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Can Proxy Means Testing Improve the Targeting Performance of Social Safety Nets in Bangladesh?

Author

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  • IFFATH A. SHARIF

    (Senior Economist, South Asia Social Protection Unit, The World Bank)

Abstract

This paper develops and discusses a Proxy Means Test (PMT) based household targeting system for Bangladesh. The PMT model derived from household survey data includes observable and verifiable characteristics on (i) household demographics and characteristics of household head; (ii) ownership of assets; (iii) housing quality, and access to facilities and remittances; and (iv) location variables in a formal algorithm to proxy household welfare. Simulations of the model suggest that the proposed PMT formula is able to improve the targeting efficiency by a considerable amount when compared with existing targeted safety net programmes. However, numerous implementation challenges remain which include but are not limited to a cost-efficient data collection process, effective management of information and a feasible and cost-efficient monitoring and verification system to minimise fraud and leakage.

Suggested Citation

  • Iffath A. Sharif, 2012. "Can Proxy Means Testing Improve the Targeting Performance of Social Safety Nets in Bangladesh?," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(2), pages 1-43.
    • Handle: RePEc:ris:badest:0535
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    References listed on IDEAS

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    1. Castaneda, Tarsicio & Lindert, Kathy & de la Briere, Benedicte & Fernandez, Luisa & Hubert, Celia & Larranaya, Oswaldo & Orozco, Monica & Viquez, Roxana, 2005. "Designing and implementing household targeting systems : lessons from Latin American and The United States," Social Protection Discussion Papers and Notes 32756, The World Bank.
    2. Siddiqui, Tasneem. & Abrar, Chowdhury R., 2003. "Migrant worker remittances and microfinance in Bangladesh," ILO Working Papers 993632983402676, International Labour Organization.
    3. Glewwe, Paul & Kanaan, Oussama, 1989. "Targeting assistance to the poor using household survey data," Policy Research Working Paper Series 225, The World Bank.
    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.
    5. repec:ilo:ilowps:363298 is not listed on IDEAS
    6. Grosh, M.E. & Baker, J.L., 1995. "Proxy Means Tests for Targetting Social Programs. Simulations and Speculation," Papers 118, World Bank - Living Standards Measurement.
    7. Glewwe, P. & Kanaan, O., 1989. "Targeting Assistance to the Poor: A Multivariate Approach Using Household Survey Data," Papers 94, Warwick - Development Economics Research Centre.
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    Cited by:

    1. Md. Masud‐All‐Kamal & Choyon Kumar Saha, 2014. "Targeting Social Policy and Poverty Reduction: The Case of Social Safety Nets in Bangladesh," Poverty & Public Policy, John Wiley & Sons, vol. 6(2), pages 195-211, June.

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    More about this item

    Keywords

    Targeting; Proxy Means Test; Safety Nets; Bangladesh;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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