Protecting the poor during adjustment and transitions

Abstract

This paper reviews the programs implemented in selected countries to protect the poor during normal times and during transition or adjustment. In particular, two questions are addressed: how have countries implemented the programs in practice, and what are the lessons. The paper reviews five sets of programs: (i) food subsidies and related interventions, (ii) food for works and other public works programs, (iii) credit-based self-employment programs, (iv) social funds and related interventions, and (v) child allowances. More representative than comprehensive, the selection of programs and countries is based on the availability of rigorous evaluations, the importance of the program, and the issue under consideration. In choosing between the instruments and their duration and coverage, governments face key issues, including how much to spend and how to finance programs; how to target assistance to the poor, within politically feasible limits; how to select the most appropriate delivery mechanism; and how to avoid adverse effects on incentives for labor supply and private savings and transfers. The reviewed program and country experience offers a few key lessons. First, it is

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