Public Works Programs In Developing Countries Have The -PDF Free Download

Public works programs in developing countries have the ...
24 Feb 2021 | 1 views | 0 downloads | 10 Pages | 893.22 KB

Share Pdf : Public Works Programs In Developing Countries Have The

Export Public Works Programs In Developing Countries Have The File to :

Download and Preview : Public Works Programs In Developing Countries Have The

Report CopyRight/DMCA Form For : Public Works Programs In Developing Countries Have The



Transcription

Laura ZimmermannUniversity of Michigan, USA, and IZA, GermanyPublic works programs in developing countries havethe potential to reduce povertyThe success of public works programs in reducing poverty dependson their design and implementation—in practice, they do better assafety netsKeywords: public works programs, poverty reduction, transfers, safety net, antipoverty program, shock mitigationELEVATOR PITCH876MillionsPublic works programs in developing countriescan reduce poverty in the long term and help lowskilled workers cope with economic shocks in theshort term. But success depends on a scheme’sdesign and implementation. Key design factorsare: properly identifying the target population;selecting the right wage; and establishing efficientimplementation institutions. In practice, rationing,corruption, mismanagement, and other implementationflaws often limit the effectiveness of public worksprograms.People employed in public works programs, 2009543210KEHTYELABDETSource: [1].KEY FINDINGSProsPublic works programs provide a safety net forhouseholds after economic shocks.Programs can be adapted to a variety of countrycontexts and to both aggregate and idiosyncraticshocks.Public works programs allow households to selfselect into employment when they need it.Programs can be flexible and decentralized.Despite implementation problems, public worksprograms typically reach the target population.ConsRationing, corruption, mismanagement, and otherimplementation problems limit the effectiveness ofpublic works programs in providing employmentat specified wages.Job-rationing and low-income gains may dampenthe impact of public works programs on poverty.Public works programs can reduce the availabilityof private-sector jobs.Governments do not always set clear policygoals and instill them into program design andimplementation.AUTHOR’S MAIN MESSAGEPublic works programs have the potential to be important policy tools for reducing poverty, if governments set clear goalsand instill them into program design and implementation. But while the safety nets provided by such programs oftenimprove the quality of poor people’s lives, many schemes suffer from implementation problems that limit the welfarebenefits for the poor. In practice, such programs are unlikely to have a large and lasting impact on poverty.Public works programs in developing countries have the potential to reduce poverty. IZA World of Labor 2014: 25doi: 10.15185/izawol.25 Laura Zimmermann May 2014 wol.iza.org1

Laura Zimmermann Public works programs in developing countries have the potential toreduce povertyMOTIVATIONLarge-scale unemployment and underemployment are widespread in developingcountries. Job opportunities are especially scarce during the agricultural off-season and inbad economic times, and credit and insurance markets are not developed enough to helphouseholds cope with income fluctuations. In these contexts of market failures, publicworks programs promise substantial benefits in reducing poverty. Governments can stepin and directly provide employment opportunities in construction and infrastructureprojects, boosting household income and often providing a safety net in times of economicshock.These promised benefits have made public works programs a popular policy tool indeveloping countries for several decades, but particularly in the last 10–15 years. As theillustration on page 1 shows for a selected number of countries for which consistent dataare available, developing countries around the world implement such programs, althoughtheir size varies substantially. Whereas many older programs were temporary and triedto address short-term unemployment, several newer initiatives have been large and havefocused on creating longer-lasting schemes that offer a safety net and predictable longerterm support for poor households. This has broadened the goals of public works programsbeyond mitigating aggregate and idiosyncratic shocks to reducing long-term poverty. Afew initiatives also aim to provide a bridge to permanent employment, but this is rarelyan explicit goal in government schemes in developing countries. The programs are thusseen as a flexible government tool in the fight against poverty that can be adapted to verydifferent country experiences and unexpected challenges.Public works programs have potential advantages and drawbacks as antipoverty initiativesin developing countries, but the evidence on their effectiveness is weak.DISCUSSION OF PROS AND CONSThe expected benefits of public works programsPublic works programs, properly conceived, promise to be an important policy tool infighting poverty in developing countries. Their aim is to generate employment for thepoor, although program design varies with the country’s situation and specific goals.Some programs are intended to help households deal with aggregate shocks that affectlarge segments of the population, such as macroeconomic shocks, natural disasters, andseasonal shocks. Others are aimed at reducing long-term poverty or helping householdscope with idiosyncratic shocks.In general, program participation has two benefits for poor households: transfer benefitsand stabilization benefits. Transfer benefits are the direct monetary gains from programparticipation: the wages received for a day’s work minus the costs incurred, includingtransport costs and forgone income from private-sector jobs not taken. If the programwage is high and the cost of participation is low—for example, because program jobsare local and have little adverse impact on the private sector—the program may boosthousehold income for the poor [2].Public works programs that operate throughout the year or during times of highunemployment or underemployment can also provide stabilization benefits. During theagricultural off-season or in economic downturns, for example, households may havefew employment opportunities in the private sector. Having a public works job helpsIZA World of Labor May 2014 wol.iza.org2

