Giving no-strings-attached money to the world's poorest produces remarkably good results (Click on this headline to read more)
Monday, October 28, 2013, 3:18 pm
The Economist details outcomes from Give Directly,
an organization that analyzes satellite photos to identify the poorest
places in the world and then hands over no-strings-attached cash grants
to the people who live there. It's a contrast to other programs, where
donations are funneled into school construction or funding planned-out
businesses. Give Directly has produced remarkably good results: "In
randomly selected poor households in 63 villages that have received the
windfalls, they say, the number of children going without food for a day
has fallen by over a third and livestock holdings have risen by half. A
year after the scheme began, incomes have gone up by a quarter and
recipients seem less stressed, according to tests of their cortisol
levels."
Still, this is not the only cash giveaway. A trial in Vietnam in 2006 gave one-off handouts to 550 households; two years later, local poverty rates had fallen by 20 percentage points. The scheme was dubbed “cash for coffins” after elderly recipients spent the money on their funeral arrangements to save their children the expense.
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