Kalanidhi Subbarao

Safety net programs and poverty reduction: lessons from cross-country experience.

The need for social safety nets has become a key component of poverty reduction strategies. Over the past three decades several developing countries have launched a variety of programs, including cash transfers, subsidies in-kind, public works, and income-generation programs. However, there is little guidance on appropriate program design, and few studies have synthesized the lessons from widely differing country experiences. This report fills that gap. It reviews the conceptual issues in the choice of programs, synthesizes cross-country experience, and analyzes how country- and region-specific constraints can explain why different approaches are successful in different countries.

Public works as a safety net : design, evidence, and implementation

From the Victorian poor laws in nineteenth century Britain to the post-war recovery of the 1940s, public works programs have historically played an important role as countercyclical interventions to address seasonal and short-term unemployment. In recent times, the role of public works has broadened, because globalization and economic integration, while expanding opportunities for all, has also increased the exposure to and transmission of risk, especially to the poorest. Public works are now being used increasingly across the developing world as an essential part of the social protection toolkit to respond to risk and persistent poverty. And recent flagship public works programs in Argentina, Ethiopia, India, and elsewhere have sparked even greater interest in their effective use in other developing-country contexts. This book provides a comprehensive overview of public works programs as a safety net instrument and their impacts. It also provides a practical review of program design features and implementation methods, and a compendium of operational and how-to knowledge, combining technical expertise with ongoing country experiences. The book thus fills a major knowledge gap in this field. To date, much attention has been devoted to making the case for improved public works, with less attention paid to the how-to aspects. The target audience of the book includes policy makers and practitioners in national and sub-national governments, donors and international organizations, and nongovernmental organizations, particularly those working in countries where a new wave of social protection interventions has been seen in recent years (e.g., Ethiopia, Ghana, Rwanda) or is likely to emerge in the future (e.g., countries emerging from the Arab Spring in the Middle East, like the Arab Republic of Egypt).

The Crisis Hits Home : Stress-Testing Households in Europe and Central Asia

The Europe and Central Asia (ECA) region has been hit by a crisis on multiple fronts. Countries in ECA are facing major, interrelated, external macro-financial shocks. The first is the global growth slowdown leading to falling export market demand. In addition, the prospects for inflows of remittances to low-income countries have been downgraded as economic activity in migrant host countries has declined. The second is the financial deleveraging by major banks and other financial institutions in developed economies, which has markedly reduced the availability, and increased the cost, of external finance across public, corporate, and financial sectors. The third is the recent commodity price changes, which have involved a reversal of much of the commodity price boom of 2007 and 2008. The main objective of the study is to understand the impact of these macroeconomic shocks on household well-being. In particular, it seeks to understand the key macroeconomic shocks confronted by the region and the impact of such shocks on household welfare, including the effect on household income flows, consumption levels, and liabilities. It will also assess possible strategies to cope with the crisis and manage the adverse social impact.

Poverty among the elderly in Sub-Saharan Africa and the role of social pensions

Abstract Drawing on household survey information, this study delineates the poverty profile of the elderly in 15 low-income sub-Saharan African countries which include countries with a high and low prevalence of the HIV-AIDS pandemic. The study shows that the poverty situation of the elderly living with children and the elderly-headed households is much worse than the average in many countries. The impact of providing a social pension to the elderly on group-specific and national poverty head-count ratios and poverty gap ratios, and its fiscal implications, are analysed. Simulating various plausible eligibility criteria and benefit levels, the study concludes that while the case for an universal (untargeted) social pension is weak, substantial welfare gains can be obtained at a low cost with a social pension targeted to the poor among the elderly.

Namibia's Social Safety Net: Issues and Options for Reform

This report describes Namibias social safety net and issues and options for reform. In Namibia, the extended family is a big shock absorber: informal sharing arrangements between and within households are Namibias unique sources of strength. Grandparents contribute enormously to the continuation of this safety net by letting the entire family share their social pension in times of need, and by looking after their grandchildren while parents are away or are AIDS-infected. Yet, these informal safety nets are not robust during periods of drought, and are strained in normal times due to the high levels of unemployment and the growing burden of children of AIDS-infected parents. Of all the formal safety net programs, the social pension program and the disability grant touch the lives of the poor more than other programs. Namibia is one of the few countries in Africa to administer a social pension program for every individual after attaining the age of 60. The three main grants for needy children also suffer from regional asymmetry and are heavily urban-biased. The pro-urban and middle class bias appear highest for in-kind programs, viz., school feeding programs and shelter/housing programs. Up gradation of squatter settlements and single-room apartments, and provision water and sanitation facilities are a priority; public resources need to be reallocated to those programs of direct relevance to the rural poor. The country has many other transfer programs including subsidization of welfare homes and remission of rent for apartments with overdue rents. The impact of these programs on poverty appears at best dubious. Elimination of these programs will release the administrative resources needed to implement social pensions and disability grants more effectively. The resource savings may contribute to overall fiscal sustainability of programs. The principal conclusion of this study is while the informal safety net is unable to cope with the increasing demands, the formal programs are too many and poorly administer.