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Policy options for the Lesotho Child Grant Programme







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    Lesotho’s Child Grant Programme: 24-month impact report on productive activities and labour allocation
    Lesotho country case study report
    2014
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    The broad range of impacts of the Child Grant Programme in Lesotho 2014
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    The Lesotho Child Grants Programme (CGP) is an unconditional social cash transfer targeted to poor and vulnerable households. The objective of the 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. Households are selected through a combination of proxy means testing and community validation and registered in the National Information System for Social Assistance (NISS A). The programme is run by the Ministry of Social Development, with financial support from the European Commission and technical support from UNIC EF-Lesotho. As of March 2014, the CGP reached 19 800 households and provided benefits for approximately 65 000 children across 10 districts in Lesotho. Since 2009 the nature of the CGP has been transformed. From an exclusively donor-supported pilot, the CGP has developed institutional and operational systems for roll-out at a national scale. Funding has bee n taken over by the government, which is now considering nationwide expansion of the CGP and the NISS A, with the latter serving as a platform for better harmonizing social protection interventions in the country.
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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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