Files
Abstract
A common criticism of antipoverty programs is that the high share of
administrative (nontransfer) costs substantially reduces their effectiveness in alleviating
poverty. Yet there is surprisingly little hard empirical evidence on such programs' costs.
A recent international review of targeted poverty alleviation programs in less developed
countries found cost information--which was rarely comparable between studies--for
fewer than one-third of the programs examined. Improved information and a better
understanding of the costs of such programs are crucial for effective policymaking. This
study proposes and implements a methodology for a comparative analysis of the level
and structure of costs of three similar poverty alleviation programs in Latin America, in
order to assess 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.