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Abstract
This paper addresses the contested issue of the efficacy of targeting interventions
in developing countries using a newly constructed comprehensive database of 111
targeted antipoverty interventions in 47 countries. While the median program transfers 25
percent more to the target group than would be the case with a universal allocation, more
than a quarter of targeted programs are regressive. Countries with higher income or
governance measures, and countries with better measures for voice do better at directing
benefits toward poorer members of the population. Interventions that use means testing,
geographic targeting, and self-selection based on a work requirement are all associated
with an increased share of benefits going to the bottom two quintiles. Self-selection based
on consumption, demographic targeting to the elderly, and community bidding show
limited potential for good targeting. Proxy means testing, community-based selection of
individuals, and demographic targeting to children show good results on average, but
with considerable variation. Overall, there is considerable variation in targeting
performance when we examine experiences with specific program types and specific
targeting methods. Indeed a Theil decomposition of the variation in outcome shows that
differences between targeting methods account for only 20 percent of overall variation.
The remainder is due to differences found within categories. Thus, while these general
patterns are instructive, differences in implementation are also quite important
determinants of outcomes.