For Protection and Promotion: The Design and Implementation of Effective Safety Nets (Directions in Development)

Contents......Page 6
Acknowledgments......Page 14
Preface......Page 16
Abbreviations......Page 18
1.1 How Do Safety Nets Contribute to Development Policy?......Page 20
1.2 What Is a Good Safety Net?......Page 21
1.3 What Is a Safety Net?......Page 23
1.4 How Is This Book Organized?......Page 25
2. The Case for Safety Nets......Page 30
Figure 2.1 Where Safety Nets Fit in Larger Development Policy......Page 31
2.2 How Do Safety Nets Fit in Wider Development Policy?......Page 45
2.3 What Are the Challenges to Safety Nets?......Page 49
Table 2.4 Summary of How to Handle Challenges to Safety Nets......Page 62
3. Financing of and Spending on Safety Nets......Page 64
3.1 The Theory on Expenditure Allocation......Page 65
Table 3.2 Options for Increasing Safety Net Budgets: Advantages and Disadvantages......Page 70
3.3 In Search of Countercyclical Financing for Safety Nets......Page 74
3.4 The Cost of the Welfare State in Developed Countries......Page 77
3.5 Levels and Patterns of Safety Net Spending in Developing and Transition Countries......Page 80
Figure 3.5 Spending, Income, and Public Attitudes......Page 87
Table 3.9 Management Solutions to Implementation Challenges in a Decentralized Context, Bolsa Familia Program, Brazil......Page 101
4. Enrolling the Client: Targeting, Eligibility, and Intake......Page 104
4.1 Basic Concepts of Targeting......Page 105
4.2 Results of Targeting......Page 108
Box 4.3 Resources on Different Targeting Methods......Page 118
Box 4.4 How Do the Reasons for Adopting a Program Affect Targeting Choices?......Page 124
Notes......Page 144
5. Benefit Levels and Delivery Mechanisms......Page 146
5.1 Determining Benefit Levels in Theory and Practice......Page 147
Table 5.1 Generosity of Selected Cash Transfer Programs in Selected East European and Central Asian Countries, Selected Years 2001–4......Page 156
5.3 Enhancing Safety Net Programs to Promote Household Independence......Page 164
5.4 Managing Payments......Page 175
Notes......Page 192
Annex: Generosity of Safety Net Programs of Last Resort in OECD Countries......Page 194
6.1 The Value of Good Monitoring and Evaluation......Page 200
6.2 Distinct, but Complementary, Tools......Page 202
6.3 Development of an M&E System......Page 205
6.4 Monitoring......Page 218
6.5 Evaluation......Page 232
Notes......Page 257
Annex 6.1: Sample M&E Indicators for Typical Safety Net Interventions......Page 258
Table A6.2.1 Selected Monitoring, Evaluation, and Performance Indicators Used by Oportunidades, Mexico, 1999–2003......Page 263
Annex 6.3: A Summary of Experimental Methods......Page 269
7. Understanding Common Interventions......Page 272
7.1 Cash and Near Cash Transfers......Page 275
7.2 In-Kind Food Transfers and Other Food-Based Programs......Page 287
7.3 General Subsidies......Page 302
7.4 Workfare......Page 316
7.5 Conditional Cash Transfers......Page 331
7.6 Fee Waivers, Exemptions, and Scholarships......Page 343
7.7 Conclusion......Page 352
Notes......Page 357
Annex: Coverage of School Feeding Programs Sponsored by the World Food Programme as of 2005......Page 360
8. Assisting Traditionally Vulnerable Groups......Page 364
Box 8.1 Including Ethnic Minorities in Safety Net Programs......Page 366
Table 8.3 Characteristics of Social Pension Programs, Selected Countries and Years......Page 376
8.3 Income Support for People with Disabilities......Page 383
Notes......Page 391
9.1 What Is a Good Safety Net?......Page 392
9.2 Know Your Target Group......Page 393
9.3 Assessing the Performance of Individual Programs......Page 403
9.4 Assessing the Performance of the Entire Safety Net System......Page 413
9.5 From Diagnosis to Action......Page 417
Notes......Page 428
Annex: Administrative Costs by Type of Intervention......Page 430
10. Customizing Safety Nets for Different Contexts......Page 434
10.1 Safety Nets in Very Low-Income Countries......Page 436
10.2 Safety Nets in Middle-Income Countries......Page 441
10.3 Safety Nets for an Economic Crisis Situation......Page 450
10.4 Safety Nets after Natural Disasters......Page 454
10.5 Safety Nets to Facilitate Reforms......Page 459
Figure 10.2 Coverage and Incidence of the Unconditional Cash Transfer Program, Indonesia, 2005......Page 462
10.7 Summary......Page 470
Notes......Page 471
Appendix A. Basic Concepts of Poverty and Social Risk Management......Page 472
