Targeting of Transfers in Developing Countries

Targeting of Transfers in Developing Countries PDF

Author: David Coady

Publisher: World Bank Publications

Published: 2004

Total Pages: 128

ISBN-13: 9780821357699

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Drawing on a database of more than one hundred anti-poverty interventions in 47 countries, 'Targeting of Transfers in Developing Countries' provides a general review of experiences with methods used to target interventions in transition and developing countries. Written for policymakers and program managers in developing countries, in donor agencies, and in NGOs who have responsibility for designing interventions that reach the poor, it conveys what targeting options are available, what results can be expected as well as information that will assist in choosing among them and in their implementation. Key messages are: - While targeting 'works' - the median program transfers 25 percent more to the poor than would a universal allocation - targeting performance around the world is highly variable. - Means testing, geographic targeting, and self-selection based on a work requirement are the most robustly progressive methods. Proxy means testing, community-based selection of individuals and demographic targeting to children show good results on average, but with considerable variation. - Demographic targeting to the elderly, community bidding, and self-selection based on consumption show limited potential for good targeting. - There is no single preferred method for all types of programs or all country contexts. Successful targeting depends critically on how a method is implemented. The CD-ROM includes the database of interventions, an annotated bibliography (PDF) and Spanish and Russian translations of the book (PDFs).

Targeted Transfers in Poor Countries

Targeted Transfers in Poor Countries PDF

Author: Martin Ravallion

Publisher: World Bank Publications

Published: 2003

Total Pages: 44

ISBN-13:

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Two tradeoffs have been widely seen to severely constrain the scope for attacking poverty using redistributive transfers in poor countries: An equity-efficiency tradeoff and an insurance-efficiency tradeoff. Ravallion provides a critical overview of recent theoretical and empirical work that has called into question the extent of these tradeoffs in poor countries. He argues that these aggregate tradeoffs are often exaggerated. Indeed, they may not even be binding constraints in practice, given market failures. There appears to be scope for using carefully designed transfer schemes as an effective tool against both transient and chronic poverty. However, the same factors that weaken the tradeoffs also suggest that efficient redistributive policies might look rather different to the programs often found in practice. This paper - a product of the Poverty Team, Development Research Group - is part of a larger effort in the group to better understand the tradeoffs faced in development policymaking.

Conditional Cash Transfers

Conditional Cash Transfers PDF

Author: Ariel Fiszbein

Publisher: World Bank Publications

Published: 2009-02-09

Total Pages: 346

ISBN-13: 9780821373538

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Conditional Cash Transfer (CCT) programs aim to reduce poverty by making welfare programs conditional upon the receivers' actions. That is, the government only transfers the money to persons who meet certain criteria. These criteria may include enrolling children into public schools, getting regular check-ups at the doctor's office, receiving vaccinations, or the like. They have been hailed as a way of reducing inequality and helping households break out of a vicious cycle whereby poverty is transmitted from one generation to another. Do these and other claims make sense? Are they supported by the available empirical evidence? This volume seeks to answer these and other related questions. Specifically, it lays out a conceptual framework for thinking about the economic rationale for CCTs; it reviews the very rich evidence that has accumulated on CCTs; it discusses how the conceptual framework and the evidence on impacts should inform the design of CCT programs in practice; and it discusses how CCTs fit in the context of broader social policies. The authors show that there is considerable evidence that CCTs have improved the lives of poor people and argue that conditional cash transfers have been an effective way of redistributing income to the poor. They also recognize that even the best-designed and managed CCT cannot fulfill all of the needs of a comprehensive social protection system. They therefore need to be complemented with other interventions, such as workfare or employment programs, and social pensions.

