Publication:
Income Support for the Poorest : A Review of Experience in Eastern Europe and Central Asia

Loading...
Thumbnail Image
Files in English
English PDF (5.07 MB)
1,624 downloads
English Text (753.02 KB)
205 downloads
Published
2014-06-26
ISSN
Date
2014-07-14
Author(s)
Tesliuc, Emil
Pop, Lucian
Editor(s)
Abstract
Most countries in the world aspire to protect poorest and most vulnerable families from destitution and thus provide some type of income support to those who are very poor. These programs are often layered into social policy along with other transfers, subsidies, or services. The way to best provide such last-resort income support (LRIS) and its role in wider social policy is a matter of some complexity, much experimentation, and much study. In Eastern Europe and Central Asia, 28 of 30 countries operate LRIS programs. This study examines the experience of LRIS programs in Eastern Europe and Central Asia. It documents the outcomes of such programs throughout the region in terms of expenditure, coverage, targeting, and simulated effects on poverty and inequality. For a subset of countries, the study documents and draws lessons from the design and implementation arrangements - institutional frameworks and administrative structures, eligibility determination, benefits and conditions, governance mechanisms, and administrative costs on the basis of information gleaned during in-depth country engagements that have extended a decade or more (Albania, Armenia, Bulgaria, the Kyrgyz Republic, Lithuania, and Romania) and other detailed work available from newer or more specific engagements (Croatia, the Russian Federation, Serbia, Ukraine, and Uzbekistan). The report is organized as follows: chapter one gives introduction. Chapter two provides an overview of the role of LRIS in the wider social assistance policies of Eastern Europe and Central Asia. Chapter three looks into the institutional and financing arrangements of the LRIS programs in the case study countries. Chapter four covers one of the two most charged issues in narrowly targeted LRIS programs - how eligibility is determined. Chapter five takes up the other charged issue in these programs - the benefit formula and how labor disincentives can be held in check with the guaranteed minimum income design. Chapter six focuses on two key elements of control and accountability systems in LRIS programs - modern management information systems and strategies to reduce error, fraud, and corruption. Chapter seven examines the administrative costs of the LRIS programs in the case study countries. Chapter eight highlights and summarizes the lessons.
Link to Data Set
Citation
Tesliuc, Emil; Pop, Lucian; Grosh, Margaret; Yemtsov, Ruslan. 2014. Income Support for the Poorest : A Review of Experience in Eastern Europe and Central Asia. Directions in Development--Human Development;. © http://hdl.handle.net/10986/18886 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    Democratic Republic of Congo Urbanization Review
    (Washington, DC: World Bank, 2018) World Bank; Ranarifidy, Dina
    The Democratic Republic of Congo has the third largest urban population in sub-Saharan Africa (estimated at 43% in 2016) after South Africa and Nigeria. It is expected to grow at a rate of 4.1% per year, which corresponds to an additional 1 million residents moving to cities every year. If this trend continues, the urban population could double in just 15 years. Thus, with a population of 12 million and a growth rate of 5.1% per year, Kinshasa is poised to become the most populous city in Africa by 2030. Such strong urban growth comes with two main challenges – the need to make cities livable and inclusive by meeting the high demand for social services, infrastructure, education, health, and other basic services; and the need to make cities more productive by addressing the lack of concentrated economic activity. The Urbanization Review of the Democratic Republic of Congo argues that the country is urbanizing at different rates and identifies five regions (East, South, Central, West and Congo Basin) that present specific challenges and opportunities. The Urbanization Review proposes policy options based on three sets of instruments, known as the three 'I's – Institutions, Infrastructures and Interventions – to help each region respond to its specific needs while reaping the benefits of economic agglomeration The Democratic Republic of the Congo is at a crossroads. The recent decline in commodity prices could constitute an opportunity for the country to diversify its economy and invest in the manufacturing sector. Now is an opportune time for Congolese decision-makers to invest in cities that can lead the country's structural transformation and facilitate greater integration with African and global markets. Such action would position the country well on the path to emergence.
