EPAR Technical Report #106
Tue, 11/02/2010
Authors: 
Cecily Stokes-Prindle
Kristen Holway
Jonathan Armah
Jessica Henson Cagley
C. Leigh Anderson
Abstract: 

How development organizations, NGOs, and governments can best allocate scarce resources to those in need has long been debated. As opposed to universal allocation of resources, a more targeted approach attempts to minimize program costs while maximizing benefits among those with the greatest need or market opportunity. Drawing on literature from several sectors,this brief presents two categories of beneficiary targeting in the development context: administrative targeting and self-targeting. The paper includes a brief overview of targeting and segmentation in development, a summary of reasons for targeting, theoretical and practical critiques of targeting, and a discussion of targeting methods in research and practice, including examples from the literature. Implementation examples cited in this body of research include food aid program targeting by self-reported household income in Egypt; fertilizer use in low-potential zones of Uganda; and seven strategic initiatives to improve drought and disease resistance in crops in Asia and Sub-Saharan Africa.  We find that beneficiary segmentation has several theoretical advantages.  Improved targeting may increase the efficiency and equity of organizational and program efforts and help better match interventions to recipient preferences, increasing the likelihood of adoption and participation. Development organizations may improve the focus of both their strategic priorities and budgets through customized targeting methods. However, concerns exist regarding the accuracy, reliability, cost, and time-constraints of targeting methodologies. Creating valid and reliable target groups with implementation potential remains a significant challenge. 

See also:

EPAR Research Brief #72: Market Segmentation and Beneficiary Targeting in Agricultural Development

 

Type of Research: 
Literature Review
Research Topic Category: 
Sustainable Agriculture & Rural Livelihoods
Market & Value Chain Analysis
Development Finance & Policy
Aid & Other Development Finance

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