Safety net programs in West Bengal: how much effective?

2017 ◽  
Vol 44 (12) ◽  
pp. 2019-2032
Author(s):  
Arghya Kusum Mukherjee
Keyword(s):  
Distribution System ◽  
West Bengal ◽  
Household Survey ◽  
Safety Net ◽  
Cash Transfer ◽  
Poor People ◽  
Transfer Program ◽  
Content Type ◽  
The Poor ◽  
Employment Guarantee

Purpose The purpose of this paper is to find the determinants of participation and targeting efficiency of the following safety net programs in West Bengal: Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), self-targeted program; National Rural Livelihood Mission (NRLM), subsidy based livelihood program; Indira Awaas Yojona (IAY), targeted cash transfer program and Public Distribution System (PDS), targeted in kind transfer program. Design/methodology/approach The study is based on a household survey comprising 900 households across three Districts: Murshidabad, Nadia and Burdwan. Findings Benefits from MNREGA and PDS are not substantial, whereas financial benefits are substantial from NRLM and IAY. This paper shows that poor people have higher likelihood of participation in MNREGA and PDS. But, non poor get disproportionate benefits from IAY and NRLM both have been designed for the poor. Therefore, targeting cannot remove elite capture altogether. Socially down trodden section have higher participation in MNREGA and PDS, whereas people who are at upper tier of social hierarchy enjoy the benefits of IAY and NRLM. However, it cannot be said that these programs miss their target completely. Practical implications The study suffers from the usual limitations of sampling. Social implications Programs targeted for the poor are being appropriated by the non poor. If there is better targeting money will be channelized to the desired beneficiaries and welfare will be enhanced. Originality/value The study has unearthed the underlying reasons behind why some safety net programs have better targeting and some safety net programs have poor targeting.

Assessing the Livelihood Empowerment Against Poverty (LEAP) program as a conditional income transfer: a search for a conceptual framework

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alhassan Abdul-Wakeel Karakara ◽  
Ernest Amoabeng Ortsin
Keyword(s):  
Conceptual Framework ◽  
Poverty Reduction ◽  
Social Protection ◽  
Insurance Coverage ◽  
Implementation Strategies ◽  
Cash Transfer ◽  
Primary Data ◽  
Transfer Program ◽  
Content Type ◽  
The Poor

Purpose Ghana has implemented different kinds of pro-poor program and policies since its independence to reduce poverty. The Livelihood Empowerment Against Poverty (LEAP) is one of such program. LEAP is a social cash transfer program and its implementation has been under the auspices of the Ministry of Gender, Children and Social Protection since 2008. It provides direct cash and health insurance coverage for extremely poor households across the country to alleviate short-term poverty and encourage long-term human capital development. This paper examines the LEAP program in terms of how it has achieved its aim and the opportunities for improvement.Design/methodology/approach Primary data were obtained from interviews of 110 beneficiaries of the program. The study proposes a conceptual framework that links poverty reduction and social policies to assist researchers analyze pro-poor or social cash transfer program.Findings The findings show that the program is challenged with administrative bureaucracies, irregular inflow of funds, perceived political interferences, inconsistent implementation strategies and low value of the cash transfer (which results in little or no impact on consumption). However, the data also show that LEAP has positive impacts on nonconsumption spending like children's schooling. The program' exit strategy does not impact much on beneficiaries to allow them exit without the tendency of being poor.Practical implications This paper discussed the LEAP program as a social cash transfer to the poor in Ghana. The study constructed a conceptual framework to help researchers and practitioners analyze the implementation of pro-poor interventions. This conceptualization allows for cash transfer program to empower beneficiaries and exits them to allow for other beneficiaries to enroll, ensuring reduction in poverty over time. Generally, the beneficiaries have benefited from the LEAP in the areas of consumption, education and healthcare with few beneficiaries being able to accumulate some few assets. The LEAP program has no exit plan.Originality/value This study adds to literature by offering a conceptual framework to help researchers and policy makers in dealing with social assistance policies to the poor. The study also gave an insight into how pro-poor policy strategies could be crafted.

