Language(s):
English
Media:
Article or paper
Phone:
+ 55 61 2105 5000
Last updated:
January 29, 2008
Area of Focus:
Economic Development, Poverty and Hunger, Social Enterprise and Economic Development
Contact person:
Francisco Filho
Fax:
+ 55 61 21055001
Description:
The authors of Evaluation Note #2, Rafael Perez Ribas, Guilherme Issamu Hirata and Fabio Veras Soares, all of whom are researchers at IPC, evaluate the relative merits of two well-known targeting mechanisms for the Paraguay cash transfer programme: a multidimensional Quality of Life Index and a proxy-means test for income (as well as a combination of both). Weighing the classic trade-off between achieving wider coverage of the poor (efficacy) and minimizing leakage of benefits to the non-poor (efficiency), they find that the composite index performs better than the proxy means. Their findings are broadly relevant for cash transfer programmes in Latin America and the Caribbean as well as elsewhere in developing regions.