Social Security Policy Support (SSPS) Programme

An initiative of the Cabinet Division and the General Economics Division (GED), Bangladesh Planning Commission, Government of Bangladesh
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Cost-Benefit Ratio Study on Effects of Social Protection Cash Transfer

Cost-effectiveness of few selected cash and food assisted programmes have been analysed in this study. Various types of methods utilizing diverse data sets have been used in this study. A through desk review of administrative costs – their share in total programme cost or investment; merits and demerits of various cash and food schemes; costs associated with various types of targeting methods have been reviewed using literatures and data sets. An analytical framework invoking the costs and benefits of selected cash and food schemes has been used to assess their cost effectiveness or benefit-cost ratio. Administrative costs of the selected cash and food schemes are based on data gathered from ministries. Two approaches have been adopted to assess benefits. In the first approach (please refer to Khondker, B and Freeland, N (2014) and Philip et al (2015), poverty impacts of the schemes (with and without the schemes) have been determined using the unit record data of HIES 2016. In the second approach, the Social Accounting Matrix (SAM) of Bangladesh for 2012 has been used to derive the economywide impacts of these transfers. Finally, a micro-simulation model based on the HIES 2016 has been used to compare poverty impacts of expansion of the schemes/programmes versus enhancing the transfer amounts.

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