1 / 15

Poverty reduction through transfers in cash and in kind: Contrasts and complementarity

This seminar explores the impact of the abolition of user fees and provision of in-kind support on child poverty reduction. It also discusses the role of cash and in-kind transfers in low-income countries and the affordability of a minimum social protection package.

floyda
Download Presentation

Poverty reduction through transfers in cash and in kind: Contrasts and complementarity

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Poverty reduction through transfers in cash and in kind: Contrasts and complementarity Seminar “How can the abolition of user fees and the provision of in-kind support impact on child poverty?”,Lecture Series “Social Protection: Making Child Poverty History?” London, 15 June 2005Christina Behrendt Social Security DepartmentInternational Labour Office, Geneva

  2. Outline • Introduction • Transfers in cash and in kind • Affordability • Effects on child poverty • Conclusions ILO SOCFAS

  3. 1. Introduction • Social protection is increasingly recognized as an effective way of reducing poverty • Children as a particularly vulnerable group • Right to social security • Form of provision: cash or in-kind? ILO SOCFAS

  4. 2. Cash vs. in-kind transfers • Mode of provision dependent on benefit to be provided • What is the role for for cash and in-kind benefits in low-income countries? • Encouraging examples ILO SOCFAS

  5. 2.1 Arguments in favour of in-kind transfers • Targeting • Control over use of transfer • Less inflationary risks • Less security risks • Less prone to corruption and diversion ILO SOCFAS

  6. 2.2 Arguments in favour of cash transfers • Choice (recipients’ priorities) • Cost-efficient (both administration costs and for recipients) • Stimulation of local markets • Multiplier effects • Less prone to corruption if regular and transparent benefits ILO SOCFAS

  7. 3. Affordability • Could low income countries afford a minimum social protection package? • To what extent could such a package be financed out of domestic resources? • How much international assistance would be needed over the next years? ILO SOCFAS

  8. 3.1 Minimum Social Protection Priority basic social protection package: • Universal access to essential health care • Basic education (primary education) • Minimum income security • Basic old age and invalidity pensions • Cash benefits to children (notably orphans) ILO SOCFAS

  9. Preliminary Results for Tanzania: Scenario I – Expenditure ILO SOCFAS

  10. Preliminary Results for Tanzania: Scenario I – Financing ILO SOCFAS

  11. Poverty reducing effects of a universal old-age pension ILO SOCFAS

  12. Poverty reducing effects of a child benefit to school-age children ILO SOCFAS

  13. Poverty reducing effects of an old age pension and a child benefit ILO SOCFAS

  14. Poverty reducing effects of a targeted cash transfer to the most vulnerable ILO SOCFAS

  15. Conclusions • Both in-kind and cash transfers can play a strong role in broader social protection strategies • Basic level of social protection is affordable to some extent also in low income countries, yet some transitional extrernal support might be necessary • Pronounced direct effect on poverty reduction for children and expected positive long-term effects on social development ILO SOCFAS

More Related