POVERTY REDUCTION STRATEGY TN

iii. Even for the relatively good cross-sectional indicators, step-wise targeting based
solely on cross-sectional data is significantly more costly than perfect targeting
in achieving any given impact on chronic poverty.
iv. While there is some variation from year to year, there is no obvious pattern, such
as between ‘good’ and ‘bad’ agricultural years. This does not bear out the
finding of Lanjouw and Stern (1991) that current income in a good agricultural
year is a better indicator of chronic poverty than in a bad year.
The last mile reach strategies can attempt to focus the benefit of public
expenditure to the poor by identifying them as direct beneficiaries, screening out
unintended beneficiaries as well as by dovetailing the programmes to suit the specific
needs of the targeted populations. Last mile reach strategies involve identification of the
potential beneficiary and the administration of the benefit. These strategies refer to
strategies for targeting, allocation of funds or benefits, and conversion of funds or
benefits into outcomes aimed at achieving the MDGs.
6.1 Targeting Strategies
a. Methods of Targeting
A number of alternative methods of targeting can be identified, as discussed below:
a1. Individual Assessment Mechanism
In this mechanism, each potential beneficiary has to be examined separately to assess
whether he is a bonafide applicant on the basis of various criteria, to receive the benefit
of the programme.
a2. Group Assessment
In this case, an eligible group is decided on the basis of special characteristics, e.g.,
school lunch programmes that operate only in poor areas, programmes that
predominantly benefit chosen states, districts, blocks, neighbourhoods based on relevant
characteristics.
a3. Geographic Targeting
The main attraction of geographic targeting is its simplicity. Regions can be assigned
priority on the basis of existing aggregate data. The complicated administrative
mechanisms or means test for selecting beneficiaries individually are not required in the
case of geographic targeting. Many Latin American countries have attempted geographic
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