Political economy considerations influence the design, implementation, and outcome of social programs in general and social safety net programs in particular. Political economy in this context broadly refers to the interactions and relationships between individuals and institutions and how these relate to social programs. It includes an assessment of individual perceptions and incentives influencing policymakers, administrators, beneficiaries, and society at large.
Public perceptions about the purpose and usefulness of safety net programs influence whether they receive political support. The political attitudes about redistribution and equality of opportunity versus equality of outcomes vary among countries and regions leading to a different set of program options likely to be politically sustainable.
Clearly, institutions matter in the design and implementation of program interventions. The system of incentives that operate between program providers and the sponsors of programs and between providers and clients through institutions can determine success or failure. Much of the research on program targeting methods, for example, concludes that the institutional capacity and the quality of implementation matters as much to a successful program as the underlying program design.
While the point that political economy fundamentally affects social programs is obvious to many, there is no consensus among policymakers or analysts about how to systematically account for such concerns in the policymaking process.
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