TARGETING SOCIAL PROTECTION Stephen Devereux Centre for Social Protection Institute of Development Studies (IDS) UNICEF Social Protection Training Course IDS, Brighton ~ 16 July 2009

The Targeting Dilemma To target or not to target? Why target? Redistributive equity Redistributive equity Budget constraints. Budget constraints. Why not target? Targeting costs Targeting costs Rights Rights Stigma Stigma Politics of targeting. Politics of targeting.

The Targeting Problem

Universal Transfers

Perfect Targeting

“Two Errors of Targeting” Exclusion Exclusion F–error (failure to reach) F–error (failure to reach) Omissions Omissions Under–coverage Under–coverage Type I error Type I error Horizontal inefficiency Horizontal inefficiency Sensitivity Sensitivity Inclusion E–error (excess benefits) Leakages Over–coverage Type II error Vertical inefficiency Specificity Poorest Bill Gates

First error of targeting ~ food aid in Ethiopia

Five Errors of Targeting Benefit incidence (1) exclusion errors (2) inclusion errors Benefit incidence (1) exclusion errors (2) inclusion errors Benefit levels (3) over–funding (4) under–funding Benefit levels (3) over–funding (4) under–funding Poverty dynamics (5) the poor are a moving target Poverty dynamics (5) the poor are a moving target

The poor are a moving target… People at risk in Ethiopia

Step 1: Defining the Target Group Geographic (area–based) Geographic (area–based) Groups (e.g. farmers) Groups (e.g. farmers) Households (e.g. the “ultra–poor”) Households (e.g. the “ultra–poor”) Individuals (e.g. children, older persons) Individuals (e.g. children, older persons)

Step 2: Targeting Mechanisms Administrative Selection Geographic targeting(flood–affected districts) Geographic targeting(flood–affected districts) Proxy indicators(orphans, people over 65) Proxy indicators(orphans, people over 65) Means testing(household income) Means testing(household income)Self–Selection Low benefits (low rations on public works) Low benefits (low rations on public works) High access costs(time + labour on public works) High access costs(time + labour on public works) Community Selection Participatory(wealth ranking, village committees) Participatory(wealth ranking, village committees)

Proxy indicator: Floor types in Vietnam

Targeting Case Studies Proxy Indicator: Age ~ Social pensions in Namibia Pensions are universal for all Namibian citizens over 65: Poor pensioners queue for hours at pay–points Poor pensioners queue for hours at pay–points Wealthy pensioners get pensions paid into bank accounts Wealthy pensioners get pensions paid into bank accounts Solution: Make rich pensioners queue! Solution: Make rich pensioners queue! Means Testing ~ ‘GAPVU’ in Mozambique Three sources of inclusion errors or leakages: Officials / beneficiary collusion: “50 : 50 split” for registration Officials / beneficiary collusion: “50 : 50 split” for registration Official corruption: “Ghost beneficiary lists” Official corruption: “Ghost beneficiary lists” Beneficiary collusion: “The baby with seven mothers”. Beneficiary collusion: “The baby with seven mothers”.

Targeting Case Studies Self–Targeting ~ Cash–for–work in Zambia District 1: Participants rotated every month (wide coverage, limited impact) District 1: Participants rotated every month (wide coverage, limited impact) District 2: Continuous employment for 12 months (limited coverage, high impact, social tension) District 2: Continuous employment for 12 months (limited coverage, high impact, social tension) Community Selection ~ ‘Starter Packs’ in Malawi Starter Packs given to chiefs / committees = elite capture Starter Packs given to chiefs / committees = elite capture Starter Packs given to communities = social tension Starter Packs given to communities = social tension Solution: Triangulated community wealth ranking. Solution: Triangulated community wealth ranking.

Targeting Mechanisms – Summary Administrative Selection Proxy means test: several easily observed indicators of well–being (e.g. housing location, demographics, major assets owned, labour force participation). Proxy means test: several easily observed indicators of well–being (e.g. housing location, demographics, major assets owned, labour force participation).Self–Selection Lowering benefits, raising access costs, or using stigma to self–target the poor should be avoided. Lowering benefits, raising access costs, or using stigma to self–target the poor should be avoided. Community Selection Triangulated community wealth ranking avoids problems of elite capture and social exclusion. Triangulated community wealth ranking avoids problems of elite capture and social exclusion.