DID PUBLIC CASH TRANSFER CROWD OUT INTER-HOUSEHOLD TRANSFERS IN INDONESIA? EVIDENCE FROM "BANTUAN LANGSUNG TUNAI /BLT"

INFO ARTHA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 67-84
Author(s):  
Corry Wulandari ◽  
Nadezhda Baryshnikova
Keyword(s):  
Cash Transfer ◽  
Poor People ◽  
Crowding Out ◽  
Transfer System ◽  
Transfer Program ◽  
Exact Matching ◽  
The Public ◽  
Indonesia Family Life Survey ◽  
Public Transfers ◽  
The Government

In 2005 the Government of Indonesia introduced an unconditional cash transfer program called the ‘Bantuan Langsung Tunai’ (BLT), aimed at assisting poor people who were suffering from the removal of a fuel subsidy. There are concerns, however, that the introduction of a public transfer system can negatively affect inter-household transfers through the crowding-out effect, which exists when donor households reduce the amount of their transfers in line with public transfers received from the government. The poor may not therefore have received any meaningful impact from the public cash transfer, as they potentially receive fewer transfers from inter-household private donors. For the government to design a public transfer system, it is necessary to properly understand the dynamics of private transfer behaviour. Hence, this study evaluates whether there exists a crowding-out effect of public transfers on inter-household transfers in Indonesia.Using data from the Indonesia Family Life Survey (IFLS) and by applying Coarsened Exact Matching (CEM) and Difference-in-differences (DID) approaches, this study found that the likelihood to receive transfers from other family members (non-co-resident) reduces when the household receives BLT. However, there is no significant impact of BLT on transfers from parents and friends.

scholarly journals Cash transfers and multiplier effect: lessons from the grain subsidy program in China

2016 ◽  
Vol 8 (1) ◽  
pp. 81-99 ◽  
Author(s):  
Fujin Yi ◽  
Wuyi Lu ◽  
Yingheng Zhou
Keyword(s):  
Cash Transfer ◽  
Transfer Program ◽  
Distribution Method ◽  
Content Type ◽  
Specific Subset ◽  
Multiplier Effect ◽  
Income Multiplier ◽  
Subsidy Program ◽  
Multiplier Effects ◽  
Grain Subsidy

Purpose – The purpose of this paper is to examine the multiplier effects of the grain subsidy program in China, which is a large food self-sufficiency project that is implemented as a cash transfer program. Income multiplier effects have not been empirically examined in the evaluation of the grain subsidy program although increasing the income of farmers is the original goal of this project. Design/methodology/approach – A large number of household-level observations are employed to measure the program’s income multiplier. An unrestricted model was first employed to measure the multipliers in a period of two years, and the difference was evaluated. Then, the income promotion effects of grain subsidy on various income sources for each specific subset of the population, such as liquidity conditions and household characteristics, were estimated. Findings – The results show that the grain subsidy program has a high income multiplier, and the income promotion effect of the transferred subsidies is from agricultural production derived by intensifying input for each unit of land. The multiplier effect of the grain subsidy program as a cash transfer program can be interpreted as the shadow value of relaxing liquidity constraints and could be particularly utilized by households with more farming land and farmers in less developed regions in China. Hence, to maximize the income multiplier effect, the grain subsidy distribution method should consider these criteria instead of retaining the prevalent standard that is based on contracted land areas. Originality/value – This study addresses the gap that the effect of China’s grain subsidy program on income increment has not been empirically examined in nation wide.

scholarly journals Unique aspects of the Islamic microfinance financing process

Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 230-247 ◽  
Author(s):  
Permata Wulandari ◽  
Salina Kassim ◽  
Liyu Adhi Kasari Sulung ◽  
Niken Iwani Surya Putri
Keyword(s):  
Content Analysis ◽  
Cultural Influences ◽  
Poor People ◽  
Policy Makers ◽  
Content Type ◽  
The Poor ◽  
Proposed Model ◽  
Depth Interview ◽  
Islamic Principle ◽  
Islamic Microfinance

