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«DIREC TIONS IN DE VELOPMENT Human Development Public Disclosure Authorized The Cash Dividend The Rise of Cash Transfer Programs in Sub-Saharan Africa ...»

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Public Disclosure Authorized

Public Disclosure Authorized


Human Development

Public Disclosure Authorized

The Cash Dividend

The Rise of Cash Transfer Programs

in Sub-Saharan Africa

Marito Garcia and Charity M. T. Moore

blic Disclosure Authorized

The Cash Dividend

The Cash Dividend

The Rise of Cash Transfer Programs

in Sub-Saharan Africa

Marito Garcia and

Charity M. T. Moore

© 2012 International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This volume is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent.

The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to the work is given.

For permission to reproduce any part of this work for commercial purposes, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood

Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet:


All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org.

ISBN (paper): 978-0-8213-8897-6 ISBN (electronic): 978-0-8213-8898-3 DOI: 10.1596/978-0-8213-8897-6 Library of Congress Cataloging-in-Publication Data Garcia, Marito The cash dividend : the rise of cash transfer programs in Sub-Saharan Africa / Marito Garcia and Charity Moore.

p. cm.

ISBN 978-0-8213-8897-6 — ISBN 978-0-8213-8898-3

1. Transfer payments—Africa, Sub-Saharan—Case studies. 2. Economic assistance—Africa, Sub-Saharan. I. Moore, Charity II. World Bank. III. Title.

HG3881.5.W57G367 2011 399.5’22--dc23 Cover photo: Dowa Emergency Cash Transfer program, Malawi. Sarah Molley / Concern Worldwide.


–  –  –

It is an exciting time in Africa! Although the continent faces unparalleled challenges, its potential to meet these obstacles has never been greater.

Development policy has become increasingly concerned with the effect of vulnerability to adverse shocks on individuals’ ability to escape poverty permanently. At a time when many policy makers want to understand how to create effective, cost-efficient safety net programs that address Africa’s unique challenges, enthusiasm for conditional cash transfer programs in other regions has spilled over into the continent. Many policy makers are excited about how cash transfers can be used to meet Africa’s poverty and development goals. Nevertheless, the potential for cash transfers, both conditional and unconditional, to work in Africa must be better understood. It is this issue—whether cash transfer programs can translate to Africa and be used to reduce vulnerability, build asset bases, increase food security, and encourage human capital accumulation—that this book addresses.

This book provides the results of a thorough investigation of the recent use of cash transfer programs in Sub-Saharan Africa. The review was aimed toward understanding the evolution and current state of the programs, their intended uses, and the unique challenges associated with using cash transfer programs in the Sub-Saharan environment.

xiiixiv Foreword

The results of the review do not disappoint. The authors identified more than 120 cash transfer programs that were implemented between 2000 and mid-2009 in Sub-Saharan Africa. These programs have varying objectives, targeting, scale, conditions, technologies, and more. A sizable number of these programs conducted robust impact evaluations that provide important information, presented here, on the merits of cash transfer programs and their specific design features in the African context. The authors present summary information on programs, often in useful graphs, and provide detailed reference material in the appendixes.

They highlight how many of the cash transfer programs in Africa that had not yet begun implementation at the time of writing will continue to provide important evaluation results that will guide the design of cash transfer programs in the region. In addition to presenting data and analysis on the mechanics of the programs, the authors discuss issues related to political economy. They highlight the importance of addressing key tradeoffs in cash transfers, political will, and buy-in, and they emphasize the need to build evidence-based debates on cash transfer programs. Useful anecdotes and discussion illustrate how some programs have dealt with these issues with varying degrees of success.

This text will serve as a useful reference for years to come for those interested in large- and small-scale issues of cash transfer implementation, both in Africa and beyond. However, the book is not an end in itself. It also raises important questions that must be addressed and knowledge gaps that must be filled. Therefore, it is useful both in the information it provides and in the issues and questions it raises.

Lynne Sherburne-Benz Sector Manager, Social Protection Human Development Department, Africa Region The World Bank Acknowledgments This review was prepared by a team led by Marito Garcia, lead economist in the Africa Human Development Department of the World Bank (AFTSP), and Charity M. T. Moore, consultant, with contributions from Vicente Paqueo and Alan Brody, consultants. The work was guided by Lynne Sherburne-Benz, sector manager, AFTSP, and the AFTSP sector leadership team: Anush Bezhanyan, Carlo Del Ninno, Yasser El-Gammal, Setareh Razmara, and Giuseppe Zampaglione. Overall guidance on structure and content of the review was provided by Margaret Grosh, lead economist in the Human Development Department of the Latin American and Caribbean Region and team leader of the World Bank Social Protection Global Expert Team. The authors are indebted to the support from the management team of the Africa Human Development Department, led by Ritva Reinikka, sector director, and Maureen Lewis, adviser.

