Protection sociale

Impacts of the LEAP Programme on the local economy in Ghana

Resource Type: Publication
Published: 02/09/2013

The Livelihood Empowerment Against Poverty (LEAP) programme provides cash transfers to extremely poor households with the goal of alleviating short-term poverty and encouraging long-term human capital development. LEAP eligibility is based on poverty and having a household member in at least one of three demographic categories: having orphans or vulnerable children, elderly poor, or a person with extreme disability unable to work.Viewed from a local economy-wide perspective, the beneficiary households represent the conduit through which cash is channelled into the local economy. The programme’s immediate impact is to raise the purchasing power of beneficiary households. As the cash is spent, the transfers’ impacts immediately spread from the beneficiary households to others inside and outside the targeted villages. Income multipliers within the targeted areas are set in motion by doorstep trade, purchases in village stores, periodic markets and purchases outside the village. Some impacts extend beyond the project area, potentially unleashing income multipliers in non-target sites. The local economy-wide impact evaluation (LEWIE) methodology is designed to detail the full impact of cash transfers on local economies, including on the productive activities of both beneficiary and non-beneficiary groups, how these effects change when programmes are scaled up to include larger regions and why such effects occur. All of these aspects are important for programme design and for explaining their predicted impacts.