  • Publication
    Strengthening Competitiveness In Bangladesh—Thematic Assessment
    (Washington, DC: World Bank, 2016-07-15) Kathuria, Sanjay; Malouche, Mariem Mezghenni; Kathuria, Sanjay; Malouche, Mariem Mezghenni
    This is volume 2 of a three-volume publication on Bangladesh’s trade prospects. Bangladesh’s ambition is to build on its very solid growth and poverty reduction achievements, and accelerate growth to become a middle income country by 2021, and share prosperity more widely amongst its citizens. This includes one of its greatest development challenges: to provide gainful employment to the over 2 million people that will join the labor force each year over the next decade. Moreover, only 54.1 million of its 94 million working age people are employed. Bangladesh needs to use its labor endowment even more intensively to increase growth and, in turn, to absorb the incoming labor. The Diagnostic Trade Integration Study identifies the following actions centered around four pillars to sustain and accelerate export growth: (1) breaking into new markets through a) better trade logistics to reduce delivery lags ; as world markets become more competitive and newer products demand shorter lead times, to generate new sources of competitiveness and thereby enable market diversification; and b) better exploitation of regional trading opportunities in nearby growing and dynamic markets, especially East and South Asia; (2) breaking into new products through a) more neutral and rational trade policy and taxation and bonded warehouse schemes; b) concerted efforts to spur domestic investment and attract foreign direct investment, to contribute to export promotion and diversification, including by easing the energy and land constraints; and c) strategic development and promotion of services trade; (3) improving worker and consumer welfare by a) improving skills and literacy; b) implementing labor and work safety guidelines; and c) making safety nets more effective in dealing with trade shocks; and (4) building a supportive environment, including a) sustaining sound macroeconomic fundamentals; and b) strengthening the institutional capacity for strategic policy making aimed at the objective of international competitiveness to help bring focus and coherence to the government’s reform efforts. This second volume provides in-depth analysis across seven cross-cutting themes that underpin most of the findings of pillars 1 and 2 above.
  • Publication
    An Investment Framework for Nutrition
    (Washington, DC: World Bank, 2017-04-12) Shekar, Meera; Kakietek, Jakub; Dayton Eberwein, Julia; Walters, Dylan
    The report estimates the costs, impacts and financing scenarios to achieve the World Health Assembly global nutrition targets for stunting, anemia in women, exclusive breastfeeding and the scaling up of the treatment of severe wasting among young children. To reach these four targets, the world needs $70 billion over 10 years to invest in high-impact nutrition-specific interventions. This investment would have enormous benefits: 65 million cases of stunting and 265 million cases of anemia in women would be prevented in 2025 as compared with the 2015 baseline. In addition, at least 91 million more children would be treated for severe wasting and 105 million additional babies would be exclusively breastfed during the first six months of life over 10 years. Altogether, achieving these targets would avert at least 3.7 million child deaths. Every dollar invested in this package of interventions would yield between $4 and $35 in economic returns, making investing in early nutrition one of the best value-for-money development actions. Although some of the targets—especially those for reducing stunting in children and anemia in women—are ambitious and will require concerted efforts in financing, scale-up, and sustained commitment, recent experience from several countries suggests that meeting these targets is feasible. These investments in the critical 1000 day window of early childhood are inalienable and portable and will pay lifelong dividends – not only for children directly affected but also for us all in the form of more robust societies – that will drive future economies.
  • Publication
    At a Crossroads
    (World Bank, Washington, DC, 2017-05-02) Ferreyra, Maria Marta; Avitabile, Ciro; Botero Álvarez, Javier; Haimovich Paz, Francisco; Urzúa, Sergio
    Higher education (HE) has expanded dramatically in Latin America and the Caribbean (LAC) since 2000. While access became more equitable, quality concerns remain. This volume studies the expansion, as well as HE quality, variety and equity in LAC. It investigates the expansion’s demand and supply drivers, and outlines policy implications.
