Romania - Poverty Monitoring Analytical and Advisory Assistance Program : Are the Most Vulnerable Protected?

The rapid economic growth since 2000 has been the main driver of poverty reduction in Romania. However, even under the current positive growth scenario, there are still people who live in poverty, and some who are unlikely to benefit from future growth and thus may continue to be left behind. For these people an effective redistributive social policy and targeted interventions are needed. The purpose of this note is to assist the Ministry of Labor, Family and Equal Opportunities (MLFEO) to analyze and monitor the effectiveness of the main social safety net benefits to fight social exclusion and reduce poverty. To determine the extent to which social transfers offer protection to the poorest groups of the population, the paper uses the last available (2004-2006) rounds of the household budget survey data. The analysis presented here uses the consumption aggregate and the absolute poverty definition presented in the 2003 and 2007 poverty assessments. Three main indicators are used to assess the effectiveness of social protection (SP) programs: coverage (share of population covered by the programs), targeting (share of funds directed to each welfare group of population), and adequacy of benefit (share of the benefit in the consumption of beneficiaries). The paper begins with a review of the main findings, followed by an overview of the social protection system and its overall effectiveness. Then it assesses the main social assistance programs, and concludes with a review of key issues.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2008-06
Subjects:ABSOLUTE POVERTY, ABSOLUTE POVERTY LINE, ABSOLUTE TERMS, ADMINISTRATIVE COSTS, ADMINISTRATIVE DATA, ANTI-POVERTY, AVERAGE BENEFIT, AVERAGE MONTHLY BENEFIT, AVERAGE PENSION, AVERAGE WAGE, BENEFICIARIES, BENEFICIARY, BENEFIT ENTITLEMENT, BEST PRACTICES, CALCULATIONS, CASH INCOME, CASH TRANSFER, CASH TRANSFERS, CHILD ALLOWANCES, CHILD CARE, CHRONIC POVERTY, COLD SEASON, CONSUMPTION AGGREGATE, CONTRIBUTION, CONTRIBUTIONS, COUNTERFACTUAL, CURRENCY, DISABILITY, DISABILITY ALLOWANCES, DOMICILE, DOUBLE STANDARDS, ECONOMIC GROWTH, EQUAL OPPORTUNITIES, EU, EXCHANGE RATE, FAMILIES WITH CHILDREN, FAMILY ALLOWANCE, FAMILY ALLOWANCES, FAMILY BENEFITS, FARMER, FEMALE, FOOD PRICE, FOOD PRICES, FUTURE GROWTH, GENDER, GROSS INCOME, HOUSEHOLD BUDGET, HOUSEHOLD CONSUMPTION, HOUSEHOLD SIZE, HOUSEHOLD SURVEY, HOUSEHOLDS WITH CHILDREN, HOUSEWIFE, HOUSING, HUMAN DEVELOPMENT, IN KIND TRANSFERS, INCIDENCE ANALYSIS, INCOME, INCOME GROUPS, INCOME INEQUALITY, INCOME QUINTILE, INCOME SHOCKS, INCOME SOURCE, INCOME SOURCES, INCOME SUPPORT, INCOME TAX, INCOME TAXES, INCOMES, INEQUALITY REDUCTION, INSURANCE, LEGISLATION, LIVING STANDARD, LOW COST, LOW-INCOME, MILK, MINIMUM WAGE, NET INCOME, OLD AGE, OLD AGE PENSION, OTHER ASSETS, PENSION BENEFITS, PENSION COVERAGE, PENSION FUND, PENSIONER, PENSIONERS, PENSIONS, PENSIONS SYSTEM, POOR, POOR BENEFICIARIES, POOR FAMILIES, POOR FARMER, POOR FARMERS, POORER REGIONS, POVERTY ASSESSMENT, POVERTY GAP, POVERTY LINE, POVERTY LINES, POVERTY MAP, POVERTY MEASUREMENT, POVERTY PROGRAMS, POVERTY RATE, POVERTY REDUCTION, POVERTY RISK, POVERTY STATUS, PRIMARY EDUCATION, PROBABILITIES, PUBLIC PENSIONS, RESIDENCE, RURAL, RURAL AREAS, RURAL HOUSEHOLDS, RURAL POOR, RURAL POPULATION, SAFETY NET, SAFETY NET PROGRAMS, SCHOLARSHIPS, SELF-EMPLOYMENT, SENIOR, SINGLE PARENT FAMILIES, SOCIAL ASSISTANCE, SOCIAL EXCLUSION, SOCIAL INSURANCE, SOCIAL PROTECTION, SOCIAL PROTECTION SPENDING, SOCIAL SERVICES, TARGETED TRANSFERS, TARGETING, TRAINING WORKSHOP, TRANSACTION, TRANSACTION COSTS, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT BENEFIT, UNEMPLOYMENT BENEFITS, URBAN POPULATION, VULNERABLE GROUPS, WAGE, WAGES, WAR, WELFARE INDICATOR, WILL,
Online Access:http://documents.worldbank.org/curated/en/2008/06/10345657/romania-poverty-monitoring-analytical-advisory-assistance-program-most-vulnerable-protected
https://hdl.handle.net/10986/7843
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Summary:The rapid economic growth since 2000 has been the main driver of poverty reduction in Romania. However, even under the current positive growth scenario, there are still people who live in poverty, and some who are unlikely to benefit from future growth and thus may continue to be left behind. For these people an effective redistributive social policy and targeted interventions are needed. The purpose of this note is to assist the Ministry of Labor, Family and Equal Opportunities (MLFEO) to analyze and monitor the effectiveness of the main social safety net benefits to fight social exclusion and reduce poverty. To determine the extent to which social transfers offer protection to the poorest groups of the population, the paper uses the last available (2004-2006) rounds of the household budget survey data. The analysis presented here uses the consumption aggregate and the absolute poverty definition presented in the 2003 and 2007 poverty assessments. Three main indicators are used to assess the effectiveness of social protection (SP) programs: coverage (share of population covered by the programs), targeting (share of funds directed to each welfare group of population), and adequacy of benefit (share of the benefit in the consumption of beneficiaries). The paper begins with a review of the main findings, followed by an overview of the social protection system and its overall effectiveness. Then it assesses the main social assistance programs, and concludes with a review of key issues.