Targeting at the Margin: the 'Glass of Milk' Subsidy Programme in Peru

This article evaluates the Vaso de Leche (VL) feeding programme in Peru in order to illustrate an evaluation methodology based on targeting criteria for a decentralised transfer programme. We find that the degree of overall targeting of poor individuals attributable to the central government's choice of districts is greater than that attributable to choice of participants within districts made by the municipalities and the mothers' committees. However, when we use a version of a targeting efficiency measure first introduced by Galasso and Ravallion [2003] which we modify to be defined on the values of allocations, the opposite is the case. The community-based decision makers appear to be targeting the poor in terms of the values of the transfers.