  • Publication
    Leveraging the Potential of Argentine Cities
    (Washington, DC: World Bank, 2016-10-18) Muzzini, Elisa; Eraso Puig, Beatriz; Anapolsky, Sebastian; Lonnberg, Tara; Mora, Viviana
    Argentina’s path to economic prosperity is through efficient, sustainable and economically thriving cities. Not only are cities a spatial concentration of people, but also they generate agglomeration economies by concentrating ideas, talent, and knowledge. Argentina is one of the most urbanized countries in Latin America, with 90 percent of Argentine people currently living in cities. Argentina’s cities are geographically and economically diverse, and its largest urban area – Metropolitan Buenos Aires – is one of Latin America’s urban giants. Argentine cities need to address three main challenges to leverage their economic potential. Argentina’s current patterns of urban development are characterized by (a) high primacy and unbalanced regional development, (b) limited global economic footprint of urban economies, with employment concentrated in nontradable and resource intensive sectors, and (c) unplanned low-density urban expansion. Argentine cities thus face the challenges of moving toward a more balanced regional development, transitioning from local to global cities, and from urban sprawl to articulated densities to take full advantage of the benefits of agglomeration economies. To address these challenges, Argentina needs the leadership of the federal government; the coordinating power of provinces; and the capacity of empowered, financially sound municipalities. Argentine cities also need system-wide policy reforms in areas such as territorial planning, municipal finance, housing, urban transport, and local economic development. Leveraging the Potential of Argentine Cities: A Framework for Policy Action aims to deepen our empirical understanding of the interplay between urbanization and agglomeration economies in Argentina by asking the following: (a) What are the main trends and spatial patterns of Argentina’s urbanization that underlie agglomeration economies?, (b) Are urban policies leveraging or undermining the benefits of agglomeration economies?, and (c) Are Argentine cities fully reaping the benefits of agglomeration economies to deliver improvements in prosperity and livability? By addressing such questions and exploring their implications for action, this study provides a conceptual framework, empirical data, and strategic directions for leveraging the potential of Argentine cities.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    For Protection and Promotion : The Design and Implementation of Effective Safety Nets
    (Washington, DC : World Bank, 2008) Tesliuc, Emil; Grosh, Margaret; Ouerghi, Azedine; del Ninno, Carlo
    All countries fund safety net programs for the protection of their people. Though an increasing number of safety net programs are extremely well thought out, adroitly implemented, and demonstrably effective, many others are not. This book aims to assist those concerned with social policy to understand why countries need social assistance, what kind of safety programs will serve those best and how to develop such programs for maximum effectiveness. Safety nets are part of a broader poverty reduction strategy interacting with and working alongside of social insurance; health, education, and financial services; the provision of utilities and roads; and other policies aimed at reducing poverty and managing risk. Though useful, safety nets are not a panacea, and there are real concerns over whether they are affordable and administratively feasible or desirable in light of the various negative incentives they might create. In most settings where there is political will to do so, such concerns can be managed through a number of prudent design and implementation features. Much information and innovation exist on these topics; this book summarizes, references, and builds on this knowledge base to promote well-crafted safety nets and safety net policy.
  • Publication
    Reducing Poverty through Growth and Social Policy Reform in Russia
    (Washington, DC: World Bank, 2006) Shaban, Radwan; Asoaka, Hiromi; Barnes, Bob; Drebentsov, Vladimir; Langenbrunner, John; Zurab, Sajaia; Stevens, James; Tarr, David; Tesliuc, Emil; Shabalina, Olga; Yemtsov, Ruslan
    Following the 1998 financial crisis, four out of every ten people slipped into poverty, not able to meet basic needs. Luckily, post-crisis economic rebound was impressive and broad-based, albeit uneven across sectors and regions. This title explores the nature of poverty, both nationally and regionally, to identify the groups with a high poverty risk. It then examines growth-poverty linkages through the labor market, as well as the contribution of growth and inequality to the recent poverty reduction. It also considers the expected impact of WTO accession on overall growth and poverty. Finally, it focuses on the scope for improving social policy in ways that will have a direct impact on the poor.
