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16 International Poverty Centre Working Paper nº 8 D. RURAL/URBAN DIFFERENCES There are clearly significant rural/urban differences. With respect to single elderly persons, a much higher proportion of individuals are poor in rural areas compared with urban areas in every country. (Figure 7) The pattern remains the same for other household types, viz., households with elderly and children, and households headed by the elderly. (The results are not presented.) The relatively higher proportion of

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4 International Poverty Centre Working Paper nº 8 African countries is delineated in section IV. Three aspects of welfare are discussed: poverty incidence, poverty gap ratio, and sickness and access to healthcare. In section V the implications for poverty reduction of a social pension to the elderly under alternative targeting options are analyzed. In particular, it will examine the short run impacts of providing assistance to the elderly (living in diverse household settings) to a reduction in

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6 International Poverty Centre Working Paper nº 8 2. Households with only elderly persons 3. Households with only children and elderly persons 4. Mixed households with children, working age persons and elderly 5. Households headed by elderly persons 6. Households headed by working age (15-59) males or females Households in groups 5 and 6 are sub-groups of household group 4. To analyze the poverty status of elderly, we will need a poverty line for each of the 15 countries. The study uses

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16 International Poverty Centre Working Paper nº 8 D. RURAL/URBAN DIFFERENCES There are clearly significant rural/urban differences. With respect to single elderly persons, a much higher proportion of individuals are poor in rural areas compared with urban areas in every country. (Figure 7) The pattern remains the same for other household types, viz., households with elderly and children, and households headed by the elderly. (The results are not presented.) The relatively higher proportion of

20 0 http://www.undp-povertycentre.org/pub/IPCWorkingPaper8.pdf#page=20 www.undp-povertycentre.org/pub/IPCWorkingPaper8.pdf#page=20

18 International Poverty Centre Working Paper nº 8 households headed by the elderly – clearly not affordable for most countries. Even to fill the poverty gap among the elderly with children – a small proportion of the population in all countries – the resources required ranged from 0.1 to 0.5 percent of GDP. TABLE 7 Money as % of GDP required to eliminate poverty gap by household type Country No elderly persons Elderly persons only Elderly & children only Mixed households Not headed by

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26 International Poverty Centre Working Paper nº 8 annum in the recent past. This suggests that the fiscal leverage from economic growth is likely to be extremely limited, if not nil, for low income countries of Africa in the medium term, and so the argument that universal social pensions can sustained in a “growth scenario” is tenuous at best. In sum, it appears desirable, in the larger interest of the elderly themselves, to target the pension to the poor among the elderly keeping the age cut off

www.undp-povertycentre.org/pub/IPCWorkingPaper8.pdf#page=18

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Confronting Capacity Constraints on Conditional Cash Transfers in Latin America: the cases...

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16 International Poverty Centre Working Paper nº 38 a banking institution, which organizes the logistics of the payments, including the transport of the funds, maintaining security and providing cashiers. This experience differs from that of Brazil, for instance, which counts on a fairly developed and widespread banking network that allows an automated scheme for the delivery of transfers through money-teller machines and magnetic cards. In contrast, Red Solidaria’s transfers are handled manually and

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16 International Poverty Centre Working Paper nº 38 a banking institution, which organizes the logistics of the payments, including the transport of the funds, maintaining security and providing cashiers. This experience differs from that of Brazil, for instance, which counts on a fairly developed and widespread banking network that allows an automated scheme for the delivery of transfers through money-teller machines and magnetic cards. In contrast, Red Solidaria’s transfers are handled manually and

www.undp-povertycentre.org/pub/IPCWorkingPaper38.pdf#page=18

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