Evaluating Alternative Approaches to Poverty Alleviation Rice Tariffs Versus Targeted Transfers in Madagascar

This paper uses a partial equilibrium framework to evaluate the relative efficiency, distributional and revenue implications of rice tariffs and targeted transfers in Madagascar, especially in the context of identifying their respective roles for poverty alleviation. Although there are likely to be...

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Bibliographic Details
Main Author: Dorosh, Paul A.
Other Authors: Coady, David, Minten, Bart
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2008
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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300 |a 28 pages 
651 4 |a Madagascar, Republic of 
653 |a Wealth 
653 |a Economics 
653 |a Income 
653 |a Tariffs 
653 |a Tariff 
653 |a International Trade Organizations 
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653 |a Public finance & taxation 
653 |a Saving 
653 |a Personal income 
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653 |a Exports and Imports 
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653 |a Macroeconomics 
653 |a Macroeconomics: Consumption 
653 |a Agricultural commodities 
653 |a Investment & securities 
653 |a Taxation 
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700 1 |a Coady, David 
700 1 |a Minten, Bart 
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520 |a This paper uses a partial equilibrium framework to evaluate the relative efficiency, distributional and revenue implications of rice tariffs and targeted transfers in Madagascar, especially in the context of identifying their respective roles for poverty alleviation. Although there are likely to be substantial efficiency gains from tariff reductions, these accrue mainly to higher income households. In addition, poor net rice sellers will lose from lower tariffs. Developing a system of well designed and implemented targeted direct transfers to poor households is thus likely to be a substantially more costeffective approach to poverty alleviation. Such an approach should be financed by switching revenue raising from rice tariffs to more efficient tax instruments. These policy conclusions are likely to be robust to the incorporation of general equilibrium considerations