Summary: Global Development Issues

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  • week 4

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  • What are antipoverty transfers

    Objective: to facilitate their escape from poverty.
    It includes:
    - Pure transfers for households or individuals (child allowance)
    - Transfers combined with asset accumulation (human development conditions)   
    - Integrated antipoverty transfers (combines several interventions, pays attention to social and economic inclusion)
  • How to best study antipoverty transfers

    Social protection to develop long-term institutions needed to eradicate poverty, it includes:
    - social insurance: schemes between workers and employers
    - Social assistance: tax finance
    - Programmes addressing poverty 
    - Employment programmes 
    It's accepted in developing countries as essential for an inclusive development strategy and to reach the poorest
  • Growth of antipoverty transfers

    Faster in MIC's than LIC's. Due to implementation capacity and political factors. Factors that create political consensus:
    - strengthened social contracts
    - Fiscal pacts around natural resource revenues 
    - Awareness by policy makers and the mass public regarding effectiveness of antipoverty transfer
  • Conditions of social assistance programmes

    Conditions to the continuation of transfer payments, e.g. school-aged children are enrolled. Issues with conditions:
    - failure to comply can stop the transfer
    - Might penalize households least able to comply  
    -  Conditions fall primarily on mothers
    - Conditions might not be required
    Limited evidence that project success is due to conditions
  • Impact of social assistance on poverty rates

    - Limited evidence because poverty influenced by a range of factors. Most direct impact on household consumption:
    - Growth in food consumption,  improves nutritional status
    - Current consumption -> medium-run effects on human development -> increased productivity
  • Role of technology in social assistance

    - Leads to better service delivery and cost effectiveness
    - But exclusion of groups lacking access or competencies
    - Electronic payments reduces corruption and improves privacy
    - Intermediation is still needed by social workers
  • 5 factors that influence the effectiveness of antipoverty transfer programmes.

    - Human development focus – This influences the productive capacity of households, and leads to greater success of antipoverty transfers
    - Political embeddedness – antipoverty transfers require political support in order to be sustainable.
    - Capacity of public agencies – effectiveness depends on the capacity of public agencies to formulate, design and implement programmes.

    -Scale and selection – broad targeting works better than narrow targeting, because it reduces errors in selection.
    -Exit strategies – can be demographic (e.g. children leaving schools), or through regular reviews of entry conditions. 
  • The contribution of antipoverty transfers to progress towards zero goals. 

    -Antipoverty transfer programmes are essential in eradicating extreme poverty and maintaining this achievement.
    -Also useful for reducing disparities in access to service and opportunities in developing countries.
    - Economic growth and provision of quality basic services can reduce poverty, but without transfers they will not reach the poorest. 
  • The role of international aid and antipoverty transfers

    - Aid  can scale up antipoverty transfers by facilitating the development of design and implementation. By covering set-up costs.
    - International aid only finances antipoverty transfers in the short term.  In medium-term they have to be financed domestically to be sustainable
     
  • Neoliberal economic agenda in developing countries

    Neoliberalism is an economic and political ideology that undermines the importance of social and ecological affairs to capitalist market dynamics.
    -Rolling-back phenomenon: reducing the activities of the state
    -Rolling-out phenomenon: reconstruction of the state around neoliberal models. 
    Every country is affected by neoliberalism
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