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The Impacts of the Social Cash Transfer Pilot Programme on community dynamics in Tigray, Ethiopia

Year of publication 2014

Pages 2p.

Author Agricultural Development Economics Division

Product type Document

Edition 1

Synopsis (short abstract) This report presents analysis and findings from a qualitative research case study conducted in March 2014 in the Tigray region of Ethiopia, the last of a six country study of the economic impact of cash transfer programmes in Sub Saharan Africa. Starting in 2011, the Social Cash Transfer Pilot Programme (SCTPP) provides a social protection system through regular and predictable monthly cash transfers (a basic transfer of US$ 7.88) to extremely poor and labour constrained households. By 2014 the SCTPP was reaching over 3,700 beneficiary households in the two woredas (districts) targeted by the programme in the Tigray region, Hintalo Wajirat - a rural woreda-, and the town of Abi Adi.

Language English

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    Document
    Local Economy-wide Impact Evaluation (LEWIE) of Ethiopia’s social cash transfer pilot programme 2014
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    The Ethiopia Social Cash Transfer Pilot Programme (SCTPP) was introduced in 2011 in two woredas of the Tigray region by the regional Government with the support of the United Nations Children’s Fund (UNICEF). The goal of the SCTPP is to “improve the quality of life for vulnerable children, the elderly, and persons with disabilities” in programme households. Although the programme targets the poorest of the poor, the actual benefit to the local economy goes beyond programme beneficiaries. When b eneficiaries spend the cash transfer, they transmit the impact of the programme to others inside and outside the local economy, more often to households not eligible for the cash transfer who tend to own most of the productive assets. The impact of the SCTPP on the local economy was simulated using a LEWIE (Local Economy Wide Impact Evaluation) model applied to the two areas that received the transfer, the tabias of Hintalo-Wajirat and the town of Abi-Adi. The LEWIE model found that each birr d istributed in Hintalo-Wajirat generated an extra 1.52 birr via local market linkages, for a total income multiplier of 2.52. Similarly, each birr distributed in Abi-Adi generated an additional .35 birr, for a total income multiplier of 1.35. Thus the initial transfer of 5.58 million birr in Hintalo-Wajirat and 1.62 million birr in Abi-Adi potentially generated 14.06 million birr and 2.19 million birr respectively. However if credit, capital and other market constraints limit the local supply res ponse, the increase in demand brought about by the cash transfer programme may also lead to increased prices and consequently a lower income multiplier. Simulations incorporating such constraints find a “real” income multiplier of 1.84 birr for Hintalo-Wajirat and 1.26 birr for Abi-Adi. In both cases non-beneficiaries and the local economy as a whole benefit significantly from cash transfer programmes via trade and production linkages. Maximizing the income multiplier may require complementary interventions that target both beneficiary and non-beneficiary families.
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    Journal, magazine, bulletin
    The impacts of the Social Cash Transfer Pilot Programme (SCTPP) on the local economy in Ethiopia 2014
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    Local economy-wide impact evaluation (LEWIE) simulation methods are used to assess the likely impacts of cash transfers on the local economy. When the Social Cash Transfer Pilot Programme (SCTPP) gives money to beneficiary households, they spend it, buying goods and services. As the cash circulates within wards and districts it also creates benefits for non-recipient households that can provide the goods and services purchased by beneficiary households. This study found that each birr distribut ed by the Tigray SCTPP in Hintalo-Wajirat woreda generated an extra 1.52 birr via local economic linkages, for a total income multiplier of 2.52 birr. Similarly, each birr distributed in Abi-Adi woreda generated an additional 0.35 birr, for a total income multiplier of 1.35 birr.
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    Brochure, flyer, fact-sheet
    Impacts of the Social Cash Transfer Pilot Programme in Ethiopia 2016
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    The Social Cash Transfer Pilot Programme (SCTPP) in Ethiopia is the Tigray Regional government’s pilot of a social cash transfer currently managed at the national level. The primary objective of the programme is to improve the quality of lives of orphans and other vulnerable children (OVC), the elderly and persons with disabilities as well as to enhance their access to essential social welfare services such as health care. At the time of the baseline household survey, beneficiary households rece ived 155 Birr (equivalent to around US$8.50) plus additional amounts for children, disabled members, and dependent elderly above 60 years of age. Overall, the study has provided direct evidence that the SCT pilot programme influences the livelihood strategies of the poor in a differentiated fashion across household head gender and geographic area. The programme has helped families by increasing food security and bringing children out of working household activities, which fit with the objectives of the programme.
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