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© 1998 International Bank for Reconstruction and Development / The World Bank

research-article

The Potential and Limitations of Self-Targeted Food Subsidies

Harold Alderman and Kathy Lindert

Can self-selection ofsubsidized commodities be used as a mechanism to transfer income to the poor? Evidence from two self-targeting programs, one in South Africa and one in Tunisia, shows that although self-targeting can clearly improve the distribution of food subsidies to the poorest members of society, its power to alleviate poverty and reduce income disparities is limited by preference patterns, income inequality, and the size of the individual subsidies. Self-targeting through quality and product differentiation can be a useful means to reform existing universal subsidy schemes, but it should be considered a transitional tool while the capacity for implementing more precise mecha nisms is developed.


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This article has been cited by other articles:


Home page
 Review of Radical Political EconomicsHome page
J. W. Salevurakis and Sahar Mohamed Abdel-Haleim
Bread Subsidies in Egypt: Choosing Social Stability or Fiscal Responsibility
Review of Radical Political Economics, March 1, 2008; 40(1): 35 - 49.
[Abstract] [PDF]


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