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Public Spending and Poverty in Mozambique

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

"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

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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper DP2001/63.

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Length: 32 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:unu:wpaper:dp2001-63
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  1. Haddad, Lawrence James & Adato, Michelle, 2001. "How effectively do public works programs transfer benefits to the poor?," FCND briefs 108, International Food Policy Research Institute (IFPRI).
  2. Addison, Tony & Murshed, S. Mansoob, 2001. "The Fiscal Dimensions of Conflict and Reconstruction," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Arndt, Channing & Jensen, Henning Tarp & Robinson, Sherman & Tarp, Finn, 1999. "Marketing margins and agricultural technology in Mozambique:," TMD discussion papers 43, International Food Policy Research Institute (IFPRI).
  4. Datt, Gaurav & Simler, Kenneth & Mukherjee, Sanjukta & Dava, Gabriel, 2000. "Determinants of poverty in Mozambique (1996-97)," FCND discussion papers 78, International Food Policy Research Institute (IFPRI).
  5. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
  6. Tarp, Finn & Arndt, Channing & Jensen, Henning Tarp & Robinson, Sherman & Heltberg, Rasmus, 2002. "Facing the development challenge in Mozambique: an economywide perspective," Research reports 126, International Food Policy Research Institute (IFPRI).
  7. Lanjouw, Peter & Ravallion, Martin, 1999. "Benefit Incidence, Public Spending Reforms, and the Timing of Program Capture," World Bank Economic Review, World Bank Group, vol. 13(2), pages 257-73, May.
  8. Handa, Sudhanshu & Simler, Kenneth R. & Harrower, Sarah, 2004. "Human capital, household welfare, and children's schooling in Mozambique:," Research reports 134, International Food Policy Research Institute (IFPRI).
  9. Sahn, David E & Younger, Stephen D & Simler, Kenneth R, 2000. "Dominance Testing of Transfers in Romania," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 309-27, September.
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