Social assistance in Albania: decentralization and targeted transfers

100 Pages·1998·0.36 MB·English

by  Harold Alderman

Social Assistance in Albania :
title: Decentralization and Targeted Transfers
LSMS Working Paper ; No. 134
author: Alderman, Harold.
publisher: World Bank
isbn10 | asin: 0821342452
print isbn13: 9780821342459
ebook isbn13: 9780585260990
language: English
Public welfare--Albania, Albania--Social
subject policy, Poor--Services for--Albania,
Albania--Economic conditions--1992-
publication date: 1998
lcc: HC402.Z9P632 1998eb
ddc: 361.6/094965
Public welfare--Albania, Albania--Social
policy, Poor--Services for--Albania,
subject:
Albania--Economic conditions--1992-
Page i
Social Assistance in Albania
Page ii
The Living Standards Measurement Study
The Living Standards Measurement Study ( ) was established by
LSMS
the World Bank in 1980 to explore ways of improving the type and
quality of household data collected by statistical offices in developing
countries. Its goal is to foster increased use of household data as a
basis for policy decisionmaking. Specifically, the is working to
LSMS
develop new methods to monitor progress in raising levels of living,
to identify the consequences for households of past and proposed
government policies, and to improve communications between survey
statisticians, analysts, and policymakers.
The Working Paper series was started to disseminate intermediate
LSMS
products from the Publications in the series include critical
LSMS.
surveys covering different aspects of the data collection program
LSMS
and reports on improved methodologies for using Living Standards
Survey ( data. More recent publications recommend specific
LSS)
survey, questionnaire, and data processing designs and demonstrate
the breadth of policy analysis that can be carried out using data.
LSS
Page iii
LSMS Working Paper
Number 134
Social Assistance in Albania
Decentralization and Targeted Transfers
Harold Alderman
The World Bank
Washington, D.C.
Copyright © 1998
The International Bank for Reconstruction and Development/
THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing July 1998
To present the results of the Living Standards Measurement Study with the least
possible delay, the typescript of this paper has not been prepared in accordance with the
procedures appropriate to formal printed texts, and the World Bank accepts no
responsibility for errors. Some sources cited in this paper may be informal documents
that are not readily available.
The findings, interpretations, and conclusions expressed in this paper are entirely those
of the author(s) and should not be attributed in any manner to the World Bank, to its
affiliated organizations, or to members of its Board of Executive Directors or the
countries they represent. The World Bank does not guarantee the accuracy of the data
included in this publication and accepts no responsibility whatsoever for any
consequence of their use.
The boundaries, colors, denominations, and other information shown on any map in
this volume do not imply on the part of the World Bank Group any judgment on the
legal status of any territory or the endorsement or acceptance of such boundaries.
The material in this publication is copyrighted. Requests for permission to reproduce
portions of it should be sent to the Office of the Publisher at the address shown in the
copyright notice above. The World Bank encourages dissemination of its work and will
normally give permission promptly and, when the reproduction is for noncommercial
purposes, without asking a fee. Permission to copy portions for classroom use is
purposes, without asking a fee. Permission to copy portions for classroom use is
granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive,
Danvers, Massachusetts 01923, U.S.A.
ISBN: 0-8213-4245-2
ISSN: 0253-4517
Harold Alderman is principal economist in the Development Research Group of the
World Bank's Development Economics Department.
Library of Congress Cataloging-in-Publication Data
Alderman, Harold, 1948-
Social assistance in Albania decentralization and targeted transfers Harold Alderman.
p. cm. (LSMS working paper ; no. 134)
Includes bibliographical references (p.).
ISBN 0-8213-4245-2
1. Public welfareAlbania. 2. AlbaniaSocial policy. 3. Poor
Services forAlbania. 4. AlbaniaEconomic conditions1992-
I. Title. II. Series.
HC402.Z9P632 1998
361.6'094965dc21 98-23193
CIP
Page v
Contents
Foreword vii
Abstract ix
Acknowledgments xi
1. Introduction 1
2. Key Concepts 2
2.1 Some Advantages and Disadvantages to 2
Decentralization
2.2 Entitlements and Block Grants 3
2.3 Indicator Targeting 4
3. Social Assistance Reform in Albania 6
4. Data 8
5. Results 10
5.1 The Targeting Efficiency of the Ndihme Ekonomika 10
Program
5.2 The Effect of Decentralization on Household 26
Welfare
6. Conclusions 31
Appendix Tables:
Appendix Table 1: Means and Standard Deviation of Key 34
Variables
Appendix Table 2: Income Prediction Equations 35
Endnotes 37
References 39
Page vii
Foreword
The decentralization of service delivery has the potential to improve
efficiency by allowing decisions to be made closer to the source of
information on which they are based. It may also create incentives for
local administrators to use such information. However,
decentralization also adds additional levels of resource allocation -
from the center to local jurisdiction as well as subsequently to the
ultimate recipients of the services. The net impact on poverty is
affected by the targeting efficiency at all nodes. At this time there is
little evidence as to whether decentralization of safety nets is an
effective means of increasing equity.
This study uses a household survey collected by the Ministry of Labor
and Social Protection in Albania during 1996 to assess the
effectiveness of the distribution of social assistance by local officials.
The study complements other efforts by the Development Research
Group to explore the delivery of decentralized services.
PAUL COLLIER, DIRECTOR
DEVELOPMENT RESEARCH GROUP