Comments: “Finding the Poor…” by Rema Hanna Francisco A. Gallego PUC-Chile and J-PAL July 2013 A B D U L L A T I F J A M E E L P O V E R T Y A C T I O N L A B 1 Map • Main results – Methods – Concept of Poverty/Welfare – The challenges ahead • Rigorous evaluations: a great example! – Government + Academia – Doable! • The Poor and Arístides Torche (QEPD) Results 1 • Targeting to the poor is not easy (relevant for Chile) • Exclusion and inclusion errors • Different methods • PMT • Community involvement • Self-selection • Combinations • Main results: • PMT vs Community: • Different results but due to different concepts of poverty • PMT vs. self-selection: • Self-selection: better at finding the very poor and 3 cheaper! Results 2 • PMT vs. community: • People much happier and satisfied when involved in targeting (without big difference in “objective” outcomes) • Differences • What is poverty? • Who is poor? Some information advantages • This is important and not new in J-PAL: • Sometimes interventions do not produce changes in “objective” outcomes but make people much more happier • Duflo et al. (Happines on Tap, Morocco), Galiani et al. (TECHO, Latin America), Gallego et al. (Dental Health, Chile) 4 Results 3 • Exclusion errors: The very poor! • 40% of them are not receiving benefits • What to do? New treatments? • Information • People (NGOs, public sector) finding them? • Combination of treatments for different people/groups/areas • Relevant for Chile: • Strict cutoffs vs. smooth rules Different sets of policies • Different conditionalities 5 Observable Characteristics Rigorous Evaluations • Hard question and we do not know!! • Several reasonable hypotheses • Joint venture: Government (International Organizations) and Academia • What to do? • Pilots: Try different alternatives and learn • Improve and/or Scale-up • They did this in Indonesia!! (and also in Mexico) • Project1 took <1 year from baseline to follow up… • Our little example: Ingreso Ético Familiar. • No rigorous ex-ante evaluation • A lot of doubts about their potential impacts • Legislative discussion: ~2 years… • Why not in Chile?? • SERNAM, MINEDUC, FOSIS, TECHO, Mi Parque, Belen Educa, Fundación CAP, etc. etc. 7 The Concept of Poverty and A. Torche • Processes vs Outcomes • “Una alternativa es partir del camino inverso y buscar aquello de que se dispone y sobre esa base construir un nuevo esquema, incorporando desde la partida a los beneficiarios en la construcción de su propio destino. “ (Torche, 2000) • Direct application to the discussion today… 8