Can Mistargeting Destroy Social Capital and Stimulate Crime? Evidence from a Cash Transfer Program in Indonesia
Cash transfer programs can provide important financial support for poor households in developing countries and are becoming increasingly common. However the potential for mistargeting of program funds is high. This paper focuses on the social consequences arising from misallocation of resources in close knit communities. We find that the mistargeting of a cash transfer program in Indonesia is significantly associated with increases in crime and declines in social capital within communities. Hence poorly administered transfer programs have a potentially large negative downside that extends beyond the pure financial costs that have been the focus of the literature to date.
|Date of creation:||Jul 2012|
|Date of revision:|
|Publication status:||published in: Economic Development and Cultural Change, 2014, 62 (2), 381-415|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Demombynes, Gabriel & Ozler, Berk, 2005.
"Crime and local inequality in South Africa,"
Journal of Development Economics,
Elsevier, vol. 76(2), pages 265-292, April.
- Muliadi Widjaja, 2013. "An Economic and Social Review on Indonesiaâ€™s Direct Cash Transfer Program to Poor Families in 2005," Working Papers in Economics and Business 201304, Faculty of Economics and Business, University of Indonesia, revised Apr 2013.
- John Gibson & Bonggeun Kim, 2006. "Measurement Error and the Effect of Inequality on Experienced versus Reported Crime," Working Papers in Economics 06/05, University of Waikato, Department of Economics.
- World Bank, 2006. "Making the New Indonesia Work for the Poor," World Bank Other Operational Studies 8172, The World Bank.
- Eckel, Catherine C & Grossman, Philip J, 1998. "Are Women Less Selfish Than Men? Evidence from Dictator Experiments," Economic Journal, Royal Economic Society, vol. 108(448), pages 726-35, May.
- Hastuti & Sudarno Sumarto & Nina Toyamah & Syaikhu Usman & Bambang Sulaksono & Sri Budiyati & Wenefrida Dwi Widyanti & Meuthia Rosfadhila & Hariyanti Sadaly & Sufiet Erlita & R. Justin Sodo & Sami Baz, 2006. "A Rapid Appraisal of The Implementation of the 2005 Direct Cash Transfer Program in Indonesia : A Case Study in Five Kabupaten/Kota," Development Economics Working Papers 22529, East Asian Bureau of Economic Research.
- Mary Kay Gugerty & Michael Kremer, 2000. "Outside Funding of Community Organizations: Benefiting or Displacing the Poor?," NBER Working Papers 7896, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6736. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.