Franziska Gassmann

Size matters: targeting efficiency and poverty reduction effects of means-tested and universal child benefits in Russia

This article evaluates a policy change from universal to means-tested child allowances in terms of targeting efficiency and poverty reduction, taking the introduction of the latter form of benefits in Russia as a case-study. We use the Russia Longitudinal Monitoring Survey (RLMS) from 2000 to 2004 to analyse the impact of the reforms and to simulate the effects of various means-tested and universal child benefit schemes. Since the reforms in 2000, more children have received benefits and there has been improved targeting of low income households. Nevertheless, both inclusion and exclusion errors are considerable and although the poverty reduction impact has improved marginally since the reforms, its effect on child poverty has been small. Our simulations show that universal schemes achieve additional poverty reductions with regard to all indicators because previously excluded children now also receive a benefit. However, size matters most: only by increasing benefit levels considerably can more substantial poverty reductions be achieved.

Measuring Child Poverty and Well-Being: a literature review

Due to the acknowledgment that children deserve special focus in poverty measurement, the measurement of child poverty and well-being has received increasing attention within the academic and policy arena. The dependence of children on their direct environment for the provision of basic needs, the child-specific requirements in terms of their basic needs and the request for specific information for the formulation of child-focused policies are important reasons calling for the development of child poverty approaches. A range of approaches has been developed in the last decade to meet the need for a measurement tool especially geared to capture children and internalize their specific needs. Each of these approaches differ with respect to their chosen identification mechanism, aggregation methodology and data requirements. Decisions made on all these elements involve a set of advantages and disadvantages and have consequences for the usefulness of the approach to serve a specific purpose or audience. This review provides a structural overview of the current state of literature on the measurement of child poverty and well-being. We conclude that there are no perfect approaches for the measurement of child poverty and that each approach is the result of a specific conceptual framework in accordance with the availability of resources.

Child Poverty in Vietnam: Providing Insights Using a Country-Specific and Multidimensional Model

Despite a wide under-prioritization, the issue of child poverty has received increasing attention worldwide over the last decade. The acknowledgement in Vietnam that child-specific poverty measurement is crucial for poverty efforts directed towards children, and the current lack thereof, instigated the development of a Vietnam child poverty approach. This paper proposes a country-specific, multidimensional and outcome-based approach for the measurement of the incidence, depth and severity of child poverty. It does so at the level of the individual child using household survey data. The development of such an approach at the level of the individual child presents an appropriate alternative for or supplement to the widely used monetary poverty approach, allowing for the use of compatible analytical methods. Findings suggest that 37% of all children in Vietnam live in poverty, with the most pressing areas of deprivation being water, sanitation and leisure. We do not find evidence for a gender bias but do observe a large urban–rural divide, regional disparities and large ethnic inequalities. We argue that this tailor-made approach is a valuable new tool for policy makers and analysts in Vietnam as it enables identification and analysis of poor children, their characteristics and most pressing areas of deprivation within the country’s specific social and cultural context.

The Importance of Choice and Definition for the Measurement of Child Poverty—the case of Vietnam

Increased attention to childrens’ special position within poverty measurement resulted in the development of various child poverty approaches in the last decade. Analysis shows that their development processes involve a similar set of steps and decisions, predominantly taken in the same sequence. However, it also becomes apparent that many of these decisions are made implicitly rather than explicitly, resulting in unclear and non-transparent underlying constructs. Consequently, child poverty approaches often lack a solid and robust foundation and are misinterpreted and misunderstood when used for analytical and policy purposes. This paper distills a generic construction process from the analysis of existing child poverty approaches, presenting a tool for clear and transparent development of such approaches. It is then applied to the case of Vietnam, using household survey data, to illustrate its practical use and develop a Vietnam-specific child poverty approach. Findings suggest that 37% of all children are poor, whilst observing a large rural-urban divide but no significant differences between boys and girls.

Cash Benefits in Low-Income Countries: Simulating the Effects on Poverty Reduction for Senegal and Tanzania

Social cash transfers are increasingly recognized as an effective instrument in the reduction of poverty. The objective of the present study is to model the introduction of basic social cash transfer programmes on household welfare, poverty incidence and depth in two African countries: Senegal and Tanzania. Based on household budget survey data, a set of social cash transfers were modelled in terms of their impact on poverty reduction. In addition, a rough cost estimate of the simulated transfers is provided.

