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188 Pages·2001·8.15 MB·English

by  World Bank Group

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Administering
Targeted Social
Programs
in Latin America
From Platitudes to Practice
WORLDB ANK
REGIONAAL ND
SECTORASL TUDIES

Administering
Targeted Social
Programs
in Latin America
From Platitudes to Practice
MARGAREET.G ROSH
The World Bank
Washington, D.C.
© 1994 The International Bank for Reconstruction
and Development / The World Bank
1818 H Street, N.W., Washington, D.C. 20433
All rights reserved
Manufactured in the United States of America
First printing January 1994
The World Bank Regional and Sectoral Studies series provides an outlet for work
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formulation.
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66, avenue d'Iena, 75116 Paris, France.
Margaret E. Grosh is an economist with the Poverty and Human Resources
Division of the Policy Research Department at the World Bank.
Cover design by Sam Ferro
Library of Congress Cataloging-in-Publication Data
Grosh, Margaret E.
Administering targeted social programs in Latin America: from
platitudes to practice / Margaret E. Grosh.
p. cm.
Includes bibliographical references.
ISBN 0-8213-2620-1
1. Human services-Latin America. 2. Latin America-Social
policy. I. Title.
HV1IO.5.G76 1994
361'.0068-dc2O 93-40676
CIP
Contents
Acknowledgments ix
Chapter 1 Introduction I
Chapter 2 In Theory: Costs and Benefits of Targeting 7
What Is Targeting? 7
Benefits of Targeting 7
Costs of Targeting 8
Chapter 3 Methods for Judging Outcomes 15
Issues in Measuring Targeting Accuracy 15
Issues in Quantifying Administrative Costs 26
Methods Used in This Study 29
Chapter 4 In Practice: Program Costs and Outcomes 33
An Administrative Taxonomy of Targeting Mechanisms 33
Targeting Outcomes 35
Administrative Costs 44
Linking Administrative Costs and Incidence 47
Outlier Programs 51
Discussion and Conclusions 53
Annex: Data Sources for the Figures 55
Chapter 5 Individual Assessment Mechanisms 59
Means Tests 60
Social Worker Evaluation 74
Proxy Means Test 78
Gender of Household Head 83
Nutritional Status or Risk 85
Conclusions 91
vi Administering Targeted Social Programs in Latin America
Chapter 6 Targeting by Group Characteristic and Geographic Area 95
Group Characteristic Mechanisms 95
Geographic Targeting 96
Conclusions 109
Chapter 7 Self-Targeting Mechanisms 111
The Concept and Key Factors 111
In Practice 116
Conclusions 128
Chapter 8 Targeting and Universal Services 131
Incidence of Universally Provided Programs 131
Coverage Differences 139
Differences in Quality 141
Unit-Costs Differentials 144
Chapter 9 Summary and Conclusions 151
When Is It Appropriate to Target? 151
What Are the Basic Targeting Mechanisms? 152
How Well Do the Different Mechanisms Work? 152
What Do the Options Cost? 153
How Do We Judge Different Options? 154
What Are the Lessons to be Learned from Specific Mechanisms? 155
How Do We Select and Design an Option? 158
What Has This Review of the Experience from
Targeted Programs Taught Us? 159
Bibliography 165
Boxes
3.1 Foster-Greer-Thorbecke Poverty Measures 25
5.1 Cash Transfers versus Food Stamps . 66
Figures
3.1 Program Outcomes 16
4.1 Share of Benefits Accruing to Poorest 40 Percent by Sector 39
4.2 Share of Benefits Accruing to Poorest 40 Percent by
Country and Sector 40
4.3 Share of Benefits Accruing to Poorest 40 Percent
by Targeting Mechanism 41
4.4 Total Administrative Costs as Share of Total Costs
by Targeting Mechanism 44
4.5 Targeting Costs as Share of Total Costs by Targeting Mechanism 45
4.6 Total Administrative Cost Share by Type of Program 47
4.7 Share of Benefits Accruing to Poorest 40 Percent by Type of Program 48
Contents vii
4.8 Total Administrative Cost Share and Benefits Accruing
to Poorest 40 Percent 49
4.9 Targeting Cost Share and Benefits Accruing to Poorest 40 Percent 50
4.10 Share of Expenditures Benefiting Poorest 40 Percent
by Targeting Mechanism 51
4.11 Share of Expenditures Benefiting Poorest 40 Percent
by Type of Program 52
Tables
1.1 Inventory of Programs 3
3.1 Incidence of Two Programs: Population Quintiles 17
3.2 Participation Rates for Two Programs: Population Quintiles 19
3.3 Incidence of Lima's Public Health Care Utilization under
Alternate Quintile Definitions 21
3.4 Distribution of Students in Japanese Public Education by
Current and Lifetime Cohort Quintiles 23
3.5 Weighing Type I and II Errors 26
4.1 Taxonomy of Targeting Mechanisms 34
4.2 Administrative Costs and Incidence Outcomes by Targeting
Mechanism 36
4.3 Participation Rates in Two Clinic-based Programs 42
4.4 Administrative Costs and Error Rates in U.S. Welfare
Programs, 1985 54
5.1 Comparison of Individual Assessment Mechanisms 62
5.2 Options for Verifying Information in Individual Assessment
Mechanisms 65
5.3 Colombian Student Loan Incidence 71
5.4 Costa Rican Priority Groups for Pensions for the Elderly Indigent 77
5.5 Costa Rican University Tuition Waivers 81
5.6 Proxy Means Test Simulations 83
5.7 Peru: PANFAR's Nutrition Risk Factors 87
5.8 CEN-CENAI Psychosocial Risk Factors 90
6.1 Leakage and Undercoverage for State Level Targeting in Three
Countries 97
6.2 Mexican Leakage and Undercoverage Rates in Three Targeting Units 97
6.3 Honduran FHIS Planned versus Committed Resources
by Municipal Poverty Category, April 1990-September 1991 99
6.4 Chilean PAE: Selection Criteria 104
6.5 Costa Rican School Lunch Program 107
7.1 Incidence of Public Health Services and Add-on Programs 122
7.2 Participation Rates in the PNAC in Chile 124
7.3 Increases in Maternal and Child Health Activities after the Introduction
of the Honduran Bono Materno Infantil 126
8.1 Incidence of General Food Subsidies 132
viii Administering Targeted Social Programs in Latin America
8.2 Incidence of Universally Provided Services by Household Quintiles 134
8.3 Incidence of Universally Provided Services by Individual Quintiles 138
8.4 Percentage of Those Ill or Injured Seeking Medical Care 140
8.5 School Enrollment Rates by Welfare Group 141
8.6 Chile: Spanish Scores in Municipal Schools by Municipal
Wealth and Size 143
8.7 Jamaica: Secondary Enrollment by Track and Quintile 144
8.8 Bolivia: Unit-Costs of Primary Health Care 146
8.9 Jamaica: Per Pupil Recurrent Expenditures by School Location
and Type 148
9.1 Selecting Targeting Options 160