To test the causal impact of religiosity, we conducted a randomized evaluation of an evangelical Protestant Christian values and theology education program that consisted of 15 weekly half-hour sessions. We analyze outcomes for 6,276 ultra-poor Filipino households six months after the program ended. We find significant increases in religiosity and income, no significant changes in total labor supply, assets, consumption, food security, or life satisfaction, and a significant decrease in perceived relative economic status. Exploratory analysis suggests the program may have improved hygienic practices and increased household discord, and that the income treatment effect may operate through increasing grit.
Helping the ultra-poor develop sustainable livelihoods is a global priority, but policymakers, practitioners, and funders are faced with competing ideas about the best way to reduce extreme poverty. Innovations for Poverty Action conducted a randomized evaluation to test the impacts of diverse components and variants of the Village Enterprise microenterprise program, an integrated poverty alleviation intervention that provides poor households with a combination of cash transfers, mentorship, business training, and support with the formation of savings groups, over a one-year period.
- Village Enterprise’s microenterprise development program led to increased consumption, assets, and income, as well as improvements in nutrition and subjective well-being.
- Cost-effectiveness appears high: researchers estimate a full cost recovery within three to four years.
- A cost-equivalent cash transfer appeared to have less promising medium-term impacts on poverty reduction and subjective well-being than the microenterprise program, though estimates are more ambiguous.
- Adding a light-touch behavior change component to the cash transfer changed the investment patterns of cash transfer recipients and improved subjective well-being somewhat, but cannot be characterized as a substitute for the much more heavy-touch training and mentorship interventions of the microenterprise program.
- Overall, the results suggest that training and mentorship components of integrated poverty alleviation programs are sensible and cannot simply be removed (or substituted for cash transfers). But as they are complex, more research is needed on the issue of scaling them while maintaining their quality.
* These results are preliminary and may change after further data collection and/or analysis.
A multi-faceted program comprising a grant of productive assets, training, coaching, and savings has been found to build sustainable income for those in extreme poverty. We focus on two important questions: whether a mere grant of productive assets would generate similar impacts (it does not), and whether access to a savings account and a deposit collection service would generate similar impacts (it does not).
Can programmatic extensions such as training and mentorship enhance the economic impact of cash transfers, or do they needlessly absorb resources that program recipients could allocate more meaningfully by themselves? Using a randomized trial, we evaluate a program that targets poor Ugandans and offers them an integrated package comprised of lump sum transfers, coaching, and training on microenterprise development as well as savings group formation. We assess its impact and that of its savings component, as well as the impacts of much simplified program variants: one intervention variant that is limited to lump sum cash transfers and another that expands upon transfers using a light-touch behavioral intervention component. The results support the notion that integrated development interventions are sensible poverty reduction tools.
In Liberia, we have continued our global tradition of rigorous, applicable research by building foundational research capacity and conducting evaluations in areas of pressing national concern. Examples of our work described in this brief offer promising insights into everyday issues that affect the lives of the Liberian poor.
In Burkina Faso, Côte d'Ivoire, and Mali, we have continued our global tradition of rigorous, applicable research by building foundational research capacity and conducting evaluations in areas of pressing national concern. Examples of our work below offer promising insights into everyday issues that affect the lives of the Francophone West African poor.
Approximately 767 million people live on less than $1.90 a day.1 Across the world, the extreme poor generally depend on insecure and fragile livelihoods, and their income is frequently irregular or seasonal, putting them and their families at risk of hunger. Innovations for Poverty Action (IPA) works with academics from top research institutions to discover sustainable ways to lift these households out of extreme poverty and to support the scale-up of effective programs. In recent years, IPA has helped propel breakthrough findings—particularly on cash transfers and the “big-push” strategy known as the Graduation approach—into large-scale programs, reaching tens of millions of people. We are now testing variations of the Graduation approach in Ghana, Uganda, and the Sahel to identify what drives the impacts and how to make it more cost-effective.
1 http://www.worldbank.org/en/topic/poverty/overview. Accessed November 7, 2016.
Three hundred million of the world’s rural poor suffer from seasonal income insecurity, which often occurs between planting and harvest when the demand for agricultural labor falls and the price of food rises. Those who undergo a lean season typically miss meals for a two- to three-month period. This is especially problematic for pregnant women and young children since poor nutrition for even a short time can limit long-term cognitive and physical development. Seasonal hunger and deprivation is perhaps the biggest challenge to the reduction of global poverty that has remained largely under the radar.
Members of some families in poor rural areas migrate to urban areas for work to cope with seasonal deprivation. In Bangladesh, however, researchers observed that many vulnerable households, who could potentially reap large benefits from temporary migration, didn’t send anyone away to work, thereby risking hunger. Why weren’t more people migrating? Would these households improve food security if they were to send a migrant to these areas during the lean season? More broadly, why were so many people sticking around in relatively unproductive rural areas, in the face of persistent gaps in wages and productivity between urban and rural areas? Was this akin to the proverbial $100 bills being left on the sidewalk?
A research team from Yale University, the London School of Economics, the University of Sydney, and Innovations for Poverty Action investigated these questions in Northern Bangladesh during 2008-2011, testing whether providing information or small financial incentives, worth about the cost of a bus ticket, increased migration and in turn, improved household welfare. They found that households offered either a grant or loan to migrate were substantially more likely to send someone to work outside the village during the lean season, and those families increased caloric intake relative to those not offered the incentives. Many of those households chose to re-migrate on their own a year later. A replication and expansion of the study during 2014-2016 not only confirmed these findings, it also showed that larger scale emigration increases wages and work hours in the village of origin, indirectly benefiting other residents who stay back.