Purpose This paper aims to highlight on the unique aspects of Islamic microfinance based on the experience of Baitul Maal Wa Tamwil (BMT) in Indonesia. Design/methodology/approach It adopts the content analysis approach and focuses on three phases of financing, namely, pre-financing, financing and post-financing using coding and model buildings. Data are collected through in-depth interview with a sample of representatives of BMTs that offer product based on Islamic principle for the poor located in Jakarta, Bogor, Depok, Tanggerang and Bekasi (JABODETABEK), Sulawesi Selatan, Yogyakarta and Nusa Tenggara Barat (sample chosen based on the most concentrated areas of Islamic microfinance that offered product based on Islamic principles). Ultimately, a model based on the unique features of Islamic microfinance will be developed based on the findings of the content analysis. Findings The proposed model incorporates the peculiarities of the poor people in pre-financing, financing and post-financing activities of micro-financing products to serve as a reference for policy makers. The paper also found that each region has unique product preferences depending on the poor’s characteristics. Research limitations/implications This study is only conducted in four areas with BMT representation, namely, Jakarta, Bogor, Depok, Tangerang, Bekasi (often abbreviated as JABODETABEK), Sulawesi Selatan, Yogyakarta and Nusa Tenggara Barat) in Indonesia. Despite the limited scope, the findings have wide applications to the Islamic microfinancing in general. Originality/value The paper adds value to the literature on Islamic microfinance by enabling researchers and practitioners to understand the model of three step financing (pre-financing, financing and post-financing) in Islamic microfinance in Indonesia. Although not a new issue, the paper provides the practice of pre-financing, financing and post-financing processes which may differ from the practices of Islamic microfinance in other settings because of different cultural influences unique to every region.

scholarly journals Contesting digital finance for the poor

2020 ◽  
Vol 22 (2) ◽  
pp. 135-151 ◽  
Author(s):  
Peterson K. Ozili
Keyword(s):  
Discourse Analysis ◽  
Private Sector ◽  
Design Methodology ◽  
Socioeconomic Development ◽  
Policy Discourse ◽  
Poor People ◽  
Content Type ◽  
Development Finance ◽  
The Poor ◽  
Critical Policy

Purpose This paper aims to critically assess digital finance as a pro-poor intervention in the development finance space. Design/methodology/approach Using critical policy discourse analysis, this paper explains the turn from microfinance to digital finance, and thereafter discusses four issues: the lack of evidence that digital finance for poor people actually promotes socioeconomic development; the risks that poor people are exposed to, which arises from their exposure to digital finance technology; the lack of evidence that digital finance actually brings poor people immediate benefits; and the weak business rationale for digital finance. Findings The expectation for digital finance serving as a major pro-poor private sector intervention lacks justification. Originality/value The paper reflects on the effect of digital finance for poor people.

scholarly journals COVID-19 economic shocks and fiscal policy options for Ghana

2020 ◽  
Vol 32 (5) ◽  
pp. 903-917
Author(s):  
Komla D. Dzigbede ◽  
Rahul Pathak
Keyword(s):  
Cash Transfer ◽  
Fiscal Sustainability ◽  
Economic Indicators ◽  
Policy Options ◽  
Transfer Program ◽  
Economic Shocks ◽  
Economic Resilience ◽  
Assistance Program ◽  
Content Type

