A Sectoral Checklist

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DOCUMENT 3: A SECTORAL CHECKLIST

What is a Sector?
The term sector means different things to different people. The basic economic definition of a sector is a 'homogenous group of productive economic activities'. The most common set of sectors is found in national accounts data. Economists define sectors in terms of their output. This definition of sectors is very broad, as an examination of the transport sector shows. Transport can be divided into the following sub-sectors: maritime transport (which includes shipping and ports); railways; roads; airlines. Each of these sub-sectors could be further divided between passengers and goods, and long and short haul.
The term 'sector' is used by people other than economists. The European Commission produced 24 "Fiche de Programmation Sectorielle" (sectoral notes) in 1994 and 1995 as part of the run-up to LomŽ IV (bis). These included agriculture, livestock, fisheries, private sector, tourism, infrastructure and transport, research, education, public health, family planning, problems of drugs, potable water, rural development, urban development, tropical forestry sector, environment, women and development, population, regional integration, institutional reform, poverty alleviation, and social development.
As much support is given on a sectoral basis, it is both appropriate and necessary to look at the impact AIDS might have by sector. This checklist is designed to establish points of susceptibility and vulnerability to HIV and AIDS, and point to some of the actions that may be taken to reduce this. Susceptibility may be defined as the likelihood of people being infected, while vulnerability is the likelihood of the sector being more or less affected by the epidemic. For example migrant workers in the agricultural sector may be susceptible to infection, but if they are easily replaceable and have few benefits then the sector will not be vulnerable.

Addressing HIV and Sectors: a Checklist
If HIV/AIDS is deemed to be a problem in the country, the next step is to look at its effect on specific sectors. There are two points where sectors are considered. The first is in the drawing up of the Sectoral Fiches, when the main areas of concern and how they are to be addressed are established. The second point is in the National Indicative Programme (the document signed by government and the EC, which identifies focal areas in which support will be given. Typically infrastructure (especially transport), rural development and human resources development receive the bulk of the funds. Objectives are identified, along with actions and measures to be taken by government, and what EC support will be available. At both stages there is a need to consider the HIV/AIDS issues and two questions are raised:

Can sectors or sub-sectors be identified as being susceptible/vulnerable to HIV/AIDS?
Can a sector activity or intervention be put in place?
The idea of the checklist is that it should be completed as a diagnostic tool, using the notes provided. The spaces will not be completed with a simple 'yes' or 'no', but rather with a few words of explanation where necessary.

Figure 1. Assessing Sector Susceptibility/Vulnerability

Name of sector or sub-sector

A. LABOUR Type

A 1. Availability Skilled Unskilled

(i) Is there sufficient labour?

(ii) Are new recruits available?

(iii) Are there seasonal constraints?

(iv) Does the work require experience?

(v) Is there sick leave provision (how much)?

(vi) Is there compassionate leave (how much)?

A 2. Employee Benefits

(i) Are medical services or medical aid provided?

(ii) Is insurance provided?

(iii) Are death benefits provided for employees?

(iv) Other benefits (e.g. housing, transport)

(v) Is a pension provided for dependants?

A 3. Use of Labour (mobility)

(i) Does work demand travel overnight?

(ii) Are migrant workers employed? What % of work force?

(iii) Are most employees male or are they female? How are they housed?

B. POPULATION AND WEALTH

B1 Demographic Trends

(i) Is the population growth rate significant?

(ii) Is the population structure important?

(iii) Is the household size and composition important?

B2 Income and Expenditure

(i) Will changes in government budgets affect the sector?

(ii) Will changes in taxation affect the sector?

(iii) Are changes in household income and expenditure significant?

C. SECTOR SPECIFIC QUESTIONS

(i) Will AIDS affect demand?

(ii) Will AIDS affect supply?

(iii) Other issues

[For convenience, the checklist above is available for downloading and printing in PDF format: download now. (Requires the free Adobe Acrobat Reader.)]