Designing Fiscal Redistribution: The Role of Universal and Targeted Transfers

Designing Fiscal Redistribution: The Role of Universal and Targeted Transfers PDF

Author: Mr.David Coady

Publisher: International Monetary Fund

Published: 2020-06-26

Total Pages: 27

ISBN-13: 1513547046

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There is a growing debate on the relative merits of universal and targeted social assistance transfers in achieving income redistribution objectives. While the benefits of targeting are clear, i.e., a larger poverty impact for a given transfer budget or lower fiscal cost for a given poverty impact, in practice targeting also comes with various costs, including incentive, administrative, social and political costs. The appropriate balance between targeted and universal transfers will therefore depend on how countries decide to trade-off these costs and benefits as well as on the potential for redistribution through taxes. This paper discusses the trade-offs that arise in different country contexts and the potential for strengthening fiscal redistribution in advanced and developing countries, including through expanding transfer coverage and progressive tax financing.

Efficient Allocation of Transfers to the Poor

Efficient Allocation of Transfers to the Poor PDF

Author: Paul Glewwe

Publisher:

Published: 1990

Total Pages: 78

ISBN-13:

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This paper examines the problem of how to transfer money or other forms of assistance to poor households when one observes some characteristics of households, but not their incomes. This and related issues are often referred to as the targeting problem. The paper first sets out the problem formally as one of minimizing a poverty index given a fixed amount of money available for transfers. Assuming that household survey data are available which include accurate income and/or expenditure information, the solution for the problem is formulated as a non-linear mathematical programming exercise. Using household survey data from Cote d'Ivoire, the technique is applied to both urban and rural areas separately. The paper concludes with a general discussion and suggestions for future research.

For Protection and Promotion

For Protection and Promotion PDF

Author: Margaret Grosh

Publisher: World Bank Publications

Published: 2008-08-25

Total Pages: 612

ISBN-13: 9780821375822

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Safety nets are noncontributory transfer programs targeted to the poor or vulnerable. They play important roles in social policy. Safety nets redistribute income, thereby immediately reducing poverty and inequality; they enable households to invest in the human capital of their children and in the livelihoods of their earners; they help households manage risk, both ex ante and ex post; and they allow governments to implement macroeconomic or sectoral reforms that support efficiency and growth. To be effective, safety nets must not only be well intended, but also well designed and well implemented. A good safety net system and its programs are tailored to country circumstances, adequate in their coverage and generosity, equitable, cost-effective, incentive compatible, and sustainable. Good safety nets are also dynamic and change over time as the economy changes or as management problems are solved and new standards are set. Drawing on a wealth of research, policy, and operational documents from both academia and the World Bank s work in over 100 countries, For Protection and Promotion provides pragmatic and informed guidance on how to design and implement safety nets, including useful information on how to define eligibility and select beneficiaries, set and pay benefits, and monitor and evaluate programs and systems. The book synthesizes the literature to date and enriches it with new examples on various program options cash transfers (conditional and unconditional), in-kind transfers, price subsidies, fee waivers, and public works. It concludes with a comprehensive diagnostic for fitting safety net systems and programs to specific circumstances.

Targeting Social Transfers to the Poor in Mexico

Targeting Social Transfers to the Poor in Mexico PDF

Author: Mr.David Coady

Publisher: INTERNATIONAL MONETARY FUND

Published: 2009-03-01

Total Pages: 0

ISBN-13: 9781451872071

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Mexico’s main social support program, Oportunidades, combines two methods to target cash to poor households: an initial self-selection by households who acquire knowledge about the program and apply for benefits, followed by an administrative determination of eligibility based on a means test. Self-selection improves targeting by excluding high-income households, while administrative targeting does so mainly by excluding middle-income households. The two methods are complementary: expanding program knowledge across households substantially increases applications from non-poor households, thus reinforcing the importance of administrative targeting. The paper shows that targeting can be further improved through redesigning the means test and differentiating transfers according to demographic characteristics.

The Cash Dividend

The Cash Dividend PDF

Author: Marito Garcia

Publisher: World Bank Publications

Published: 2012-02-21

Total Pages: 441

ISBN-13: 0821388983

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This book provides in-depth descriptions and analysis of how cash transfer programs have evolved and been used in Sub-Saharan Africa since 2000. The analysis focuses on program features and implementation, but it also highlights political economy issues and current knowledge gaps.