Does more for the poor mean less for the poor? : the politics of tagging
Attempts to achieve "more for the poor" through the use of indicator targeting may in fact mean less for the poor. The efficient use of a fixed budget for poverty reduction may require targeting. However, the use of indicator targeting, using fixed characteristics that are correlated with poverty to determine the distribution of expenditures, will tend to reduce the budget. Ignoring the budget reducing effects can reduce the welfare of the poor as they receive a greater share of a shrinking budget.