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Public spending and poverty in Mozambique

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  • Heltberg, Rasmus
  • Simler, Kenneth
  • Tarp, Finn

Abstract

"Poverty reduction strategies often highlight public spending to improve health and education, focusing on investments in human capital among poorer members of society. In addition, debt relief programs such as the enhanced Highly Indebted Poor Countries (HIPC) initiative often require increased spending on health and education in return for debt cancellation. Mozambique's poverty reduction strategy is closely integrated with the government expenditure program, yet up to now little is known about the extent to which public spending is targeted toward the poor in Mozambique. This paper assesses whether public expenditures on education and health are successful at reaching the poorer segments of the Mozambican population. Standard nonbehavioral benefit-incidence methodology is applied, combining individual client information from survey data with provincial-level data on the cost of service provision. Most of the public services we are able to measure are moderately progressive, although some of the instruments we could not measure are probably less equally distributed. In Mozambique, it appears that regional and gender imbalances in health and education are more significant than income-based differences. Nevertheless, increased public expenditures on health and education such as that related to the HIPC initiative are likely to have significant poverty-reducing effects." Author's Abstract

Suggested Citation

  • Heltberg, Rasmus & Simler, Kenneth & Tarp, Finn, 2003. "Public spending and poverty in Mozambique," FCND discussion papers 167, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:167
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    Cited by:

    1. World Bank, 2004. "Skills Development in Mozambique : Issues and Options," World Bank Other Operational Studies 14366, The World Bank.
    2. Servaas van der Berg & Carlos da Maia & Cobus Burger, 2017. "Educational inequality in Mozambique," WIDER Working Paper Series 212, World Institute for Development Economic Research (UNU-WIDER).
    3. Uzochukwu Amakom, 2016. "Nigeria’s Government Spending on Basic Education and Healthcare in the Last Decade: What has Changed After Reforms?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1085-1102, July.
    4. Magnus Lindelow, 2004. "The Utilization of Curative Health Care in Mozambique: Does Income Matter?," Development and Comp Systems 0409057, University Library of Munich, Germany.
    5. World Bank Group, 2015. "Public Expenditure Review of the Education Sector in the Democratic Republic of Congo," World Bank Other Operational Studies 22932, The World Bank.
    6. Jindal, Rohit & Kerr, John M. & Carter, Sarah, 2012. "Reducing Poverty Through Carbon Forestry? Impacts of the N’hambita Community Carbon Project in Mozambique," World Development, Elsevier, vol. 40(10), pages 2123-2135.
    7. Gomanee, Karuna & Morrissey, Oliver & Mosley, Paul & Verschoor, Arjan, 2005. "Aid, Government Expenditure, and Aggregate Welfare," World Development, Elsevier, vol. 33(3), pages 355-370, March.
    8. Lindelow, Magnus, 2004. "Sometimes more equal than others : how health inequalities depend on the choice of welfare indicator," Policy Research Working Paper Series 3329, The World Bank.
    9. Magnus Lindelow, 2004. "Sometimes More Equal than Others How the choice of welfare indicator can affect the measurement of health inequalities and the incidence of public spending," Development and Comp Systems 0409018, University Library of Munich, Germany.
    10. Channing Arndt & Sam Jones & Finn Tarp, 2006. "Aid and Development: The Mozambican Case," Discussion Papers 06-13, University of Copenhagen. Department of Economics.
    11. Magnus Lindelow, 2006. "Sometimes more equal than others: how health inequalities depend on the choice of welfare indicator," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 263-279.
    12. Zahid Asghar & Mudassar Zahra, 2012. "A Benefit Incidence Analysisof Public Spending on Education in PakistanUsing PSLM Data," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 111-136, July-Dec.
    13. Stewart, Frances, 2006. "Policies towards Horizontal Inequalities in Post-Conflict Reconstruction," WIDER Working Paper Series 149, World Institute for Development Economic Research (UNU-WIDER).
    14. World Bank, 2008. "Mozambique - Beating the Odds : Sustaining Inclusion in a Growing Economy - A Mozambique Poverty, Gender, and Social Assessment, Volume 1. Main Report," World Bank Other Operational Studies 7981, The World Bank.
    15. Silva, Julie A. & Matyas, Corene J. & Cunguara, Benedito, 2014. "Regional Inequality and Polarization in the Context of Concurrent Extreme Weather and Economic Shocks," Food Security Collaborative Working Papers 186603, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    16. World Bank Group, 2015. "Governance and Finance Analysis of the Basic Education Sector in Nigeria," World Bank Other Operational Studies 23683, The World Bank.
    17. McKay, Andrew, 2002. "Assessing the Impact of Fiscal Policy on Poverty," WIDER Working Paper Series 043, World Institute for Development Economic Research (UNU-WIDER).
    18. Magnus Lindelow, 2003. "The Utilization of Curative Health Care in Mozambique: Does Income Matter?," Economics Series Working Papers WPS/2004-11, University of Oxford, Department of Economics.
    19. Magnus Lindelow, 2002. "Sometimes More Equal than Others How the choice of welfare indicator can affect the measurement of health inequalities and the incidence of public spending," Economics Series Working Papers WPS/2002-15, University of Oxford, Department of Economics.

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