What is the optimal locus of control for social assistance programs?

Download or read book What is the optimal locus of control for social assistance programs? written by Simons, Andrew M. and published by Intl Food Policy Res Inst. This book was released on 2016-04-01 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Centralized implementation mandates of Ethiopia’s Productive Safety Net Program (PSNP) require a full and uniform payment to each person in an eligible household. In practice, however, communities do not receive enough funding to fully implement the program. Therefore, communities must exercise local discretion in allocating aid. We recover the preferences revealed by local communities’ aid allocations and find they are pro-poor, allocating more to underprivileged groups with lower wage earning potential (e.g., teenage girls vs. teenage boys, adult women vs. adult men, elderly vs. working age adults). Despite communities’ pro-poor implementation, the program with constrained funding does not significantly lower overall poverty rates. In simulations with full funding, the program reduces poverty in both cases of centralized and decentralized program control, using different criteria for the allocation of funds. The major policy implication is that the financial scale of the safety net program is more important to poverty reduction than the locus of control over implementation.