The political economy of targeting – a critical review

The political economy models of targeting postulate that going universal is a win‐win situation, for the poor and the middle class, as well as those who are in power. This article critically discusses the assumptions behind the political economy arguments of targeting and tests whether a universal mechanism is bound to politically excel in a low‐income country context. On the basis of attitudinal surveys with the urban, rural and student population in Zambia, we do not find any support for the predictions of the political economy models. We discuss the assumptions of the political economy models in the light of these findings and consider potentially decisive parameters that the models currently do not incorporate.     

贫困研究的历史脉络与最新进展述评

对现有贫困研究文献进行回顾是新时期贫困研究的起点.文章对贫困研究的历史脉络进行了回顾,同时对21世纪以来的相关研究进行了简要的回顾.提出对贫困动态研究不足会影响未来减贫的贫困体瞄准性与减贫效果,因而应加强对贫困深度与贫困群体的动态研究.     

Spillovers from targeting of incentives: Exploring responses to being excluded

A growing set of policies involve transfers conditioned upon socially desired actions, such as attending school or conserving forest. However, given a desire to maximize the impact of limited funds by avoiding transfers that do not change behavior, typically some potential recipients are excluded on the basis of their characteristics, their actions or at random. This paper uses a laboratory experiment to study the behavior of individuals excluded on different bases from a new incentive that encourages real monetary donations to a public environmental conservation program. We show that the donations from the individuals who were excluded based on prior high contributions fell significantly. Yet the rationale used for exclusion mattered, in that none of the other selection criteria used as the basis for exclusion resulted in negative effects on contributions.     

Inflation targeting and its spillover effects on financial stability in emerging market economies

In this paper, we study whether adoption of inflation targeting monetary policy framework has spillover effects on financial stability in emerging market economies. Working with data for 64 emerging market economies, we develop financial stability and sector specific stability indices and identify the effect using dynamic panel data models in difference-in-difference framework. We find significant positive spillover effects of inflation targeting adoption on banking system resilience and external capital inflows arising from improved transparency and accountability of the central banks. Based on the results, the paper recommends to emerging market economies which are currently under inflation targeting lite regime, to adopt full-fledged inflation targeting monetary policy.     

农村低保制度保障对象瞄准:错位与矫正——基于F市Q村的实地调研

检验农村低保制度有效性的关键是低保对象精准,但在实际运行中,依然存在保障对象瞄准不够精准。“关系保”“人情保”“欺瞒保”“维稳保”不同程度存在,损害了制度实施的效果。为进一步把农村低保这一惠民制度落到实处,实现底线公平,应引入家计调查法,精准核算低保对象家庭收入;优化制度设计,将支出型贫困家庭纳入低保评定范围;依托第三方机构,对低保对象进行精准识别;建立三方监管,完善农村低保运行的监管机制,保证低保制度在阳光下运行,促进社会公平正义。     

Targeting Social Assistance in a Transition Economy: The Mahallas in Uzbekistan

Falling output and living standards have pushed countries in transition from the socialist system to reconsider how best to target public resources on those in need. This paper investigates the workings of a new social assistance benefit in Uzbekistan, the largest of the former Soviet Central Asian republics, administered by community organizations, the Mahallas. Household survey data are used to assess the scheme's success in targeting on the most vulnerable households, using a variety of indicators including income, durable goods ownership, agricultural assets, employment status, and anthropometric status of children.     

Social Security in Australia and New Zealand: Means-tested or Just Mean?

The social security systems of Australia and New Zealand have traditionally rejected social insurance in favour of a means-tested categorical safety net approach that provides considerable scope for targeting. The experience of both countries provides many examples of how targeting can be used to constrain social security spending, and these have attracted interest in other countries keen to contain the growth in their social security budgets. However, although there are many similarities between the two systems, there are also many differences and these have become greater as targeting has gathered momentum over the last two decades. This paper analyses how targeting has been used in each country as a way of illustrating the different approaches adopted. Attention is focused on how the retirement income systems of the two countries illustrate an increasing policy divergence, with the planned Australian transition to a "multi-pillar" approach in contrast to the constant (and continuing) reform of New Zealand superannuation. Household data on the pattern of receipt of transfer incomes and their impact on the distribution of income are then used to explore the impact of targeting since the early 1980s. This analysis suggests that, in practice, targeting has had a far smaller impact on income inequality in both countries than is often claimed.     

Targeting Social Expenditure in New Zealand: An Evaluation of the Current Policy Regime

This paper provides a brief account of how social expenditure in New Zealand has been targeted (i.e. means-tested) since the late nineteenth century, outlines the policy framework at the dawn of the new millennium, and assesses the strengths and weaknesses of the current targeting regime. It is argued that the existing policy settings are open to challenge on a number of counts. In particular, they are complex, inconsistent and relatively intrusive, they impose significant administrative and compliance costs, and they generate considerable incentive problems. Nor has the greater reliance on targeting since the mid-1980s prevented an increase in relative poverty and inequality. Given this situation, the paper outlines some possible reforms.     

Targets and Taxes: Explaining the Welfare Orientations of the Australian Public

Australia's welfare model – targeted payments alongside low but progressive taxation – exemplifies the targeted approach, prioritizing the needs of poorer citizens within the constraints of low taxation. But does this approach match the welfare orientations of Australia's voters? Does the public hold other views about welfare, emerging out of competing interests in welfare debates? We consider results of two questions included in the Australian Survey of Social Attitudes 2005. The first question asks respondents about four welfare goals that outline competing welfare orientations: targeting poverty, expanding health and education, enforcing the welfare rules and reducing welfare. The second question asks about four taxation goals drawing on similar orientations as established for welfare: targeting tax cuts, taxing for welfare, enforcing tax rules and reducing overall tax. Asking about both enables us to tell whether voters approach tax and welfare ‘consistently’ and to see whether, in Australia's case, there is a preference for Australia's targeting model. We reach three conclusions: (1) voters hold diverse preferences about welfare and taxes, but the targeted model has a relatively strong voter base; (2) voters hold ‘pro‐welfare’ orientations, choosing poverty reduction and expanding public services over both paternalism and cutting welfare, and (3) multivariate analysis indicates a level of consistency in welfare and tax orientations among voters.     

Targeting Social Assistance: Dibao and Institutional Alienation in Rural China

China's Dibao (Minimal Living Security System) is the world's biggest cash social assistance system serving 52 million people. However, Dibao is less effective at alleviating poverty in rural areas than should it be. The analytic concepts of targeting and institutional alienation (the mismatch between stated goals and true functioning) are applied in a village case‐study to understand why. It appears that Dibao reaches some people considered self‐evidently to be needy, but funds are diverted for purposes of rural governance and social control (reward, punishment and deterrence) and personal gain. Although culturally framed, the concepts and findings potentially have relevance to the global South and North.