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Principles and Approach to Targeting:With Reference to the Indonesian Social Safety Net Program

Author

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  • Sumarto, Sudarno
  • Suryahadi, Asep

Abstract

The potential benefits of accurate targeting are substantial because public expenditures can be concentrated to the needy, thereby saving money and improving program efficiency. However, targeting also entails the administrative costs associated with identifying, reaching, and monitoring potential beneficiaries. In addition, there are also potential costs in the form of disincentive costs, stigma costs, and political economy costs. The experience of the recent Indonesian social safety net programs shows that targeting was one of the most difficult problems in the implementation of these programs. As a result, the programs were plagued by the twin problems of undercoverage and leakage.

Suggested Citation

  • Sumarto, Sudarno & Suryahadi, Asep, 2001. "Principles and Approach to Targeting:With Reference to the Indonesian Social Safety Net Program," MPRA Paper 58670, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58670
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    File URL: https://mpra.ub.uni-muenchen.de/58670/1/MPRA_paper_58670.pdf
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    References listed on IDEAS

    as
    1. Sumarto, Sudarno & Suryahadi, Asep & Pritchett, Lant, 2000. "Safety nets and safety ropes - who benefited from two Indonesian crisis programs - the"poor"or the"shocked"?," Policy Research Working Paper Series 2436, The World Bank.
    2. Bigman, David & Fofack, Hippolyte, 2000. "Geographical Targeting for Poverty Alleviation: An Introduction to the Special Issue," The World Bank Economic Review, World Bank, vol. 14(1), pages 129-145, January.
    3. Ferreira, Francisco & Prennushi, Giovanna & Ravallion, Martin, 1999. "Protecting the poor from macroeconomic shocks," Policy Research Working Paper Series 2160, The World Bank.
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    Cited by:

    1. B. Essama-Nssah, 2018. "Assessing the performance of targeting mechanisms," Working Papers 457, ECINEQ, Society for the Study of Economic Inequality.
    2. Anne Daly & George Fane, 2002. "Anti-Poverty Programs in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(3), pages 309-329.
    3. Mohamed Bakhshoodeh, 2013. "Proxy Means Tests for Targeting Subsidies Scheme in Iran," Working Papers 795, Economic Research Forum, revised Nov 2013.

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    More about this item

    Keywords

    Targeting; safety net programs; poverty; Indonesia.;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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