Pakistan's Growth Story

Home

Conversations

Submissions

About

Contact

This policy brief is based on a study conducted by the researchers through Oxford University and Lahore School of Economics, and funded by the British Academy and Lahore School of Economics. The study is entitled “The Downside of Discretion” and is available at sites.google.com/site/kvyborny.

Pakistan’s Benazir Income Support Programme is one of the world’s largest public assistance programs, issuing a regular Unconditional Cash Transfer to 7 million recipient households across the country. When BISP was first initiated, parliamentarians were asked to identify and nominate poor households for the program. Then, the Government of Pakistan worked with advisors in aid donor agencies to develop and implement a Poverty Scorecard (Proxy Means Test) to select the poorest recipients, using a simple formula based on their assets.

This policy brief summarizes the findings of a research study on the effects of this reform to use the Poverty Scorecard. The study looks at survey data from thousands of households, and compares how BISP was distributed as the Poverty Scorecard reform was rolled out. It finds that the reform that implemented the Poverty Scorecard:

Improved targeting by reducing favoritism for politically connected households. Before the reform, households from the home villages of winning politicians were two to four times (200-400%) more likely to receive the transfer than those in rival politicians’ villages. After the reform, there is a large and significant reduction in favoritism for the best-connected group – the politician’s own caste/clan in his home village. These households no longer receive any advantage in getting the BISP after the reform. Favoritism was reduced across parties and for powerful senior politicians as well as junior politicians.

Improved targeting by reducing BISP transfers to wealthier households , such as those who have finished (pakka)houses or who are highly educated.

Increased welfare by 15% by targeting poorer households who benefited more from the funds, even after accounting for the administrative costs of the Poverty Scorecard survey (National Socio-Economic Registry)

Improved public approval of social protection programs by 40%.

Before BISP, many governments in Pakistan each introduced a new transfer program, in part in response to favoritism in previous programs. This led to inconsistent coverage, making social protection ineffective as a safety net. BISP was the first social protection program in Pakistan to adopt a completely objective, rule-based system for selecting recipients.

The study shows that the investment in the Poverty Scorecard / National Socio-Economic Registry and the commitment to an objective targeting system has paid off by making BISP pro-poor and resistant to political favoritism. The findings suggest that the government should build on BISP’s success by expanding the use of the NSER for identifying beneficiaries across programs through the Ehsaas initiative, and make this system accessible to provincial governments and other development partners to expand the benefits of this investment.

Kate Vyborny is Associate Director, DevLab and Research Associate, Department of Economics, Duke University; Visiting Fellow, Lahore School of Economics.

Muhammad Haseeb is a Ph.D. candidate at the University of Warwick and former Research Fellow, Lahore School of Economics.

Twitter

Facebook

Uncategorized

View all posts by Pakistan's Growth Story

Fill in your details below or click an icon to log in:

You are commenting using your WordPress.com account. ( Log Out / Change )

You are commenting using your Google account. ( Log Out / Change )

You are commenting using your Twitter account. ( Log Out / Change )

You are commenting using your Facebook account. ( Log Out / Change )

Connecting to %s

Notify me of new comments via email.

Notify me of new posts via email.

Pakistan’s Growth Story provides a clear, research-based perspective on the ideas and policies that are shaping Pakistan’s economic and human development. It is a collaboration of the Consortium for Development Policy Research (CDPR) and International Growth Centre (IGC) , with contributions from CDPR’s partner organisation, Institute of Development and Economic Alternatives (IDEAS)

Property Tax and Urban Policy in Khyber Pakhtunkhwa

Bringing Pakistan’s Technology Sector to the Forefront

Population Growth and the Demographic Dividend

Leaving No One Behind: The Role of Special Education in Pakistan

Urbanization and Growth

Challenges and opportunities for Pakistan education systems in the COVID-19 response

COVID-19 and Innovation in Retail

Marginalised groups face unequal access to public goods

Gender Gaps in Learning: Are Girls’ Schools Better?

Supporting Gilgit-Baltistan’s agriculture sector

Afghanistan

Agriculture

Air pollution

Bangladesh

Book Talk

Business

Climate Change

Community Development

COVID19

CPEC

Criminal Justice

Democracy

Development Banks

Devolution

Disability

Disaster Management

Economic Growth

Education

Elections

Employment

Energy

Environment

Exports

Food Security

Gender

Governance

Health

Human Rights

Impact

India

Infrastructure

Law

Microfinance

Nutrition

Politics

Poverty

Prejudice

Rural development

Security

Social inclusion

Stock Market

Taxation

Tolerance

Trade

United Kingdom

United States

Urbanization

Water

October 2020

September 2020

August 2020

July 2020

June 2020

May 2020

April 2020

March 2020

December 2019

November 2019

October 2019

September 2019

August 2019

July 2019

June 2019

May 2019

April 2019

March 2019

January 2019

December 2018

November 2018

October 2018

September 2018

August 2018

July 2018

June 2018

May 2018

April 2018

March 2018

February 2018

January 2018

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

December 2016

November 2016

September 2016