PurposeThis article examines the fiscal challenges the coronavirus pandemic poses in African countries, using Ghana as a case study and summarizes the country's immediate monetary and fiscal responses to the pandemic. The article also discusses the potential impacts of coronavirus-related shocks on the Ghana economy and policy options the national government may pursue to counteract the pandemic's adverse long-term effects.Design/methodology/approachThe article uses daily and monthly economic indicators to assess the immediate impact of the pandemic on Ghana's economy. The article also uses latest data from the Ghana Living Standards Survey (GLSS) to simulate potential shocks to the economy related to the coronavirus crisis and examines the outcomes from a potential government response that expands spending on an existing direct social assistance program.FindingsThe authors find that the coronavirus pandemic is associated with a significant increase in Ghana's poverty measures over time, and an expansion in government spending under an existing cash transfer program would partly offset the economic shocks related to the crisis and improve outcomes for poverty and inequality. The authors also argue that other well-targeted expenditure and revenue policies will support long-term economic resilience.Research limitations/implicationsThe research suggests that a temporary expansion of the existing program of direct cash payments to poor households may be an effective social protection policy, as are well-targeted revenue and spending policies that support economic recovery and long-term fiscal sustainability.Practical implicationsThe findings imply that while the pandemic might cause severe shocks in the economy, well-targeted spending and revenue policies that are anchored in sound macroeconomic management can promote economic resilience and long-term fiscal sustainability.Social implicationsPublic managers must ensure that national policy responses to the coronavirus pandemic consider socio-economic indicators, such as poverty and income inequality.Originality/valueThe authors present research that uses novel household-level data and an evidence-based microsimulation framework to articulate potential public policy strategies that can guide national responses to, and recovery from, the coronavirus pandemic.

scholarly journals Efficiency, Legitimacy, and Impacts of Targeting Methods: Evidence from an Experiment in Niger

2020 ◽  
Author(s):  
Patrick Premand ◽  
Pascale Schnitzer
Keyword(s):  
Program Effectiveness ◽  
Safety Net ◽  
Cash Transfer ◽  
Transfer Program ◽  
Community Based ◽  
Means Testing ◽  
The Subject ◽  
Per Capita ◽  
The Impact ◽  
Roll Out

Abstract The methods to select safety net beneficiaries are the subject of frequent debates. Targeting assessments usually focus on efficiency by documenting the pre-program profile of selected beneficiaries. This study provides a more comprehensive analysis of targeting performance through an experiment embedded in a national cash transfer program in Niger. Eligible villages were randomly assigned to have beneficiary households selected by community-based targeting (CBT), proxy-means testing (PMT), or a formula to identify the food-insecure (FCS). The study considers targeting legitimacy and the impact of targeting choice on program effectiveness based on data collected after program roll-out. PMT is more efficient in identifying households with lower consumption per capita. Nonbeneficiaries find formula-based methods (PMT and FCS) more legitimate than CBT. Manipulation and information imperfections affect CBT, which can explain why it is not the most legitimate. Program impacts on some welfare dimensions are larger among households selected by PMT than CBT.

scholarly journals Penggunaan Dana Zakat dalam pembangunan Takaful Mikro:Satu Sorotan Literatur

2019 ◽  
pp. 73-91
Author(s):  
Nik Abdul Rahim Nik Abdul Ghani ◽  
Ihsan Ilahi Mohd Sabri ◽  
Salmy Edawati Yaacob ◽  
Nurul Ilyana Muhd Adnan ◽  
Ahmad Dahlan Salleh ◽  
...  
Keyword(s):  
Content Analysis ◽  
Qualitative Study ◽  
Financial Institutions ◽  
Distribution System ◽  
Financial Assistance ◽  
Financial Inclusion ◽  
Poor People ◽  
The Poor ◽  
The Needy ◽  
Efficient Distribution

