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Social transfers: don't let the best be the enemy of the good!
28 January 2008
As Voltaire observed in La Bégueule (1772), "Le mieux est l'ennemi du bien", which translates as "the best is the enemy of the good". This seems to be the danger with social transfers in Africa: however well they work, and however effective they may be, there is always someone ready to level criticisms at them, and always someone asking for more evidence to justify them. Let us take, as a representative example of what is currently happening all over the African continent, the debate around the Child Support Grant (CSG) in South Africa.
A fascinating book1 has recently been published about the genesis of the CSG, by Francie Lund, who from 1995 chaired South Africa's Lund Committee for Child and Family Support. This catalogues the difficulties, challenges and opposition encountered during the design process, and recognises that, from the start, "the work of the Committee came to be a site of contestation about the values and expectations of the ‘new' South Africa, and feelings ran high".
Since then, a number of thorough and comprehensive studies2 have been undertaken on the CSG, which now reaches 8 million children up to the age of 14 years. This research is overwhelmingly positive about the impact. First the CSG benefits children: it has been shown to improve nutritional status, decrease child hunger, enhance educational performance, encourage children to stay in school longer, and so on. Because it is given to the primary caregiver (in the overwhelming majority of cases female), it has also been found to have a positive impact on women, and thereby on household expenditure patterns. And still other studies at the macro level have clearly demonstrated the impact of the grant in reducing both the breadth and the depth of poverty, and in encouraging broad labour force participation. So the CSG is undeniably a Good Thing: for individuals, for households, for communities, and for the nation as a whole.
But it is not perfect. Not many national policies are. Think for example of attempts to outlaw "drinking and driving". Several countries have successfully halved death-rates on their roads by lowering the permitted alcohol limits for drivers. Yet not everyone is happy: breweries and vineyards complain of reduced sales, and night-clubs have sued for loss of business, etc. Or think of those countries that are banning the smoking of cigarettes in all public places, a policy that will dramatically reduce the incidence of cancer and thereby cut national health costs. Yet the powerful tobacco companies are resisting strongly, and bars and restaurants are up in arms at the restraint on their trade.
So it is with the CSG. A number of criticisms continue to be raised against it. And these may be valid criticisms. But are they sufficiently important to call into question the general good that is achieved by the grant? Let us look more carefully at some of the key specific objections that have been raised:
- "Young girls get pregnant simply in order to access the CSG". It is indeed possible that, at the margins, there may be some amongst the poorest for whom the prospect of R200 per month does tip the balance when it comes to decisions about getting pregnant, or how much care to take in not getting pregnant, or whether or not to get an abortion if one does get pregnant. For them, even though the cost of raising a child may be more than the value of the grant, it does at least provide some cash in hand that otherwise would not exist, which might be used to finance microenterprises or establish a small shop, in the belief that increased income will benefit the whole household. But, since this is a rational choice, even such cases are not a valid argument against the CSG. And they would in any case appear to be in a minority: a recent study3 by the Human Sciences Research Council looked at this issue by studying national surveys and administrative data, and concluded "there are no grounds to believe that young South African girls are deliberately having children in order to access welfare benefits".
- "The CSG is breaking down traditional family values and support systems, by giving young mothers the means to leave their homes". Again, it could legitimately be argued that any degree of financial independence may encourage a move away from the family; but, again, R200 per month is likely to be far less than the incremental cost of so doing. Indeed, it could be counter-argued that for a young mother to bring a financial contribution of that amount into a household is actually reinforcing, rather than undermining, the extended family structure; or that the CSG in some cases underpins the fluidity of household structure in southern Africa by allowing rational reallocation of childcare and income-generating responsibilities among household members. Finally, there have surely been many far more damaging influences on these sometimes romanticised traditional values over the last thirty years than the arrival of the CSG!
- "The CSG is reinforcing a trend towards putting babies onto formula rather than breast-feeding". The argument here is that giving mothers a small amount of cash has a double negative impact on their infants, because (a) breastmilk is better but formula now becomes affordable; (b) limited cash causes mothers to ‘ration' the formula, and this dilution results in undernutrition. Yes, maybe. But a large number of CSG recipients continue to breastfeed their children (often to an advanced age); and, even if it is true that limited cash leads to dilution, it cannot be said that the grant has caused this - the grant gives mothers (a bit) more cash, not less. And again there are strong arguments to suggest that there are far more significant factors which determine a mother's choice between breast-feeding and formula than receipt of the CSG: among them, for example conditions of employment, the media, and advertising campaigns by the powdered milk industry. We should look to a lot of other places to address the very real problem of dilution of formula food, rather than focus on the grant.
It is important that the inevitable (but often trivial) weaknesses of social protection programmes are not disproportionately exploited by their detractors. Legitimate concerns such as those expressed above need to be investigated and understood; any perverse outcomes or incentives should be carefully monitored and evaluated; careful targeting should seek to avoid cases where they might proliferate; and steps should be built in to minimise any negative impacts wherever possible (for example by linking grants to awareness campaigns and educational programmes). But we must be very careful to do this in the recognition that correcting any relatively insignificant abuses or distortions may cost significantly more than the losses to the system that they engender, and, more generally, that social transfer programmes do far more good than harm.
It would be a mistake to throw the baby out with the bathwater. A more pragmatic conclusion might be to paraphrase Winston Churchill's endorsement of democracy, and to say that: "social transfers are the worst possible way to reduce poverty ... except for all the others"! - Lund, F, “Changing Social Policy: the Child Support Grant in South Africa”, HSRC Press, 2008 – free download available from http://www.hsrcpress.ac.za/
- see for example:
EPRI, “The Social and Economic Impact of South Africa’s Social Security System”, EPRI, 2004 Makino, K, “Social security policy reform in post-apartheid South Africa: a focus on the Basic Income Grant”, Durban Centre for Civil Society, 2004 Woolard, I, “Impact of government programmes using administrative data sets: social assistance grants”, Ten Year Review Research Programme, 2003 Case, A., V. Hosegood, et al, “The reach and impact of Child Support Grants: Evidence from KwaZulu-Natal”, Development Southern Africa 22(4): 467-482, 2005 Goldblatt, B, “Gender and social assistance in the first decade of democracy: A case study of South Africa's Child Support Grant”, Politikon: South African Journal of Political Studies 32: 239-257, 2005 Triegaardt, J. D, “The Child Support Grant in South Africa: a social policy for poverty alleviation?”, International Journal of Social Welfare 14: 249-255, 2005 Maitra, P. and R. Ray, “The effect of transfers on household expenditure patterns and poverty in South Africa”, Journal of Development Economics 71(1): 23-49, 2003 Williams, M.J, “The Social and Economic Impacts of South Africa’s Child Support Grant”, EPRI Working Paper #39, 2007 - Makiwane, M and E. Udjo, “Is the Child Support Grant associated with an increase in teenage fertility in South Africa?”, HSRC, 2006
Image Credit: IFAD/Giuseppe Bizzarri
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