Laura Zimmermann Public works programs in developing countries have the potential toreduce povertyhouseholds avoid large income and consumption fluctuations. If public works programsare long-standing, they also help reduce uncertainty about future household income andmay allow workers to make larger investments because people know that they have accessto a safety net during bad economic times.The government has less need in the case of public works programs than in other typesof transfer programs to maintain administrative lists of poor households. Because ofthe nature of public works employment, poor households often either self-select intothe program or have a say in the selection of program beneficiaries in other ways. Thisreduces implementation complexity in reaching the intended population and could makepublic works programs less prone to corruption, since pretending to be poor to receivegovernment benefits is less attractive than under traditional cash transfer schemes.Implementation can be decentralized to local institutions, which might have a betterknowledge of local conditions, be more flexible in handling projects, and be moretransparent, thus curbing opportunities for mismanagement and corruption at higherlevels of government. And schemes that can be adapted quickly to newly arising situationsand unexpected shocks have the potential to reach the poor more quickly. Projects canalso advance local development by creating assets and infrastructure directly where it isneeded. Longer-run programs allow government institutions at different levels to learnfrom past mistakes and to improve upon implementation quality over time.Finally, if large enough to influence jobs and wages in the private sector, public worksprograms can help enforce minimum wage laws and raise market wages. The povertyreducing impact of such initiatives may therefore be substantially larger than those ofschemes that simply transfer money to the poor, and may even benefit households thatare not direct program participants. Depending on the program features, individuals mayalso benefit from program participation through training opportunities that improve theirchances of finding employment in the future.The expected costs of public works programsPublic works programs also have drawbacks. If these drawbacks are severe enough, it maymean that the money spent running the program would be more efficiently used reducingpoverty in a different way—for example, in a traditional cash transfer program or throughimprovements in education and health services [2].Large, ambitious programs may strain government institutions, since the planning andexecution of public works programs require more administrative involvement than doother transfer schemes. Institutions may be understaffed, lack the expertise to developuseful projects for local development, and struggle with forecasting demand. Thesechallenges often lead to a rationing of projects, substantially reducing their effectivenessin advancing local development. In the worst case, gaps in technical knowledge may evenexacerbate local conditions—for example, where extensive well building or deforestationleads to soil erosion. Institutional constraints may also delay wage payments, underminingthe insurance function of the program, and lower the benefits from offering trainingopportunities. In the context of many rural areas where non-skilled labor in the agriculturalsector is the dominant occupation, many training programs will be ineffective unless theyare tailored carefully to the specific context and take into account local job opportunitiesand workers’ financial situations.IZA World of Labor May 2014 wol.iza.org3

