Journal Article

Targeting Revisited

Dominique van de Walle

in The World Bank Research Observer

Published on behalf of World Bank

Volume 13, issue 2, pages 231-248
Published in print August 1998 | ISSN: 0257-3032
Published online August 1998 | e-ISSN: 1564-6971 | DOI: http://dx.doi.org/10.1093/wbro/13.2.231
Targeting Revisited

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Public spending programs aimed at alleviating poverty can either be broadly targeted at categories ofspending or narrowly targeted at types of people. Each approach has benefits and costs to the poor. It is often claimed that narrow targeting of the poor will allow governments to reduce pQverty more effectively and at lower cost. But narrow targeting often has hidden costs, and once these costs are considered, the most finely targeted policy may not have any more effect on poverty than a broadly targeted one. Both approaches also have hidden benefits, although less is known about their impact. Targeting can help, but it is not a cure-all. Reducing poverty calls for broadly targeted social sector spending combined with narrower targeting of cash and in-kind transfers to spec groups. It is also important for governments to experiment with schemes that offer better incentives, to carefully monitor the costs and outcomes, and to be flexible and pragmatic in their policy responses.

Journal Article.  0 words. 

Subjects: Development Planning and Policy

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