An operational method for assessing the poverty outreach performance of development policies and projects: Results of case studies in Africa, Asia, and Latin America

SummaryMany development policies seek to target the poorest to provide them access to key services. However, there is a lack at present of low-cost and reliable methods for assessing whether a policy reaches the poorest. We present an operational method to assess the relative poverty of targeted recipients for services. The method constructs a multi-dimensional poverty index through principle component analysis using a range of poverty-related indicators. The method was tested in India, Kenya, Madagascar, and Nicaragua. Results from these studies support our belief that the method has a potential for assessing the extent to which the poorest are reached by targeted development projects, programs, or policy instruments.