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The impacts of the Social Cash Transfer Pilot Programme (SCTPP) on the local economy in Ethiopia

Year of publication 2014

Pages 2p.

Author Agriculture and Economic Development Analysis Division

Product type Journal, magazine, bulletin

Edition 1

Synopsis (short abstract) 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.

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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    Brochure, flyer, fact-sheet
    The broad range of impacts of the Social Cash Transfer Pilot Programme in Ethiopia 2016
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    This brief describes the broad array of impacts arising from a cash transfer programme that was piloted in the Tigray region of Ethiopia from 2011 to 2014. About 80 percent of Tigray’s population of 4.3 million live in rural areas and depend on rain-fed subsistence agriculture for their livelihoods. Farm families in Tigray tend to have small land holdings and limited productive inputs such as labour, oxen, seeds and fertilizers. Severe drought has repeatedly struck the northern Tigray region and has had a major effect on agricultural productivity. In 2011, BOLSA launched the Social Cash Transfer Pilot Programme (SCTPP) in Tigray with support from UNICEF. The programme particularly aimed to improve the lives of orphans and vulnerable children, the elderly and disabled people.
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    Document
    The Impacts of the Social Cash Transfer Pilot Programme on community dynamics in Tigray, Ethiopia 2014
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    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.
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