Read about Evidence Action's scale-up of the program here.
Targeted interventions that sustainably improve the lives of the poor will be a critical component in eliminating extreme poverty by 2030. The poorest households tend to be physically and socially isolated and face disadvantages across multiple dimensions, which makes moving out of extreme poverty challenging and costly. This paper compares the cost-effectiveness of three strands of anti-poverty social protection interventions by reviewing 30 livelihood development programs, 11 lump-sum unconditional cash transfers, and seven graduation programs. All the selected graduation initiatives focused on the extreme poor, while the livelihood development and cash transfer programs targeted a broader set of beneficiaries. Impacts on annual household consumption (or on income when consumption data were not available) per dollar spent were used to benchmark cost-effectiveness across programs. Among all 48 programs reviewed, lump-sum cash transfers were found to have the highest benefit-cost ratio, though there are very few lump-sum cash transfer programs that serve the extreme poor or measure long-term impacts. Livelihood programs that targeted the extreme poor had much lower benefit-cost ratios. Graduation programs are more cost-effective than the livelihood programs that targeted the extreme poor and measured long-term impacts (i.e., at least one year after end of interventions). More evidence is needed, especially on long-term impacts of lump-sum cash transfers to the extreme poor, to make better comparisons among the three types of programs for sustainable reduction of extreme poverty.
This paper provides empirical evidence regarding the causal effects that upgrading slum dwellings has on the living conditions of the extremely poor. In particular, we study the impact of providing better houses in situ to slum dwellers in El Salvador, Mexico and Uruguay. We experimentally evaluate the impact of a housing project run by the NGO TECHO (“roof”), which provides basic pre-fabricated houses to members of extremely poor population groups in Latin America. The main objective of the program is to improve household well-being. Our findings show that better houses have a positive effect on overall housing conditions and general well-being: the members of treated households are happier with their quality of life. In two countries, we also document improvements in children’s health; in El Salvador, slum dwellers who have received the TECHO houses also feel that they are safer. We do not find this result, however, in the other two experimental samples. There are no other noticeable robust effects in relation to the possession of durable goods or labor outcomes. Our results are robust in terms of both their internal and external validity because they are derived from similar experiments in three different Latin American countries.
We show that extremely poor, war-affected women in northern Uganda have high returns to a package of $150 cash, five days of business skills training, and ongoing supervision. Sixteen months after grants, participants doubled their microenterprise ownership and incomes, mainly from petty trading. We also show these ultrapoor have too little social capital, but that group bonds, informal insurance, and cooperative activities could be induced and had positive returns. When the control group received cash and training 20 months later, we varied supervision, which represented half of the program costs. A year later, supervision increased business survival but not consumption.
Background. By 2009, two decades of war and widespread displacement left the majority of the population of Northern Uganda impoverished. Methods. This study used a cluster-randomized design to test the hypothesis that a poverty alleviation program would improve economic security and reduce symptoms of depression in a sample of mostly young women. Roughly 120 villages in Northern Uganda were invited to participate. Community committees were asked to identify the most vulnerable women (and some men) to participate. The implementing agency screened all proposed participants, and a total of 1800 were enrolled. Following a baseline survey, villages were randomized to a treatment or wait-list control group. Participants in treatment villages received training, start-up capital, and follow-up support. Participants, implementers, and data collectors were not blinded to treatment status. Results. Villages were randomized to the treatment group (60 villages with 896 participants) or the wait-list control group (60 villages with 904 participants) with an allocation ration of 1:1. All clusters participated in the intervention and were included in the analysis. The intent-to-treat analysis included 860 treatment participants and 866 control participants (4.1% attrition). Sixteen months after the program, monthly cash earnings doubled from UGX 22 523 to 51 124, non-household and non-farm businesses doubled, and cash savings roughly quadrupled. There was no measurable effect on a locally derived measure of symptoms of depression. Conclusions. Despite finding large increases in business, income, and savings among the treatment group, we do not find support for an indirect effect of poverty alleviation on symptoms of depression.
Labor-intensive public works programs are important social protection tools in low- income settings, intended to supplement the income of poor households and improve public infrastructure. In this evaluation of the Malawi Social Action Fund, an at- scale, government-operated program, across- and within-village randomization is used to estimate effects on food security and use of fertilizer. There is no evidence that the program improves food security, and suggestive evidence of negative spillovers to untreated households. These disappointing results hold even under modifications to the design of the program to offer work during the lean rather than harvest season or increase the frequency of payments.
For policy purposes, it is important to understand the relative efficacy of various methods to target the poor. Recently, participatory methods have received particular attention. We examine the effectiveness of a hybrid two-step process that combines a participatory wealth ranking and a verification household survey, relative to two proxy means tests (the Progress out of Poverty Index and a housing index), in Honduras and Peru. The methods we examine perform similarly by various metrics. They all identify most accurately the poorest and the wealthiest households but perform with mixed results among households in the middle of the distribution. Ultimately, given similar performance, the analysis suggests that costs should be the driving consideration in choosing across methods.