Project name - A modern humanistic approach to the assignment of social benefits in Azerbaijan: Proactive people-centred assignment mechanism.

Information about the project (which process is digitalized) – SUMMARY The State Social Protection Fund of Azerbaijan (SSPF) introduced the unique AI-driven proactive assignment mechanism for the assignment of social benefits. This self-starting assignment system is a modern approach to delivering a social service that uses big data and technology to identify and reach out to eligible individuals and assign social benefits from a single center to families without them having to visit any institution. Historically, the Azerbaijani populace faced an intricate and lengthy procedure for availing social services, necessitating navigation through myriad bureaucratic channels and paperwork. By addressing this challenge, the new mechanism streamlined the process, enabling eligible citizens to be automatically enrolled and receive their due benefits in time. Citizens are also informed via SMS notification about the assignment of social payment, the amount, and where they can obtain their bank cards. By emphasizing user-centricity, openness, and robust stakeholder engagement, the SSPF has markedly enhanced the accessibility and reliability of social services for its citizens and has positioned Azerbaijan at the vanguard of innovative governance, offering a paradigm that stands as a beacon for nations globally. THE ISSUE OR CHALLENGE Historically, the process of securing social benefits, including pensions, stipends, social allowances, compensations, etc. in Azerbaijan, was fraught with complexities and challenges, which weren't just procedural but were deep-rooted in a system that, over time, had grown labyrinthine in nature. Bureaucratic inefficiencies: - Eligible beneficiaries had to navigate through a plethora of bureaucratic steps, filling in numerous forms, and often visiting several offices just to ensure their applications were in order. - Procedural hurdles disproportionately affected the elderly and vulnerable sections of the populace, who were the primary recipients of many of the benefits. Redundant documentation: - Many applicants found themselves entangled in an often repetitive documentation process. - A single missing document could delay the assignment of a benefit for months, causing undue stress and financial hardship. Exclusion of vulnerable groups: - While the urban population had relatively easier access to resources and information, those in remote regions or from vulnerable groups often found it challenging to access their rightful benefits. - People were either unaware of the processes or faced logistical challenges in accessing service points. Operational overheads: - From the administrative perspective, manually processing each application not only consumed an inordinate amount of time but also placed significant pressure on the resources and staff of the SSPF. ADDRESING THE CHALLENGE The SSPF has established a comprehensive strategy focused on several key areas: • Shifting from “reactive approach” to “proactive approach”, ensuring a more responsive and efficient experience for citizens; • Zero contact with the SSPF and minimizing officer-citizen interactions, thereby increasing citizen satisfaction; • Implementing a proactive approach to precise calculation and allocation of social benefits from a centralized hub, ensuring fairness and accuracy; • Elimination of social payment assignment delays, ensuring immediate rights realization; • Reviewing and rectifying past errors in the calculation and allocation of social benefits, ensuring fairness and rectitude in the process; • Minimization of document circulation and paper usage; • Expanding the utilization of up-to-date electronic and proactive services, enhancing accessibility and convenience for citizens; • Improving mechanisms for executing payment claims and ensuring rigorous oversight of court decision compliance. • Ensuring alignment of the SSPF's activities with international standards. TARGETS TO BE ACHIEVED When the SSPF initiated the proactive assignment mechanism for social benefits, several clear and measurable targets were outlined to gauge the initiative's success and impact. The ambition was not merely to address immediate challenges but to lay the groundwork for a transformative, sustainable, and citizen-centric system. • Ensuring the alignment of the activities carried out by the SSPF with the requisite international standards, thereby upholding a commitment to global compliance; • Facilitating the expeditious and seamless resolution of issues of heightened societal significance and those affecting citizens on a broad scale, in practical terms; • Employing actuarial valuations to rectify the monthly disbursement levels of social benefits to citizens, thereby ensuring financial adjustments are made with precision and accuracy; • Harnessing modern ICTs to digitize the array of services provided by the SSPF while concurrently streamlining associated processes, thus resulting in substantial time and cost savings; • Advancing the delivery of social benefits to a more personalized, efficient, and cost-effective paradigm, ultimately enhancing the overall efficacy of the system; • Eradicating instances of human error and mitigating the need for cumbersome bureaucratic procedures, thereby augmenting transparency and elevating citizen satisfaction levels.