Table B.1 Cash and Near Cash Programs......Page 484
Glossary......Page 526
References......Page 536
Index......Page 586
Box 1.1 Definitions of Safety Nets and Social Assistance......Page 24
Box 2.1 The Motivating Force of Educational Stipends: The Bangladesh Female Secondary School Assistance Program......Page 35
Box 2.2 The Loss of an Ox......Page 37
Box 2.3 A Poverty Trap in Shinyanga......Page 38
Box 2.4 A Policy Maker’s Take on Growth, Equality, and Policy......Page 41
Box 2.5 The Developmental Effects of the Elizabethan Poor Laws......Page 42
Box 2.6 Is Dependency Always Bad?......Page 54
Box 2.7 Women’s Reactions to Questions about Transfers and Fertility......Page 59
Box 3.1 Okun’s Leaky Bucket......Page 66
Box 3.2 What Tax Instruments Should Governments Use to Support Safety Nets?......Page 72
Box 3.3 Fiscal Responsibility Laws......Page 76
Box 3.4 Literature on Safety Net Spending Levels Based on the IMF’s Government Finance Statistics......Page 82
Box 3.5 Financing Arrangements and Incentives in the Netherlands......Page 93
Box 3.6 Quality Assurance of Eligibility Determination in the U.S. Food Stamp Program......Page 94
Box 4.1 How Narrow Should Targeting Be?......Page 110
Box 4.2 Universalism versus Targeting......Page 117
Box 4.5 Communications and Transparency in Program Intake......Page 132
Box 5.1 The Value of a CCT Program’s Education Grant: From Theory to Practice......Page 148
Box 5.2 The Benefit Formula for Brazil’s Bolsa Familia Program......Page 153
Box 5.3 Lack of Applicability of High Labor Disincentives in the AFDC to Safety Nets in Middle- and Low-Income Countries......Page 158
Box 5.4 Labor Disincentives in Very Low-Income Countries: The Kalomo District Pilot Social Cash Transfer Scheme, Zambia......Page 160
Box 5.5 Is Reduced Work Effort Really So Bad?......Page 162
Box 5.6 Managing Work Disincentives in Romania’s GMI Program......Page 163
Box 5.7 Bulgaria’s From Social Assistance to Employment Program......Page 165
Box 5.8 Global Experience with Active Labor Market Programs......Page 166
Box 5.9 Cash Incentives Aimed at Behavioral Change Rather Than Income Support......Page 168
Box 5.10 Introduction of a One-Window Approach in Arzamas, Russia......Page 174
Box 5.11 A Transfer Program with Strong Psychosocial Support for Families: Chile Solidario......Page 176
Box 5.12 Delivering In-kind Transfers......Page 177
Box 5.13 ATMs and POS Machines: Conducting Transactions Remotely Using Electronic Cards......Page 180
Box 5.14 Managing the Contracting Process......Page 183
Box 5.15 Processing Payments Using a Smart Card System......Page 189
Box 5.16 Delivering Cash in an Emergency......Page 190
Box 6.1 Key Uses of Performance Indicators......Page 224
Box 6.2 Tracking Error, Fraud, and Corruption......Page 225
Box 6.3 Example of Supranational Monitoring System: The European Union’s Mutual Information System on Social Protection......Page 231
Box 6.4 Cost-Benefit and Cost-Effectiveness Analysis......Page 233
Box 6.5 Misleading with Targeting Statistics......Page 241
Box 6.6 Ignorance Has High Costs......Page 251
Box 6.7 The Problem of Bias......Page 253
Box 7.1 Classification of Types of Programs Covered......Page 274
Box 7.2 The South African Child Support Grant......Page 277
Box 7.3 Use and Effectiveness of Cash Transfers in Emergencies......Page 285
Box 7.4 The Vulnerable Group Development Program, Bangladesh......Page 289
Box 7.5 From Universal to Targeted Distribution, India and Indonesia......Page 290
Box 7.6 Cash and In-Kind Transfers: Alternatives or Complements?......Page 291
Box 7.7 Inferior Commodities and Inframarginal Consumption......Page 294
Box 7.8 Universal Food Subsidy System for Bread and Flour, Egypt......Page 304
Box 7.9 Reforming Food Price Subsidies, Tunisia......Page 306
Box 7.10 Lowering the Cost of Rice by Adjusting Import Tariffs versus Targeted Cash Transfers, Madagascar......Page 309
Box 7.11 Public Works Program, Korea......Page 317
Box 7.12 Factors Underlying the Success of Argentina’s Trabajar Program......Page 320
Box 7.13 The Changing Nature of Public Works Programs, India......Page 323
Box 7.14 The PROGRESA/Oportunidades Program, Mexico......Page 333
Box 7.15 Th e Debate: Conditional versus Unconditional Cash Transfers......Page 335
Box 7.16 Heath Fee Waiver Program, Armenia......Page 346
Box 7.17 Elimination of User Fees and Waivers, South Africa and Uganda......Page 351
