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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tool, is used to raise broader questions for international social policies which are designed on increasingly outdated notions of 'households' and of 'work'.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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    References listed on IDEAS

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    Citations

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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. 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.
    4. Francie LUND, 2010. "Hierarchies of care work in South Africa: Nurses, social workers and home-based care workers," International Labour Review, International Labour Organization, vol. 149(4), pages 495-509, December.
    5. Priscilla Gutura, 2014. "Boosting Their Stomachs’: The Role of Social Grants in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 6(2), pages 105-119.
    6. 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.
    7. Sophie PLAGERSON & Senzelwe MTHEMBU & Thandi SIMELANE & Khuliso MATIDZA & Anita MWANDA, 2023. "The local economic development effects of income transfers in South Africa. The Social Relief of Distress grant," Working Paper 32d74b80-0ef5-416c-aa00-d, Agence française de développement.
    8. Emma Aguila & Mariana López-Ortega & Luis Miguel Gutiérrez Robledo, 2018. "Non-contributory pension programs and frailty of older adults: Evidence from Mexico," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-19, November.
    9. Dongling Zhang & Yanyan Wang & Yuxin Jiao, 2022. "The Impact of Social Pension Schemes on the Mental Health of the Chinese Elderly: A Mediating Effect Perspective of Two-Way Intergenerational Support," IJERPH, MDPI, vol. 19(14), pages 1-18, July.
    10. Chloe Allison & Neryvia Pillay, 2024. "Cash transfers and prices what is the impact of social welfare on prices," Working Papers 11057, South African Reserve Bank.
    11. Waidler, Jennifer, 2016. "On the fungibility of public and private transfers: A mental accounting approach," MERIT Working Papers 2016-060, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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