Publication: Social Assistance Programs and Household Welfare in Eswatini
Date
2021-06
ISSN
Published
2021-06
Author(s)
Abstract
Eswatini has notably high levels of
poverty and inequality. Recurrent, negative shocks are an
important contributing factor. This study assesses the
performance of the largest social assistance programs in
Eswatini, based on 2016/17 national household survey data.
It examines the coverage rates of these programs, and their
incidence and effectiveness in reducing poverty and
inequality. The study also examines the association between
program participation and negative shocks reported by
households, in particular, drought and food price shocks
associated with the 2015-2016 El Niño event. Across
programs, benefits are concentrated among poor households.
However, the performance of programs in reducing poverty and
inequality tends to be limited because of low intended or
actual benefit levels and shortfalls in intended or actual
coverage of the poor. Households that receive program
benefits are more likely to report a drought shock. Except
in the case of emergency food aid, which is provided ex
post, we interpret this pattern to indicate that programs
tend to provide ex-ante coverage to those vulnerable to this
shock. At a minimum, enhancing the performance of programs
in addressing poverty, inequality, and the adverse effects
of shocks would require that actual benefit levels equal
intended levels (for example, by procuring sufficient food
commodities to meet the needs of the school feeding program)
and that intended benefit levels are fully aligned with
program aims (for example, by providing grant amounts to
schools that are large enough to allow for tuition-free
government secondary education for orphaned and vulnerable
children). Absent greater budgetary allocations to programs,
addressing these benefit-related disconnects may require
improving the targeting of select program benefits to poorer
households such as by using a proxy means test. We simulate
the effects of programs on poverty and inequality reduction
from such hypothetical reforms.
Link to Data Set
Citation
“Raju, Dhushyanth; Younger, Stephen D.. 2021. Social Assistance Programs and Household Welfare in Eswatini. Social Protection and Jobs Discussion Paper;No. 2106. © World Bank, Washington, DC. http://hdl.handle.net/10986/35747 License: CC BY 3.0 IGO.”