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THE WORLD BANK ECONOMIC REVIEW, VOL. 15, NO. 1, 33-53
© 2001 International Bank for Reconstruction and Development / The World Bank


Article

Multi-Tier Targeting of Social Assistance: The Role of Intergovernmental Transfers

Harold Alderman

the Rural Development Department at the World Bank. halderman{at}worldbank.org

Abstract

Albania provides a small amount of social assistance to nearly 20 percent of its population through a system that allows some community discretion in determining distribution. This study investigates how well this social assistance program is targeted to the poor. Relative to other safety net programs in low-income countries, social assistance in Albania is fairly well targeted. Nevertheless, the system is hampered by the absence of a clear, objective criterion to determine the size of the grants from the central government to communes as well as limited information that could be used to implement this criterion. Substantial gains in targeting could be achieved if the central government better allocated transfers to local governments, even holding local targeting at base levels.


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