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.

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.

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 Taiwan's budgetary responses to COVID-19: the use of special budgets

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wei-Jie Liao ◽  
Nai-Ling Kuo ◽  
Shih-Hsien Chuang
Keyword(s):  
Lessons Learned ◽  
Fiscal Sustainability ◽  
Short Term ◽  
Content Type ◽  
The Great Recession ◽  
News Reports ◽  
Economic Stimulus ◽  
Fiscal Implications ◽  
Taiwanese Government

PurposeThe authors examine the Taiwanese government's budgetary responses to COVID-19, with a focus on the special budgets created for containing the virus, undertaking bailouts and providing economic stimulus. The authors assess the short-term and long-term fiscal implications of the budgetary measures and discuss how Taiwan's experiences could provide lessons for other countries for future emergencies.Design/methodology/approachThe authors collect data from Taiwan's official documents and news reports and compare the special budgets proposed by the Taiwanese government during the Great Recession and the COVID-19 pandemic. The authors discuss lessons learned from the 2008–09 special budget and possible concerns of the 2020 special budgets. In the conclusions, the authors discuss potential long-term implications for Taiwan's budgetary system as well as possible lessons for other countries based on Taiwan's experiencesFindingsThe authors found that the 2008–09 special budgets focused only on economic stimulus, whereas the 2020 special budgets covered COVID-19 treatments, bailouts and economic stimulus. In 2020, the Taiwanese government devised targeted bailout plans for industries and individuals most affected by the pandemic and created the Triple Stimulus Vouchers to boost the economy. Since the special budgets were largely funded through borrowing, the authors pointed out concerns for fiscal sustainability and intergenerational equity.Originality/valueCOVID-19 has changed how the world functions massively. This work adds to the literature on COVID-19 by providing Taiwan's budgetary responses to the pandemic. This work also identifies ways for Taiwan to improve the existing budgetary system and discusses lessons for other countries.

Long-Term Effects of a Conditional Cash Transfer Program in Nicaragua

2018 ◽  
Author(s):  
Karen Macours ◽  
john maluccio ◽  
Laura Abadia ◽  
Keesler Welch ◽  
Tatiana Melnikova
Keyword(s):  
Conditional Cash Transfer ◽  
Cash Transfer ◽  
Transfer Program ◽  
Long Term Effects ◽  
Conditional Cash Transfer Program

Kuwait's politics will stall economic reforms

2016 ◽  
Keyword(s):  
Extended Period ◽  
Economic Reforms ◽  
Small Population ◽  
Fiscal Sustainability ◽  
Content Type ◽  
Reform Plan ◽  
Capital Spending ◽  
The Government ◽  
International Assets

Significance With huge financial reserves, low public debt and a small population, Kuwait is one of the Gulf Cooperation Council (GCC) states best equipped to ride out an extended period of low oil prices. However, with the country registering its first budget deficit in 16 years, concerns about Kuwait's long-term fiscal sustainability have become more pressing, and the government has introduced a reform plan aimed at restructuring the economy. Impacts The government will step up capital spending, launching as many projects as possible before the 2017 election. The private sector is likely to face increased financial costs, eg, corporate taxes, higher utilities charges and employment of nationals. Kuwait will become further integrated into the international bond market, and rely more on its international assets as a source of income. Political tensions could rise ahead of the 2017 poll if the government takes more measures to reduce opposition electoral prospects. Kuwait will lag behind other GCC states in its progress on economic reforms.

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.

scholarly journals Pengaruh bantuan paket sembako dan bantuan langsung tunai selama pandemi Covid-19 terhadap kelangsungan hidup masyarakat

2021 ◽  
Vol 6 (2) ◽  
pp. 176-186
Author(s):  
Hendra Sukmana
Keyword(s):  
Data Collection ◽  
Significant Contribution ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Cash Transfer ◽  
Transfer Program ◽  
Assistance Program ◽  
Cash Assistance ◽  
Food Package ◽  
Data Collection Technique

The purpose of the research, one of which is to prove the effect of food package assistance and also direct cash assistance on the survival of the community during the Covid-19 pandemic. The quantitative approach is carried out using a sample of 80 respondents with multiple linear regression analysis techniques. The data collection technique is done by using a questionnaire. The results of the study indicate that first, the basic food package assistance program has a significant contribution to the survival of people's lives. Second, the cash transfer program has a significant contribution to the survival of the community. Third, the basic food package assistance program and direct cash assistance have a significant contribution to the survival of people's lives. Based on the results of research and findings in the field, the following suggestions are obtained: first, the community needs more ongoing assistance, such as employment opportunities and useful equipment assistance. to improve skills and expertise for business actors. Second, a re-evaluation of the aid distribution process is carried out so that it can be felt by the community, such as being more fair and wise in the process of collecting data on aid beneficiaries. Third, an evaluation is needed in the data collection process, where this process must prioritize deliberation from the RT to the village level, in order to obtain data that is in accordance with the value of propriety and the aspect of willingness. Based on this, the direct package assistance program and also direct cash assistance have a significant contribution to the survival of the community. Other results show that the cash transfer program has the most significant contribution in influencing the survival of the community.

Dominican Republic growth to slow but remain robust

2019 ◽  
Keyword(s):  
Dominican Republic ◽  
Public Investment ◽  
Western Hemisphere ◽  
Government Support ◽  
Fiscal Sustainability ◽  
Average Growth ◽  
Content Type ◽  
Debt Dynamics ◽  
External Conditions

Subject The Dominican Republic economy. Significance With average growth of 6.5% over the last five years, the Dominican Republic is one of the most dynamic economies in the Western Hemisphere. Favourable external conditions and strong domestic demand, fuelled by a timely monetary impulse after the 2017 slowdown, explain last year’s pick-up. Fiscal consolidation is the major challenge facing the country amid persistent structural public deficits. The upward public debt dynamics will have to be reversed to ensure fiscal sustainability in the medium-to-long term. Impacts A less supportive external environment and pre-election uncertainty will weigh on growth this year. Tourism will remain a major driver of growth in the medium term thanks to government support and public investment. Current account deficits will be financed largely by FDI attracted by free zones, buoyant construction and tourism. A new coal-fired power plant will boost power supplies and facilitate a scaling-back of public energy subsidies, easing fiscal pressures.

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