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Anti-Poverty Transfers without Riots in Tunisia

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Author Info
Christophe Muller

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Abstract

We draw some lessons from the Tunisian experience of social reforms and associated civil conflict. Our main interest is the riots that occurred after subsidy cuts and their possible substitution of price subsidies by direct cash transfers. We propose new welfare indicators apt to assess policy reforms in situations of fragile states. Finally, using micro level data we show that the plausible policy decision 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 the in force price subsidies with direct cash transfers, for fear of social unrest.

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Paper provided by University of Nottingham, CREDIT in its series Discussion Papers with number 07/06.

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Handle: RePEc:not:notcre:07/06

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Keywords: Poverty Social conflicts Tunisia Targeting Social transfers.

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  1. Muller, Christophe, 2002. "Prices and living standards: evidence for Rwanda," Journal of Development Economics, Elsevier, vol. 68(1), pages 187-203, June. [Downloadable!] (restricted)
  2. Park, Albert & Wang, Sangui & Wu, Guobao, 2002. "Regional poverty targeting in China," Journal of Public Economics, Elsevier, vol. 86(1), pages 123-153, October. [Downloadable!] (restricted)
  3. Bourguignon, F. & Fields, G., 1995. "Discontinuous Losses from Poverty, Generalized P& Measures and Optimal Transfers to the Poor," DELTA Working Papers 95-06, DELTA (Ecole normale supérieure).
  4. Ahmed, Akhter U. & Bouis, Howarth E., 2002. "Weighing what's practical: proxy means tests for targeting food subsidies in Egypt," Food Policy, Elsevier, vol. 27(5-6), pages 519-540. [Downloadable!] (restricted)
  5. Bourguignon, F. & Fields, G.S., 1990. "Poverty Measures and Anti-Poverty Policy," DELTA Working Papers 90-04, DELTA (Ecole normale supérieure).
  6. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-21, May. [Downloadable!] (restricted)
  7. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-19, September. [Downloadable!] (restricted)
  8. Bigman, David & Fofack, Hippolyte, 2000. "Geographical Targeting for Poverty Alleviation: An Introduction to the Special Issue," World Bank Economic Review, Oxford University Press, vol. 14(1), pages 129-45, January.
  9. Gutner, Tamar, 2002. "The political economy of food subsidy reform: the case of Egypt," Food Policy, Elsevier, vol. 27(5-6), pages 455-476. [Downloadable!] (restricted)
  10. Bigman, David & Srinivasan, P. V., 2002. "Geographical targeting of poverty alleviation programs: methodology and applications in rural India," Journal of Policy Modeling, Elsevier, vol. 24(3), pages 237-255, June. [Downloadable!] (restricted)
  11. van de Walle, Dominique, 1998. "Assessing the welfare impacts of public spending," World Development, Elsevier, vol. 26(3), pages 365-379, March. [Downloadable!] (restricted)
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  12. De Donder, Philippe & Hindriks, Jean, 1998. " The Political Economy of Targeting," Public Choice, Springer, vol. 95(1-2), pages 177-200, April. [Downloadable!] (restricted)
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  13. Creedy, John, 1996. "Comparing Tax and Transfer Systems: Poverty, Inequality and Target Efficiency," Economica, London School of Economics and Political Science, vol. 63(250), pages S163-74, Suppl.. [Downloadable!] (restricted)
  14. Giovanni Andrea Cornia & Frances Stewart, 1993. "Two Errors of Targeting," Innocenti Occasional Papers, Economic Policy Series iopeps93/54, UNICEF Innocenti Research Centre. [Downloadable!]
  15. Alderman, Harold & Lindert, Kathy, 1998. "The Potential and Limitations of Self-Targeted Food Subsidies," World Bank Research Observer, Oxford University Press, vol. 13(2), pages 213-29, August. [Downloadable!]
  16. 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)
  17. 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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  18. Bibi, Sami & Duclos, Jean-Yves, 2007. "Equity and policy effectiveness with imperfect targeting," Journal of Development Economics, Elsevier, vol. 83(1), pages 109-140, May. [Downloadable!] (restricted)
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  19. David Coady, 2004. "Targeting Outcomes Redux," World Bank Research Observer, Oxford University Press, vol. 19(1), pages 61-85.
  20. Baker, Judy L. & Grosh, Margaret E., 1994. "Poverty reduction through geographic targeting: How well does it work?," World Development, Elsevier, vol. 22(7), pages 983-995, July. [Downloadable!] (restricted)
  21. Emmanuel Skoufias & David P. Coady, 2007. "Are the Welfare Losses from Imperfect Targeting Important?," Economica, London School of Economics and Political Science, vol. 74(296), pages 756-776, November. [Downloadable!] (restricted)
  22. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
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