Comments and Reviews

Wednesday Jul 14, 2010

How Much Do Non-Cash Components and Externalities Affect the Impact of Cash Transfers?

 

 How Much Do Non-Cash Components and Externalities Affect the Impact of Cash Transfers?

 

by Rafael Perez Ribas, University of Illinois at Urbana-Champaign; Fábio Veras Soares and Clarissa Teixeira, International Policy Centre for Inclusive Growth; Elydia Silva, Brazilian Development Bank (BNDES); and Guilherme Hirata, Pontifical Catholic University of Rio de Janeiro

 

Much of the debate about conditional cash transfer (CCT) programmes revolves around the issues of targeting and conditionalities. Despite the many impact evaluations of CCT programmes, mostly in Latin America, there is little evidence on either the effect of the cash alone or the value added by the conditionality.

 The cash component has an income effect that allows families to consume more goods and services, including healthcare and schooling. Depending on the families’ preferences, this rise in income may also lead to a change in the consumption share of goods and services. Because of non-cash components, however, there might be a substitution effect that changes the way in which households spend their income, aside from the expected changes due to the increased income. Thus the question is how these other components change household behaviour in terms of the consumption pattern.

Download: http://www.ipc-undp.org/pub/IPCOnePager111.pdf

Can Public Works and Employment Programmes Be More than Safety Nets?

 

Can Public Works and Employment Programmes Be More than Safety Nets?

By  Radhika Lal

 Public works and public employment programmes (PEPs) have long been considered a staple of social assistance. For the most part, though, they have been designed as “safety nets”
in the context of counter-cyclical programme interventions and responses to shocks. In some cases they have also focused on reducing poverty or addressing structural unemployment challenges over the longer term, but they have seldom been implemented on a scale that would make a dent in structural poverty. Recent advances in conceptualising and implementing scalable PEPs suggest that these programmes also have a broader development role to play.

 

http://www.ipc-undp.org/pub/IPCOnePager112.pdf

Tuesday May 11, 2010

The Programa Subsidio de Alimentos in Mozambique: Baseline Evaluation

The Programa Subsidio de Alimentos in Mozambique: Baseline Evaluation

By Fabio Veras Soares, Guilherme Issamu Hirata and Rafael Perez Ribas

 

I. Introduction

The Food Subsidy Programme (Programa Subsidio de Alimentos, PSA) is the main basic social protection programme of the government of Mozambique in terms of coverage. It was established in 1990 to help the destitute elderly (women above 55 and men above 60), people living with a disability, the chronically sick and their dependants by providing a monthly cash transfer. The programme falls under the mandate of the Ministry for Women and Social Action (MMAS), while implementation is the responsibility of the National Institute for Social Action (INAS), the Ministry’s executing agency.

 

By the end of 2008, the PSA covered 143,455 households with a total of 287,454 beneficiaries. The main direct beneficiaries were the elderly (93 per cent), followed by people living with disabilities (6 per cent) and the chronically ill (1 per cent). The general eligibility criteria are: age, residency for more than six months in the selected area, per capita earnings less than the minimum benefit on the PSA scale, and/or recognised by medical declaration to be chronically ill or living with a disability. Potential beneficiaries are selected by a local intermediary (known as a Permanente) chosen by the community and appointed by INAS, after which the application undergoes an approval process within the INAS delegation.

 

Although the PSA is a national programme, it does not reach the entire eligible population and its coverage is unequally distributed across districts. This is the result of the absence of an expansion strategy based on poverty incidence and population density. Expansion of the PSA was initially restricted to urban areas in order to mitigate the effects of the post-war structural adjustment programme on the urban population (Low et al., 1999). Currently, expansion to remote rural areas is a programme priority. The programme’s administrative cost is considered high relative to the amount transferred to the beneficiaries (Ellis, 2007). Though the programme is the largest in terms of the number of beneficiaries, its coverage is low relative to the potential universe of beneficiaries. Expansion of the programme tends to diminish the administrative costs in relative terms.

