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The objective of this report is twofold:
first, analyze and discuss the linkages between different
minimum standards currently used in the Kyrgyz Republic and
with the Monthly Benefit for Poor Families (MBPF), and,
secondly, to analyze the potential of alternative targeting
methods and benefit levels. The analysis in this report
mainly draws on data from the Kyrgyz Integrated Household
Survey (KIHS) 2010. The report is structured as follows: the
next section analyzes and compares different minimum living
standards as currently used in the Kyrgyz Republic.
Subsequently, we simulate different targeting options using
static micro-simulation. Categorical targeting, proxy-means
testing and the current means-test given a higher Guaranteed
Minimum Income (GMI) are analyzed and eventually compared in
terms of cost efficiency. The last section concludes. One of
the objectives of the Strategy for Social Protection
Development 2012-2014 of the Government of the Kyrgyz
Republic (GoKG) is to improve the targeting performance of
the MBPF. The MBPF is the only last-resort social transfer
program in the Kyrgyz Republic aimed at providing a
guaranteed minimum income to the population. Currently,
eligibility for the MBPF is determined by a means-test. A
second objective of the strategy, which is closely linked to
the first, aims at improving the poverty reduction
effectiveness of the transfer. The size of the MBPF is
defined by the difference between family income per capita
and the level of the GMI. The main purpose of a national
poverty line is to analyze they extent and nature of poverty
in the country, and to assess the (distributional) outcomes
of public policies. The objective of the food poverty line
is to identify the extremely poor households and individuals
in the society.
