The Cost of Poverty Alleviation Transfer Programs: A Comparative Analysis of Three Programs in Latin America

Natàlia Caldés · David P. Coady · John A. Maluccio

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Poverty, Education, and Child Welfare International Development and Aid Income, Poverty, and Inequality

Abstract

A common criticism of antipoverty programs is that the high share of administrative (nontransfer) costs substantially reduces their effectiveness. Yet there is surprisingly little rigorous empirical evidence on program costs. This study proposes and implements a replicable methodology for a comparative cost analysis of three similar poverty alleviation programs in Honduras, Mexico and Nicaragua, and assesses their cost efficiency. The findings underscore that any credible assessment of cost-efficiency requires a detailed analysis of program cost structures that goes well beyond simply providing aggregate cost information.

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References

2004The Impact of PROGRESA on Food Consumption 2004The Targeting of Transfers in Developing Countries: Review of Experience and Lessons 2001SCHOOL SUBSIDIES FOR THE POOR: EVALUATING A MEXICAN STRATEGY FOR REDUCING POVERTY 1994USING RANDOMIZED CONTROL DESIGNS IN EVALUATING SOCIAL SECTOR PROGRAMS IN DEVELOPING COUNTRIES 2001AN EVALUATION OF THE DISTRIBUTIONAL POWER OF PROGRESA'S CASH TRANSFERS IN MEXICO 2001Progressing Through Progresa: An Impact Assessment of a School Subsidy Experiment

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