Publication: How to Target Households in Adaptive Social Protection Systems?: Relative Efficiency of Proxy Means Test and Household Economy Analysis in Niger
Loading...
Date
2016-10
ISSN
Published
2016-10
Author(s)
Editor(s)
Abstract
Proxy Means Test (PMT) and the Household Economy Analysis (HEA) are widely used methods to target chronically poor households and those suffering from food crises respectively. Using panel data from Niger, this study provides the first empirical evidence on the relative efficiency of these methods in identifying households suffering from permanent or seasonal deprivations. Results show limited overlap between households selected by each method. The PMT performs better in targeting chronically poor households, while HEA performs better in targeting seasonal food insecure households. The study also explores the extent to which these methods can be improved, used and potentially combined to target households as part of ASP systems. Results show that the HEA formula could be further improved to target seasonally food insecure households, including through a regression model estimating food insecurity, and a principal component analysis (PCA) model. Combinations of PMT with methods such as HEA, PCA, or a food insecurity formula may be considered to identify households suffering from chronic poverty and seasonal food insecurity as part of an efficient and scalable ASP system. Harmonizing data collection tools of PMT and HEA users would serve as a crucial building block towards a unified registry and play a key role in improving the efficiency of ASP systems.
Link to Data Set
Citation
“Schnitzer, Pascale. 2016. How to Target Households in Adaptive Social Protection Systems?: Relative Efficiency of Proxy Means Test and Household Economy Analysis in Niger. Social Protection and Labor Discussion Paper;No. 1612. © World Bank. http://hdl.handle.net/10986/25387 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication How to Target Households in Adaptive Social Protection Systems? Evidence from Humanitarian and Development Approaches in Niger(Taylor and Francis, 2019-12-06)The methods used to identify the beneficiaries of programs aiming to address persistent poverty and shocks are subject to frequent policy debates. Relying on panel data from Niger, this report simulates the performance of various targeting methods that are widely used by development and humanitarian actors. The methods include proxy-means testing (PMT), household economy analysis (HEA), geographical targeting, and combined methods. Results show that PMT performs more effectively in identifying persistently poor households, while HEA shows superior performance in identifying transiently food insecure households. Geographical targeting is particularly efficient in responding to food crises, which tend to be largely covariate. Combinations of geographical, PMT, and HEA approaches may be used as part of an efficient and scalable adaptive social protection system. Results motivate the consolidation of data across programs, which can support the application of alternative targeting methods tailored to program-specific objectives.Publication Efficiency, Legitimacy and Impacts of Targeting Methods(World Bank, Washington, DC, 2018-04-18)The methods to select safety net beneficiaries are the subject of frequent policy debates. This paper presents the results from a randomized experiment analyzing how efficiency, legitimacy, and short-term program effectiveness vary across widely used targeting methods. The experiment was embedded in the roll-out of a national cash transfer program in Niger. Eligible villages were randomly assigned to have beneficiary households selected through community-based targeting, a proxy-means test, or a formula designed to identify the food-insecure. Proxy-means testing is found to outperform other methods in identifying households with lower consumption per capita. The methods perform similarly against other welfare benchmarks. Legitimacy is high across all methods, but local populations have a slight preference for formula-based approaches. Manipulation and information imperfections are found to affect community-based targeting, although triangulation across multiple selection committees mitigates the related risks. Finally, short-term program impacts on food security are largest among households selected by proxy-means testing. Overall, the differences in performance across targeting methods are small relative to the overall level of exclusion stemming from limited funding for social programs.Publication Effectiveness of Targeting Mechanisms Utilized in Social Protection Programs in Bolivia(World Bank, Washington, DC, 2015-09)As part of the 2006-2011 National Development Plan, the Plurinational State of Bolivia launched two cash transfer programs and one youth labor training program aimed at promoting the accumulation of households’ human capital: the Juancito Pinto Educational Grant, the Juana Azurduy Mother-Child Grant, and my first decent job. The objective of this paper is to analyze the effectiveness of the targeting mechanisms utilized in these programs. Based on the information provided by the Ongoing Household Survey, we estimate the mechanisms’ potential inclusion and exclusion errors. The results permit us to suggest that the categorical selection mechanisms used in the three programs are effective in reaching the poorest population, although they present distinct levels of inclusion and exclusion errors associated with both the design and implementation problems of the particular mechanism utilized.Publication Targeting for Social Safety Nets(World Bank, Washington, DC, 2021-10)Proxy-Means Testing (PMT) and Community-Based Targeting (CBT) are among the most widely used methods for poverty targeting in low-income settings. This paper analyzes household data from nine programs implemented in the Sahel region using a harmonized approach to compare PMT and CBT selection as conducted in practice, once geographical targeting has been applied. The results show that the targeting performance measured depends critically on the definition of the targeting objectives, share of beneficiaries selected, and indexes used to evaluate targeting. While PMT performs better in reaching the poorest households based on per capita consumption, it differs little from CBT, or a random or universal allocation of benefits when distances to poverty lines are considered. When aiming to identify food insecure households, most PMT and CBT targeting schemes perform no better than a random allocation of benefits. On the other hand, targeting costs represent only a small share of budgets. Overall, the results emphasize the need to study programs as implemented in practice instead of relying on simulations of targeting performance, as widely used by practitioners and academics. Taken together, the findings suggest that while there may be a need to select households resulting from budget constraints, PMT and CBT contribute little to poverty or food insecurity reduction efforts in poor and homogeneous settings.Publication Climate-responsive Social Protection(World Bank, Washington, DC, 2012-03)In the years ahead, development efforts aiming at reducing vulnerability will increasingly have to factor in climate change, and social protection is no exception. This paper sets out the case for climate?responsive social protection and proposes a framework with principles, design features, and functions that would help Social Protection (SP) systems evolve in a climate?responsive direction. The principles comprise climate?aware planning; livelihood?based approaches that consider the full range of assets and institutions available to households and communities; and aiming for resilient communities by planning for the long term. Four design features that can help achieve this are: scalable and flexible programs that can increase coverage in response to climate disasters; climate?responsive targeting systems; investments in livelihoods that build community and household resilience; and promotion of better climate risk management.
