Friday 14 December 2007

CMF Releases a Working Paper on a Study of Identifying the Poorest of the Poor

If you start field research in rural India, you immediately start questioning how Below Poverty Line (BPL) rationing cards are distributed. BPL cards are, in theory, distributed to households below poverty line and entitle them to purchase subsidized food and fuel at ration shops. In reality, however, you observe in rural areas that people who owns tractors or motorcycles have BPL cards. After a little bit of investigation reveals that political power highly influences the chances of obtaining one.

If BPL cards do not reach the intended segment of society, any poverty alleviation programs for which their recipients are based on the possession of the card inevitably fail to generate expected outcomes.

This study investigates whether the BPL rationing program effectively targets the poorest of the poor, compared to a more in-depth Participatory Rural Appraisal (PRA) conducted by an MFI in West Bengal.

The study finds that a PRA is a better, though more time consuming, approach to identifying target populations. This can be an important finding for government agencies, international institutions, or aid agencies that attempt to achieve more efficient and effective aid programs.

0 comments: