Public works programs in developing countries have the potential to reduce poverty

Public works programs in developing countries can reduce poverty in the long term and help low-skilled workers cope with economic shocks in the short term. But success depends on a scheme’s design and implementation. Key design factors are: properly identifying the target population; selecting the right wage; and establishing efficient implementation institutions. In practice, rationing, corruption, mismanagement, and other implementation flaws often limit the effectiveness of public works programs.;

Zimmermann, L. Public works programs in developing countries have the potential to reduce poverty. IZA World of Labor 2014: 25 doi: 10.15185/izawol.25

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