Can Mistargeting Destroy Social Capital and Stimulate Crime? Evidence from a Cash Transfer Program in Indonesia

Lisa Cameron and Manisha Shah

No 6736, IZA Discussion Papers from IZA Network @ LISER

Abstract: Cash transfer programs can provide important financial support for poor households in developing countries and are becoming increasingly common. However the potential for mistargeting of program funds is high. This paper focuses on the social consequences arising from misallocation of resources in close knit communities. We find that the mistargeting of a cash transfer program in Indonesia is significantly associated with increases in crime and declines in social capital within communities. Hence poorly administered transfer programs have a potentially large negative downside that extends beyond the pure financial costs that have been the focus of the literature to date.

Keywords: cash transfer programs; crime; mistargeting; social capital (search for similar items in EconPapers)
JEL-codes: I38 O12 O15 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2012-07
New Economics Papers: this item is included in nep-dev, nep-sea and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Published - published in: Economic Development and Cultural Change, 2014, 62 (2), 381-415

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Related works:
Journal Article: Can Mistargeting Destroy Social Capital and Stimulate Crime? Evidence from a Cash Transfer Program in Indonesia (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp6736

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