peri-urban and rural Employment Social Support (PESS) business smallholders (World Bank 2017). In Honduras, grant. Cameroon is exploring options for the Life Improvement and Livelihood digital financial services (instead of savings Enhancement for Conditional Cash Transfer groups) in its urban economic inclusion Program (ACTIVO) Project developed program. audiovisual materials on accounting, financial education, and measures for income These digital solutions offer the potential to improvement, which are available for free cost-effectively deliver at scale. And designing on its website (JICA 2020). Colombia’s and implementing these solutions is likely to be Transforming My Future Project uses a tablet- easier in urban than in rural contexts. Digital based mobile application to conduct training; training solutions can be useful in standardizing participants use a notebook to take notes the consistency and quality of training and complete training tasks. Coaches are also (regardless of the ability of individual trainers or trained virtually, using tablets that connect coaches). Digital payment solutions also allow to a virtual program platform. Program closer monitoring of beneficiaries as well as management uses the virtual platform to opportunities for financial inclusion. support and monitor coaches’ training and asses their readiness to conduct trainings Digital solutions cannot be sought, however, through examinations (Fundación Capital where access to digital technologies and digital 23 2018). literacy are limited. Digital tools also require high • Job matching for informal workers. upfront investments and effective data privacy Mozambique’s Social Protection Project and protection. Emerging experience suggests the is exploring the potential of partnering importance of building capacity to design and with Biscate, a private digital platform implement solutions appropriate for the target that matches informal skilled workers group, using digital platforms that are already to customers using hybrid Unstructured popular with program participants, adopting Supplementary Service Data (USSD) (for multichannel and multiformat strategies, giving workers without smartphones) and Internet- beneficiaries sufficient training and time to learn based technology. This matching service could how to use the tools, and continually learning potentially increase the revenues and profits from implementation to adjust content and of informal workers. delivery (Fundación Capital 2021). The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 24 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Leveraging Urban Actors and Policies Urban policy frameworks and institutional arrangements can pose challenges for programs. Cities play an important role in job creation; urban local governments have direct influence over municipal taxes and incentives, zoning and land use polices, construction permits and business licenses, infrastructure and service provision, and public safety. These governments can also stimulate economic and the confiscation of their goods (Chen and opportunities by investing in skills, innovation, Carré 2020). Lack of occupational safety and and business support services for enterprises. health laws also adversely affect workers in the However, weak city planning, dysfunctional informal sector, who are usually not covered by land markets, and inequitable urban policy labor protections (Filmer and Fox 2014). frameworks can pose challenges for economic At the policy level, economic inclusion programs 24 inclusion (World Bank 2015a). At the same need to advocate for inclusive urban development. time, many municipalities are shifting their Many laws and regulations need to be reformed focus from primarily infrastructure-focused to match the reality of informal work. Changes spatial interventions (such as slum upgrading) to could include legalizing commercial space for more multidimensional approaches that cover street vendors and other urban informal workers; economic and social inclusion. Such programs protecting specific groups, such as waste-pickers include promoting local economic development, and home-based workers, and addressing the right improving the business environment, and to work and access to services by migrants and 25 supporting the private sector and small and displaced populations (Chen and Carré 2020). medium-size enterprises. Community consultations can help design urban Urban planning regulations affect informal spaces that are more hospitable for the vulnerable livelihoods but do not typically incorporate the urban poor. Informal workers also need to be needs of poor informal workers (Chen and Carré better organized (through cooperatives, for 2020; Filmer and Fox 2014). In most cities, street example) and their representatives involved in vendors and other informal businesses typically urban planning and legal reform processes (Chen experience unsafe working conditions and often and Carré 2020). Urban development programs face evictions from their place of work over typically include community consultations, licensing and taxation as well as harassment by which can help redesign spaces for petty trade local authorities, including demands for bribes businesses, training, and community gatherings The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 25 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor and improve connectivity and infrastructure actively engaged. In Ecuador, for instance, the (World Bank 2021e). Changes at the policy level