Laura Zimmermann Public works programs in developing countries have the potential toreduce povertyIn addition, it may be difficult to coordinate players at different tiers of government and,as is often the case in low-income countries, the preferences of donor countries andorganizations. This is especially important for longer-run programs that have to securecontinued funding despite potential changes in the amount or source of development aid.Wage-setting is a delicate task. If the program wage is set too high relative to market wages,the program will put upward pressure on private-sector wages for unskilled workers,reducing the number of private-sector jobs. Wages that are too high will also attractworkers who are not poor, diluting the program’s antipoverty effects and neutralizingthe self-selection benefits. This will be even stronger if public employment needs to berationed because of high demand for public works jobs [2]. The availability of a safety netmay induce excessive risk-taking among workers, since they know that they have access toemployment opportunities if their investments do not pay off.Public works programs are not immune to corruption and mismanagement. Projects maybe hijacked by private-sector stakeholders, draining benefits from the rest of the localpopulation. Private employers may try to weaken the program in order to limit any effectson local labor markets. Government officials may exaggerate employment numbers andunderpay workers, misappropriating the resources for themselves. Long-standing schemesmay be especially prone to these problems, since different parties have time to learn aboutprogram loopholes and to undermine the implementation process at various stages.Empirical evidence of the effectiveness of public works programs is mixedHow effective in general are public works programs in developing countries?Public works programs are popular in many developing countries in Africa, Asia, and LatinAmerica. While their design and implementation have varied, several empirical findingsare common to many of them.One of the most common goals of public works programs is mitigating the negativeeffects of aggregate shocks. While many small, temporary initiatives since the 1980s arein this category, other schemes show the scalability and adaptability of public worksprograms that emerged in response to specific shocks. In Sri Lanka, a public worksprogram was part of the Emergency Northern Recovery Project in the aftermath of a longcivil conflict. Its goal was to provide short-term employment to affected households andto rebuild local infrastructure, farms, and housing. The initial aim of Argentina’s Headof Household (Jefes de Hogar) Program, which operated between 2002 and 2009, wasto help unemployed household heads in households with particularly vulnerable familymembers (such as children, pregnant women, and people with disabilities) ride out thesevere financial crisis of 2002. Over time, it developed a stronger focus on training to buildhuman capital and increase long-term employment opportunities.Public works programs also provided a popular government tool in the aftermath of the2007–2009 world economic crisis to combat rising unemployment, poverty, and foodinsecurity. The World Bank funded programs in over 24 countries, and a number ofgovernments in developing countries introduced or scaled up their own projects.While these are examples of responses to one-off shocks, another goal is to help householdscope with the recurring shocks of droughts and food crises. Ethiopia’s Productive SafetyNet Program is one such scheme. First implemented in 2005, the donor-funded schemeIZA World of Labor May 2014 wol.iza.org4

Laura Zimmermann Public works programs in developing countries have the potential toreduce povertyFigure 1. Ethiopia’s Productive Safety Net Program (PSNP) and Rwanda’s Vision 2020Umurenge Program (VUP)Ethiopia’s Productive SafetyNet Program (PSNP)Rwanda’s Vision 2020Umurenge Program (VUP)Implementation start20052008Main goalRelieve chronic food insecurityEradicate extreme povertyNumber of beneficiaryhouseholds7.6 million (2009), about10% of population61,335 (2009/10), about0.6% of populationLabor cost share80%88%Program wage policy atimplementation dateProgram wage

Public works programs in developing countries have the potential to reduce poverty. IZA World of Labor 2014: 25 ... but particularly in the last 10–15 years. As the illustration on page 1 shows for a selected number of countries for which consistent data are available, developing countries around the world implement such programs, although their size varies substantially. Whereas many older ...

Related Books

Public Works Department Public Works Region Aurangabad

Public Works Department Public Works Region Aurangabad

GOVERNMENT OF MAHARASHTRA Public Works Department Public Works Region Aurangabad Public Works Circle Osmanabad E Tender Notice No ABJ 01 01 2014 15

Public Works Region Nagpur Public Works Circle

Public Works Region Nagpur Public Works Circle

Public Works Region Nagpur Public Works Circle Gadchiroli Public Works Division No II Gadchiroli E TENDER PAPERS e Tendering System https pwd maharashtra etenders in NAME OF WORK CONSTRUCTION OF ADDITIONAL FLOOR OVER REAR WING AND ANCILLARY WORKS IN GOVT POLYTECHNIC IN GADCHIROLI DISTT GADCHIROLI

PUBLIC WORKS REGION AMARAVATI PUBLIC WORKS CIRCLE

PUBLIC WORKS REGION AMARAVATI PUBLIC WORKS CIRCLE

PUBLIC WORKS REGION AMARAVATI PUBLIC WORKS CIRCLE AMRAVATI PUBLIC WORKS DIVISION AMRAVATI B 1TENDER PAPERS e Tendering System FOR THE WORK OF Construction of Tahsil Office Building at Warud Tq Warud District Amravati Amount put to Tender Rs 5 25 45 655 Earnest Money Deposit Rs 2 63 000 ETENDER NOTICE NO E TENDER NO

