Considerations in Using Proxy Means Tests in Eastern Caribbean States

The social safety net assessments conducted in Eastern Caribbean states in and around 2009 recommended that countries should develop a proxy means test (PMT) to replace the diverse approaches they were using to target poverty-related benefits. Proxy mean tests were argued to be an objective and transparent alternative mechanism, especially given the unreliability of income data.

This paper aims to assist countries in exploring the recommendations by explaining what PMTs are, highlighting their strengths and weaknesses and presenting opportunities and challenges.