central ministry has signed memorandums of may also be required for participants involved understanding with urban local bodies that in small business activities to secure locations or support its economic inclusion program. Some of permits for these activities. Several programs have these municipalities provide their own resources adopted a participatory approach to increasing to promote the economic inclusion of vulnerable social engagement within the community. In youth. Djibouti, for example, a slum upgrading program includes labor-intensive public works and The challenge for urban development programs income-generating activities carried out by local implemented by urban local governments is associations of youth and women (Ahmed 2021). to provide an effective package of support that addresses the multiple constraints the urban poor Programs implemented by central ministries face. Most such programs support the provision and programs implemented by urban local of infrastructure and services; many provide governments face different challenges. The labor-intensive public works. In Mozambique, primary challenge for programs implemented for example, the Maputo Urban Transformation by central ministries is the need to link with the Project (World Bank 2021g) includes a small local development plans and budgeting priorities labor-intensive public work component as well of municipalities. Complementary “place-based” as investments in small, multiuse public spaces, and “people-based” interventions can address streets markets, and pedestrian and nonmotorized 27 community, local economy, and institutional pathways. barriers to the spatial, social, and economic inclusion of the poor and vulnerable. However, These investments have the potential to provide shifting incentives to create urban environments temporary employment or link the urban poor that are supportive of informal workers’ to markets. But further support may be needed livelihoods will require better understanding to promote sustainable income generation for of the ways in which informal workers can this target group. The urban poor and vulnerable contribute to the urban economy and specific will likely require some combination of training, value chains or sectors. Central ministries can coaching, and business grants to overcome also explore options for fiscal incentives, such as human, financial, and network constraints. performance-based grants, to engage urban local Some programs are already exploring these governments. options, with components that offer training, self-employment facilitation, or links with Economic inclusion programs could more closely social protection programs. In the Democratic reflect the priorities of the municipality. Several Republic of Congo, for example, the Kinshasa urban programs in Africa include public works Multisector Development and Urban Resilience components. City governments tend to be Project (World Bank 2021d) increases access to supportive of such programs, because they from infrastructure and services and improves the skills the work performed (cleaning and maintaining and socioeconomic opportunities of residents of streets, building drainage and sanitation networks, selected neighborhoods of the city. The experience rehabilitating or maintaining public gardens of these programs provides the basis for layering and green spaces or local markets). In Ethiopia’s economic inclusion components atop existing Urban Productive Safety Net Project, city urban development programs. Forging effective governments identify and plan public works linkages with central ministries can provide cost- through a participatory process involving local effective platforms to reach the target group, link 26 communities (Gentilini et al. 2021). In highly to existing social protection benefits, and deliver urbanized contexts, local governments are already additional components. The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 26 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Interagency coordination is critical, especially street markets, slum upgrading, and affordable between central social or labor ministries housing) can promote urban livelihoods; and local municipalities. Achieving it may be individual- and household-level interventions can particularly difficult in urban contexts. Potential help the poor and vulnerable connect to these reasons for coordination failures include lack of opportunities. Collaboration between central incentives (municipalities’ mandates may not ministries and urban local authorities can help necessarily include economic inclusion); lack of programs use existing platforms and facilitate clarity on roles and responsibilities (municipalities linkages and referrals to municipal services and and local departments of social safety net or labor social services. In Indonesia, an urban regeneration ministries have different mandates and lines of program is exploring options for systematically accountability); and inadequate mechanisms for including economic inclusion components based coordination (in terms of operational tools, for on profiling residents and mapping available example, such as integrated information systems programs and services. and registries, to promote information sharing). In Mozambique, differences in local capacity and The sustainability of economic inclusion programs coordination between the municipality and social also relies on strong local partnerships, including protection agency led to variations in program with NGO and private