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Community-based Targeting and Initial Local Conditions: Evidence from Indonesia’s IDT Program

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Author Info
Chikako Yamauchi

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Abstract

Community-based selection of social program recipients has the potential to benefit from local knowledge about individuals in need. This informational advantage however might be offset by local elite capture and administrative incompetency. Using Indonesia's anti-poverty program, this paper investigates which pre-program conditions are associated with community-based targeting outcomes. Results show that wealthier and more unequal villages constantly target better. This suggests that, though there is much concern about local capture in communities with large inequality, the ease of identifying the poor could overwhelm the possibly larger political influence of local elites. Also, villages headed by young, educated persons initially exhibit better targeting, but lose this advantage over time, as the monitoring of loan disbursement becomes more difficult for village heads. I explore Indonesia's political context, which provides insight into these findings.

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Paper provided by Centre for Economic Policy Research, Research School of Social Sciences, Australian National University in its series CEPR Discussion Papers with number 584.

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Date of creation: Aug 2008
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Handle: RePEc:auu:dpaper:584

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Web page: http://econrsss.anu.edu.au/
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Related research
Keywords: targeting; community; inequality; IDT; Indonesia;

Find related papers by JEL classification:
D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Health, Education, and Welfare
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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  1. Chikako Yamauchi, 2008. "Heterogeneity in the Returns to Investment in Poor Villages," CEPR Discussion Papers 582, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
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    Other versions:
  5. Bigman, David, et al, 2000. "Community Targeting for Poverty Reduction in Burkina Faso," World Bank Economic Review, Oxford University Press, vol. 14(1), pages 167-93, January.
  6. Parry, Taryn Rounds, 1997. "Achieving balance in decentralization: A case study of education decentralization in Chile," World Development, Elsevier, vol. 25(2), pages 211-225, February. [Downloadable!] (restricted)
  7. Ravallion, Martin, 2000. "Monitoring Targeting Performance When Decentralized Allocations to the Poor Are Unobserved," World Bank Economic Review, Oxford University Press, vol. 14(2), pages 331-45, May. [Downloadable!]
  8. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October. [Downloadable!] (restricted)
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  15. Conning, Jonathan & Kevane, Michael, 2002. "Community-Based Targeting Mechanisms for Social Safety Nets: A Critical Review," World Development, Elsevier, vol. 30(3), pages 375-394, March. [Downloadable!] (restricted)
  16. David Bigman & Stefan Dercon & Dominique Guillaume & Michel Lambotte, 1999. "Community Targeting for Poverty Reduction in Burkina Faso," Center for Economic Studies - Discussion papers ces9910, Katholieke Universiteit Leuven, Centrum voor Economische Studiën. [Downloadable!]
  17. Mansuri, Ghazala & Rao, Vijayendra, 2004. "Community-based (and driven) development : A critical review," Policy Research Working Paper Series 3209, The World Bank. [Downloadable!]
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  18. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April. [Downloadable!] (restricted)
  19. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank. [Downloadable!]
  20. Jayne, T. S. & Strauss, John & Yamano, Takashi & Molla, Daniel, 2001. "Giving to the Poor? Targeting of Food Aid in Rural Ethiopia," World Development, Elsevier, vol. 29(5), pages 887-910, May. [Downloadable!] (restricted)
  21. Schady, Norbert R, 2002. "Picking the Poor: Indicators for Geographic Targeting in Peru," Review of Income and Wealth, Blackwell Publishing, vol. 48(3), pages 417-33, September. [Downloadable!] (restricted)
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  22. Hans Antlo¨v, 2003. "Village Government And Rural Development In Indonesia: The New Democratic Framework," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 39(2), pages 193-214, January. [Downloadable!] (restricted)
  23. Jayne, Thomas S. & Strauss, John & Yamano, Takashi & Molla, Daniel, 2002. "Targeting of food aid in rural Ethiopia: chronic need or inertia?," Journal of Development Economics, Elsevier, vol. 68(2), pages 247-288, August. [Downloadable!] (restricted)
    Other versions:
  24. David Coady, 2004. "Targeting Outcomes Redux," World Bank Research Observer, Oxford University Press, vol. 19(1), pages 61-85.
  25. Faguet, Jean-Paul, 2004. "Does decentralization increase government responsiveness to local needs?: Evidence from Bolivia," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 867-893, March. [Downloadable!] (restricted)
  26. Elbers, Chris & Fujii, Tomoki & Lanjouw, Peter & Ozler, Berk & Yin, Wesley, 2007. "Poverty alleviation through geographic targeting: How much does disaggregation help?," Journal of Development Economics, Elsevier, vol. 83(1), pages 198-213, May. [Downloadable!] (restricted)
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  27. Coady, David P. & Grosh, Margaret & Hoddinott, John, 2002. "Targeting outcomes redux," FCND discussion papers 144, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  28. Alderman, Harold, 2002. "Do local officials know something we don't? Decentralization of targeted transfers in Albania," Journal of Public Economics, Elsevier, vol. 83(3), pages 375-404, March. [Downloadable!] (restricted)
  29. David Coady, 2006. "The Welfare Returns to Finer Targeting: The Case of The Progresa Program in Mexico," International Tax and Public Finance, Springer, vol. 13(2), pages 217-239, May. [Downloadable!] (restricted)
  30. David Coady & Emmanuel Skoufias, 2004. "On the Targeting and Redistributive Efficiencies of Alternative Transfer Instruments," Review of Income and Wealth, Blackwell Publishing, vol. 50(1), pages 11-27, 03. [Downloadable!] (restricted)
  31. Pranab K. Bardhan & Dilip Mookherjee, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May. [Downloadable!] (restricted)
  32. Lanjouw, Peter & Ravallion, Martin, 1999. "Benefit Incidence, Public Spending Reforms, and the Timing of Program Capture," World Bank Economic Review, Oxford University Press, vol. 13(2), pages 257-73, May.
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  34. Anne Daly & George Fane, 2002. "Anti-Poverty Programs in Indonesia," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 38(3), pages 309-329, December. [Downloadable!] (restricted)
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