  • Publication
    Assessing Safety Net Readiness in Response to Food Price Volatility
    (World Bank, Washington, DC, 2011-09) Andrews, Colin; Grosh, Margaret; Quintana, Rodrigo; Rodriguez-Alas, Claudia
    In 2008, when food prices rose precipitously to record highs, international attention and local policy in many countries focused on safety nets as part of the response. Now that food prices are high again, the issue of appropriate responses is again on the policy agenda. This note sets out a framework for making quick, qualitative assessments of how well countries' safety nets prepare them for a rapid policy response to rising food prices should the situation warrant. The framework is applied using data from spring 2011, presenting a snap?shot analysis of what is a dynamically changing situation. Based on this data safety net readiness is assessed in 13 vulnerable countries based on the following criteria: the presence of safety net programs, program coverage, administrative capacity, and to a lesser degree, targeting effectiveness. It is argued that these criteria will remain the same throughout time, even if the sample countries affected will be expected to vary. Based on this analysis the note highlights that though a number of countries are more prepared than they were in 2008, there is still a significant medium term agenda on safety net preparedness in the face of crisis. In this context, strategic lessons from the 2008 food crisis response are presented to better understand the response options and challenges facing governments and policy makers. The note concludes by calling for continued investment and scale up of safety nets to mitigate poverty impacts and help prevent long term setbacks in nutrition and poverty.
  • Publication
    Zambia : Using Social Safety Nets to Accelerate Poverty Reduction and Share Prosperity
    (World Bank, Washington, DC, 2013-03) Tesliuc, Cornelia; Smith, W. James; Sunkutu, Musonda Rosemary
    Despite robust annual growth of 5.7 percent in the recent past, poverty in Zambia remains stubbornly high. The poverty headcount rate is 60 percent (as of 2010), and 39 percent of the population live in extreme poverty, with insufficient consumption to meet their daily minimum food requirements. Chronic malnutrition remains very high, with 47 percent of children under the age of 5 being stunted in 2010, close to the high levels of the early 1990s. The report recommends a unified National Safety Net Program comprising cash transfers and public works to reach the poorest 20 percent of the population. The estimated cost is about US$100 million per year. This is less than 2 percent of public spending and around 15 percent of the current subsidies programs benefiting the non-poor.
  • Publication
    Social Assistance in the New EU Member States : Strengthening Performance and Labor Market Incentives
    (Washington, DC: World Bank, 2007) Ringold, Dena; Kasek, Leszek
    This report looks at safety nets in the new member states from the perspective of fiscal impact and effectiveness. Given the limited budgets for social assistance, ensuring that resources are spent well, reach those who need them, and optimize welfare gains and labor market outcomes. This also requires attention to the balance between spending on means-tested antipoverty programs and family benefits and social insurance programs. Because of high levels of pension spending and rapidly aging populations, there is a risk that contributory social insurance spending will crowd out spending on social assistance. Managing the long-term fiscal sustainability of these programs to meet emerging needs is a priority. This paper looks at social assistance within the broader context of social protection. The main focus of the policy discussion is on the guaranteed minimum income programs, which comprise the centerpiece of the social assistance systems in each of the EU8 countries. Child allowances are also discussed, which are the most important programs from the perspective of spending levels. The first Chapter reviews the datasets and approach. Chapter 2 looks at the context of poverty and social exclusion in the EU8 and the implications for safety nets. Chapter 3 analyses social protection spending. Chapter 4 reviews the performance of social assistance and social protection based on household survey data for six of the countries. Chapter 5 discusses policy design issues including administration, decentralization and activation measures. Chapter 6 looks at the labor market incentives of combined taxes and benefits, and discusses in-work benefits. Chapter 7 concludes.