sector partners that are effectiveness across cities (Gentilini et al. 2021). For willing to customize interventions to urban central programs, the selection of program areas participants. Urban contexts offer a wide range can provide an opportunity to align incentives of programs and services, by public and private and partner with the municipalities that are most providers, but they need to be tailored to meet interested in the program. An urban economic the needs of poor and vulnerable residents to inclusion pilot in Brazil encouraged municipalities be effective. Urban scope economic inclusion to apply to be included in the program; it programs can link with formal training established criteria for the selection of cities and providers that develop customized options for provided incentives for municipalities to engage. urban beneficiaries. Programs can also link In Honduras, the ACTIVO program was carried with private sector employers for mentoring, out by social agents and municipal officers, with demand-driven training, and jobs (through both cadres serving as trainers (JICA 2020). placements, internships, and apprenticeships, for example). In Argentina and Burkina Faso, for Ideally, coordination should not be limited to example, private sector partners helped design ensuring effective program implementation; and implement training programs providing life it should include deeper collaboration with skills and entrepreneurship training and coached respect to program design that leverages participants in starting a business. (World Bank complementarities. Investments in urban 2013a, 2014). infrastructure (such as multiuse public spaces, The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 27 Key Adaptations Selecting and Tailoring Program Tailoring Delivery Leveraging Urban Conclusion to the Urban Managing Target Design to the Systems to the Actors and Policies Context Groups Needs of the Urban Lifestyles of the Poor Urban Poor Conclusion Rural economic inclusion programs cannot be simply transplanted to urban contexts; they must be designed specifically for the urban context, so that they reflect the unique needs of urban residents. Delivery systems need to adapt to the needs and lifestyles of the urban poor. Programs also need to be embedded in urban policy and planning, as part of the drive toward inclusive cities. Several lessons emerge from the operational Several countries are implementing experience from a growing pipeline of economic inclusion programs in urban urban scope programs: contexts; their experience provides insights for operational teams. Much more • The challenge of fine-tuning targeting will be learned in coming years. It will and beneficiary selection in urban areas be important to collate lessons through has implications for how programs systematic evaluations and learning from define eligible groups and how delivery implementation. A deeper understanding of systems register and enroll beneficiaries. cost-effectiveness will help build political • Program design needs to take into support to incorporate economic inclusion account the specific characteristics of programming into government policy urban poverty. It should be based on frameworks. It will also be important the binding constraints to sustainable to understand the programmatic and income generation for each target institutional adaptations needed to scale group. programs in urban contexts, building on • Systems need to adapt to deliver high- lessons learned from pilots and leveraging intensity and group interventions in partnerships with urban local governments urban contexts. and between government and partner • Urban scope programs need to engage organizations. effectively with urban actors and policies, to stimulate complementary investments in people and places. The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 28 Appendix A Programs Reviewed The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 29 Appendix A Table A.1 Programs reviewed Country Program/ Type of location Source project Argentina Empleo Jóven (Argentina Youth Employ- Urban only World Bank (2014); Bersusky ment Support Project, formerly known as and Paz (2021) Jóvenes por Más y Mejor Trabajo) Urban scope (urban, rural) Azerbaijan Employment Support Project World Bank (2020a); dis- cussions at PEI Urban Clinic, December 2020 Urban only (urban, peri-urban) Bangladesh Recovery and Advancement of Informal World Bank (2021a) Sector Employment (RAISE) Ultra-Poor Graduation, BRAC Urban scope (urban, peri-urban) BRAC-UPGI (2021); Ara et al. (2016) Urban scope (urban, rural) Benin Projet Emploi des Jeunes (Youth Em- World Bank (2020b) ployment Project; Youth Inclusion Project (Azôli) Urban only Brazil Piloto do Fomento Productivo Urbana Government of Brazil (2021) (Urban Productive Development Pilot) Urban scope (urban, rural) Burkina Faso Youth Employment Skills Development World Bank (2013a, 2020e); Project CFI (2019) Urban only Cameroon Adaptive Safety Nets and Economic World Bank (2021b) Inclusion Project Urban scope (urban, peri-urban, rural) Colombia Transformando Mi Futuro (Transforming Centro de Estudios Sobre My Future) Desarrollo Económico (2017); Leon-Jurado and Maldonado (2021); Fun- dación Capital (2018) Urban only Côte d’Ivoire Projet d’Urgence de Création d’Emploi World Bank (2012); Bertrand Jeunes et de Développement des Com- et al. (2016, 2017) pétences (Youth Employment and Skills Development Project) Urban only (urban, peri-urban) Democratic Republic Kinshasa Multisector Development