This document summarizes the results of social protection programs in Africa that aim to reduce poverty through cash transfers. It finds that:
1) Government-run non-contributory cash transfer programs in Africa have tripled over the last 15 years, though overall coverage of social protection remains low.
2) Evaluations of cash transfer programs in 10 African countries find they significantly reduce poverty, improve food security and nutrition, increase spending on education and healthcare, and boost asset accumulation.
3) Cash transfers are found to have multiplier effects, stimulating broader economic activity at household and community levels without increasing inflation.
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Learning Objectives:
- Understand the rationale behind the 2024 updates to the Uniform Guidance outlined in 2 CFR 200, and their implications for federal grant recipients.
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Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
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Poverty Reduction through Social Protection in Africa
1. unite for
children
Results for Poverty Reduction
through Social Protection in Africa
Amber Peterman
On behalf of the UNICEF Office of Research—Innocenti
Transfer Project Team
EU/EFTA meeting; March 2018, Stockholm
2. 2
Source: Cirillo & Tebaldi 2016 (Social Protection in Africa: Inventory of Non-Contributory Programmes): www.ipc-
undp.org/pub/eng/Social_Protection_in_Africa.pdf
Rise of social protection in Africa:
Non-contributory Gov’t programming triples over last 15 years
3. 3
Percentage of total population covered by at least
one social protection benefit (2015, SDG indicator 1.3.1)
Source: World Social Protection Report 2017-2019: Universal social protection to achieve the Sustainable Development
Goals, ILO, Geneva, 2017.
4. 4
Evidence from Africa: Recent reviews
Source: Bastagli et al. (2016). Cash transfers: What does the evidence say? ODI, London; Hidrobo
et al. (2018) Social Protection, Food Security and Asset Formation World Development 101: 88-103.
Bastagli et al. (2016): 201 studies
0 20 40 60
Caloric intake
Food consumption
Livestock
Productive assets (non-farm)
Productive assets (farm)
Savings
Number of indicators
Sub-Saharan Africa East Asia & Pacific Europe & Central Asia
LAC MENA South Asia
Hidrobo et al. (2018): 91 studies
5. 5
Transfer Project: Partners & motivation
Created 2009 as an Institutional Partnership between UNICEF,
FAO, Save the Children, University of North Carolina
Originally 6 countries in SSA, but expanded given high demand
Working in close collaboration with national counterparts,
including national governments and research institutions
Objectives:
1. Provide evidence on the effectiveness of cash transfers in
achieving impacts for children & households
2. Inform the development and design of policy & programs
3. Promote learning across the continent on the design &
implementation of cash transfer evaluations and research
6. 6
The Transfer Project & From Evidence to Action
Ethiopia, Ghana,
Kenya, Lesotho,
Malawi, Madagascar,
South Africa,
Tanzania, Zambia &
Zimbabwe
From Evidence to Action, Open access: http://www.fao.org/3/a-i5157e.pdf
7. 7
Overview of Transfer Project Evaluations
Country
(program)
Targeting
(in addition to
poverty)
Sample
size
(HH)
Methodology LEWIE Youth
Years of data
collection
Ethiopia (SCTP) Labour-constrained 3,351 Longitudinal PSM X 2012, 2013, 2014
Ghana (LEAP)
Elderly, disabled or
OVC
1,614 Longitudinal PSM X 2010, 2012, 2016
Ghana (LEAP
1000)
Pregnant women,
child<2
2,500 RDD 2015, 2017
Kenya (CT-OVC) OVC 1,913 RCT X X 2007, 2009, 2011
Lesotho (CGP) OVC 1,486 RCT X 2011, 2013
Madagascar
LUL/TMDH
School-age or child <5 2799 RCT 2016, 2017
Malawi (SCTP) Labour-constrained 3,500 RCT X X 2011, 2013, 2015
South Africa (CSG) Child <18 2,964 Longitudinal PSM X 2010, 2011
Tanzania (PSSN) Food poor 801 RCT X 2015, 2017
Tanzania (PSSN
Cash Plus)
Food poor 2209 RCT X 2017, 2018, 2019
Zambia (CGP) Child 0-5 2,519 RCT
X 2010, 2012, 2013,
2014, 2017
Zambia (MCTG)
Female, elderly,
disabled, OVC
3,078 RCT X 2011, 2013, 2014
Zimbabwe (HSCT)
Food poor, labour-
constrained
3,063
Longitudinal case-
control
X X 2013, 2014, 2017
8. 8
Total consumption pc
Food security scale (HFIAS)
Overall asset index
Relative poverty index
Incomes & Revenues index
Finance & Debt index
Material needs index (5-17)
Schooling index (11-17)
Anthropometric index (0-59m)
-.2 0 .2 .4 .6 .8
Effect size in SDs of control group
36-month results
Broad Impacts from two Zambian programsMCP
CGP
Source: Handa et al. (2018). Can Unconditional Cash Transfers raise long-
term living standards? Journal of Development Economics 133: 42-65
9. 9
Consumption
Food Security
Assets
Finance & Debt
Income & Revenue
Subjective well-being
Children’s
Material Needs
Schooling
Child Nutrition
-.1 .1 .3 .5 .7 .9
Effect size in SDs of the control groupSource: UNC (2016) Malawi Endline Impact Evaluation Report.
