PURPOSE AND SCOPE OF THE ASSIGNMENT Keeping the above need for building strong economic arguments and rationale for the Goverment and ensuring that NSPS gets implemented in a sustainable manner, the following objectives are proposed for this UNICEF supported research: Assist RGC/SPCU in long term policy development Assist Ministry of Economy and Finance (MoEF) in planning its annual allocation for SP instruments Identify cost efficient approaches to SP programming in the Cambodian context especially in line with the NSPS implementation principle i.e. „Ten commandments document‟. Assist UNICEF in development its approach to SP in Cambodia in line with the principles of relevance, efficiency , effectiveness, equity, human rights based and childfocused Scope: Economic Rate of Return (ERR)-The research will estimate Economic Rates of Return. Here ERR is defines as „net benefits to all members of society, as a percentage of cost, taking into account externalities and other market imperfections.52 Wherever possible financial rates of return will be estimated as well. Macro and Micro-The Return on Investment will be estimated for the nation and for the entire economy but an estimation of the benefits at the micro/household level and at subnational level, will be made wherever possible. Transferring a dollar from the average consumer to the poorest raises welfare of the poor. The consultant devise an approach to illustrate ERR under a plausible range of assumptions regarding the social value of transferring to the poor. The measurable impact on growth of a transfer (even the best of the lot) is compared to the average return to similar investments in health or infrastructure then transfers wil not appear to be the better set of investments. That is, if the Question is whether a CCT is the best way to invest in education (or health) the answer is likely no. If, however, the Q is whether a CCT is the best way to spend our transfer $, the answer is likely yes. The problem is that SNs have multiple objectives and to look at only a subset often implicitly assigns zero value to the others. Sayan investment can give a return of X while an equal value SN can give a return of a (a .c X) but also increases consumption of the poor which has a value in terms of the how much society values redistribution that has a value of b where (b .c X), the question of interest is whether (a+ b) ;: or .c X. Unfortunately, it is difficult if not impossible to quantify b; the implicit welfare weights are not directly observable although there are many applications of parametric weights using a grid of possible weights (see, for example, Deaton's Analysis of Survey Data chapter 3). But it is wrong to assume this is zero. If we focus only on a, we are likely to be viewed as a poor investment.
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The net benefits to all members of society, as a percentage of cost, taking into account externalities and other market imperfections, as per the , online dictionary of economics, http://www.economics-dictionary.com/definition/economic-rateof-return.html
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