Micro takaful is a manifestation of financial inclusion in a country. The purpose of micro takaful is to support the financial needs of the poor and unfortunate group, in which most of them are known as the B40 segment. The majority of them are considered the asnaf (reciepients) of zakat. They are the groups most susceptible to financial shocks in the event of accident, illness or death . However, they typically do not have sufficient income to purchase takaful. Insufficient contribution could thus impede the development of micro takaful. One of the proposed solutions is to utilise the zakat funds to help the asnaf group especially the needy and poor people. Additionally, the yearly increment of the zakat fund requires a more efficient distribution system. Amongst the proposed mechanisms is to utilise the fund to develop a microtakaful model. This paper analyses previous studies on micro takaful model in the takaful industry and its need for the use of zakat fund. The article also examines some issues and challenges in utilising zakat fund for the development of micro takaful. This research is a qualitative study using content analysis approcah. The findings suggest that there are several financial assistance schemes for poor people provided by the governement or financial institutions. However,, very few micro takaful schemes are currently being offered . Thus, a study on using zakat to develope micro takaful schemes should Abstrak Takaful mikro ialah manifestasi amalan rangkuman kewangan (financial inclusion) dalam sesebuah negara. Tujuan takaful mikro ialah untuk menyokong keperluan kewangan golongan miskin dan tidak bernasib baik, yang sebahagian besar mereka juga dikenali sebagai B40. Kebanyakan mereka terdiri daripada asnaf zakat. Mereka ialah kumpulan masyarakat yang akan menghadapi masalah kejutan kewangan apabila berlaku kemalangan, sakit atau kematian. Walaubagaimanapun, golongan ini tidak mempunyai pendapatan yang cukup untuk mencarum sumbangan dalam takaful. Dana sumbangan yang tidak signifikan juga boleh membantut pembangunan takaful mikro. Antara solusi cadangan ialah melalui penggunaan dana zakat bagi membantu golongan asnaf khususnya fakir dan miskin. Di samping itu, peningkatan kutipan zakat setiap tahun dapat dipadankan dengan kaedah agihan yang lebih efisien.  Salah satu mekanisme agihan yang dicadang ialah melalui kaedah pembinaan takaful mikro berasaskan dana zakat. Kertas ini menganalisis beberapa kajian lepas yang telah dijalankan berkaitan pembangunan model takaful mikro dalam industri takaful dan keperluannya kepada dana zakat. Kertas ini turut menjelaskan beberapa isu dan cabaran berkaitan penggunaan dana zakat bagi pembangunan takaful mikro. Kajian ini adalah kualitatif dengan menggunakan pendekatan analisis kandungan. Hasil mendapati beberapa skim bantuan kewangan kepada golongan miskin disediakan sama ada oleh kerajaan atau institusi kewangan. Namun tidak banyak skim takaful mikro ditawarkan buat masa sekarang. Justeru, satu kajian penggunaan zakat untuk membangunkan takaful mikro wajar perlu dijalankan dalam kajian lanjutan.

The extent of financial inclusion through MGNREGS: a district level analysis in West Bengal, India

2020 ◽  
Vol 48 (1) ◽  
pp. 121-139
Author(s):  
Krishna Singh
Keyword(s):  
West Bengal ◽  
Principal Component ◽  
Financial Inclusion ◽  
Content Type ◽  
Post Offices ◽  
Wage Payment ◽  
Effect Regression ◽  
Employment Guarantee ◽  
The Impact ◽  
Employment Guarantee Scheme

PurposeMahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) launched in the year 2006, with the pursuit of the objective of removing poverty and unemployment and thus address the issue of financial inclusion. The performance of the programme across the states in India has not been uniform. The purpose of this study is to focus on the financial inclusiveness features associated with MGNREGS program across the selected districts in West Bengal in the years of recent past.Design/methodology/approachIn this study, financial inclusion index has been developed by consideration of four indicators with the help of principal component method. Fixed effect regression model has been applied to explain the impact of relevant determinants on financial inclusion index.FindingsIt is observed that out of 19 districts, seven districts registered an increase in the value of the financial inclusion index in the year 2019 compared to that in the year 2013. The empirical analysis for identifying the determinants of overall inclusion reveals that factors like households having active job card, utilization of fund, amount of labour cost and number of works have significant influence on financial inclusion.Originality/valueThe study widely discussed how the scheme was helping in promoting financial inclusion by providing wage payment through banks and post offices accounts. The author has also tried to highlight some of the difficulties in accelerating the speed of financial inclusion when banks and post offices are used as a means for wage payment and finally provide remedial measures that could be taken to tackle these problems.

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