Publication: Targeting versus Universality: Is There a Middle Ground?
Loading...
Published
2019-10
ISSN
Date
2019-12-05
Author(s)
Editor(s)
Abstract
In the last few years, proposals to introduce a universal basic income or universal basic income (UBI) have proliferated. Proponents point out that narrowly targeted programs exclude many of the poor. Critics point out that universality spreads limited resources thinly over the population limiting the impact on poverty for a given level of spending. While high income countries can claw back the transfer to the higher income group through a progressive income tax, this is not possible in developing countries where most people operate in the informal sector. This note looks at an alternative to either narrow targeting or UBI. It uses household survey data from 52 low and middle-income countries to compare the poverty impact of a UBI to a transfer that is gradually reduced as estimated consumption increases. The taper can be set at different rates and can lead to zero transfers to households above a chosen threshold. The tapered UBI (TUBI) can be based on proxy indicators for unobserved income from special surveys and administrative databases. Both are becoming more common as government databases are digitized.
Link to Data Set
Citation
“Majoka, Zaineb; Palacios, Robert. 2019. Targeting versus Universality: Is There a Middle Ground?. Social Protection and Jobs Policy and
Technical Note,no. 22;. © World Bank. http://hdl.handle.net/10986/32789 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Regional Study on Targeting Systems and Practices : Draft Policy Note(World Bank, Washington, DC, 2010-06-28)This policy note aims to take stock of regional experiences in the area of targeting, both in the context of government systems and the World Bank's operational work, in South Asia. The main objectives are to review targeting systems and practices in the context of government programs; to critically review the role for and impact of targeting in the WB's operational work; and to extract lessons that can be used to deepen the relevance and impact of the WB's operational work in South Asia. The evidence presented in this note will serve as a resource for those interested in and/or planning some work on targeting related work in the region. In this sense, by presenting information on both country systems and performance of WB-led work, the note targets both practitioners and managers. The analysis focuses first on the architecture of targeting systems in South Asia, and on the determinants of targeting effectiveness, including the choice and design of the targeting tool, implementation and monitoring of the targeting tool, and the design, implementation and monitoring of the targeted program. The note concludes that international evidence a large fraction of the observed differences in targeting effectiveness across systems and programs, can be attributed to factors related to implementation and monitoring. This implies that investments aimed at correcting resource, capacity and logistic limitations in government systems could go a long way in improving targeting outcomes in the region.Publication The Revival of the "Cash versus Food" Debate(World Bank, Washington, DC, 2016-02)The longstanding “cash versus food” debate has received renewed attention in both research and practice. This paper reviews key issues shaping the debate and presents new evidence from randomized and quasi-experimental evaluations that deliberately compare cash and in-kind food transfers in ten developing counties. Findings show that relative effectiveness cannot be generalized: although some differences emerge in terms of food consumption and dietary diversity, average impacts tend to depend on context, specific objectives, and their measurement. Costs for cash transfers and vouchers tend to be significantly lower relative to in-kind food. Yet the consistency and robustness of methods for efficiency analyses varies greatly.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(World Bank, Jakarta, 2012-01)Indonesia has experienced strong economic growth over the last forty years. At the same time, the proportion of Indonesians living below the poverty line has fallen dramatically. Nonetheless, around 12 percent of Indonesians remain in poverty and another 30 percent remain highly vulnerable to falling into poverty in any given year. In addition, Indonesia has experienced a number of crises in the last two decades, and such shocks are likely to continue in the future in an increasingly integrated global economy. Over the last fifteen years the Government has been developing social assistance programs designed to promote the poor out of poverty and protect poor and vulnerable households from both individual and more widespread shocks. The coverage, design and implementation of these programs continue to be improved as social protection in Indonesia matures, but a number of issues remain. One of the most important, and difficult, is how these programs can accurately target households who need those most. The challenge is to develop a targeting approach which includes most of the poor and vulnerable while minimizing leakage to the rich. At the same time, the system must be feasible, affordable, and accepted and used by all. Furthermore, identifying which households are poor is a difficult task in any developing country, but is particularly so in Indonesia, which has a very large population, a high degree of geographic dispersion, decentralization of much budgetary and operational governance, and frequent entry and exit of households into and from poverty. This evidence-based report builds in part on innovative research done collaboratively with the Government of Indonesia. In this respect Indonesia is contributing to the frontier of global knowledge on targeting, while also drawing on the experience of other countries. Moving from a thorough assessment of the current effectiveness of targeting in Indonesia, the report contains practical and detailed recommendations for the future. In particular, a National Targeting System is proposed, which envisages developing a single registry of potential beneficiaries to target social assistance to the right households, resulting in more accurate and cost-effective targeting outcomes, and ultimately stronger program impacts.Publication World Bank Support for Pensions and Social Security(World Bank, Washington, DC, 2012-03)Pension and social insurance programs that prevent a substantial loss in consumption resulting from old age, disability, or death are an integral part of any social protection system. The dual objectives of such programs are to allow for the prevention of a sharp decline in income when these life-cycle events take place and protection against poverty in old age. This background paper reviews the World Bank's conceptual framework for the analysis of pension programs and defines the major challenges facing low and middle income countries, namely, coverage, adequacy and sustainability. The paper proposes a broad, forward-looking strategy to help address these challenges.