Box 8.2 Th e Complexities of Measuring Poverty among Different Age Groups......Page 368
Box 8.3 Th e Political Economy of Old-Age Support......Page 374
Box 9.1 Seasonality of Vulnerability in Two Localities in Mozambique......Page 398
Box 9.2 The Public Expenditure Review Lens: Analysis of Individual Programs......Page 405
Box 9.3 A Proposal for Benchmarking Administrative Costs......Page 411
Box 9.4 The Public Expenditure Review Lens: Sectorwide View......Page 414
Box 9.5 Common Pitfalls in Reforming Safety Net Systems......Page 416
Box 9.6 Communication Strategy: A Key Component of Reform......Page 425
Box 10.1 Eastern European Safety Nets: From Central Planning through Transition to Accession......Page 435
Figure 1.1 Processes and Stakeholders Involved in a Safety Net......Page 22
Figure 2.2 Perceptions of Fairness of Country Income Distribution in Latin America......Page 33
Figure 2.3 Distribution of General Revenue–Financed Transfers for Selected Countries by Population Quintile......Page 52
Figure 3.1 Societal Attitudes about Poverty and Spending on Social Welfare......Page 78
Figure 3.2 Safety Net Expenditures as a Percentage of GDP, Selected Countries and Years......Page 83
Figure 3.4 Social Assistance, Social Insurance, and Social Sector Spending by Region, Selected Years......Page 85
Figure 4.2 Share of Benefits Accruing to Each Quintile for Selected Safety Net Programs, India, Fiscal 2004/05......Page 107
Figure 4.3 Errors of Inclusion, Selected Programs and Countries......Page 109
Figure 4.4 Conceptualizing Administrative Costs......Page 112
Figure 4.5 Targeting Performance by Targeting Method......Page 122
Figure 4.6 From Population to Beneficiary: The Stages of Targeting......Page 125
Figure 4.7 Fraction of the Social Assistance Budget Captured by Each Quintile, Armenia, 1998 and 1999......Page 142
Figure 5.1 Reconciling Needs with Budget Constraints......Page 150
Figure 5.3 Generosity of Selected CCT Programs in Selected Latin American and Caribbean Countries, Various Years......Page 155
Figure 6.1 A Typical M&E System......Page 204
Figure 6.2 Logical Framework for Ethiopia’s Productive Safety Net Program......Page 206
Figure 6.3 M&E Strategy of Oportunidades......Page 216
Figure 6.4 Framework for Distinguishing among Different Types of Performance Indicators......Page 223
Figure 6.5 Incidence of Social Protection Transfers Depends on the Assumed Pretransfer per Capita Consumption, Republic of Yemen, 1999......Page 246
Figure 6.6 Ex Ante Estimation of the Average Net Impact of Reforming Fuel Subsidies in Indonesia......Page 248
Figure 7.1 Designing and Implementing Public Works Programs......Page 330
Figure 7.2 Coverage by Decile, Selected CCT Programs and Years......Page 337
Figure 7.3 Share of Benefits Accruing by Decile, Selected CCT Programs and Years......Page 338
Figure 8.2 Percentage of Orphans by Age, Asia, Latin America and the Caribbean, and Sub-Saharan Africa, 2003......Page 377
Figure 8.3 Prevalence of Disability by Age Group, Selected East European Countries and Years......Page 384
Figure 8.4 Disability Rates by Poverty Status, Selected East European Countries and Years......Page 385
Figure 9.1 Losses by Households Th at Experienced Shocks, Guatemala, 2000......Page 400
Figure 9.2 Share of Administrative Costs in Program Budget, Median Value by Type of Program, Selected Programs and Years......Page 410
Figure 10.1 Incidence of Diesel, Gasoline, and Kerosene Subsidies, Indonesia, 2004......Page 461
Figure 10.3 Food Prices......Page 463
Figure 10.4 Types of Mitigating Policies Adopted by Selected Countries, Early March 2008......Page 467
Figure A.1 Households in Chronic versus Transient Poverty......Page 474
Figure A.2 Poverty as a Disease......Page 476
Table 2.1 Safety Nets for Protection and Promotion......Page 44
Table 2.2 Possible Target Groups, the Role of Safety Nets, and Complementary Policies......Page 47
Table 2.3 Examples of Social Protection Programs by Life Cycle......Page 48
Table 3.1 Cost-Benefit Estimates of the Education Effects of the Bono de Desarrollo Humano Program, Ecuador......Page 68
Table 3.3 Perceptions of Poverty in the United States, Europe, and Latin America, 1995–7 (percentage of respondents)......Page 79
Table 3.4 Correlations between Spending on Social Sectors and Other Factors......Page 86
Table 3.5 Advantages and Disadvantages of Financing Sources for Subnational Governments......Page 91
