Using data from the 1992 Bulgarian household budget 20 percent in terms of household income): survey, Hassan and Peters analyze the structure of The head of household in a poor home tends to be income in Bulgaria, identifying who the poor are and older, a woman, poorly educated, and unemployed. Poor how they are reached by the social safety net. Their main households are not necessarily larger households in findings about household incomes: Bulgaria, unlike in other developing countries. * Social transfers provide an extremely large rhe sources of income in poor Bulgarian households component -24 percentof household income per reflect other findings: capita. That is roughly on a par with the share in other * The poor depend for more than half their income Eastern European counitries but more thari 40 percent on social benefits (especially pensions), indicating the higher than the share in OFCL) countries.importance of the social safety net. * Wage earnings have declined as a source of income,The social safety net is not well targeted. Most reflecting the contraction of the state sector. Wage social benefits are pro-poor, in the sense that they income as a share of income in Bulgaria has declined to improve income distribution, but many benefits accrue to only half the OEC.D level.better-off households. There is substantial scope for * Income from self-employmenit has increased, better distribution of income. reflecting the surge in small-scale retail establishments.Hassan and Peters conclude that comprehensive * Income is considerably less concentrated in Bulgaria reform of social benefits is needed, focusing on pensions, than in other lower-middle-income countries.unemployment benefits, child allowances, and social The authors' main findings about rhe poor (the bottom assistance.This papera product of the Country Operations Division, Europe and Central Asia, Country Department Iis part of a larger effort in the department to analyze the social dimensions of stabilization and adjustment. Copies of the paper are available free
This study utilizes the 1992 Bulgarian household budget survey to analyze the distribution of income and income tax burden. Results indicate that the country is characterized by low income inequality, though this is changing rapidly. The findings also show that the present income tax system is progressive and that the urban sector pays much more relative to its income. Despite a steeply graduated statutory tax rate schedule, effective progression is rather modest, indicating significant tax evasion. However, one must view the results of progressivity and urban bias cautiously. As in-kind income becomes monetized and as the economy becomes more market-oriented, both progressivity and urban/rural differences will wane over time. Copyright 1996 Western Economic Association International.
The Operations Evaluation Department (OED) is an independent unit within the World Bank, It reports directly to the Bank's Board of Executive Directors OED assesses what works, and what does not, how a borrower plans to run and maintain a project, and the lasting contribution of the Bank to a country's overall development The goals of evaluation are to learn from experience, to provide an objective basis for assessing the results of the Bank's work, and to provide accountability in the achievement of its objectives It also improves Bank work by identifying and disseminating the lessons learned from experience and by framing recommendations drawn from evaluation findings THEAFRICAN DEVELOPMENTBANK GROUP The African Development Bank Group's mandate, as stipulated m Article I of the Agreement Establishing the Bank, is to "contribute to the economic development and social progress of its regional members-individually and jointly " The Bank's mission, therefore, is to assist Regional Member Countries (RMCs) to break the vicious cycle of poverty in which they are entrapped Working towards this goal, the Bank would endeavor to facilitate and mobilize the flow of external and domestic resources, public and private, promote investment, and provide technical assistance and policy advice to RMCs WORLD BANK OPERATIONS EVALUATION DEPARTMENT AFRICAN DEVELOPMENT BANK OPERATIONS EVALUATION DEPARTMENT cmy Lesotho Development in a Challenging Environment
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