 

In 2008, the PSA underwent two important reforms. First, the subsidy scale increased. The subsidy amount for the first (direct) beneficiaries rose from 70 to 100 meticais (US$2.5 to US$3.6), and the additional benefit for dependants increased from 10 to 50 meticais (US$0.36 to US$1.80) per dependant up to four. The second reform was the greater focus on the inclusion of eligible dependants as indirect beneficiaries in the payment scheme, and the monitoring and evaluation system.

http://www.ipc-undp.org/pub/port/IPCPolicyResearchBrief14.pdf

Benefiting Without Receiving Money? Externalities of Conditional Cash Transfer Programmes on Schooling, Health and the Village Economy

I. Introduction

Although cash transfer programmes have been implemented and evaluated for more almost a decade, very little is known about how they affect households that are located in communities where the programme is implemented but that are not officially registered for the programme
(either because they are ineligible or are unwilling to participate). The vast majority of evaluations focus on households that are officially registered. Cash transfer programmes, however, are likely to affect all households living in a community, even those that are not participating.

By Christian Lehmann

http://www.ipc-undp.org/pub/port/IPCPolicyResearchBrief13.pdf

Friday Feb 12, 2010

Direct or Mediated Relationships? Civic Involvement and Social Accountability in the Bolsa Família Programme

 

Conditional Cash Transfer (CCT) programmes are key to reducing the effects of the economic crisis among the poor in Latin America. Their implementation, however, entails two risks: an increase in political clientelism (exchange of votes for favours) and the widening of the power gap between the poor population and local authorities. In order to gain access to the programme and receive financial aid, families rely on the authorities in charge of registering beneficiaries and checking compliance with conditionalities. As a result, government actors enjoy a better power position at the local level and/or are able to ask for political support in return.

 Download: http://www.ipc-undp.org/pub/IPCOnePager105.pdf

What Is the Impact of the Bolsa Família Programme on Education?

 

Many researchers have shown that Brazil’s Bolsa Família programme had a large impact on reducing poverty and income inequality. But evidence for the programme’s impact on educational outcomes is in short supply. Does Bolsa Família increase school enrolment? Does it reduce dropout rates? Does it improve grade promotions?

Download: http://www.ipc-undp.org/pub/IPCOnePager106.pdf

Thursday Jan 14, 2010

The Doha Round and Kenya: Good and Not So Good Lessons

The global financial crisis and spiking unemployment figures have raised the threat of escalating barriers to trade. An early conclusion to the Doha Round might help avert some of the increase in protectionism, but no one knows by how much. And while Doha will help the world economy, it will also create winners and losers across countries and across sectors within countries (Polaski, 2006). How much developing countries can win
or lose depends, to a large extent, on how the issue of agricultural subsidies in developed countries is resolved. But it also depends on the definition of sensitive commodities and the effects of further liberalising trade in manufacturing goods. Developing countries will have to look very carefully at the gains and losses from proposed Doha Round agreements, the so-called “modalities”. For many developing countries, the nature of any agreed package will be more important than reaching any agreement by a specific deadline.

Download: http://www.ipc-undp.org/pub/IPCOnePager102.pdf

Wednesday Sep 16, 2009

Do CCTs Lessen the Impact of the Current Economic Crisis? Yes, but...

The recent financial and economic crisis has sparked a debate on whether conditional cash transfer (CCT) programmes make families less vulnerable to that crisis. This link between the crisis and CCTs was made because countries like Brazil, which have large CCT programmes, were enduring the impacts better than most others.

Download: http://www.ipc-undp.org/pub/IPCOnePager96.pdf

Do CCT Programmes Have a Pro-Poor Spillover Effect?

Conditional Cash Transfer programmes (CCTs), such as Progresa in Mexico or Bolsa Família in Brazil, have been compared to a “magic golden bullet in development”. A plethora of rigorous evaluations of such programmes points to a significant increase in food consumption among cash-recipient households. A topic that has not received much attention yet is the impact of cash transfer programmes on the food consumption of households that do not receive the transfer (programme-ineligible households) but that are in the same village as cash recipients.

Download: http://www.ipc-undp.org/pub/IPCOnePager98.pdf

Monday Jun 22, 2009

What Is the Impact of Cash Transfers on Labour Supply?

This One Pager investigates the impact of the Brazilian Conditional Cash Transfer Programm, the Programa Bolsa Família (PBF), on beneficiaries’ decision to supply their labour. The theoretical departure is this: households have a time allocation strategy between housework activities and paid work. Income shocks, such as cash transfers, alter such time-allocation preferences. In other words, they change the relative value of time.

We assume that paid work hours do not generate any additional well-being to households, except for increases in income. As cash transfers increase income, paid time loses value relative to unpaid time. Therefore, the expected behaviour is a reduction in the supply of paid work hours and an increase in housework or leisure hours.

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