Revisiting Targeting In Social Assistance

Targeting is a commonly used, but much debated, policy tool within global social assistance practice. Revisiting Targeting in Social Assistance: A New Look at Old Dilemmas examines the well-known dilemmas in light of the growing body of experience, new implementation capacities, and the potential to bring new data and data science to bear. The book begins by considering why or whether or how narrowly or broadly to target different parts of social assistance and updates the global empirics around the outcomes and costs of targeting. It illustrates the choices that must be made in moving from an abstract vision to implementable definitions and procedures, and in deciding how the choices should be informed by values, empirics, and context. The importance of delivery systems and processes to distributional outcomes are emphasized, and many facets with room for improvement are discussed. The book also explores the choices between targeting methods and how differences in purposes and contexts shape those. The know-how with respect to the data and inference used by the different household-specific targeting methods is summarized and comprehensively updated, including a focus on “big data†? and machine learning. A primer on measurement issues is included. Key findings include the following: · Targeting selected categories, families, or individuals plays a valuable role within the framework of universal social protection. · Measuring the accuracy and cost of targeting can be done in many ways, and judicious choices require a range of metrics. · Weighing the relatively low costs of targeting against the potential gains is important. · Implementing inclusive delivery systems is critical for reducing errors of exclusion and inclusion. · Selecting and customizing the appropriate targeting method depends on purpose and context; there is no method preferred in all circumstances. · Leveraging advances in technology—ICT, big data, artificial intelligence, machine learning—can improve targeting accuracy, but they are not a panacea; better data matters more than sophistication in inference. · Targeting social protection should be a dynamic process.

With intellectual rigour, the Handbook of Aid and Development not only critically examines the relationship between aid and development, but also discusses recent trends within the field and judiciously considers its future prospects.

Social Protection Program Spending and Household Welfare in Ghana

More than a decade has passed since the publication of the series entitled Social Analysis of Agriculture and Rural Investment Projects, which comprises three complementary manuals – the Manager’s, Practitioner’s and Field guides. During this time, conflict, climate change and economic downturns have been driving up poverty, hunger, and socioeconomic inequalities, reducing the resilience of agrifood systems. In response, the FAO Investment Centre has updated the Social Analysis guides to address the evolving and volatile rural transformation context, providing programme managers, practitioners and field workers with a set of enhanced tools for the design, implementation and evaluation of inclusive investments in agrifood systems. Today’s investments must prioritize more demand-driven, people-centred, culturally sensitive and locally owned sustainable approaches, with increased attention to reducing gender and other inequalities. Operationalizing these principles contributes to FAO’s and financing agencies’ objectives of ending poverty, improving food security and nutrition, and reducing inequalities. The goal of the updated guides is to support investments that contribute to inclusive, resilient and sustainable agrifood systems, aligned with the outcomes of the UN Food Systems Summit, the Sustainable Development Goals (SDGs), and the core principle of leaving no one behind. This publication is part of the Investment Toolkits series under the FAO Investment Centre's Knowledge for Investment (K4I) series. The contents of this publication have been turned into three e-leaning courses, which are accessible for free through the FAO E-learning Academy.

Quantifying the impact of the COVID-19 pandemic on poverty in Africa has been as difficult as predicting the path of the pandemic, mainly due to data limitations. The advent of new data sources, including national accounts and phone survey data, provides an opportunity for a thorough reassessment of the impact of the pandemic and the subsequent expansion of social protection systems on the evolution of poverty in Africa. In this paper, we combine per capita GDP growth from national accounts with data from High-Frequency Phone Surveys for several countries to estimate the net impact of the pandemic on poverty. We find that the pandemic has increased poverty in Africa by 1.5-1.7 percentage points in 2020, relatively smaller than early estimates and projections. We also find that countries affected by Fragility, Conflict, and Violence (FCV) experienced the greatest increases in poverty, about 2.1 percentage points in 2020. Furthermore, we assess and synthesize empirical evidence on the role that social protection systems played in mitigating the adverse impact of the COVID-19 crisis in Africa. We review social protection responses in various African countries, mainly focusing on the impact of these programs and effectiveness of targeting systems. Although the evidence base on the protective role of social protection programs during the pandemic remains scarce, we highlight important findings on the impacts of these programs while also uncovering some vulnerabilities in social protection programming in Africa. We finally draw important lessons related to the delivery, targeting and impact of various social protection programs launched in Africa in response to the pandemic.