Notes for Completing the Checklist
This checklist is designed to identify areas in which HIV/AIDS may impact on a sector or project. As it is completed areas of concern will be identified. How they are addressed falls outside the scope of the checklist. These notes assist in completing the checklist.

Section A - Labour
There are three key issues: will there be enough labour of the right type and at the right time?; what effect will increased morbidity and mortality have on the cost of employee benefits?; and how is the labour used? Skilled and unskilled labour should be assessed separately.

A1 - Labour Availability

(i) Is there sufficient labour available?

(ii) Are new recruits available? Labour may be available initially, but can it be replaced?

(iii) Are there seasonal constraints? Are there peaks in the supply of and demand for labour.

(iv) Does the work require experience? Some jobs do not require training but are learnt through experience - this type of employee will be difficult to replace.

(v) Is there sick leave provision (how much)? Although sick leave is a benefit, it will have an impact on labour availability. It is expected that employees will take all available sick leave as they fall ill - this can affect labour availability, especially if benefits are generous.

(vi) Is there any compassionate leave? Increased mortality will increase demand for compassionate leave.

A2 - Employee Benefits

(i) Are medical services or medical aid provided? The effect of AIDS will be to increase the demand for medical care whether supplied or paid for by the sector/company/project.

(ii) Are death benefits provided? If employees or their dependants receive death benefits such as ex gratia payments or coffins, increased demand will increase costs.

(iii) Is insurance provided? AIDS means claims will increase and either premiums rise or benefits decrease.

(iv) Is a pension provided for dependants? Pensions for contributors obviously cease at their death, but some schemes provide for spouses and dependents. These will continue to pay out. In the event of AIDS death, it is likely that children will be left and the contributor will not have paid enough in contributions to cover the benefits that will be paid out.

(v) Other benefits, e.g., housing and transport? Are there other benefits which might be affected by increased morbidity and mortality?

A3 - Use of Labour

(i) Does work demand travel? Workers who travel as part of their work (e.g., military, transport sector), are more likely to indulge in risky behaviour.

(ii) Are migrant workers employed? Migrants are more likely to undertake risky behaviour - as they are separated from their families.

(iii) Are male or female employees predominant? In some settings where the employees are mainly male or female, there may be more risky behaviour.

Section B - Population and Wealth
AIDS has the potential to affect both the size and the structure of a population, and the way both households and governments earn and spend money. This section sets out possible trends and asks if they are important for a sector.

B1 - Demographic Trends

(i) Is the population growth rate significant? AIDS has the potential to reduce the rate of population growth. If the sector assumes a certain level of population growth (for example planning new schools makes certain assumptions as to the size of the school age population), then the impact of AIDS must be considered.

(ii) Is the population structure important? AIDS will have a marked impact on the structure of a population as certain cohorts will be more seriously affected than others.

(iii) Is the household size and composition important? As people in their twenties and thirties die, they will leave children who need care. This may change both the size of households and their composition.

B2 - Income and Expenditure

(i) Will changes in government budgets affect this sector? AIDS will increase demand for expenditure on health and social services and decrease resources available for other sectors.

(ii) Will changes in taxation affect this sector? It is possible that taxes may have to rise to pay for increased health and welfare while tax revenues are reduced.

(iii) Are changes in household income and expenditure significant? As households lose income-earners and/or take in orphans, both income and expenditure patterns may change.

C - Sector Specific Questions
The last part of the checklist will provide for questions that are specific to a sector. Here, the checklist would look at issues such as the inputs and outputs of a specific sector. Each sector will have its own set of questions. Three specific sector checklists have been prepared, namely education, rural development and infrastructure and are included.

