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Economic & Productive Impacts of Cash Transfers & Implications for Rural Livelihoods

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Natalia Winder Rossi's (FAO) presentation at the Transfer Project Workshop in Arusha, Tanzania on 2nd April 2019.

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Economic & Productive Impacts of Cash Transfers & Implications for Rural Livelihoods

  1. 1. Setting the Scene: Economic and productive impacts of cash transfers and implications for rural livelihoods Arusha, April 2019
  2. 2. What is the issue? Social Protection: From Protection to Production 1 Still a long way to go….  736 million people live in extreme poverty (2015 figures)  80% of the extreme poor are in rural areas:  income depend on agriculture and natural resources  Vulnerable to climate related risks and shocks  Limited access to social services, infrastructure, financial services  Heterogeneous group (income, geographic location, livelihood, age, gender)
  3. 3. What is the issue? Social Protection: From Protection to Production 1 How to accelerate progress to achieve SDG 1 (1.1; 1.3; 1.5)? How to end extreme poverty?  Political will  Macro dynamics- stimulation of economic growth and generating employment where majority of poor live  Enhancing social and productive capital (investing in rural areas, access to services, including in extending social protection to the poor)
  4. 4. Pathways to enahnce social and prodcutive inclusion Social Protection: From Protection to Production 1  Make processes of structural, rural and agricultural transformation more inclusive  Address inequitable distribution of resources and market failures  Create employment and economic opportunities  Increase access to assets (including land, natural resources, technology)  Accumulate human capital  Increase access to liquidity, credit, markets and services  Improved ability to manage risk  Reduce burden of care
  5. 5. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Impact: National cash transfer programmes:  enhance risk management capacity, relax liquidity constraints, and generate economic impacts even among the poorest  Generate multiplier impacts in the local economy (impacts on non-participants) Transfer Project contributed to build and strengthen the economic case for scale-up or programmes at national level!
  6. 6. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Adequacy of programmes:  Take up, use and impact of programmes will largely depend on the adequacy of such programmes in terms of size, regularity, but also socio- cultural pertinence and livelihoods  TP contributed to shed light on the specific elements of design that matter for economic impacts  TP raising issues on gender-sensitive design, implementation  Still gaps in terms of pertinence for indigenous peoples, livelihoods*
  7. 7. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Complementary interventions (CASH+)  To maximize and sustain the gains over time, it is key to complement cash with complementary interventions (existing or new)  Different desired outcomes will determine the type of “plus”  TP contributed to show the added impacts of CASH+ (social and economic)  TP contributed to shed light on the best plus for FSN and productive impacts
  8. 8. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Comprehensive strategy of economic participation and inclusion of the poorest  Gradual integration of households into broader rural and economic development processes  Identify processes to enhance inclusion of those left behind  Graduation models provide some elements, but gaps in terms of sustainability and linkages with broader processes  CASH+ and SP/AG coherence work provided some additional elements on sustainability on long-term impact, but still gaps on incentives to AG, labor, production sectors to systematically engage   What can the TP provide to this process?
  9. 9. Comprehensive Strategy: Reminders! Social Protection: From Protection to Production 1  Graduation from poverty, not from SP (preventing from falling back)  Poorest and most vulnerable face broad and heterogeneous array of constraints  Long process; need to tailor interventions to different populations and contexts  Ultimately all complementary programmes, as well as graduation models, depend on broader sectoral policy and rural development  Access to markets, getting prices right, animal health, extension, natural resource management, infrastructure……  Biggest driver of poverty reduction will be broad based, inclusive economic growth  Social protection as one key starting point…   What can the TP provide to this process?
  10. 10. Thank you!

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