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Impacts of the Child Grants Programme on the local economy in Lesotho







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    Local economy-wide impact evaluation of Lesotho’s Child Grants Programme and Sustainable Poverty Reduction through Income, Nutrition and Access to Government Services Project 2021
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    This report presents findings from a study of the local-economy impacts of one of Lesotho’s largest social programmes, the Child Grants Programme (CGP), and a rural development intervention, the Sustainable Poverty Reduction through Income, Nutrition and Access to Government Services (SPRINGS) programme. The CGP provides cash transfers to eligible poor households, while SPRINGS was a multi-faceted productive intervention targeting areas reached by the CGP, that provided support in various forms. The study is part of a larger project - a partnership between FAO, IFAD and the Universidad de los Andes (UNIANDES) and its Centro de Estudios en Desarrollo Económico (CEDE) - that seeks to identify factors that lead to better articulation between social protection interventions and rural productive inclusion strategies.
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    Impacts of the Child Grants Programme on the local economy in Lesotho 2013
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    The objective of Lesotho’s Child Grants Programme (CGP) is to improve the living standards of Orphans and Vulnerable Children (OVC) so as to reduce malnutrition, improve health status, and increase school enrolment among OVC. The CGP seeks to accomplish this via an unconditional cash transfer targeted at poor and vulnerable households. The programme’s immediate impact will be to raise the purchasing power of the beneficiary households. The LSL 1 440 transfer represents an average of 22 percent of the income of the treated households, every quarter the programme transfers LSL 3.3 million to 2 299 households.
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    Evaluating local general equilibrium impacts of Lesotho’s child grants programme
    PtoP from Protection to Production
    2014
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    This report presents findings from a local economy-wide impact evaluation (LEWIE) of Lesotho’s Child Grants Programme. Simulations indicate that total income impacts significantly exceed the amounts transferred under the programme: each maloti transferred stimulates local nominal income gains of up to 2.23 maloti. By stimulating demand for locally supplied goods and services, cash transfers have productive impacts, mostly in households that do not receive the transfer. Our simulations reveal the importance of the local supply response to changes in demand. Capital and labour constraints exert upward pressure on local prices and reduce the programme’s income multiplier in real terms. Nevertheless, real income multipliers remain significantly greater than 1.0 in most cases, even in the presence of factor constraints. Our findings raise questions about how to measure the impacts of cash transfers which include effects on non-beneficiaries as well as targeted households. Evaluations focusi ng only on the treated households are likely to significantly understate programme impacts because of general-equilibrium feedbacks in local economies.

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