Users also downloaded

Showing related downloaded files

  • Publication
    Governance Matters IV : Governance Indicators for 1996-2004
    (World Bank, Washington, DC, 2005-06) Kaufmann, Daniel; Kraay, Aart; Mastruzzi, Massimo
    The authors present the latest update of their aggregate governance indicators, together with new analysis of several issues related to the use of these measures. The governance indicators measure the following six dimensions of governance: (1) voice and accountability; (2) political instability and violence; (3) government effectiveness; (4) regulatory quality; (5) rule of law, and (6) control of corruption. They cover 209 countries and territories for 1996, 1998, 2000, 2002, and 2004. They are based on several hundred individual variables measuring perceptions of governance, drawn from 37 separate data sources constructed by 31 organizations. The authors present estimates of the six dimensions of governance for each period, as well as margins of error capturing the range of likely values for each country. These margins of error are not unique to perceptions-based measures of governance, but are an important feature of all efforts to measure governance, including objective indicators. In fact, the authors give examples of how individual objective measures provide an incomplete picture of even the quite particular dimensions of governance that they are intended to measure. The authors also analyze in detail changes over time in their estimates of governance; provide a framework for assessing the statistical significance of changes in governance; and suggest a simple rule of thumb for identifying statistically significant changes in country governance over time. The ability to identify significant changes in governance over time is much higher for aggregate indicators than for any individual indicator. While the authors find that the quality of governance in a number of countries has changed significantly (in both directions), they also provide evidence suggesting that there are no trends, for better or worse, in global averages of governance. Finally, they interpret the strong observed correlation between income and governance, and argue against recent efforts to apply a discount to governance performance in low-income countries.
  • Publication
    Government Matters III : Governance Indicators for 1996-2002
    (World Bank, Washington, DC, 2003-08) Kaufmann, Daniel; Kraay, Aart; Mastruzzi, Massimo
    The authors present estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. The authors assign these individual measures of governance to categories capturing key dimensions of governance and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. They present the point estimates of the dimensions of governance as well as the margins of errors for each country for the four periods. The governance indicators reported here are an update and expansion of previous research work on indicators initiated in 1998 (Kaufmann, Kraay, and Zoido-Lobat 1999a,b and 2002). The authors also address various methodological issues, including the interpretation and use of the data given the estimated margins of errors.
  • Publication
    Breaking the Conflict Trap : Civil War and Development Policy
    (Washington, DC: World Bank and Oxford University Press, 2003) Collier, Paul; Elliott, V. L.; Hegre, Håvard; Hoeffler, Anke; Reynal-Querol, Marta; Sambanis, Nicholas
    Most wars are now civil wars. Even though international wars attract enormous global attention, they have become infrequent and brief. Civil wars usually attract less attention, but they have become increasingly common and typically go on for years. This report argues that civil war is now an important issue for development. War retards development, but conversely, development retards war. This double causation gives rise to virtuous and vicious circles. Where development succeeds, countries become progressively safer from violent conflict, making subsequent development easier. Where development fails, countries are at high risk of becoming caught in a conflict trap in which war wrecks the economy and increases the risk of further war. The global incidence of civil war is high because the international community has done little to avert it. Inertia is rooted in two beliefs: that we can safely 'let them fight it out among themselves' and that 'nothing can be done' because civil war is driven by ancestral ethnic and religious hatreds. The purpose of this report is to challenge these beliefs.
  • Publication
    Design Thinking for Social Innovation
    (2010-07) Brown, Tim; Wyatt, Jocelyn
    Designers have traditionally focused on enchancing the look and functionality of products.
  • Publication
    Governance Matters VIII : Aggregate and Individual Governance Indicators 1996–2008
    (2009-06-01) Kaufmann, Daniel; Kraay, Aart; Mastruzzi, Massimo
    This paper reports on the 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These aggregate indicators are based on hundreds of specific and disaggregated individual variables measuring various dimensions of governance, taken from 35 data sources provided by 33 different organizations. The data reflect the views on governance of public sector, private sector and NGO experts, as well as thousands of citizen and firm survey respondents worldwide. The authors also explicitly report the margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. They find that even after taking margins of error into account, the WGI permit meaningful cross-country comparisons as well as monitoring progress over time. The aggregate indicators, together with the disaggregated underlying indicators, are available at www.govindicators.org.