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Subsidies as a social safety net: effectiveness and challenges

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  • Alderman, Harold

Abstract

This paper will consider a range of consumer-oriented subsidy instruments, including general subsidies, and tax exemptions as well as targeted quotas. Section II discusses the distribution, or incidence of the subsidy expenditures for all these instruments. It focuses primarily on food as the means by which the subsidy is delivered, although the section concludes with a brief comparison of food subsidies with energy subsidies. The following section asks whether food subsidies actually achieve the nutritional, and stabilization goals that they are often claimed to achieve. Some of the administrative concerns about market interventions that policymakers must consider, are discussed in Section IV. These administrative concerns, as well as their effects on beneficiaries, point to possibilities for program reform, which are discussed in the final section.

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Bibliographic Info

Paper provided by The World Bank in its series Social Protection Discussion Papers with number 25299.

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Date of creation: 30 Sep 2002
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Handle: RePEc:wbk:hdnspu:25299

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Keywords: Economic Theory&Research; Environmental Economics&Policies; Health Economics&Finance; Services&Transfers to Poor; Safety Nets and Transfers;

References

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  1. Richard Adams, 1998. "The political economy of the food subsidy system in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 35(1), pages 66-88.
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Cited by:
  1. Khaleque, Khaleque & Suborna, Bubarna & Baqui, Baqui, 2008. "Impact of Social Safety Net Programs In Seasonal Deprivation," MPRA Paper 22045, University Library of Munich, Germany.
  2. Sami Bibi & Jean-Yves Duclos, 2007. "Poverty-decreasing indirect tax reforms: Evidence from Tunisia," International Tax and Public Finance, Springer, Springer, vol. 14(2), pages 165-190, April.
  3. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers, International Food Policy Research Institute (IFPRI) 172, International Food Policy Research Institute (IFPRI).
  4. Brown, Lynn & Gentilini, Ugo, 2006. "On the Edge: The Role of Food-based Safety Nets in Helping Vulnerable Households Manage Food Insecurity," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2006/111, World Institute for Development Economic Research (UNU-WIDER).
  5. Janet Currie & Firouz Gahvari, 2007. "Transfers in Cash and In Kind: Theory Meets the Data," NBER Working Papers 13557, National Bureau of Economic Research, Inc.
  6. Khaldi, Raoudha & Dhraief, Mohamed Zied & Haddad, Samia & Rached, Zouhair & Padilla, Martine, 2007. "Impact of the food safety policies on the reduction of poverty in Tunisian rural areas," 106th Seminar, October 25-27, 2007, Montpellier, France, European Association of Agricultural Economists 7928, European Association of Agricultural Economists.
  7. Angel-Urdinola, Diego & Wodon, Quentin, 2008. "Assessing the Targeting Performance of Social Programs: Cape Verde," MPRA Paper 11072, University Library of Munich, Germany.
  8. Blanca Moreno-Dodson & Quentin Wodon, 2008. "Public Finance for Poverty Reduction : Concepts and Case Studies from Africa and Latin America," World Bank Publications, The World Bank, number 6881, August.
  9. World Bank, 2006. "Repositioning Nutrition as Central to Development : A Strategy for Large Scale Action," World Bank Publications, The World Bank, number 7409, August.

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