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Anti-Poverty Transfers without Riots in Tunisia

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Abstract

We draw some lessons from the Tunisian experience of social reforms and associated unrest. Our main interest is the riots that occurred after subsidy cuts and the attempts at substitution of price subsidies by direct cash transfers. We propose new welfare indicators to assess reforms in such situations. Using micro level data, we show that plausible policy decisions depend on parameters describing the balance between poverty and program exclusion risk. In the Tunisian case, only a much larger weight put on poverty relatively to exclusion could bring the decision maker to substitute in force price subsidies with direct cash transfers.

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Bibliographic Info

Paper provided by Institut d'economie publique (IDEP), Marseille, France in its series IDEP Working Papers with number 0801.

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Length: 27 pages
Date of creation: Mar 2008
Date of revision: Mar 2008
Handle: RePEc:iep:wpidep:0801

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Keywords: Poverty; Social conflicts; North Africa; Tunisia; Targeting; Social transfers;

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Cited by:
  1. Mohammad Abu-Zaineh & Habiba Romdhane & Bruno Ventelou & Jean-Paul Moatti & Arfa Chokri, 2013. "Appraising financial protection in health: the case of Tunisia," International Journal of Health Care Finance and Economics, Springer, vol. 13(1), pages 73-93, March.

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