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
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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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