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Community-based Targeting and Initial Local Conditions: Evidence from Indonesia’s IDT Program

Chikako Yamauchi

No 584, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University

Abstract: Community-based selection of social program recipients has the potential to benefit from local knowledge about individuals in need. This informational advantage however might be offset by local elite capture and administrative incompetency. Using Indonesia's anti-poverty program, this paper investigates which pre-program conditions are associated with community-based targeting outcomes. Results show that wealthier and more unequal villages constantly target better. This suggests that, though there is much concern about local capture in communities with large inequality, the ease of identifying the poor could overwhelm the possibly larger political influence of local elites. Also, villages headed by young, educated persons initially exhibit better targeting, but lose this advantage over time, as the monitoring of loan disbursement becomes more difficult for village heads. I explore Indonesia's political context, which provides insight into these findings.

Keywords: targeting; community; inequality; IDT; Indonesia (search for similar items in EconPapers)
JEL-codes: D73 H11 H75 O17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-geo, nep-pbe and nep-sea
Date: 2008-08
References: View references in EconPapers View complete reference list from CitEc
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