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What role for safety net transfers in very low income countries?

Author

Listed:
  • Smith, James W.
  • Subbarao, Kalanidhi
Abstract
The authors consider the question of what role safety net transfers should play in very low income countries where a large population live in absolute poverty, and the state has limited resources to fund transfers. The number of people living below minimum acceptable consumption levels will remain so high that some form of safety net intervention is justified. For pure transfers, governments should be selective of very specific groups such as orphans, to limit costs and engender political support. To improve the impact per dollar spent on transfers, programs should be selected to have a multiplier effect on incomes such as vouchers for small fertilizers packs for the poor, or to leverage by using small amounts of cash to help households reduce risk or diversify economic activity. Selection of programs that are self-targeting, such as public works at a low wage rate or subsidized food goods. The judicious timing of transfers is important. Programs should also be kept as simple as possible to fit with the limited administrative capacity, avoiding multiple overlapping donor programs in favor of one or two simple nationwide programs that are easily implemented, cost-effective, and fiscally sustainable.

Suggested Citation

  • Smith, James W. & Subbarao, Kalanidhi, 2003. "What role for safety net transfers in very low income countries?," Social Protection Discussion Papers and Notes 25605, The World Bank.
    • Handle: RePEc:wbk:hdnspu:25605
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    Citations

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    Cited by:

    1. Md Ashiq Iqbal, 2008. "Macroeconomic Implications of Social Safety Nets in the Context of Bangladesh," Macroeconomics Working Papers 22289, East Asian Bureau of Economic Research.
    2. Mohajan, Haradhan, 2013. "Food, Agriculture and Economic Situation of Bangladesh," MPRA Paper 54240, University Library of Munich, Germany, revised 18 Aug 2013.
    3. Ninno, Carlo del & Tamiru, Kaleb, 2012. "Cameroon social safety nets : Africa social safety net and Social protection assessment series," Social Protection Discussion Papers and Notes 88995, The World Bank.
    4. Lynn R. Brown & Ugo Gentilini, 2006. "On the Edge: The Role of Food-based Safety Nets in Helping Vulnerable Households Manage Food Insecurity," WIDER Working Paper Series RP2006-111, World Institute for Development Economic Research (UNU-WIDER).
    5. World Bank, 2012. "Liberia - A Diagnostic of Social Protection," World Bank Publications - Reports 12344, The World Bank Group.
    6. del Ninno, Carlo & Dorosh, Paul A. & Subbarao, Kalanidhi, 2007. "Food aid, domestic policy and food security: Contrasting experiences from South Asia and sub-Saharan Africa," Food Policy, Elsevier, vol. 32(4), pages 413-435, August.
    7. Alderman, Harold & Haque, Trina, 2006. "Countercyclical safety nets for the poor and vulnerable," Food Policy, Elsevier, vol. 31(4), pages 372-383, August.
    8. David Coady, 2015. "Designing and Evaluating Social Safety Nets: Theory, Evidence, and Policy Conclusions," Working Papers id:7496, eSocialSciences.
    9. World Bank, 2012. "Cameroon : Social Safety Nets," World Bank Publications - Reports 11912, The World Bank Group.
    10. Nanak Kakwani & Kalanidhi Subbarao, 2007. "Poverty among the elderly in Sub-Saharan Africa and the role of social pensions," Journal of Development Studies, Taylor & Francis Journals, vol. 43(6), pages 987-1008.
    11. Mohajan, Haradhan, 2013. "Food and nutrition of Bangladesh," MPRA Paper 53527, University Library of Munich, Germany, revised 11 Nov 2013.
    12. Md Ashiq Iqbal & Towfiqul Islam Khan & Tazeen Tahsina, 2008. "Macroeconomic Implications of Social Safety Nets in the Context of Bangladesh," CPD Working Paper 75, Centre for Policy Dialogue (CPD).
    13. Cherrier, Cecile & Ninno, Carlo del & Razmara, Setareh, 2011. "Burkina Faso social safety nets," Social Protection Discussion Papers and Notes 88994, The World Bank.
    14. Zhila Abshari & Glenn P. Jenkins & Chun-Yan Kuo & Mostafa Shahee, 2021. "Progressive Taxation versus Progressive Targeted Transfers in the Design of a Sustainable Value Added Tax System," Sustainability, MDPI, vol. 13(20), pages 1-17, October.
    15. Nanak Kakwani & Kalanidhi Subbarao, 2005. "Ageing and Poverty in Africa and the Role of Social Pensions," World Bank Publications - Reports 8535, The World Bank Group.
    16. Armando Barrientos & Casilda Lasso de la Vega, 2011. "Assessing wellbeing and deprivation in later life: A multidimensional counting approach," Global Development Institute Working Paper Series 15111, GDI, The University of Manchester.
    17. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications - Books, The World Bank Group, number 6582.
    18. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).

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