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Public Works as a Safety Net
about both PSNP and impact evaluation are of significance both within and outside the Ethiopian context. The case study reviews and summarizes the findings of selected targeting and impact evaluations to describe how PSNP has evolved over time. It is a review of work done by others, and no originality is claimed. The chapter does not discuss methodologies in detail, nor does it critique the limitations of the data sources. The discussion focuses on the reported impacts related to targeting performance and setting the wage rate as well as on labor market and household effects on income, assets, and food security. The chapter is organized as follows: The “Program Context” section provides a short description of the program and its components. The “Overview of Selected Impact Evaluation Studies: Methods and Data” section provides a summary of the data collected for some of the most common evaluation methodologies used. The “Program Targeting Performance” section discusses how effective targeting has been under PSNP. “The Cash Transfer Modality: Beneficiary Preferences, Timeliness, and Local Market Effects” section explains the level, modality, and timeliness of PSNP transfers. The “Program Impact on Household Well-Being” section discuses some of the main findings of program impact on household well-being (income, assets, and consumption). The “Unintended Effects” section expands on unintended effects and other key findings regarding secondary impacts. The final section offers a summary of lessons learned and conclusions. In light of these findings, the chapter also provides a short assessment of how the program has evolved over time.
Program Context The Government of Ethiopia launched PSNP in 2004 to provide transfers to chronically insecure households with the objective of ensuring food consumption and preventing asset depletion in a way that stimulates markets, improves access to services and natural resources, and rehabilitates and enhances the natural environment (World Bank 2010). PSNP represents an innovative attempt by the Government of Ethiopia to shift away from responding to chronic hunger by emergency appeals and toward a proactive response that relies on using predictable resources to address a predictable problem. The two main components of PSNP are a public works program that provides countercyclical employment on mostly rural infrastructure and land rehabilitation projects, and a direct support component that provides unconditional cash or food transfer to