and World Bank (2021c) Urban Resilience Project of Congo Third Additional Financing for the East- Urban scope (urban, peri-urban, rural) World Bank (2021d) ern Recovery Project The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 30 Country Program/ Type of location Source project Urban only Djibouti Integrated Slum Upgrading Project World Bank (2019a) Urban only Ecuador Social Safety Net Project World Bank (2019b) Urban only Ethiopia Urban Productive Safety Net and Jobs World Bank (2016a); Franklin Project et al. (2021); Degu and Manie (2020); urban clinic presentation and summary note Urban scope (urban, peri-urban, rural) Honduras Project on Life Improvement and Live- JICA (2020) lihood Enhancement for Conditional Cash Transfer Beneficiaries through Financial Inclusion (ACTIVO) Urban scope (urban, peri-urban, rural) Kenya Youth Employment and Opportunities World Bank (2016b) Project Urban only Liberia Economic Empowerment for Adolescent Adoho et al. (2014) Girls Urban scope (urban, rural) Liberia Youth Opportunities Project World Bank (2015b); Bengu (2021) Urban scope (urban, peri-urban) Mozambique Maputo Urban Transformation Project World Bank (2021g) Productive Social Action Program Urban scope (urban, peri-urban, rural) Zapatero et al. (2017) Social Protection Project Urban scope (urban, rural) World Bank (2013); Ricaldi, Mata, and Martins (2021) Urban scope (peri-urban, rural) Nigeria Agro-Processing, Productivity Enhance- IPA (2020) ment and Livelihood Improvement Support (APPEALS) Nigeria for Women Project Urban scope (peri-urban, rural) World Bank (2018) Urban only Papua New Guinea Second Urban Youth Employment Hoy and Naidoo (2019); Project Ivaschenko et al. (2017); World Bank (2020f) Urban scope (peri-urban, rural) Philippines BRAC–UPGI Urban Pilot BRAC-UPGI (2021); urban clinic presentation and sum- mary note The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 31 Country Program/ Type of location Source project Urban-only (urban, peri-urban) Senegal Yook Koom Ndiaye (2021); World Bank (2020c) Urban scope (urban, rural) Tanzania Boosting Inclusive Growth for Zanzibar: World Bank (2021h) Integrated Development Project Urban scope (urban, rural) Tanzania BRAC Empowerment and Livelihood for Banks (2017); Buehren et al. Adolescents (2017) Youth Opportunities Program Urban scope (urban, rural) Blattman, Fiala, and Martinez (2014, 2018) Urban scope (urban, peri-urban, rural) Uganda BRAC Empowerment and Livelihood for Banks (2017); Bandiera et al. Adolescents (2020) The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 32 Notes The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 33 Notes 1. The first note highlighted the potential of delivering economic inclusion programs in urban contexts at scale (Avalos et al. 2021). This note draws the first note as well as on a regional background paper on economic inclusion in urban Sub-Saharan Africa (Bossuroy et al. forth- coming). 2. This definition follows the one used in The State of Economic Inclusion Report 2021: The Potential to Scale (Andrews et al. 2021). 3. See Avalos et al. (2021) for definitions and data sources. 4. Participants at PEI events noted the following challenges in designing and delivering urban programs: selecting beneficiaries, customizing and delivering coaching (a high-intensity com- ponent) for urban participants, identifying viable market opportunities for sustainable urban livelihoods, ensuring access to basic services, and working with urban local governments. See BRAC-UPGI (2021); Concern Worldwide (2018); and Moqueet, Zaremba, and Whisson (2020) for operational insights from nongovernment-led programs. 5. Among the government-led programs in the 2020 Landscape Survey, only 10 operated exclusively in urban or peri-urban areas; 58 programs operated across urban, peri-urban, and rural areas; and 39 programs operated exclusively in rural areas (Avalos et al. 2021). Analysis of the survey compares urban-scope programs with rural-only programs, as the sample of 10 urban-only programs is too small for disaggregated analysis. The operational review includes these urban scope programs as well as a number of new urban-only and urban scope pro- grams that have been introduced since 2020. 6. The PEI 2020 Landscape Survey provides a global snapshot of economic inclusion pro- grams. Of the 219 programs identified in 75 countries, over half (118 programs in 63 coun- tries) reach urban or peri-urban areas either exclusively or in addition to rural areas. 7. Examples include Senegal’s Yook Koom Koom (Ndiaye 2021) and Mozambique’s Social Protection Project (World Bank 2013b). 8. According to the PEI 2020 Cost Survey, targeting accounted for 0.3–5.5 percent of total pro- gram costs, with lower costs for programs that used existing systems, such as Benin’s ACCESS program, which covers both urban and rural areas (Andrews et al. 2021). 9. These programs include the Youth Employment and Skills Development Project in Burkina Faso (World Bank 2013a); the Emergency Youth Employment and Skills Development Project in Côte d’Ivoire (World Bank 2012); the Projet pour la Stabilisation de l’Est de la RDC pour la Paix in the Democratic Republic of Congo (World Bank 2021c); and the Projet Emploi des Jeunes and the Youth Inclusion Project (Azôli) in Benin (World Bank 2020b). 10. Ethiopia: UPSNP; Mozambique: Productive Social Action Program (PSAP). 