From Social Assistance to Social Development: Education Subsidies in Developing Countries

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More About This Textbook


In this study, authors Samuel Morley and David Coady demonstrate how a promising new alternative to standard donor-financed education programs -- the conditioned transfer for education (CTE) program -- can advance both poverty reduction and education goals at the same time. CTE programs meet the immediate needs of the poorest families by providing cash or food, but only on the condition that they keep their children in school. These transfers reduce poverty in the short run, and the additional education of the children of poor families breaks the long-run cycle of poverty by increasing their earning potential. The book compiles a vast amount of unpublished and published material on existing CTE programs and their impact on poverty. Groundbreaking case studies and detailed evaluations of programs in Mexico, Brazil, Bangladesh, Nicaragua, Honduras, and Chile add up to an unusual and surprising success story for skeptics of development and foreign aid.
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Product Details

  • ISBN-13: 9780881323573
  • Publisher: Peterson Institute for International Economics
  • Publication date: 5/28/2003
  • Edition description: New Edition
  • Pages: 120
  • Product dimensions: 5.90 (w) x 8.90 (h) x 0.40 (d)

Table of Contents

Preface ix
Acknowledgments xiii
1 Introduction 1
The Role of Social Safety Nets 2
Organization of This Book 8
2 Poverty and Education in Developing Countries 9
Poverty in Developing Countries 9
Education in Developing Countries 13
3 Program Design 19
Program Size 20
Targeting 21
Benefit Structure 28
Costing CTE Programs 30
4 Impact of CTE Programs on Educational Outcomes 35
Educational Impact of Progresa in Mexico 37
Educational Impact of RPS in Nicaragua 40
Educational Impact of FFE in Bangladesh 42
Educational Impact of Bolsa Escola in Brazil 44
Are CTEs Cost Effective? 45
5 Impact of CTE Programs on Poverty 49
Transfer Levels 49
Program Size Relative to the Poverty Gap 51
Targeting Performance 54
Measuring Impact 58
Country Results 60
6 Comparative Performance 67
Calculating Net Direct Benefits to the Poor from CTE Programs 67
Current and Future Earnings Benefits Combined 70
CTE Programs and Targeted Employment Programs: A Comparision 76
Eligibility, Benefits, and the Trade-off Between More Education and Less Poverty 78
7 Cash for Education and the Search for More Effective Methods of Aid Delivery 85
Education 86
Poverty 87
The Block Grant Approach 88
CTEs and Permanent Safety Nets 89
The Cost of Extending CTE Programs 91
8 Conclusions and Issues for the Future 97
Review of the Evidence on Current Programs 97
Advantages of CTE-Type Programs 99
Issues for the Future 100
Appendix Program Descriptions 105
References 125
Index 129
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