POVERTY IMPACTS OF CASH TRANSFER PROGRAMS 77


the OAP to vulnerable households, defined as those without an able-bodied household member (households with members who are under age twenty or over age fifty-nine or are sick, injured, or disabled) (Gassmann and Behrendt 2006, 19). Table 5.3 shows the range of poverty impacts of an OAP and a targeted


transfer in Tanzania. The results show that noncontributory OAPs reduce pov- erty not only among the elderly who are direct beneficiaries but also for households with children and without able-bodied members. The poverty gap is reduced by about 1 percentage point, representing an 18 percent reduction in Tanzania. The targeted cash transfer demonstrates a powerful impact on the head-


count poverty of the target group (households without an able-bodied mem- ber) (Table 5.4). Although the transfer would not have a large impact on over- all headcount poverty, it would reduce the poverty gap very significantly for the target group. Looking beyond this country example, a set of simulations by Kakwani and


Subbarao (2005) and Kakwani, Soares, and Son (2005) examines the poverty impacts of cash transfers and social pensions in 15 countries in Sub-Saharan Africa. The countries were chosen based on data availability but also because they are broadly representative of the whole of Sub-Saharan Africa, with rep-


Table 5.3—Poverty impacts of old-age pensions and targeted transfers in Tanzania


Impacts


Headcount poverty Overall


Children (birth through age fourteen) Old-age pension


–2 percentage points; –9 percent


Girls: –1.7 percentage points; –7 percent


Boys: –1.7 percentage points; –7 percent


Households with children (birth through age fourteen)


Households without an able-bodied member


Poverty gap Overall


Households with children (birth through age fourteen) Households without an able-bodied member


Source: Gassmann and Behrendt (2006). Note:


Blank cells indicate that results were not evaluated.


–1.9 percentage points; –8 percent


–2.5 percentage points; –13 percent


Targeted transfer


–1.4 percentage points; –6 percent


Girls: –1.8 percentage points; –7 percent


Boys: –1.5 percentage points; –6 percent


–1.5 percentage points; –6 percent


–8.4 percentage points; –43 percent


–15 percent


–4.9 percentage points; –93 percent


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