The Effectiveness of the Monthly Cash Assistance Program Delivered by the National Aid Fund on Beneficiaries and Poverty Rate in Jordan

Adel Y. Y. Shamaileh

Abstract


The monthly cash transfer program is the largest program administered by the National Aid Fund (NAF). Its annual budget represents 96% of NAF budget. NAF was founded in 1986 as the prime government instrument for combating poverty. The program sets its objective to eradicate poverty among 80 percent of households under poverty line.
The study evaluates the extent of the program's success in achieving this objective.
To a large extent, the success of the program depends upon the degree of political commitment, and sustainablity of required financial support from the government. Therefore, the program’s success or failure can be considered an assessment of the government policy.
Contrasting the beneficiaries’ situations according to the prescribed measures, before assistance and after, indicates the real impact of this program and the policy in general. Using the database of (NAF), the results show, based on the poverty line, that only 11%-22% of the poor are receiving monthly cash assistance. In other words only one- seventh of the target set by NAF received aid. The results also show that none of the poor have been alleviated from their position below the poverty line, that the program has not reduced the number of poor, nor the poverty rate. Nevertheless, the program proved to be effective in reducing poverty depth, the poverty gap and income inequality among the beneficiaries.
The study was conduced using the whole database available at NAF. Data covers the beneficiaries as of June 2009 numbered 74315 families with 201000 individuals.

Keywords


Cash Assistance, Poverty line, Poverty Gap, Poverty Depth, Poverty Elasticity to Economic Growth, Gini Coefficient.

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