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Program Interventions for Food Security, Poverty Alleviation and Rural Development Suresh Babu October 26, 2011

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Program Interventions for Food Security, Poverty Alleviation and

Rural Development

Suresh BabuOctober 26, 2011

Page 2

Concept of Rural Development and Poverty Alleviation

Growth for poverty reduction Employment orientation Landless laborers Poor and vulnerable

Page 3

Green Revolution and Poverty

Food production increase – 250 m. tons

Real price of food goes down? Extra resources for education/health

Page 4

Rural Growth Linkages

Input supplies Marketing agents Repairs & maintenance Artisans & services Post-harvest agroprocessing

Page 5

Food to Health

Macronutrients to Micronutrients

Iron – Anemia

Vitamin A deficiency

Child malnutrition remains high

Page 6

Technology Challenges

Technology – labor saving?

Getting out of agriculture

Rural nonfarm employment

Increasing productivity

Page 7

Page 8

Institutional Challenges

Institutions to help the poor? Who are the poor? Where are they? Why are they? How to help?

Page 9

Rural Institutions

The Gram Panchayats Linkages to service delivery Linkages to government programs Linkages to NGOs

Page 10

Policy Challenges

What policies are in place? What programs are in place? How they affect people? How to influence policy? How to monitor the impact?

Page 11

Program Interventions

Cash transfers Food related programs Price and tax subsidies Fee waivers in health Public works Microcredit and informal insurance

Page 12

Cross-cutting Issues

Overview Institutions Targeting Evaluation Political Economy Gender Community Based Targeting

Page 13

Supplementary Feeding Programs

Economic Rationale for Supplementary Feeding Programs

Effectiveness of Supplementary Feeding Programs

Appropriate Circumstances for the Use of Supplementary Feeding programs

Program Design Issues

Criteria for Program Evaluation

Page 14

Characteristics of Selected School Feeding Programs

Ration

Days per year

Cost per 1,000 calories/day over 365 days (US $)

Number of beneficiaries

Estimated annual cost (US$ millions)

Tamil Nadu Mid-day meal

418 200 67.02 n.a. n.a.

Guatemala 456 165 19.25 1,099,000 4.3

Gambia 858 196 81.46 376,202 14.1

Nepal 3718 mix of Maternal and child Health and Social Fund

622 293 56.50 377,650 10.7

Source: World Bank data

Page 15

Food for Work Programs

Economic Rationale for Food for

Work

Program Design

Criteria for Program Evaluation

Page 16

Food Stamp Programs

Economic Rationale for Food Stamp Programs

Appropriate Circumstances for the Use of Food Stamps

Design Issues

Suitability for Adapting to a Crisis

Implementation of Food Stamp Programs

Criteria for Evaluating Programs

Page 17

Emergency Feeding

Rationale for World Bank Involvement with

Emergency Feeding Programs

Purpose of Emergency Feeding

Timing the Transfer to Support Both Objectives

Program Types

Appropriate Conditions for Emergency Feeding

Page 18

An International Comparison of Leakage from Food Subsidy Programs

Type of program Country Leakage to Non-needy

Untargeted Food Subsidies Egypt (early 1980s) High (60-80%)

Untargeted Food Subsides Brazil High (81%)

Untargeted Food Rations (I.e., ratio shops)

India, Pakistan High (50-60%)

Self-targeting Food Rations Bangladesh (sorghum), Pakistan

Low (10-20%)

Food Stamps- Targeted by Income

Colombia, Sri Lanka (post- 1979), United States

Low-Moderate (10-30%)

Supplementation Schemes- On-site, most Vulnerable Group Targeting

India, Tamil Nadu Low (3-10%)

Targeted Food for Education program (free ration for school enrollment of children

Bangladesh Low (8-14%)

Page 19

Key Design Features of a Good Public Works Program

The wage rate should be set at a level

Restrictions on eligibility should be avoided

If rationing is required, program should be targeted to poor areas

The labor intensity should be as high as possible

Public works should be synchronized to the timing of agricultural slack seasons

Provision of childcare or preschool services can improve participation by women

Transaction costs to the poor are kept low

The program should include an asset maintenance component

Page 20

Targeting: An overview

The benefits of targeting

The costs of Targeting

Measuring targeting performance

Classifying targeting methods

Page 21

The International evidence on targeting outcomes

Database Construction

Programs Identified

Indicators of targeting performance

Descriptive analysis

Regression analysis

Caveats and limitations

Summary

Page 22

Implementing targeting methods

Mean tests

Proxy means tests

Community based targeting

Geographic targeting

Demographic targeting

Self-targeting

Some generic issues

Page 23

Several possible roles for safety nets in very poor countries

To fill in the deepest part of the poverty gap

To bring all (or many) of the poor up to an acceptable consumption level

To smooth consumption (e.g., seasonally)

To protect against major shocks

To insure against individual risks, either idiosyncratic ones such as income loss, or those that allow the poor to take on riskier, but higher return, activities

As an investment (to avoid decapitalization and to keep children in school)

Page 24

Global Hunger Index -2010

Page 25

Capacity Development? Translate policies and programs into action Build capacity for local governance Empowering rural youth Ride the new wave of high Value agriculture Public-Private partnership

Page 26

Thank you…..