Universalism or Targeting

1
Universalism or Targeting

• Ilcheong Yi
• Research Coordinator
• UNRISD

2
Social integration

• Social integration is a process enhancing
  instrumental values of socio-economic and
  political factors for poverty reduction and full
  employment. (collective factor enhancing
  individual capapbility)
• Variety of social policy programmes for social
  integration
• Ideal typical core principles universalism vs
  targeting
• Existing programmes with mixed elements
  (evaluation).

3
Targeting

• rational reduction of social costs through
  efficient method
• Underlying assumption Individual responsibility
  for individual misfortune (individual
  responsibility for market failure, thus
  correction through societal help not the
  transformation of social structure for market
  with human face)
• Justification reduction of leakage (reduction of
  inclusion error with less emphasis on
  undercoverage).
• Variety of targeting methods
• Evaluation targeting efficiency ? the degree of
  benefits of those targets hit (beneficiaries).
• ? programmes with standard leakage and
  coverage

4
1st 2nd 3rd 4th 5th Benefits per poor indi. targeting efficiency Under coverage() leakage()
uni 200/4 200/4 200/4 200/4 200/4 50 1.0 0 0
Ideal targe- 500/4 500/4 125 2.5
St. leakage(32) 340/4 340/4 200/4 100/4 20/4 85 1.7 0 32
St. cover(50) 500/2 (0/2) 500/2 (0/2) 0 0 0 250/1(0/1) 5 50 0
St. le. Cov. 340/2 (0/2) 340/2(0/2) 200/4 100/4 20/4 170/1(0/1) 3.4 50 32
BF(2004) 255/1.96(0/2.04) 255/1.96(0/2.04) 303/4 155/4 32/4 130/1(0/1) 2.6 59 49
PATH 580/2.4(0/1.6) 220/2.4(0/1.6) 140/4 50/4 10/4 242/1(0/1) 4.832 40 20
5

• The excluded are out there!!(poverty eradication
  and social integration??)
• Administrative costs (efficient?)

6
Improvement of Targeting

• Lowering leakage and under-coverage lower
  leakage ? higher under coverage
• Lowering both leakage and undercoverage
  increased administrative costs
• Non-economic costs ? identification ? increasing
  distrust, empowering bureaucrats over the
  vulnerable, stigmatization (Social
  disintegration)
• Middle class support lost under the crisis

7
Universal programmes

• Comparative advantage against targeting in terms
  of inclusiveness (economic and non-economic
  benefits)
• Holistic approach to assess universalism
• individual universal programme may be costly.
  There is a cost saving and redistribution through
  synergies making redistributive political
  coalition, progressive tax system
• Universalism in design
• Welfare dependency, moral hazards holistic
  approach for assessment (single mother without
  job), comparison of unemployment benefits with
  car insurance
• Sensitive universalism is needed. Targeting
  within universalism? Affirmative action?