© 1999 International Bank for Reconstruction and Development / The World Bank
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Public Social Spending in Africa: Do the Poor Benefit?
Florencia Castro-Leal is an economist and Kalpana Mehra is a research analyst in the Poverty Reduction and Economic Management Network at the World Bank, Julia Dayton is a Ph.D. candidate in health economics at Yale University, and Lionel Demery is lead poverty specialist in the Poverty Reduction and Social Development Group in the Africa Regional Office of the World Bank.
Education and health care are basic services essential in any effort to combat poverty and are often subsidized with public funds to help achieve that purpose. This paper examines the effectiveness of public social spending on education and health care in several African countries and finds that these programs favor not the poor, but those who are better-off. It concludes that this targeting problem cannot be solved simply by adjusting the subsidy program. The constraints that prevent the poor from taking advantage of these services must also be addressed if the public subsidies are to be effective.
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