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The Child Grant Programme (CGP) positively impacted productive activities and labour allocation in Zambia







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    Local Economy-wide Impact Evaluation (LEWIE) of Zambia’s Child Grant Programme 2014
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    The Zambia Child Grant Programme (CGP) provides a bi-monthly cash transfer to households with children under five years of age, with the goal of reducing “extreme poverty and the intergenerational transfer of poverty” in programme households. The CGP provides a significant infusion of cash into Zambia’s rural economy. When beneficiaries spend the cash transfer they transmit the impact 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 local businesses. The impact of the CGP on the local economy was simulated using a LEWIE (Local Economy Wide Impact Evaluation) model, focusing on the three districts where the programme is located and included in the CGP impact evaluation. The LEWIE model for the CGP found that the transfers could lead to relatively large income multipliers of ZMK 1.79. That is, every Kwacha transferred to poor households had the potential to raise local income by ZMK 1.79. Eligible hous eholds receive the direct benefit of the transfer, while ineligible households receive the bulk of the indirect benefit. However, if labour, capital and land markets do not function well upward pressure on prices could result. This would raise consumption costs for all households and lead to a real income multiplier that is lower than the nominal multiplier. This real income multiplier could be as low as ZMK 1.34. Complementary programmes that increase the supply response (such as access to cred it to invest in capital) could increase the real-income and production impacts of the programme.
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    Brochure, flyer, fact-sheet
    The broad range of impacts of the Zambia Child Grant Model 2015
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    The Social Cash Transfer (SCT) programme is Zambia’s flagship social protection cash transfer programme. The Child Grant (CG) model of the SCT, established in 2010 by the Ministry of Community Development, Mother and Child Health, currently reaches 20 000 ultra-poor households in three of the poorest districts of the country: Kalabo, Kaputa and Shangombo. The overarching goals of the CG model are to reduce extreme poverty and the intergenerational transfer of poverty. This brief highlights the programme's main impacts on: consumption expenditure, reduction of poverty and food insecurity, household agricultural production, labour supply, local economy and communities, and on savings and debt repayments.
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    Zambia’s Child Grant Programme: 24-month impact report on productive activities and labour allocation
    Zambia country case study report
    2014
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    This report uses data from a 24-month randomized experimental design impact evaluation to analyse the impact of the Zambia Child Grant Programme (CGP) on individual and household decision making including labour supply, the accumulation of productive assets and other productive activities. The general framework for empirical analysis is based on a comparison of programme beneficiaries with a group of controls interviewed before the programme began and again two years later, using both single and double difference estimators. The findings reveal overall positive impacts of the CGP across a broad spectrum of outcome indicators and suggest that the programme is achieving many of its intended objectives. Specifically, we find strong positive impacts on household food consumption and investments in productive activities, including crop and livestock production. The programme is associated with large increases in both the ownership and profitability of non-farm family businesses; reductions in household debt levels; increases in household savings; and concordant shifts in labour supply from agricultural wage labour to better and more desirable forms of employment. The analysis reveals important heterogeneity in programme impacts, with estimated magnitudes varying over household and individual characteristics.

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