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Who is protected from budget cuts?

  • Martin Ravallion

Standard policy advice at times of fiscal adjustment is to protect public spending on the poor. However, the political economy of fiscal adjustment could well indicate the opposite direction, to protect the non-poor from adjustment. This point is illustrated by three case studies based on research on social programs in Argentina, Bangladesh, and India, focusing on how targeting performance varied with aggregate outlays. The results suggest a tendency for program spending on the non-poor that is protected from budget cuts.

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Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 7 (2004)
Issue (Month): 2 ()
Pages: 109-122

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Handle: RePEc:taf:jpolrf:v:7:y:2004:i:2:p:109-122
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  1. Lanjouw, Peter & Ravallion, Martin, 1998. "Benefit incidence and the timing of program capture," Policy Research Working Paper Series 1956, The World Bank.
  2. Raymond Vreeland, James, 2002. "The Effect of IMF Programs on Labor," World Development, Elsevier, vol. 30(1), pages 121-139, January.
  3. 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, vol. 21(1), pages 19-30, January.
  4. Dilip Mookherjee & Pranab K. Bardhan, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May.
  5. Bidani, Benu & Ravallion, Martin, 1995. "Decomposing social indicators using distributional data," Policy Research Working Paper Series 1487, The World Bank.
  6. Philippe De Donder & Jean Hindriks, 1998. "The political economy of targeting," Public Choice, Springer, vol. 95(1), pages 177-200, April.
  7. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
  8. Ravallion, Martin & Wodon, Quentin, 2000. "Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy," Economic Journal, Royal Economic Society, vol. 110(462), pages C158-75, March.
  9. Lanjouw, Peter & Pradhan, Menno & Saadah, Fadia & Sayed, Haneen & Sparrow, Robert, 2001. "Poverty, education, and health in Indonesia : who benefits from public spending?," Policy Research Working Paper Series 2739, The World Bank.
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