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Poverty, Inequality and Social Protection in Myanmar

Author

Listed:
  • Miguel Niño-Zarazúa

    (UNU-WIDER)

  • Finn Tarp

    (University of Copenhagen)

Abstract

In 2014, prior to the political transition of 2015 towards democracy, the government published the Myanmar National Social Protection Strategic Plan with the aim of supporting socio-economic development, and strengthening the resilience of vulnerable people against shocks and life cycle contingencies. In this study, we take stock of the social protection system in place in Myanmar until the end of 2020, paying attention to the design features, and levels of institutionalisation of these programmes. We conduct a poverty and inequality decomposition analysis as well as a benefit-incidence analysis to examine the degree of progressivity or regressivity of these programmes. Overall, we find low coverage rates of welfare benefits, with negligible poverty reducing effects at the national level. The contribution of welfare benefits to reducing inequality is mixed, with social insurance having disequalising effects while social assistance programmes have a more equalizing contribution to the distribution of income. Further simulation analysis indicates that expanding coverage under poverty targeting approaches would produce larger welfare gains than universal approaches in the delivery of welfare benefits, irrespective of the design features of programmes.

Suggested Citation

  • Miguel Niño-Zarazúa & Finn Tarp, 2021. "Poverty, Inequality and Social Protection in Myanmar," DERG working paper series 21-11, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
  • Handle: RePEc:kud:kuderg:2111
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    File URL: https://www.econ.ku.dk/derg/wps/11-2021.pdf
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    References listed on IDEAS

    as
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    3. Abdelkrim Araar, 2006. "On the Decomposition of the Gini Coefficient: an Exact Approach, with an Illustration Using Cameroonian Data," Cahiers de recherche 0602, CIRPEE.
    4. Jean-Yves Duclos & Abdelkrim Araar, 2006. "Poverty and Equity," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-33318-2, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    social protection; poverty; inequality; decomposition; benefit incidence analysis;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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