Broad Impacts from Malawi SCTP
30-month results
10. 10
Reductions on poverty measures
10 10
1.4
12
11
10
0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Ethiopia
(24 months)
Kenya
(24 months)
Lesotho
(24 months)
Malawi
(36months)
Zambia
MCTG
(36 months)
Zambia CGP
(48 months)
Zimbabwe
(12 months)
Increase in
household
income (%)
Reduction in
poverty head
count (pp)
Reduction in poverty gap (pp)
Percentagepointimpact
(48 months)
Solid bars represent significant impact, shaded insignificant.
Impacts are measured in percentage points, unless otherwise specified
11. 11
Across-the-board impacts on food security
Ethiopia
SCTP
Ghana
LEAP
Kenya
CT-OVC
Lesotho
CGP
Malawi
SCTP
Zambia
MCTG
Zambia
CGP
Zim
HSCT
Spending on food & quantities consumed
Pc food expenditures (overall)
Pc expenditure (food items)
Kilocalories per capita
Frequency & diversity of food consumption
Number of meals per day
Dietary diversity/Nutrient rich
food
Food consumption behaviours
Coping strategies adults/
children
Food insecurity access scale
Green check marks represent significant impact, black are insignificant and empty is indicator not collected
Source: Hjelm 2016 (The impact of cash transfers on food security): https://transfer.cpc.unc.edu/wp-
content/uploads/2015/09/The-Impact-of-Cash-Transfers-on-Food-Security.pdf
12. 12
No evidence cash transfers increase
beneficiary spending on ‘undesirable’ goods
(e.g. alcohol & tobacco)
Alcohol & tobacco represent <2% of budget share across 7
evaluations (data comes from detailed consumption modules
with over 120 food items)
No positive impacts on alcohol & tobacco spending (consistent
with meta-analysis on cash transfers & temptation goods).
In Lesotho, impacts are negative (decreases in spending)
Alternative measures in 4 evaluations yield same result:
“Has alcohol consumption increased in this community over the
last year?”
“Is alcohol consumption a problem in your community?”
Source: Handa et al. 2017 (Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash
Transfers as a Poverty Reduction Strategy in Africa): https://www.unicef-irc.org/publications/899/
13. 13
School enrollment impacts (secondary age children):
Same range as those from CCTs in Latin America
8
3
7
8
16
8
7 7
1
9
6
10
0
2
4
6
8
10
12
14
16
18
20
Percentagepointimpact
Primary enrollment already high, impacts at secondary level. Ethiopia is all children age 6-16.
Bars represent percentage point impacts - Solid bars represent significant impact, shaded not significant.
14. 14
Significant increase in material needs for school-age
children’s clothing, shoes, blanket
11
26
30
23
32
26
0
5
10
15
20
25
30
35
Ghana
(LEAP)
Lesotho
(CGP)
Malawi
(SCTP)
Zambia
(MCTG)
Zambia
(CGP)
Zimbabwe
(HSCT)
Percentagepointimpact
Lesotho includes shoes and school uniforms only, Ghana is schooling expenditures for ages 13-17. Other
countries are shoes, change of clothes, blanket ages 5-17.
Bars represent percentage point impacts - Solid bars represent significant impact, shaded not significant.
“I do not lack food that much
nowadays because the money
from Mtukula Pakhomo is there
to use to support us. Life has
changed. It has helped in
school, I have food, have
bought a change of clothes. In
the past I had only one set of
clothes that when I come from
school I could wash it at night
and wear it the next day. (Now)
the uniform is in good
condition and not torn up.”
