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Qualitative research and analyses of the economic impacts of cash transfer programmes in Sub-Saharan Africa

Synthesis Report








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    The local economy impacts of social cash transfers
    A comparative analysis of seven sub-Saharan countries
    2016
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    This article presents findings on the local economy impacts of seven African country SCT programmes evaluated as part of the UN Food and Agriculture Organization’s (FAO) “From Protection to Production” (PtoP) project. The countries are Ethiopia, Ghana, Kenya, Lesotho, Malawi, Zambia and Zimbabwe. The PtoP project has facilitated expansion of the evaluations of SCT programmes to include productive and local-economy impacts. Local economy-wide impact evaluation (or LEWIE) employs simulation method s to reveal the full impact of cash transfers on local economies, including spillovers they create to non-beneficiaries. It does this by linking agricultural household models together into a general-equilibrium model of the local economy, in most cases a treated village or village cluster. Our LEWIE analysis finds evidence of significant spillovers, resulting in SCT income multipliers that are considerably greater than one in most cases. Most spillovers accrue to non-beneficiary households. Inte gration with outside markets shifts impacts out of local economies, reducing local income multipliers. Local supply constraints may result in price inflation which creates a divergence of real from nominal income multipliers for beneficiaries as well as non-beneficiaries. The existence of income spillovers reveals that SCT programmes have local economy impacts beyond the treated households, which could yield large benefits for rural developments.
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    Qualitative research and analyses of the economic impacts of cash transfer programmes in sub-Saharan Africa: Ethiopia country case study report 2014
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    This report forms one of a set of six country case studies that explore the impact of cash transfer programmes on household economic decision-making and the local economy in sub-Saharan Africa. The research is being carried out under the auspices of the From Protection to Production (PtoP) project, a four-year collaboration between UNICEF, the United Kingdom Department for International Development (DFID) and the Food and Agriculture Organization (FAO). The PtoP is part of a larger effort, the T ransfer Project – jointly implemented by UNICEF, Save the Children and the University of North Carolina – that supports the implementation of cash transfer evaluations in sub-Saharan Africa. The research is intended as a complement to other studies of cash transfer programmes that focus more on social indicators such as health and education outcomes. It therefore covers themes such as the extent to which cash transfers can help households to manage risk, overcome credit constraints, make produc tive investments and improve their access to markets, as well as their effect in stimulating local economies. This report reviews the Tigray Social Cash Transfer Pilot programme. Case studies of cash transfer programmes in Ghana, Kenya, Lesotho, Zimbabwe and Malawi have been completed and are available at www.fao.org/economic/ptop/publications/reports.
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    The household- and individual-level economic impacts of cash transfer programmes in Sub-Saharan Africa 2017
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    This report synthesizes the analysis and findings of a set of seven country impact evaluation studies that explore the impact of cash transfer programmes on household economic decision-making, productive activities and labour allocation in sub-Saharan Africa. The seven countries are Ethiopia, Ghana, Kenya, Lesotho, Malawi, Zambia and Zimbabwe. Results from seven recently completed rigorous impact evaluations of government-run unconditional social cash transfer programmes in sub-Saharan Africa s how that these programmes have significant positive impacts on the livelihoods of beneficiary households. In Zambia, the Child Grant programme had large and positive impacts across an array of income generating activities. The impact of the programmes in Ethiopia, Kenya, Lesotho, Malawi and Zimbabwe were more selective in nature, while the Livelihood Empowerment Against Poverty programme in Ghana had fewer direct impacts on productive activities, and more on various dimensions of risk management .

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