Name of the organization that implemented the project – 

Was the project implemented with an end-to-end process approach? – yes

Was the project implemented within the past 12 months? – yes

What are the main take aways or achievements of the project? – EVALUATION OF RESULTS The introduction of the proactive assignment of social services by the SSPF brought about a radical transformation in the social protection domain of Azerbaijan: 1. Beneficiary uptake: • In 2023, the proactive assignment system successfully catered to over 600 thousand beneficiaries, indicating an 80% uptake among the target group. • Currently, all types of pensions, 49 out of 51 types of social allowances and stipends are proactively assigned to citizens. 2. Expedited assignments: • In 2021, over 90% of social benefit assignments experienced delays extending from 2-4 months, and in some instances, up to a year from the eligibility date. Fast forward to 2022, the proactive system demonstrated remarkable efficiency: 72% of beneficiaries were assigned on the very day their rights were established, and administrative enhancements ensured that the remaining 28 per cent saw their assignment durations slashed to a mere 15 days; • Over the past period, a total of USD 4.2 billion has been paid to 600 thousand individuals through proactive social payment assignments; • a 94% adequacy rate was determined (some individuals’ social insurance contributions are reflected late in their personalized accounts due to late payments by insurants). 3. Operational efficiency: • The administrative efficiency of the SSPF witnessed dramatic enhancements: - Processing time for assignments saw a 60% reduction; - Human error instances dropped by 75%, signaling an error-free distribution of benefits; - Operational costs, in comparison to the previous manual system, declined by 40%, showcasing fiscal prudence. 4. Digital engagement: • The proactive assignment system, while reducing the necessity for applications, inadvertently increased digital literacy and engagement. - “e-sosial” web-portal (https://e-sosial.az) Azerbaijan Unified Social Registry was launched for citizens to verify their data accuracy, enabling public oversight over the SSPF; - “e-sosial” web-portal witnessed a surge in its user base, with registrations crossing the 1.4 million mark by December 2023; - “e-sosial” web-portal received over 71.8 million interactions, indicating highly engaged citizenry. 5. Consistent growth and expansion: • From 2021 to early 2024, 15 new types of social payments had been established, and they had been assigned through a design compatible with the proactive mechanism. - The proactive assignments over the years were as follows: 7% in 2020, 45.6% in 2021, 54.4% in 2022, and 72% in 2023. - Statistically, 80 thousand individuals achieved 100% proactive assignment for the newly established types of stipends (in 2023) due to the prior adaptation of the legislative requirements for proactive assignment concerning those types of stipends. 6. Citizen satisfaction: • Reduction in the number of complaints by 70%; • Level of satisfaction of citizens in the SSPF’s services increased sharply and amounted to 98%; • a 65% decrease in citizen applications to the SSPF; • 88% decrease in SSPF-involved court cases in 2023 compared to 2019, dropping from 12100 to 1500. LESSONS LEARNED Factors indispensable to replicate the good practice: • Holistic digitization: The success of this initiative hinges on digitization of records and automation of administrative processes. This foundational step eliminates bureaucratic barriers, streamlines workflows, and reduces the need for paperwork and in-person visits. • Proactive assignment mechanism: The shift from reactive to proactive approach is a key factor. By leveraging data from various sources to preemptively identify and enroll eligible beneficiaries, this system ensures comprehensive coverage and timely disbursement of benefits. • Iterative approach to refinement: A commitment to collecting and acting upon user feedback, as demonstrated by the pilot project in 2019, ensures that the system remains effective and user-friendly. It's imperative to incorporate feedback and adapt the mechanism based on real-world experiences. RISKS IN IMPLEMENTING THE GOOD PRACTICE: • Data privacy and security: The extensive use of data and technology in this proactive assignment mechanism raises concerns about data privacy and security. Unauthorized access or data breaches could lead to serious consequences, including identity theft and fraud. Safeguards, robust cybersecurity measures, and compliance with data protection regulations are necessary to mitigate this risk. • Digital inequality: While digitization is a key enabler, it also poses risk of excluding segments of the population who may not have access to technology or digital literacy. Replicating this approach should be accompanied by measures to bridge the digital divide, ensuring that vulnerable or remote communities can still access their benefits through alternative means. • Resource and infrastructure constraints: Implementing a proactive assignment mechanism may require significant resources, both in terms of technology and trained personnel. Inadequate funding, infrastructure, or skilled staff can hinder the successful deployment of such a system. Careful planning and resource allocation are essential to overcome this risk. REFERENCE: 1) https://www.youtube.com/watch?v=GnzLrxURby4 2) https://drive.google.com/file/d/1GtOcAYSHp9oK-Afou00yAh_2Y8Sa70Pz/view?usp=sharing 3) https://e-sosial.az/#/eServiceFrame/154370

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