Users also downloaded
Showing related downloaded files
Publication The Container Port Performance Index 2023(Washington, DC: World Bank, 2024-07-18)The Container Port Performance Index (CPPI) measures the time container ships spend in port, making it an important point of reference for stakeholders in the global economy. These stakeholders include port authorities and operators, national governments, supranational organizations, development agencies, and other public and private players in trade and logistics. The index highlights where vessel time in container ports could be improved. Streamlining these processes would benefit all parties involved, including shipping lines, national governments, and consumers. This fourth edition of the CPPI relies on data from 405 container ports with at least 24 container ship port calls in the calendar year 2023. As in earlier editions of the CPPI, the ranking employs two different methodological approaches: an administrative (technical) approach and a statistical approach (using matrix factorization). Combining these two approaches ensures that the overall ranking of container ports reflects actual port performance as closely as possible while also being statistically robust. The CPPI methodology assesses the sequential steps of a container ship port call. ‘Total port hours’ refers to the total time elapsed from the moment a ship arrives at the port until the vessel leaves the berth after completing its cargo operations. The CPPI uses time as an indicator because time is very important to shipping lines, ports, and the entire logistics chain. However, time, as captured by the CPPI, is not the only way to measure port efficiency, so it does not tell the entire story of a port’s performance. Factors that can influence the time vessels spend in ports can be location-specific and under the port’s control (endogenous) or external and beyond the control of the port (exogenous). The CPPI measures time spent in container ports, strictly based on quantitative data only, which do not reveal the underlying factors or root causes of extended port times. A detailed port-specific diagnostic would be required to assess the contribution of underlying factors to the time a vessel spends in port. A very low ranking or a significant change in ranking may warrant special attention, for which the World Bank generally recommends a detailed diagnostic.Publication The Container Port Performance Index 2020 to 2024: Trends and Lessons Learned(Washington, DC: World Bank, 2025-09-22)The Container Port Performance Index (CPPI) provides a global benchmark of how container ports perform in handling vessel calls. Developed jointly by the World Bank and S&P Global Market Intelligence, it measures the time ships spend in port and relates this to the number of containers moved during that time. This approach makes the CPPI a unique diagnostic tool that can highlight patterns in port operations and shed light on global and regional supply chain dynamics. Now in its fifth edition, the CPPI report covers the period from 2020 to 2024. It builds on a well-established methodology to generate scores for more than 400 container ports worldwide. Over time, the CPPI has become a trusted reference point for policymakers, industry stakeholders, and researchers who seek to understand how ports adapt to shocks, recover from disruptions, and identify opportunities for investments, reform and modernization. A major innovation in this edition is the introduction of multi-year trend analysis. Rather than presenting annual snapshots, the report now tracks how CPPI scores have changed across five years. This longitudinal perspective reveals shifts in port performance, showing where scores have risen, fallen, or remained stable. By linking these movements to external factors, the CPPI offers insights into how global and regional supply chains evolve under pressure. The results clearly mirror the crises that have shaken global trade. During the COVID-19 pandemic, CPPI scores in different regions declined sharply as congestion, equipment shortages, and delays overwhelmed many ports. By 2023, global averages rebounded in parallel with easing freight markets and reduced congestion. Yet 2024 brought new challenges: the Red Sea crisis disrupted major trade lanes, while climate-related constraints at the Panama Canal added further stress. These shocks were reflected in lower global and several regional average scores, underscoring the vulnerability of maritime transport to geopolitical and environmental events. The CPPI is not about comparing one port against another, but about understanding changes in performance over time. Ports that improved their scores often did so by reducing time at anchor, optimizing berth operations, investing in digital tools, and strengthening coordination across logistics partners. The evidence confirms that improvements are possible across ports of all sizes, and that rising scores are linked to deliberate actions to minimize time in port relative to containers moved. By consolidating five years of results, this edition transforms the CPPI into a long-term reference point. It shows how global crises have affected shipping, how different regions have adapted, and what lessons can be drawn for future resilience. The World Bank and S&P Global Market Intelligence remain committed to maintaining the CPPI as a global public good, providing transparency, comparability, and practical insights to support more reliable and sustainable maritime supply chains.Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.Publication Global Economic Prospects, June 2025(Washington, DC: World Bank, 2025-06-10)The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.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.