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WP 2009-12: Targeting Analysis of Social Policy

WP 2009-12
TitleTargeting Analysis of Social Policy
Original titleAnálisis de Focalización de la Política Social
Author(s) Marielle Del Valle and Augusta Alfageme
Language Spanish
Date 2009/04/30
Abstract

This document shows two levels of targeting analysis: geographical and by households or individuals. The first shows the outcomes of the Poverty Map by districts of 2007, and performs a geographical allocation analysis of the public expenditure in the "Glass of Milk Program" (Programa de Vaso de Leche) and the "Municipal Compensation Fund" (Fondo de Compensación Municipal - Foncomun). The second provides a targeting study at the household level to analyze the effectiveness of the following social programs Community Kitchens (Comedores Populares), School Breakfast (Desayuno Escolar), Glass of Milk (Vaso de Leche) and Integrated Health Insurance (Seguro Integral de Salud), using the last available information of the National Hosehold Survey carried out by the National Institute of Statistics. Of the 1 834 districts of the country, 56 percent have monetary poverty rates higher than 50 percent. It is also shown, with the exception of Metropolitan Lima, that the Foncomun's resources are not being allocated in accordance to the social infraestructure needs at geographical level. In the case of the Glass of Milk, it can be observed that, without Lima, the geographical allocation matches better the monetary poverty, however, there are serious targeting problems at the household level. With regard to the targeting at the household level, we find that from 2005 to 2007, the leakage measured by the monetary method increased in 8, 6, 5 and 2 percentage points in Community Kitchen, Glass of Milk, Integrated Health Insurance and School Breakfast programs, respectively. These programs received resources for S/. 985 millions in 2007; however due to leakages, the loss of resources amounted to S/. 387 millions. The coverage has improved in School Breakfast and Integrated Health Insurance, but it has not done so in Community Kitchen and Glass of Milk, for which the undercoverage remained constant. We also perform a measure of the targeting errors identifying as poor population those with precarious living conditions. With this definition, the leakage levels decrease, but their trend is very similar to the one calculated with the monetary method.

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