Multi-Donor Trust Fund on Labor Markets, Job Creation and Economic Growth: IL...
Pensions Core Course 2013: Pensions in Low-income Countries
1. Page 1 of 3
Social pensions in LICs
Armando Barrientos, BWPI, University of Manchester, UK (a.barrientos@manchester.ac.uk)
Targeting the Elderly or Targeting Households? Morning Symposium on Social
Pensions vs Social Assistance, World Bank April 3rd, 2013
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Why do LICs introduce social pensions?
Capacity constraints limit the range of available transfer instruments
Smaller budgets than alternatives (e.g. a child transfer)
Straightforward to estimate future liabilities (sustainability, graduation)
Easier to prevent escalation re electoral cycle (sustainability)
Relatively easier to identify potential recipients, especially if categorical
Social pensions have assured (strong?) political feedback
Demographics and the franchise
Limited disincentive effects – especially given growth policy focus
Managing the adverse consequences of growth (e.g. on informal protection?)
Other: HIV/Aids?
Social pensions: a platform for the expansion of social protection or a self-standing instrument?
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Relative budgets for categorical transfers in SSA
Data source: Kakwani et al. (2006); Kakwani and Subbarao (2007)
3.7
8.2
3
2.5
7.6
4.8
5.1
3.9
4.3
2.6
6.3
6.5
3
4.3
4.8
2.11
3.05
1.55
1.11
3.74
2.83
3.3
2.66
2.06
1.15
3.13
2.92
1.68
1.86
1.68
Burkina Faso 98
Burundi 98
Cameroon 96
Cote d'Ivoire 98
Ethiopia 00
Gambia 98
Ghana 94
Guinea 94
Kenya 97
Madagascar 01
Malawi 97
Mozambique 96
Nigeria 96
Uganda 99
Zambia 98
Categorical child transfer of 20% of national poverty line Categorical social pension of70% of national poverty line