TARGETING FAMILIES AFFECTED BY HIV AND AIDS 47


rion was not applied to all households, calling into question its fairness and adequacy. In response, the program proposed to test a universal pension sys- tem, improve the training of the committees, standardize the application form but include more questions identifying destitution, and request commit- tees to comment on whether the household assets reported are still func- tional (MCDSS/TWG 2007a). Furthermore, some have questioned whether community-based targeting on a national scale is the most effective means of reaching the most vulnerable households, defined as female headed, elderly headed, and caring for orphans and other vulnerable children. There are also questions about costs; although proxy means tests are expensive, community- based processes can be as well. A study comparing different targeting methods in Zambia (Watkins 2008)


found that categorical targeting is less expensive than a proxy means test but that additional criteria must be applied to capture the poor. The study found that in two out of three districts, community-based methods (compared with poverty deciles) were effective in identifying the poorest households, whereas in one it was not. The poorly performing district had less easily identifiable ultra poor and more clustering around the mean. The study authors therefore recommended that methods be selected based on local conditions, suggesting these guidelines: for wards with very high poverty prevalence and severity, geographic targeting only; for those with medium to medium-high poverty, community-based targeting if community structures are adequate (otherwise proxy means testing); for those with low poverty and hard-to-identify poor in urban contexts, means testing with household verification if means testing is found to be over 85 percent accurate. Other proposed improvements to the process included refining the current


eligibility criteria and developing an index to provide additional information about the relative position of eligible households to deepen the information on the type and quantity of assets owned, the sources and types of income earned by household members, dependency ratios, and access to public ser- vices (World Bank 2007b). Uganda’s planned cash transfer program also pro- posed to combine a community-based process followed by a means test based on census data to determine which families identified by the community pro- cess meet the criteria (International Poverty Center 2007).


Means Tests and Categorical Targeting in Southern Africa South Africa’s targeting system for its cash transfers, including the Old Age Pension (OAP), Child Support Grant (CSG), Foster Care Grant (FCG), and others, use an application-based means test. The OAP has been found to be well targeted to poor households and to households caring for children, with three- generation households and skip-generation households (where grandparents


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