Poverty reduction through geographic targeting : how well does it work?

Simulated transfer schemes using household data for Venezuela, Mexico and Jamaica indicate that geographic targeting is a useful mechanism for transferring benefits to the poor. Poverty can be significantly reduced when compared with transfer schemes involving no targeting, such as general food subsidies. Of the various techniques used to identify priority regions for a targeting program, outcomes proved to be fairly similar. The level of the geographic unit does, however, seem to have a notable impact on targeting outcomes. (DSE/DÜI)