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The World Bank
Development Economics
Development Research Group

Figure 1. Assessing Sector Susceptibility/Vulnerability
Name of sector or sub-sector
A. LABOUR	Type
A 1. Availability	Skilled	Unskilled
(i) Is there sufficient labour?
(ii) Are new recruits available?
(iii) Are there seasonal constraints?
(iv) Does the work require experience?
(v) Is there sick leave provision (how much)?
(vi) Is there compassionate leave (how much)?
A 2. Employee Benefits
(i) Are medical services or medical aid provided?
(ii) Is insurance provided?
(iii) Are death benefits provided for employees?
(iv) Other benefits (e.g. housing, transport)
(v) Is a pension provided for dependants?
A 3. Use of Labour (mobility)
(i) Does work demand travel overnight?
(ii) Are migrant workers employed? What % of work force?
(iii) Are most employees male or are they female? How are they housed?
B. POPULATION AND WEALTH
B1 Demographic Trends
(i) Is the population growth rate significant?
(ii) Is the population structure important?
(iii) Is the household size and composition important?
B2 Income and Expenditure
(i) Will changes in government budgets affect the sector?
(ii) Will changes in taxation affect the sector?
(iii) Are changes in household income and expenditure significant?
C. SECTOR SPECIFIC QUESTIONS
(i) Will AIDS affect demand?
(ii) Will AIDS affect supply?
(iii) Other issues

A1 - Labour Availability
(i)	Is there sufficient labour available?
(ii)	Are new recruits available? Labour may be available initially, but can it be replaced?
(iii)	Are there seasonal constraints? Are there peaks in the supply of and demand for labour.
(iv)	Does the work require experience? Some jobs do not require training but are learnt through experience - this type of employee will be difficult to replace.
(v)	Is there sick leave provision (how much)? Although sick leave is a benefit, it will have an impact on labour availability. It is expected that employees will take all available sick leave as they fall ill - this can affect labour availability, especially if benefits are generous.
(vi)	Is there any compassionate leave? Increased mortality will increase demand for compassionate leave.
A2 - Employee Benefits
(i)	Are medical services or medical aid provided? The effect of AIDS will be to increase the demand for medical care whether supplied or paid for by the sector/company/project.
(ii)	Are death benefits provided? If employees or their dependants receive death benefits such as ex gratia payments or coffins, increased demand will increase costs.
(iii)	Is insurance provided? AIDS means claims will increase and either premiums rise or benefits decrease.
(iv)	Is a pension provided for dependants? Pensions for contributors obviously cease at their death, but some schemes provide for spouses and dependents. These will continue to pay out. In the event of AIDS death, it is likely that children will be left and the contributor will not have paid enough in contributions to cover the benefits that will be paid out.
(v)	Other benefits, e.g., housing and transport? Are there other benefits which might be affected by increased morbidity and mortality?
A3 - Use of Labour
(i)	Does work demand travel? Workers who travel as part of their work (e.g., military, transport sector), are more likely to indulge in risky behaviour.
(ii)	Are migrant workers employed? Migrants are more likely to undertake risky behaviour - as they are separated from their families.
(iii)	Are male or female employees predominant? In some settings where the employees are mainly male or female, there may be more risky behaviour.

B1 - Demographic Trends
(i)	Is the population growth rate significant? AIDS has the potential to reduce the rate of population growth. If the sector assumes a certain level of population growth (for example planning new schools makes certain assumptions as to the size of the school age population), then the impact of AIDS must be considered.
(ii)	Is the population structure important? AIDS will have a marked impact on the structure of a population as certain cohorts will be more seriously affected than others.
(iii)	Is the household size and composition important? As people in their twenties and thirties die, they will leave children who need care. This may change both the size of households and their composition.
B2 - Income and Expenditure
(i)	Will changes in government budgets affect this sector? AIDS will increase demand for expenditure on health and social services and decrease resources available for other sectors.
(ii)	Will changes in taxation affect this sector? It is possible that taxes may have to rise to pay for increased health and welfare while tax revenues are reduced.
(iii)	Are changes in household income and expenditure significant? As households lose income-earners and/or take in orphans, both income and expenditure patterns may change.