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Economic & Productive Impacts of Cash Transfers & Implications for Rural Livelihoods
1. Setting the Scene:
Economic and productive impacts of cash
transfers and implications for rural livelihoods
Arusha, April 2019
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. 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. 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. 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. 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. 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. 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. 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?