The International Monetary Fund’s engagement on social safety net (SSN) issues is likely to expand as member countries respond to growing challenges in the economic and fiscal landscape. SSNs play a crucial role in protecting households from poverty, promoting inclusive growth, and maintaining social stability. This technical note discusses (1) the different channels through which SSN spending may become macro-critical, (2) how to assess the importance of these channels, and (3) the types of policy responses that are appropriate and the trade-offs involved in choosing among them. To facilitate a more comprehensive assessment of SSN spending, the paper also examines the complementary role of labor market programs (for example, unemployment benefits and active labor market programs). The paper emphasizes the importance of early engagement and coordination with development partners with expertise on social safety nets and with different stakeholders when formulating policy advice.

The outlook for Low-Income Countries (LICs) is gradually improving, but they face persistent macroeconomic vulnerabilities, including liquidity challenges due to high debt service. There is significant heterogeneity among LICs: the poorest and most fragile countries have faced deep scarring from the pandemic, while those with diversified economies and Frontier Markets are faring better. Achieving inclusive growth and building resilience are essential for LICs to converge with more advanced economies and meet the Sustainable Development Goals (SDGs). Building resilience will also be critical in the context of a more shock-prone world. This requires both decisive domestic actions, including expanding and better targeting Social Safety Nets (SSNs), and substantial external support, including adequate financing, policy advice, capacity development and, where needed, debt relief. The Fund is further stepping up its support through targeted policy advice, capacity building, and financing.

The COVID-19 pandemic triggered a pronounced setback in the fight against global poverty—likely the largest setback since World War II. Many low- and middle-income countries have yet to see a full recovery. High indebtedness in many countries has hindered a swift recovery, while rising food and energy prices—fueled in part by conflict and climate shocks—have made a return to progress on poverty reduction more challenging than ever. These setbacks have altered the trajectory of poverty reduction in large and lasting ways. The world is significantly off course on the goal of ending extreme poverty by 2030.The year 2020 also marked a historic turning point as decades of global income convergence gaveway to global divergence as the world’s poorest people were hardest hit. The richest people have recovered from the pandemic at a faster pace, further exacerbating differences. These diverging fortunes between the global rich and poor ushered in the first rise in global inequality in decades. Poverty and Shared Prosperity 2022: Correcting Course provides the first comprehensive analysis of the pandemic’s toll on poverty in developing countries.It identifies how governments can optimize fiscal policy to help correct course. Fiscal policies offset the impact of COVID-19 on poverty in many high-income countries, but those policies offset barely onequarter of the pandemic’s impact in low-income countries and lower-middle-income countries. Improving support to households as crises continue will require reorienting protective spending away from generally regressive and inefficient subsidies and toward a direct transfer support system—a first key priority. Reorienting fiscal spending toward supporting growth is a second key priority identified by the report. Some of the highest-value public spending often pays out decades later. Amid crises, it is difficult to protect such investments, but it is essential to do so. Finally, it is not enough just to spend wisely—when additional revenue does need to be mobilized, it must be done in a way that minimizes reductions in poor people’s incomes. The report highlights how exploring the underused forms of progressive taxation and increasing the efficiency of tax collection can help in this regard. Poverty and Shared Prosperity is a biennial series that reports on global trends in poverty and shared prosperity. Each report also explores a central challenge to poverty reduction and boosting shared prosperity, assessing what works well and what does not in different settings. By bringing together the latest evidence, this corporate flagship report provides a foundation for informed advocacy around ending extreme poverty and improving the lives of the poorest in every country in the world. For more information, please visit worldbank.org/poverty-and-shared-prosperity.