Size Matters: Poverty Reduction Effects of Means-Tested and Universal Child Benefits in Russia

Since the start of the transition, the Russian Federation has experienced a number of regulatory and administrative reforms with respect to the provision child benefits. Besides changes in financing from local to federal budget, the introduction of means testing of previously universal child benefits was the most radical reform in child benefit provision. The current programme has been in place since 2000. Using the cross-section and panel components of the Russia Longitudinal Monitoring Survey (RLMS) from 2000 to 2004, this paper is the first to evaluate whether the targeting efficiency of child benefits has increased during this period and whether benefit receipt adequately assists households in the prevention of (chronic) poverty. We show that incidence and coverage rates under the target population have increased strongly but that leakage remains considerable. Our analysis also shows that the impact of child benefits on family welfare is rather small and benefit receipt helps little to prevent (chronic) poverty. Simulations of four alternative benefit scenarios show that universal child benefits perform slightly better in terms of poverty reduction. Although all tested scenarios perform better than the current scheme, doubling the size of the universal benefit and allocate it universally, would have the largest impact and reduce poverty with 12% at a cost of an estimated 0.025% of GDP.

Defining Vulnerability in Post-Conflict Environments

This paper seeks to conceptualize multi-dimensional vulnerability in a post conflict environment. Such environments are characterized by four types of losses. These include human security, losses of exchange freedom, loss in sense of belonging, and loss of access to markets and services. These losses occur because availability of resources is reduced and even when they are available, individuals and households may not be able to convert them into well-being. Viewing such losses in a uni-dimensional way, perhaps in terms of income or consumption losses, is restrictive. For a comprehensive analysis, therefore, it is necessary to consider vulnerability in terms of multi-dimensional losses. Such an analysis would focus not only on the root causes of vulnerability but also the mechanisms by which a loss is translated into vulnerability. The paper uses Sen’s concepts of entitlements, capabilities and functionings to study the impact of resource loss as well as mechanisms whereby vulnerability is created.

How effective can efficient be? Social assistance in Kosovo and what it means for children:

The primary objective of the majority of social assistance schemes is to reduce poverty, and targeting is often considered an important tool to reach this objective more efficiently and effectively. This paper investigates the efficiency and effectiveness of a targeted benefit scheme that uses a hybrid form of targeting and is subject to a tight budget constraint, namely the social assistance scheme in Kosovo. In recognition of the long-term detrimental and negative consequences of child poverty, we focus particularly on the scheme’s impact on children. A mixed method approach is used to investigate both the economic and non-economic costs and implications. Findings suggest that the social assistance scheme is highly efficient but excludes many poor children. Poverty impacts are limited and the scheme does not resonate well with its recipients. Policy simulations indicate that incremental budget increases have the potential to greatly reduce child poverty when implemented hand-in-hand with amendments to the current social assistance scheme.

To What Extent Does the Existing Safety Net Protect the Poor

The objective of social protection policies is to help families, individuals and communities with the prevention and mitigation of social and economic risks. Social protection policies are a range of public interventions to support the poor and vulnerable, and assist families, individuals and communities to better manage social and economic risks. The objective of this paper is to assess the effectiveness of the Kyrgyz social safety net in protecting the poor using data from the 2008 Kyrgyz Integrated Household Survey (KIHS). The analysis focuses on non-contributory social benefits targeted to poor and vulnerable households. The next section provides an overview of the current system of social benefits and recent reforms. Section three presents the results of the empirical analysis, focusing on coverage, distribution, adequacy and impact of the current non-contributory social transfers. Section four discusses the potential impact of the reform and further challenges.

Measuring Multidimensional Vulnerability in Afghanistan

This paper seeks to develop a methodology towards measuring multidimensional vulnerability in post conflict environments. Vulnerability is defined as the combination of lack of entitlements and exposure to risks (Ahmed & Gassmann, 2009). The occurrence of a shock has varying impact on well-being. For some households, there is little or no decrease in well-being, whereas for others, there is a high fall in well-being, making households vulnerable. The occurrence of a conflict reduces household functionings, a loss that is caused by not only a fall in entitlements but also a breakdown in the process by which entitlements are converted into functionings. The former, lack of entitlements, leads to internal defenselessness and manifests itself in terms of reduced resilience. The latter, exposure to risk, results from external defenselessness, which manifests itself in terms of heightened fragility. Using data from the 2005 National Risk and Vulnerability Assessment (NRVA), we apply the framework to Afghanistan and develop a profile of households in Afghanistan that experience multidimensional vulnerability. The paper argues that while lack of entitlements is pervasive in Afghanistan, majority of households suffer from a combination of exposure to risk and lack of entitlements.