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Impacts of the Social Cash Transfer Pilot Programme in Ethiopia

Year of publication 2016

Pages 2p.

Author Robert Pickmans and Solomon Asfaw (FAO)

Publisher FAO ;

Product type Brochure, flyer, fact-sheet

ISBN No ISBN

Edition 1

Synopsis (short abstract) 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.

Language English

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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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    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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    Productive Impact of Ethiopia’s Social Cash Transfer Pilot Programme
    A From Protection to Production (PtoP) report
    2016
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    This report uses data from a two-year impact evaluation to analyse the impact of the Ethiopia Social Cash Transfer Pilot Programme (SCTPP) on household behaviour and decision-making, including agricultural production and other income-generating activities, labour supply, the accumulation of productive assets, access to credit and food security. The general framework for empirical analysis is based on a comparison of programme beneficiaries with a group of controls interviewed in 2012 and again t wo years later, using difference-in-difference (or double difference) estimators combined with propensity score matching methods. The findings show that the programme significantly increased household food security and decreased the number of hours children spend on household chores and activities. The programme is also associated with increases in social capital, and subjective well-being. However, the effects of the SCTPP on the accumulation of productive assets and on agricultural production are mixed. The analysis reveals important heterogeneity in programme impacts, with estimated magnitudes varying over geographical area and over gender of the household head.
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