Errors of Inclusion and Exclusion

Both the 15 poor households included in the program and the 75 nonpoor SOURCE Authors. 

Excluded from program 5 exclusion error 75 successful targeting 80 

FOR PROTECTION AND PROMOTION THE DESIGN AND IMPLEMENTATION OF EFFECTIVE SAFETY NETS 

A further extension of the basic framework is to take differentiated benefits into account. Most programs still offer a uniform transfer to participants, but a sizable number now tailor the benefit to the degree of need or to the size or structure of the recipient household (for more details, see chapter 5, section 1). Customized benefits somewhat complicate the ex post evaluation of targeting performance, but not intractably so. 

FIGURE 4.1 Share of Population by Quintile That Received Benefits in Selected Safety Net Programs, India, Fiscal 2004/05 

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The question of whether to target categorically or by need arises for orphans and vulnerable children as it does for the elderly. In terms of accuracy, categorical targeting to orphans or foster children will suffer from high errors of inclusion and exclusion. Deaths, especially from AIDS, are not concentrated among the poor, but rather are spread across the welfare distribution thus orphans and vulnerable children will be found in families at all income levels. Of course, many of the countries greatly affected by AIDS were poor already, so they have many very poor children who are not orphans or vulnerable children. 

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