Targetting Effectiveness of Social Transfer Programs in Botswana:Means-tested versus Categorical and Self-selected instruments

Botswana has an extensive social protection system aimed at improving the welfare of poor and vulnerable groups. We evaluate the targeting effectiveness of 15 social transfer programs using targeting performance indicators and Benefit Incidence Analysis (BIA), and the 2015/16 Botswana Multi-Topic Household Survey data. Results on targeting performance indicators reveal that, except for one, programs have low coverage (high under-coverage) and low targeting effectiveness of the poor; hence, high leakages to the non-poor. BIA results indicate that most social assistance and asset transfer programs, and a public works program are progressive and pro-poor. However, while programs aimed at building human capital through financing tertiary education are also progressive, they are not pro-poor, suggesting inequality in access to higher education. Since education is one of the pathways out of poverty, this may contribute to intergenerational transmission of poverty. Further, means-tested programs do not necessarily target the poor better than programs employing categorical and self-selected targeting mechanisms. This may partly be because eligibility criteria may not be strictly enforced during selection of beneficiaries for major means-tested programs, such as the Destitute Persons Program. Therefore, reforms are required to improve the targeting effectiveness of the programs and to minimize leakages to the non-poor.