Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico

One of the common criticisms of poverty alleviation programs is that the high share of administrative (nontransfer) costs substantially reduces the programs’ impact on poverty. But very little empirical evidence exists on program costs. For example, a recent extensive international review of targete...

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Main Authors: Coady, David, Perez, Raul, Vera-Ilamas, Hadid
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2005
Subjects:
Online Access:https://hdl.handle.net/10568/160604
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author Coady, David
Perez, Raul
Vera-Ilamas, Hadid
author_browse Coady, David
Perez, Raul
Vera-Ilamas, Hadid
author_facet Coady, David
Perez, Raul
Vera-Ilamas, Hadid
author_sort Coady, David
collection Repository of Agricultural Research Outputs (CGSpace)
description One of the common criticisms of poverty alleviation programs is that the high share of administrative (nontransfer) costs substantially reduces the programs’ impact on poverty. But very little empirical evidence exists on program costs. For example, a recent extensive international review of targeted poverty alleviation programs in developing countries could find data on costs for only 32 out of the 111 programs reviewed. Even then, the numbers available were not always comparable. In this paper, we present a detailed analysis of the cost structure of a program recently introduced in Mexico, called PROGRESA. Our analysis shows how cost data can be used as the basis for an evaluation of the cost efficiency of anti-poverty programs. It cautions, however, that one must be very careful when interpreting cost numbers or undertaking comparisons across programs in order to avoid misleading conclusions. Any credible analysis of a program’s cost efficiency must involve a detailed analysis of cost structure and not simply provide aggregate cost information. We also highlight the importance of not neglecting private costs incurred by households in taking up transfers.
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spelling CGSpace1606042025-11-06T04:21:50Z Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico Coady, David Perez, Raul Vera-Ilamas, Hadid poverty research methodology education economic aspects human capital consumer behaviour costs analysis expenditure poverty alleviation One of the common criticisms of poverty alleviation programs is that the high share of administrative (nontransfer) costs substantially reduces the programs’ impact on poverty. But very little empirical evidence exists on program costs. For example, a recent extensive international review of targeted poverty alleviation programs in developing countries could find data on costs for only 32 out of the 111 programs reviewed. Even then, the numbers available were not always comparable. In this paper, we present a detailed analysis of the cost structure of a program recently introduced in Mexico, called PROGRESA. Our analysis shows how cost data can be used as the basis for an evaluation of the cost efficiency of anti-poverty programs. It cautions, however, that one must be very careful when interpreting cost numbers or undertaking comparisons across programs in order to avoid misleading conclusions. Any credible analysis of a program’s cost efficiency must involve a detailed analysis of cost structure and not simply provide aggregate cost information. We also highlight the importance of not neglecting private costs incurred by households in taking up transfers. 2005 2024-11-21T09:51:18Z 2024-11-21T09:51:18Z Brief https://hdl.handle.net/10568/160604 en Open Access application/pdf International Food Policy Research Institute Coady, David; Perez, Raul; Vera-Ilamas, Hadid. Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico. FCND Discussion Paper Brief. 199. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160604
spellingShingle poverty
research
methodology
education
economic aspects
human capital
consumer behaviour
costs
analysis
expenditure
poverty alleviation
Coady, David
Perez, Raul
Vera-Ilamas, Hadid
Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico
title Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico
title_full Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico
title_fullStr Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico
title_full_unstemmed Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico
title_short Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico
title_sort evaluating the cost of poverty alleviation transfer programs an illustration based on progresa in mexico
topic poverty
research
methodology
education
economic aspects
human capital
consumer behaviour
costs
analysis
expenditure
poverty alleviation
url https://hdl.handle.net/10568/160604
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