Efficiency scores for each area of social expenditures

Efficiency scores for each area of social expenditures

The efficiency scores were calculated based on the above-normalized indicators and input specified as the expenditures as a percentage of GDP. They were calculated using the output-oriented, Data Envelopment Analysis (DEA) method, separately for each year, using three-year moving averages of the indicators. Two inputs are used for each outcome indicator:

(1) given sectoral expenditure on the indicator that directly impacts the outcome,
(2) other social expenditures (calculated as total social expenditures – sectoral expenditures) that impact indirectly to the outcome since overall social expenditure has an indirect impact on inclusive development.

The efficiency scores produced by DEA are within a 0 to 1 interval. More details on the methodology of calculating the presented efficiency score are presented in the accompanying paper.

info HIC: High-income countries, MIC: Medium-income countries, LDC: Least developed countries.

Normalized outcome indicators for different categories of social expenditures

Normalized outcome indicators for different categories of social expenditures

Outcome indicators are selected corresponding to expenditures to analyse the efficiency of expenditures (Table 1). The selection is based on studies that indicate the direct positive impact of expenditure on such outcomes (Ref). The outcome indicators are normalized to 0-1 intervals by applying the following formula:

Normalized indicator = (V – min)/(max-min)

for indicators where the policy aim is to increase the value of the indicator; and

Normalized indicator = (min - V)/(max-min)

otherwise. V is the value of the indicator in a given country and year, max is the maximum and min is the minimum of the indicator for the given sample (including all countries and years).

info HIC: High-income countries, MIC: Medium-income countries, LDC: Least developed countries.

Social expenditures as a % of GDP

Social expenditures as a % of GDP

The value expressed social expenditures within different categories as a percentage of GDP. Country group averages (of the Arab States, Global average, High-income Countries (HIC), Middle-income Countries (MIC) and Least Developed Countries (LDC) are unweighted averages for the respective country groups. Income group classification is based on the World Bank country classifications by income level. LDC classification is based on the United Nations classification of Least Developed Countries. The complete country classification used can be accessed here.

Data presented on the charts are the most recent observations of the 3-year moving average for a given indicator (for most cases, it is an average of 2017, 2018 and 2019, as 2019 is the most recent observed data point).

info HIC: High-income countries, MIC: Medium-income countries, LDC: Least developed countries.