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Setting the Scene:
Economic and productive impacts of cash
transfers and implications for rural livelihoods
Arusha, April 2019
What is the issue?
Social Protection: From Protection to Production
1
Still a long way to go….
 736 million people live in extreme poverty (2015 figures)
 80% of the extreme poor are in rural areas:
 income depend on agriculture and natural resources
 Vulnerable to climate related risks and shocks
 Limited access to social services, infrastructure,
financial services
 Heterogeneous group (income, geographic location,
livelihood, age, gender)
What is the issue?
Social Protection: From Protection to Production
1
How to accelerate progress to achieve SDG 1 (1.1; 1.3; 1.5)?
How to end extreme poverty?
 Political will
 Macro dynamics- stimulation of economic growth and
generating employment where majority of poor live
 Enhancing social and productive capital (investing in rural
areas, access to services, including in extending social
protection to the poor)
Pathways to enahnce social and prodcutive inclusion
Social Protection: From Protection to Production
1
 Make processes of structural, rural and agricultural transformation more
inclusive
 Address inequitable distribution of resources and market failures
 Create employment and economic opportunities
 Increase access to assets (including land, natural resources, technology)
 Accumulate human capital
 Increase access to liquidity, credit, markets and services
 Improved ability to manage risk
 Reduce burden of care
Enhancing productive capital: what do we know?
Social Protection: From Protection to Production
1
 Impact: National cash transfer
programmes:
 enhance risk management capacity, relax
liquidity constraints, and generate
economic impacts even among the
poorest
 Generate multiplier impacts in the local
economy (impacts on non-participants)
Transfer Project contributed to build and
strengthen the economic case for scale-up
or programmes at national level!
Enhancing productive capital: what do we know?
Social Protection: From Protection to Production
1
 Adequacy of programmes:
 Take up, use and impact of programmes will largely depend on the
adequacy of such programmes in terms of size, regularity, but also socio-
cultural pertinence and livelihoods
 TP contributed to shed light on the specific elements of design that
matter for economic impacts
 TP raising issues on gender-sensitive design, implementation
 Still gaps in terms of pertinence for indigenous peoples, livelihoods*
Enhancing productive capital: what do we know?
Social Protection: From Protection to Production
1
 Complementary interventions (CASH+)
 To maximize and sustain the gains over time, it is key to complement
cash with complementary interventions (existing or new)
 Different desired outcomes will determine the type of “plus”
 TP contributed to show the added impacts of CASH+ (social and
economic)
 TP contributed to shed light on the best plus for FSN and productive
impacts
Enhancing productive capital: what do we know?
Social Protection: From Protection to Production
1
 Comprehensive strategy of economic participation and inclusion of the poorest
 Gradual integration of households into broader rural and economic
development processes
 Identify processes to enhance inclusion of those left behind
 Graduation models provide some elements, but gaps in terms of
sustainability and linkages with broader processes
 CASH+ and SP/AG coherence work provided some additional elements on
sustainability on long-term impact, but still gaps on incentives to AG, labor,
production sectors to systematically engage
  What can the TP provide to this process?
Comprehensive Strategy: Reminders!
Social Protection: From Protection to Production
1
 Graduation from poverty, not from SP (preventing from falling back)
 Poorest and most vulnerable face broad and heterogeneous array of constraints
 Long process; need to tailor interventions to different populations and contexts
 Ultimately all complementary programmes, as well as graduation models, depend
on broader sectoral policy and rural development
 Access to markets, getting prices right, animal health, extension, natural resource management,
infrastructure……
 Biggest driver of poverty reduction will be broad based, inclusive economic growth
 Social protection as one key starting point…
  What can the TP provide to this process?
Thank you!

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Economic & Productive Impacts of Cash Transfers & Implications for Rural Livelihoods

  • 1. Setting the Scene: Economic and productive impacts of cash transfers and implications for rural livelihoods Arusha, April 2019
  • 2. What is the issue? Social Protection: From Protection to Production 1 Still a long way to go….  736 million people live in extreme poverty (2015 figures)  80% of the extreme poor are in rural areas:  income depend on agriculture and natural resources  Vulnerable to climate related risks and shocks  Limited access to social services, infrastructure, financial services  Heterogeneous group (income, geographic location, livelihood, age, gender)
  • 3. What is the issue? Social Protection: From Protection to Production 1 How to accelerate progress to achieve SDG 1 (1.1; 1.3; 1.5)? How to end extreme poverty?  Political will  Macro dynamics- stimulation of economic growth and generating employment where majority of poor live  Enhancing social and productive capital (investing in rural areas, access to services, including in extending social protection to the poor)
  • 4. Pathways to enahnce social and prodcutive inclusion Social Protection: From Protection to Production 1  Make processes of structural, rural and agricultural transformation more inclusive  Address inequitable distribution of resources and market failures  Create employment and economic opportunities  Increase access to assets (including land, natural resources, technology)  Accumulate human capital  Increase access to liquidity, credit, markets and services  Improved ability to manage risk  Reduce burden of care
  • 5. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Impact: National cash transfer programmes:  enhance risk management capacity, relax liquidity constraints, and generate economic impacts even among the poorest  Generate multiplier impacts in the local economy (impacts on non-participants) Transfer Project contributed to build and strengthen the economic case for scale-up or programmes at national level!
  • 6. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Adequacy of programmes:  Take up, use and impact of programmes will largely depend on the adequacy of such programmes in terms of size, regularity, but also socio- cultural pertinence and livelihoods  TP contributed to shed light on the specific elements of design that matter for economic impacts  TP raising issues on gender-sensitive design, implementation  Still gaps in terms of pertinence for indigenous peoples, livelihoods*
  • 7. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Complementary interventions (CASH+)  To maximize and sustain the gains over time, it is key to complement cash with complementary interventions (existing or new)  Different desired outcomes will determine the type of “plus”  TP contributed to show the added impacts of CASH+ (social and economic)  TP contributed to shed light on the best plus for FSN and productive impacts
  • 8. Enhancing productive capital: what do we know? Social Protection: From Protection to Production 1  Comprehensive strategy of economic participation and inclusion of the poorest  Gradual integration of households into broader rural and economic development processes  Identify processes to enhance inclusion of those left behind  Graduation models provide some elements, but gaps in terms of sustainability and linkages with broader processes  CASH+ and SP/AG coherence work provided some additional elements on sustainability on long-term impact, but still gaps on incentives to AG, labor, production sectors to systematically engage   What can the TP provide to this process?
  • 9. Comprehensive Strategy: Reminders! Social Protection: From Protection to Production 1  Graduation from poverty, not from SP (preventing from falling back)  Poorest and most vulnerable face broad and heterogeneous array of constraints  Long process; need to tailor interventions to different populations and contexts  Ultimately all complementary programmes, as well as graduation models, depend on broader sectoral policy and rural development  Access to markets, getting prices right, animal health, extension, natural resource management, infrastructure……  Biggest driver of poverty reduction will be broad based, inclusive economic growth  Social protection as one key starting point…   What can the TP provide to this process?