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'Crowding in' care, security and micro-enterprise formation: revisiting the role of the state in poverty reduction and in development

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  • Frances Lund

    (University of Natal, Durban, South Africa)

Abstract

A central issue for both economic and social policies aimed at addressing poverty is the appropriate role of the state, and the interaction between public and private measures of support. One tradition in economics has been concerned that public spending will 'crowd out' private savings and private pension provision. The substantial South African programme of state assistance to elderly people presents a unique opportunity to understand the impact of state intervention. The non-contributory old age pension raises household incomes, and 'crowds in' care of the elderly and of children, enhances household security, and stimulates the formation of very small businesses, as well as local markets. The positive performance of this programme, both in poverty reduction and as a development tool, is used to raise broader questions for international social policies which are designed on increasingly outdated notions of 'households' and of 'work'. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • Frances Lund, 2002. "'Crowding in' care, security and micro-enterprise formation: revisiting the role of the state in poverty reduction and in development," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(6), pages 681-694.
  • Handle: RePEc:wly:jintdv:v:14:y:2002:i:6:p:681-694
    DOI: 10.1002/jid.918
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    File URL: http://hdl.handle.net/10.1002/jid.918
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    References listed on IDEAS

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    1. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-1361, September.
    2. 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, vol. 6(1), pages 155-169, January.
    3. Cox, Donald & Jimenez, Emmanuel, 1990. "Achieving Social Objectives through Private Transfers: A Review," World Bank Research Observer, World Bank Group, vol. 5(2), pages 205-218, July.
    4. Frances Lund, 1999. "Understanding South African social security through recent household surveys: New opportunities and continuing gaps," Development Southern Africa, Taylor & Francis Journals, vol. 16(1), pages 55-67.
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    Cited by:

    1. Anne Case & Victoria Hosegood & Frances Lund, 2005. "The reach and impact of Child Support Grants: evidence from KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 22(4), pages 467-482.
    2. Anne Case & Victoria Hosegood & Frances Lund, 2003. "The Reach of The South African Child Support Grant: Evidence from KwaZulu-Natal," Working Papers 254, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
    3. Waidler, Jennifer, 2016. "On the fungibility of public and private transfers: A mental accounting approach," MERIT Working Papers 060, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Armando Barrientos & Jocelyn DeJong, 2006. "Reducing Child Poverty with Cash Transfers: A Sure Thing?," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 537-552, September.
    5. Lai, Mun Sim & Orsuwan, Meechai, 2009. "Examining the Impact of Taiwan's Cash Allowance Program on Private Households," World Development, Elsevier, vol. 37(7), pages 1250-1260, July.

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