PUBLIC WORKS REGION AMARAVATI PUBLIC WORKS CIRCLE AKOLA

PUBLIC WORKS REGION AMARAVATI PUBLIC WORKS CIRCLE AKOLA

15 Reg ister to be m an ned 16 Drawings Issuedto Valid upto D R No Region Amravati on or before Date 28 10 2015 up to 11 00 A M Online or shall be submitted in Chief Engineer P W Region Amravati s office upto 11 00 Hrs 3 Submit Hash to Create online Tender by Contractor Technical and financial Bid Last date and time Dt 06 11 2015 at 17 30 p m 4 Period for online Super Hash

PUBLIC WORKS REGION MUMBAI PUBLIC WORKS CIRCLE MUMBAI

PUBLIC WORKS REGION MUMBAI PUBLIC WORKS CIRCLE MUMBAI

PUBLIC WORKS REGION MUMBAI PUBLIC WORKS CIRCLE MUMBAI CENTRAL MUMBAI PUBLIC WORKS DIVISION WORLI MUMBAI B 1 TENDER PAPERS e Tendering System FOR THE WORK OF Manual Cleaning of B D D Chawl No 1 to 32 at N M Joshi Marg amp 5 to 16 at Sewree for 4 Months Amount put to Tender Rs 13 88 941 Earnest Money Deposit Rs 13 900

PUBLIC WORKS DEPARTMENT PUBLIC WORKS CIRCLE OSMANABAD

PUBLIC WORKS DEPARTMENT PUBLIC WORKS CIRCLE OSMANABAD

public works circle osmanabad construction division osmanabad b 2 standard bidding document procurement of civil works

GOVERNMENT OF MAHARASHTRA PUBLIC WORKS DEPARTMENT PUBLIC

GOVERNMENT OF MAHARASHTRA PUBLIC WORKS DEPARTMENT PUBLIC

GOVERNMENT OF MAHARASHTRA PUBLIC WORKS DEPARTMENT PUBLIC WORK CIRCLE YAVATMAL TENDER DOCUMENTS FOR Outsourcing of P W Sub Dn amp Rest House Ghatanji Distt Yavatmal For Year 2018 19

OKLAHOMA STATUTES TITLE 61 Public Buildings and Public Works

OKLAHOMA STATUTES TITLE 61 Public Buildings and Public Works

Public Buildings and Public Works Notice These statutes were compiled to assist trainees during the 2007 Certified Procurement Officer Seminar Although we have made every effort to assure they are correct they are not warranted as to accuracy In addition to the official published volumes Oklahoma statutes may be accessed at several state websites which include www oscn net and www lsb

Safety at Street Works and Road Works gov uk

Safety at Street Works and Road Works gov uk

Safety at Street Works and Road Works A Code of Practice October 2013 8815 Safety at Streetworks Cover v1 4 indd 1 27 05 2014 10 48

Greater Works Lillian DeWaters GREATER WORKS

Greater Works Lillian DeWaters GREATER WORKS

only Mind there is now or ever shall be keep clamouring for greater healings tangible proofs of what their minds can do A sorry web one weaves when once he believes that of himself he can do anything He should let go such vain ambition altogether and looking toward the Eternal Heights glimpse Eternal things Healed bodies regenerated

HOW IT ALL WORKS SETTING THE TIDE amp TIME HOW IT ALL WORKS

HOW IT ALL WORKS SETTING THE TIDE amp TIME HOW IT ALL WORKS

Quick Start Guide HOW IT ALL WORKS The Rip Curl SearchGPS2 Watch and Search App are a revolutionary way to track your sur ing and other activities You can now re live your top speed distance travelled wave count and session time Track your other activities from surf to snow run to swim as your watch connects to satellites orbiting the earth Watch may need charging before irst use

WINTER 2014 RECREATION PROGRAMS Parks amp Programs Through

WINTER 2014 RECREATION PROGRAMS Parks amp Programs Through

made Leprechaun Trap Have fun playing fairy elfin pixie and Leprechaun games while hunting for the hidden gold Each participant gets a Snack Pack and leaves with a smile and a bag full of Leprechaun goodies The aver age time needed to complete all the activities is approxi mately 1 hour Event fee is per child and includes one