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The political economy of targeted safety nets

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  • Pritchett, Lant

Abstract

This paper is the written version of a lecture that draws principally on research on safety nets and operational experience with the implementation of safety nets, drawing heavily on the crisis of safety net programs in Indonesia from 1998 to 2000. As such it provides more views than reviews of the literature on the principal issues in the political economy of targeted safety net programs. The text is followed by a Q&A that clarifies views put perhaps too starkly in the text. Five major issues are reviewed. First, the implications of some simple models of electoral politics which make the budget allocated to programs endogenous to their targeting design highlight the dangers in ignoring political economy. Second, the political economy of safety net versus safety rope programs is reviewed. Third, some of the literature on the perception of fairness of the targeting criteria is reviewed. Fourth, the issue of local versus central targeting of programs is discussed. Fifth, the political economy of program implementation that considers the fit between program targeting and the organizational culture of the implementing organization is considered.

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Bibliographic Info

Paper provided by The World Bank in its series Social Protection Discussion Papers with number 31498.

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Date of creation: 01 Jan 2005
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Handle: RePEc:wbk:hdnspu:31498

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Related research

Keywords: Safety Nets and Transfers; Services&Transfers to Poor; Rural Poverty Reduction; Poverty Impact Evaluation; Poverty Monitoring&Analysis;

References

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  1. van de Walle, Dominique, 1994. "The Distribution of Subsidies through Public Health Services in Indonesia, 1978-87," World Bank Economic Review, World Bank Group, World Bank Group, vol. 8(2), pages 279-309, May.
  2. Philippe De Donder & Jean Hindriks, 1998. "The political economy of targeting," Public Choice, Springer, Springer, vol. 95(1), pages 177-200, April.
  3. Chris Manning, 2000. "Labour Market Adjustment to Indonesia's Economic Crisis: Context, Trends and Implications," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(1), pages 105-136.
  4. Becker, Gary S & Mulligan, Casey B, 2003. "Deadweight Costs and the Size of Government," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 46(2), pages 293-340, October.
  5. David Coady & Margaret Grosh & John Hoddinott, 2004. "Targeting of Transfers in Developing Countries : Review of Lessons and Experience," World Bank Publications, The World Bank, number 14902, August.
  6. Milanovic Branko, 1994. "Cash Social Transfers, Direct Taxes, and Income Distribution in Late Socialism," Journal of Comparative Economics, Elsevier, vol. 18(2), pages 175-197, April.
  7. Pritchett, Lant & Suryahadi, Asep & Sumarto, Sudarno & Suharso, Yusuf, 2000. "The evolution of poverty during the crisis in Indonesia, 1996-99," Policy Research Working Paper Series, The World Bank 2435, The World Bank.
  8. Galasso, Emanuela & Ravallion, Martin, 2000. "Distributional outcomes of a decentralized welfare program," Policy Research Working Paper Series, The World Bank 2316, The World Bank.
  9. Elizabeth Frankenberg & Duncan Thomas & Kathleen Beegle, 1999. "The Real Costs of Indonesian Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Working Papers, RAND Corporation Publications Department 99-04, RAND Corporation Publications Department.
  10. Sheshinski, E. & Diamond, P., 1992. "Economic Aspects of Optimal Disability Benefits," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 92-5, Massachusetts Institute of Technology (MIT), Department of Economics.
  11. Sumarto, Sudarno & Suryahadi, Asep & Pritchett, Lant, 2000. "Safety nets and safety ropes - who benefited from two Indonesian crisis programs - the"poor"or the"shocked"?," Policy Research Working Paper Series, The World Bank 2436, The World Bank.
  12. Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 21(1), pages 19-30, January.
  13. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(6), pages 1-24.
  14. Alderman, Harold & von Braun, Joachim, 1984. "The effects of the Egyptian food ration and subsidy system on income distribution and consumption:," Research reports, International Food Policy Research Institute (IFPRI) 45, International Food Policy Research Institute (IFPRI).
  15. Cameron, Lisa A., 2002. "Did social safety net scholarships reduce drop-out rates during the Indonesian economic crisis?," Policy Research Working Paper Series, The World Bank 2800, The World Bank.
  16. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 95(3), pages 508-46, June.
  17. Cox, Donald C & Jimenez, Emmanuel, 1992. "Social Security and Private Transfers in Developing Countries: The Case of Peru," World Bank Economic Review, World Bank Group, World Bank Group, vol. 6(1), pages 155-69, January.
  18. Ferreira, Francisco & Prennushi, Giovanna & Ravallion, Martin, 1999. "Protecting the poor from macroeconomic shocks," Policy Research Working Paper Series, The World Bank 2160, The World Bank.
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Cited by:
  1. World Bank, 2013. "From Universal Price Subsidies to Modern Social Assistance : The Political Economy of Reform," World Bank Other Operational Studies 16723, The World Bank.
  2. Krishna, Anirudh, 2007. "For Reducing Poverty Faster: Target Reasons Before People," World Development, Elsevier, Elsevier, vol. 35(11), pages 1947-1960, November.

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