~ Male youth in beneficiary household (on
recently transitioning to secondary school)
16. 16
Productive investments
Ethiopia
SCTP
Ghana
LEAP
Kenya
CT-OVC
Lesotho
CGP
Malawi
SCTP
Zambia
CGP
Zambia
MCTG
Zim
HSCT
Tropical Livestock Units (TLU)
Any livestock ownership
Any agricultural asset ownership
Expenditure on crop inputs
Value of harvest (local units)
Green check marks represent significant impact, red adverse impact,
black are insignificant and empty is indicator not collected
Overall impacts mask impacts on specific livestock/activities
Households substitute out of casual paid labor (off farm) to on farm/small
businesses – no evidence that households systematically decrease work
participation
Positive impacts on savings, networks, decreases in credit constraints vary by
country
Source: Handa et al. 2017 (Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash
Transfers as a Poverty Reduction Strategy in Africa): https://www.unicef-irc.org/publications/899/
17. 17
Household-level multipliers
0.69 0.72
0.61
0.47
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Malawi
(SCTP, 36
months)
Zambia
(MCTG, 36
months)
Zambia
(CGP, 36
months)
Zimbabwe
(HSCT, 48
months)
Householdmultiplier
Transfer Multiplier
• Compare value of transfer to
measured ‘benefits’ in
monetary terms (spending,
savings, increases in assets,
income)
• Only significant impacts
considered, deflated to
baseline values
• Pathways for multipliers are
diverse (Ex. Agriculture in
MCTG, non-farm business in
CGP)
18. 18
Community-level impacts
• In 5 evaluations, tested for inflation using a basket of 10
commonly purchased goods
• No inflationary impacts found (*exception price of beef in
Lesotho)
• Why? Supply expanded to meet demand, beneficiaries
relatively small proportion of population
• Local Economy Wide Impact Evaluation (LEWIE) models
collect information on non-beneficiaries and local
businesses/markets at baseline to simulate community-level
impacts of transfers
19. 19
Local Economy Wide Impact Evaluation
(LEWIE) estimates
Source: Taylor E, Thome K, Filipski M. “Local Economy-Wide Impact Evaluations of Social Cash Transfer
Programmes.” In “From Evidence to Action.” Eds. Davis B, Handa S, Hypher N, Winder Rossi N, Winters P,
Yablonski J. 2016. Oxford: Oxford University Press.
1.35
2.52 2.50
1.81
1.34
2.23
1.27
1.79 1.73
0
0.5
1
1.5
2
2.5
3
Ethiopia
SCTPP
(Abi-Adi)
Ethiopia
SCTPP
(Hintalo)
Ghana
LEAP
Kenya
CT-OVC
(Garissa)
Kenya
CT-OVC
(Nyanza)
Lesotho
CGP
Malawi
SCTP
Zambia
CGP
Zimbabwe
HSCT
20. 20
‘Psychology’ of poverty
Poverty has psychological consequences (myopia, stress,
impatience, cognitive overload)
Poor, sub-optimal decisionmaking which reinforces poverty
New work using ‘lab in the field’ experiments soliciting responses of
how long participants are willing to wait for payoffs
Results in Malawi & Zambia indicate cash transfers can alleviate
some of these negative mental states, including reduced stress &
willingness to wait for payouts
Some measurement issues still to tackle: Perceived stress scales not
necessarily ‘calibrated’ to rural Africa context, biomarkers still costly &
problematic to collect
21. 21
Conclusions & what’s next?
Large-scale government unconditional cash transfers have
strong, positive impacts on:
Poverty, food security & expenditures
Human capital
Resiliency-related outcomes (assets, productive investment)
Beyond beneficiaries: Local economies
Design matters: Amount of transfer, regularity or payments
Cash is important, but not sufficient: Supply side limitations
(health & education)
Next frontier: “cash plus” programming & evaluation to examine
synergies
Policy uptake important for understanding how to maximize
impact on poverty & human capital for poor populations
23. 23
Transfer Project is a multi-organizational initiative of the United Nations Children’s Fund (UNICEF)
the UN Food and Agriculture Organization (FAO), Save the Children-United Kingdom (SC-UK),
and the University of North Carolina at Chapel Hill (UNC-CH) in collaboration with national
governments, and other national and international researchers.
