Evaluating social protection programs in Tajikistan

Hyun H Son

doi:10.1016/j.asieco.2011.09.002

Abstract

At independence, Tajikistan inherited an extensive social protection system that included a range of cash and non-cash benefits. While the economy is well into its transition from a centrally planned to a market-oriented economy, its social welfare policies still adhere to the methods and approaches of the Soviet period. This is true for social protection, which has both social insurance and social assistance components, and for which benefits are effectively non-contributory in nature in that no contributions are collected from employees. In this paper, we examine the performance of the country's social protection system—essentially public transfers for the elderly and disabled—in terms of reducing poverty, with the aim of identifying its key problems. Since the government provides such public transfers mainly as pensions (i.e., old-age pension, disabled pension, and survivors pension), it merits an in-depth analysis of whether or not these transfer programs reach the intended beneficiaries; that is, how well do they target the intended beneficiaries? Using data from the Living Standards Measurement Survey conducted in 2007, we find that only 43% of poor households are receiving transfers from the government, while 33% of non-poor households receive transfers. This study argues for applying a targeted approach to public transfer programs, including non-contributory pension schemes aimed at the most vulnerable populations.

Highlights

It is commonly perceived that transitional economies have inherited a broad range of public programs, policies, and services addressing a wide variety of social needs
This study focused on three major social pension programs in Tajikistan: old-age pension, disability pension, and survivor’s pension due to the loss of breadwinner
This is done for two reasons: (i) as discussed above, much of the social protection in the country is coursed through the pension system; and (ii) in the Living Standard Measurement Survey (LSMS) data, practically all recipients of government transfers receive one or more of the three social pensions

Summary

Introduction

It is commonly perceived that transitional economies have inherited a broad range of public programs, policies, and services addressing a wide variety of social needs. These mechanisms have proved to be ill-suited to the needs of a market economy and incapable of addressing the social risks that have emerged during the transition period. Transitional economies face significant challenges in transforming inherited social protection programs to the realities of a market economy. While many countries prefer benefit structures similar to those of the Organisation for Economic Co-operation and Development (OECD) countries, these may not necessarily be the most appropriate models for economies in transition. The social risks in transition economies are significantly different from those of developed market economies and nontransition developing countries alike. Cultural and economic differences between transition economies and OECD countries, and even between transition economies themselves, militate against a one-size-fits-all solution

Methods

Results

Conclusion