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Community-based Targeting and Initial Local Conditions: Evidence from Indonesia’s IDT Program

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  • Chikako Yamauchi

Abstract

Community-based selection of social program recipients has the potential to benefit from local knowledge about individuals in need. This informational advantage however might be offset by local elite capture and administrative incompetency. Using Indonesia's anti-poverty program, this paper investigates which pre-program conditions are associated with community-based targeting outcomes. Results show that wealthier and more unequal villages constantly target better. This suggests that, though there is much concern about local capture in communities with large inequality, the ease of identifying the poor could overwhelm the possibly larger political influence of local elites. Also, villages headed by young, educated persons initially exhibit better targeting, but lose this advantage over time, as the monitoring of loan disbursement becomes more difficult for village heads. I explore Indonesia's political context, which provides insight into these findings.

Suggested Citation

  • Chikako Yamauchi, 2008. "Community-based Targeting and Initial Local Conditions: Evidence from Indonesia’s IDT Program," CEPR Discussion Papers 584, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  • Handle: RePEc:auu:dpaper:584
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    File URL: https://www.cbe.anu.edu.au/researchpapers/cepr/DP584.pdf
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    References listed on IDEAS

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    Cited by:

    1. Giles, John & Satriawan, Elan, 2015. "Protecting child nutritional status in the aftermath of a financial crisis: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 114(C), pages 97-106.
    2. Suryadarma, Daniel & Yamauchi, Chikako, 2013. "Missing public funds and targeting performance: Evidence from an anti-poverty transfer program in Indonesia," Journal of Development Economics, Elsevier, vol. 103(C), pages 62-76.
    3. González-Flores, Mario & Heracleous, Maria & Winters, Paul, 2012. "Leaving the Safety Net: An Analysis of Dropouts in an Urban Conditional Cash Transfer Program," World Development, Elsevier, vol. 40(12), pages 2505-2521.
    4. Schüring, Esther, 2014. "Preferences for Community-based Targeting - Field Experimental Evidence from Zambia," World Development, Elsevier, vol. 54(C), pages 360-373.

    More about this item

    Keywords

    targeting; community; inequality; IDT; Indonesia;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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