Table 3.6 Options for Managing Local Governments’ Incentives to Use Lax Entry Criteria for Centrally Financed Safety Net Programs......Page 92
Table 3.7 An Example of a Functional Analysis of a Program and Responsible Levels of Government: The Village Full Employment Program, India......Page 97
Table 3.8 Advantages of Alternative Allocations of Institutional Responsibilities for Household Targeting Systems......Page 98
Table 4.1 Errors of Inclusion and Exclusion......Page 106
Table 4.2 Administrative Costs of Targeting for Selected Means-Tested and Proxy Means-Tested Programs, Various Years......Page 113
Table 4.3 Estimated Total and Annual Costs of Household Targeting Systems,Selected Countries, 2002......Page 114
Table 4.4 Approaches to Household Registration......Page 128
Table 4.5 Institutional Consolidation, Family Poverty Benefits Program, Armenia, 1999–2004......Page 143
Table 5.2 Distributing Agencies and Instruments......Page 178
Table 5.3 Costs of Delivering Benefits, Selected Countries and Programs......Page 191
Table A5.1 Social Assistance Benefits, Selected OECD Countries, 2005......Page 195
Table 6.1 Key Differences between Monitoring and Evaluation......Page 203
Table 6.2 Logical Framework and Selected Output and Outcome Indicators for Ethiopia’s PSNP......Page 207
Table 6.3 Advantages and Disadvantages of Using Administrative Data to Monitor and Evaluate Programs......Page 211
Table 6.4 Sample Indicator Specification Sheet Adapted from the Bolsa Familia Program, Brazil......Page 220
Table 6.5 Guidelines for Collecting Outcome Indicators......Page 222
Table 6.6 Selected Targets for Panama’s Red de Oportunidades......Page 227
Table 6.7 Examples of Disaggregation Subgroups and Benchmarks......Page 228
Table 6.8 Examples of Questions Addressed by Process Evaluations of Safety Net Programs......Page 236
Table 6.9 Common Targeting Measures......Page 239
Table 6.10 Some of the Main Types of Targeting Assessments......Page 245
Table 6.11 When to Conduct an Impact Evaluation: A Checklist......Page 256
Table A6.2.2 Indicators Collected from the Sample of Sentinel Points, by Area of Residence, in Percentages, Oportunidades, Mexico, 2000-02......Page 266
Table 7.1 Comparison of Delivery Options for Supplementary Foods......Page 292
Table 7.2 Types of Interventions in Education by Country......Page 348
Table 7.3 Characteristics of Safety Net Interventions......Page 354
Table 8.1 Percentage of the Population Living in Poverty by Age, Selected Sub-Saharan African Countries and Years......Page 369
Table 8.2 Percentage of the Population Living in Poverty by Age, Selected EasternEuropean Countries, Selected Years 1993–5......Page 370
Table 8.4 Variations in Orphans’ School Enrollment, Selected Countries and Years......Page 379
Table 8.5 Targeting Criteria for OVC by Setting: Burundi, Malawi, and Selected Countries Served by World Vision......Page 381
Table 8.6 Social or Family Assistance Programs for People with Disabilities, Selected Countries......Page 386
Table 8.7 Advantages and Disadvantages of Alternative Approaches to Operational Definitions of Disability in Medical Assessments......Page 387
Table 9.2 Percentage Share of Income by Quintile, Indonesia, 1996......Page 395
Table 9.3 Percentage of Population Moving Into and Out of Poverty, Rural Ethiopia, 1989 and 1995......Page 396
Table 9.4 Types of Data Required for Different Types of Diagnostics......Page 402
Table 9.5 Cost-Efficiency of Various School Feeding Programs, Panama, 2005......Page 408
Table 9.6 Cost-Effectiveness of Transfers to Reduce Poverty, Guatemala, 2000......Page 409
Table 9.7 Examples of Recent Reforms by Type......Page 419
Table 9.8 Estimated Annual Costs and Expected Coverage of a Proposed Safety Net Reform Package, Pakistan, 2006–10......Page 421
Table 9.9 Options for Institutional Locations for Safety Nets......Page 427
Table 10.1 Sample of Public Works Supported under the PSNP, 2007......Page 440
Table 10.2 Targeting Outcomes of the GMI Program, Bulgaria, 2003......Page 448
Table A.1 Examples of Social Risk Management Strategies and Arrangements......Page 480
Table B.2 In-Kind Food Transfers and Other Food-Based Programs (Targeted Programs)......Page 494
Table B.3 General Subsidy Programs......Page 499
Table B.4 Public Works Programs......Page 505
Table B.5 Conditional Cash Transfer Programs......Page 512
Table B.6 Fee Waivers for Health and Education......Page 521