11. In a peri-urban graduation pilot in the Philippines, participants selected livelihoods such as ambulatory food carts, meat processing, massage therapy, and livestock. In a similar pilot in The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 34 urban Uganda, youth opted for vocational training in electrical work, mobile repair, motorcy- cle repair, and other small trades (BRAC-UPGI 2021). 12. Differences between urban and rural areas are particularly stark in programs that priori- tize youth: Of the 22 youth-focused programs surveyed, a much larger share of urban scope programs focused on promoting wage employment (45 percent in urban areas and 0 in rural areas) and self-employment (64 percent in urban areas and 21 percent in rural areas). 13. See https://www.worldbank.org/en/programs/sahel-adaptive-social-protection-pro- gram-trust-fund#6 for an overview of the program, including more detail on program compo- nents. 14. In India, BRAC and World Vision added urban-specific life skills modules on peacebuild- ing and conflict resolution (including religious and caste conflict), alcohol abuse, and gam- bling. BRAC’s program in urban Bangladesh includes modules on disaster preparedness for floods, fire hazards, and evictions. 15. The evaluation did not find a net impact on fertility or sexual behavior, possibly because the life skills curriculum focused on employment-related soft skills rather than sexual and reproductive health. 16. This community-based model differed from Liberia’s Economic Empowerment of Adoles- cent Girls and Young Women in several ways. Coaching was provided largely by female peers or mentors, professional trainers were brought in for specific vocational skills, and there was an emphasis on life skills, including sexual and reproductive health (Chakravarty, Das, and Vaillant 2017). 17. In addition, teen pregnancy fell by 34 percent and early entry into marriage/cohabitation by 62 percent. 18. A randomized field experiment in urban Ethiopia found that one-off psychological sup- port (in the form of a three-hour self-affirmation workshop) to vulnerable youth can affect mindsets and job search in the short term, at least for young men. Impacts—including on employment and earnings in the short term—were higher for the most vulnerable men. The intervention cost less than $10 per person (Mejía-Mantilla and Walshy 2020). Evidence from rural areas points to the positive impact of video-based interventions to boost aspirations and self-efficacy (see for example Bernard et al. (2014) for rural Ethiopia and Lecoutere, Spielman, and Campenhout (2019) for rural Uganda). 19. The transport subsidy covered the cost of regular trips to the town center. By easing spatial constraints, it increased the intensity and efficacy of job search. The job application workshop covered how to prepare effective applications and approach job interviews; participants had their skills certified on the basis of standardized personnel selection tests. Participants offered the transport subsidy were 32 percent more likely to be in formal employment than partic- ipants who did not receive the subsidy; the effect size of the workshop was 31 percent. The interventions cost only about $20 a person for the transport subsidy and $18 for the workshop (Abebe et al. 2017). The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 35 20. This pattern is starker among the 10 surveyed programs that operate exclusively in urban contexts, with about half providing three to four components and only 30% providing five to six components. 21. Several programs have made changes to group-based components because of COVID-19 restrictions. For instance, Liberia’s Youth Opportunities Program originally provided business grants to groups of five beneficiaries. In 2020, the program allowed beneficiaries to operate businesses as individuals or a group. 22. A BRAC pilot with the Philippines government provided remote coaching using mo- bile phones to offer guidance on how to maintain livelihoods during quarantine during the COVID-19 pandemic. 23. The larger rural program Produciendo por Mi Futuro also uses these digital tools. 24. See the following World Bank regional reviews on urbanization challenges and public policy implications: Baker and Gadgil (2017); Ferreyra and Roberts (2018); Ellis and Roberts (2016); Lall, Henderson, and Venables (2017). 25. Efforts could also include broader legal reform with respect to the social protection and occupational safety and health protection of informal workers and exclusionary policies that constrain access to jobs, land, and services for migrants, internally displaced people, women and other vulnerable groups. 26. Public works cover five areas: (a) urban greenery and beautification; (b) urban integrated solid waste management; (c) urban integrated watershed management; (d) social infrastruc- ture (as part of a larger plan, such as environmental, disaster prevention, and human develop- ment–enhancing initiatives); and (e) creation of a conducive environment for urban agricul- ture. 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The Partnership for Economic Inclusion In Practice / Operational Considerations for Urban Economic Inclusion Programming 43 The Partnership for Economic Inclusion (PEI) is a global partnership with a mission to support the adoption of national economic inclusion programs that increase the earnings and assets of extremely poor and vulnerable households. PEI brings together global stakeholders to catalyze country-level innovation, advance innovation and learning and share global knowledge. PEI is hosted by the Social Protection and Jobs Global Practice (SPJ) of the World Bank. In Practice