Users also downloaded
Showing related downloaded files
Publication Commodity Markets Outlook, April 2024(Washington, DC: World Bank, 2024-04-25)The conflict in the Middle East has been exerting upward pressures on prices of key commodities, notably oil and gold. High commodity prices, despite relatively subdued global GDP growth, suggest some countervailing forces offsetting tepid demand, such as heightened geopolitical strains and increasing metals-intensive investments in the energy transition. Commodity prices are forecast to soften marginally in 2024 and 2025 but remain substantially above pre-pandemic levels. Unlike most other prices, crude oil prices are expected to increase in 2024, mainly reflecting geopolitical tensions. The key risk to commodity price projections relates to the possibility of a broadening of the Middle East conflict, which could lead to significantly higher oil prices, thus reigniting global inflationary pressures. Meanwhile, food insecurity worsened markedly last year, reflecting elevated food prices and armed conflicts around the world. Should such conflicts worsen, global hunger could rise substantially. Heightened uncertainty around the commodity price outlook underscores the importance of forecast accuracy. A Special Focus section evaluates the performance of five approaches used to forecast prices of three commodities—aluminum, copper, and oil. It concludes that there is no “one-approach-beats-all.” Macroeconometric models tend to be more accurate at longer horizons, mainly due to their ability to account for the impact of structural changes. It is, however, critical to incorporate judgment and information that cannot be accounted for by statistical approaches. This highlights the importance of employing a wide range of approaches when forecasting commodity prices.Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication Growth in the Middle East and North Africa(Washington, DC: World Bank, 2024-10-16)This issue of the MENA Economic Update presents a summary of recent macroeconomic trends, including an update of the conflict centered in Gaza and its regional spillovers, alongside an analysis of factors that shape the long-term growth potential of the region, with special attention to the persistent effects of conflicts. A modest uptick in growth is forecast for 2024, which nonetheless masks important disparities within the region. The acceleration is driven by the high-income oil exporters, while growth is expected to decelerate among developing MENA countries, both developing oil exporters and developing oil importers. Despite current challenges, the region can dramatically boost growth by better allocating talent in the labor market, leveraging its strategic location, and promoting innovation. Closing the gender employment gap, rethinking the footprint of the public sector, and facilitating technology transfers through trade under enhanced data quality and transparency can help the region leap toward the frontier. Peace is a pre-condition for catching up to the frontier, as conflict can undo decades of progress, delaying economic development by generations.Publication Commodity Markets Outlook, October 2024(Washington, DC: World Bank, 2024-10-29)Commodity prices are expected to decrease by 5 percent in 2025 and 2 percent in 2026. The projected declines are led by oil prices but tempered by price increases for natural gas and a stable outlook for metals and agricultural raw materials. The possibility of escalating conflict in the Middle East represents a substantial near-term upside risk to energy prices, with potential knock-on consequences for other commodities. However, over the forecast horizon, longer-term dynamics—including decelerating global oil demand, diversifying oil production, and ample oil supply capacity—suggest sizable downside risks to oil prices, especially if OPEC+ unwinds its latest production cuts. There are also dual risks to industrial commodity demand stemming from economic activity. On the one hand, concerted stimulus in China and above-trend growth in the United States could push commodity prices higher. On the other, weaker-than-anticipated global industrial activity could dampen them. Following several overlapping global shocks in the early 2020s, which drove parallel swings in commodity prices, commodity markets appear to be departing from a period of tight synchronization. A Special Focus analyzes commodity price synchronization over time and considers the relative importance across commodity cycles of a wide range of demand and supply shocks, including global demand shocks and shocks specific to different commodity markets. It concludes that, while supply shocks were the dominant commodity price driver in the early 2000s and around the global financial crisis, post-pandemic price movements have been more substantially shaped by commodity-specific shocks, such as those related to conflicts.Publication Morocco Country Climate and Development Report(World Bank, Washington, DC, 2022-10)Climate change poses a serious threat to Morocco’s economic growth and human potential but with the right investments and policies in place, a more sustainable future is possible. A new World Bank diagnostic tool, The Country Climate and Development Report explores the linkages between climate and development and identifies priority actions to build resilience and reduce carbon emissions, while supporting economic growth and reducing poverty. The Morocco climate report identifies three priority areas – tackling water scarcity and droughts; enhancing resilience to floods; and decarbonizing the economy. The report also looks at the cross-cutting issues of financing, governance, and equity. The underlying message in the report is that if Morocco invests in climate action now and takes the appropriate policy measures, the benefits will be immense. Ambitious climate actions will help to revitalize rural areas, create new jobs and position the Kingdom as a green industrial hub, while also helping Morocco to reach its broader development goals. The report identifies key pathways to decarbonize the economy, reducing reliance on fossil fuels and massively deploying solar and wind power. The report estimates that total investment needed to put Morocco firmly on a resilient and low carbon pathway by the 2050s would be around $78 billion in present dollar value. The good news is that these investments could be gradual and that with the appropriate policies in place, the private sector could shoulder much of the cost.