Current core funding for the Transfer Project comes from the Swedish International Development
Cooperation Agency (Sida) to UNICEF Office of Research, as well as from staff time provided by
UNICEF, FAO, SC-UK and UNC-CH. Evaluation design, implementations and analysis are all
funded in country by government and development partners. Top-up funds for extra survey rounds
have been provided by: 3IE - International Initiative for Impact Evaluation (Ghana, Malawi,
Zimbabwe); DFID - UK Department of International Development (Ghana, Lesotho, Ethiopia,
Malawi, Kenya, Zambia, Zimbabwe); EU - European Union (Lesotho, Malawi, Zimbabwe); Irish Aid
(Malawi, Zambia); KfW Development Bank (Malawi); NIH - The United States National Institute of
Health (Kenya); Sida (Zimbabwe); and the SDC - Swiss Development Cooperation (Zimbabwe);
USAID – United States Agency for International Development (Ghana, Malawi); US Department of
Labor (Malawi, Zambia). The body of research here has benefited from the intellectual input of a
large number of individuals. For full research teams by country, see: https://transfer.cpc.unc.edu/
Acknowledgements
25. 25
Responding to
the critics
with evidence
Translated into 8
languages!
Available for download: http://www.fao.org/documents/card/en/c/fe894cf7-a0ba-4c13-8ec6-
3c6d09b5e7b7
27. 27
General approach to modeling
• Probit or ordinary least squares (OLS) multivariate
regressions
• Baseline balance/ successful randomization in all countries
• For “once occurring outcomes” use endline cross section and
drop those who had already reported outcome at baseline
• For outcomes changing over time (mental health, education,
aspirations), use difference-in-difference models
• Control for baseline individual, household, community
characteristics & cluster standard errors
• Weight for probability of appearing in sample (among all
eligible youth in any given household)
Editor's Notes
In 2015: UCTs make up the largest share of program typology (70 programs), followed by cash for work (23) and CCT/Social Support Services (19 each).
Africa evaluations now “taking over” with more evidence on productive and food security outcomes as compared to LAC.
Ones in blue/bold are in the book – others were/are ongoing – book is freely downloadable! http://www.fao.org/3/a-i5157e.pdf
Blue indicates on-going or future data collection
One way we can look at impacts is broadly across domains within a program – so here is an example of a broad range of domains (which all aggregate various productive and human capital indicators into standardized indices). We can see that there are significant (and large) impacts across all domains except for schooling and anthro in the CG model. These programs were particularly successful, due in part to the size of transfers and regularity of payments (over 3 years).
Another way is to look at certain domains across evaluations (where they were collected). First, we can look at poverty measures—across many of the countries, the solid bars are significant percentage point impacts, while shaded is insignificant. We can see that in general, with the exception of Lesotho and Zimbabwe there were large pp reductions in poverty.
The tick marks indicate that the indicator was included in the most recent available evaluation report. Green tick mark = program impact on food security indicator. Difference between pc food exp (overall) and (items) is that items are specific impacts on consumption of meat and starches (Ghana), vegetables (Malawi), cereals, meats and sugars (Zambia MCTG), meat, dairy and cereals (Zambia CGP) and sugar/fats (Zim)
Investments also can be made in terms of human capital. These are impacts on secondary-school age children, instead of primary, since primary enrollment rates are high across countries. In all but two countries—Ethiopia and Zimbabwe, there are large and significant impacts. In Zimbabwe, this lack of significance was because it was found that HH that started receiving the cash transfer were dropped from a basic education benefit, instead of being an additional or harmonized transfer as was planned. You can see on the right in blue are some of the impacts from the LAC CCTs (conditional on school enrollment/attendance) which are roughly comparable. We find positive effects on other education indicators, including attendance, grade for age—however not always consistently in the full sample.
Resilience is the capacity of a unit to anticipate and prevent, or withstand (idiosyncratic) shocks and stressors to their livelihoods without compromising quality of life
TLU are livestock numbers converted to a common unit, reflecting weight and feed requirements, estimates follow conversion factors for a unit equivalent to a tropical cow with weight 250 kg. Ag assets include: ax, ho
Nominal Income Multipliers with Confidence Bounds for SCT in Seven Countries – e.g. for every $ transferred in Ethiopia 1.35 – 2.25 is generated in local economy
Amount: Transfers range from 7% (Ghana) to 27% (CGP Zambia) of household pre-program consumption, this has implications for the variety of impacts realized – rule of thumb 20%, however must keep pace with inflation, which often devalues amount over time