Special thanks is extended to Cécile Cherrier, Mohammed Farooq (United Nations Children’s Fund—UNICEF), Charlotte Harland (UNICEF), Sebastian Levine (United Nations Development Programme— UNDP), and Julianna Lindsey (UNICEF) for helping provide structure and improving the content of the report.

xvxvi Acknowledgments

This review would not have been possible without assistance from many individuals, both within and outside the World Bank, who are working in social protection and cash transfer programs throughout SubSaharan Africa. Many people were gracious enough to provide us with contact information or to send us in the right direction as we investigated cash transfers in the region.

Besides relying on valuable information cited in the references, we are indebted to the following individuals who provided comments and additional information used in the review: Jane Maponga (Action Aid International, Zimbabwe); Nilsa Batalha (Angola’s Ministry of Social Assistance and Reinsertion); Francisco Ayala, Paulina LaVerde, and Jason Thompson (Ayala Consulting); Jacy Braga Rodrigues (Bolsa Escola, São Tomé and Príncipe); Armando Barrientos (Brooks World Poverty Institute and Chronic Poverty Research Centre); Rene Ferreira (Centro Nacional de Pensões Sociais, Cape Verde); Darren Evans (Concern Worldwide); Gilberte Hounsounou (Conditional Cash Transfers for Orphans and Vulnerable Children, Senegal); Helen Appleton, Catherine Arnold, Ian Atfield, Joanne Bosworth, Isabelle Cardinal, Fagoon Dave, Gertrude Mapunda Kihunrwa, Dennis Paine, Sonya Sultan, Tim Waites, and Rachel Yates (Department for International Development); Philippe Bertrand, Jan Eijkenaar, Eliana Toro, Héloise Troc, and Marika Uotila (European Commission); Esther Schüring and Sanna Stockstrom de Pella (German Technical Cooperation); Kerina Zvobgo (GRM, Zimbabwe); Stephen Kidd (HelpAge International) Benjamin Roberts (Human Sciences Research Council); Paul Harvey (Humanitarian Outcomes); Melissa Andrade and Fábio Veras Soares (International Policy Centre for Inclusive Growth); Sammy Keter (Ministry of Arid and Semi-arid Lands, Kenya); Bestone Mboozi and Morris Moono (Ministry of Community Development and Social Services, Zambia); Harry Mwamlima (Ministry of Economic Planning and Development, Malawi);

Nicola Jones (Overseas Development Institute); Camilla Knox-Peebles and Nupur Kukrety (Oxfam GB); Patrick Ward (Oxford Policy Management); Alex Rees (Save the Children UK); Foday Conteh (National Safety Net Program, Unconditional Cash Transfer for the Poor and Needy (Sierra Leone); Bernd Schubert (Team Consult); Carlos Alviar, Maggie Brown, Ben Davis, Tony Hodges, Mayke Huijbregts, Kumiko Imai, Theresa Kilbane, Dorothee Klaus, Roger Pearson, Rémy Pigois, and Tayllor Spadafora (UNICEF); Gelson Tembo (University of Zambia); Harold Alderman, Jeanine Braithwaite, Sarah Coll-Black, Damien de Walque, Shanta Devarajan, Pierre Fallavier, Ariel Fiszbein, Acknowledgments xvii Emanuela Galasso, Florence Kondylis, Mungai Lenneiye, Maureen Lewis, Ida Manjolo, Michael Mills, Menno Mulder-Sibanda, Aidan Mulkeen, Suleiman Namara, Foluso Okunmadewa, Azedine Ougheri, Mirey Ovadiya, Berk Özler, Nadine Poupart, Ando Raobelison, Dena Ringold, Manuel Salazar, Riham Shendy, Wout Soer, Emma SorenssonMistiaen, Concha Steta-Gandara, Tshiya Subayi-Cuppen, Quy-Toan Do, Maurizia Tovo, Vincent Turbat, Will Wiseman, and Ruth Wutete (World Bank); and Mads Lofvall and Waheed Lor-Mehdiabadi (World Food Programme). The time these individuals have taken to share documentation, comments, and other information is greatly appreciated.

Finally, although an attempt has been made to ensure that the information presented in this report is accurate, any errors are those of the authors.

Abbreviations AIDS acquired immunodeficiency syndrome ATM automated teller machine CARE Cooperative for Assistance and Relief Everywhere CB-CCT Community-Based Conditional Cash Transfer (Tanzania) CCT conditional cash transfer CF-SCT Child-Focused Social Cash Transfer (Senegal) CGP Child Grants Programme (Lesotho) CIDA Canadian International Development Agency COPE In Care of the Poor (Nigeria) CT cash transfer DANIDA Danish International Development Agency DECT Dowa Emergency Cash Transfers (Malawi) DFID U.K. Department for International Development DCO District Children Office (Kenya) DPT diphtheria, pertussis, tetanus (vaccine) FAO Food and Agricultural Organization of the United Nations FACT Food and Cash Transfers (Malawi)

–  –  –

UNDP United Nations Development Programme UNESCO United Nations Educational, Scientific, and Cultural Organization UNHCR Office of the United Nations High Commissioner for Refugees UNICEF United Nations Children’s Fund USAID U.S. Agency for International Development VUP Vision 2020 Umurenge Programme (Rwanda) WFP World Food Programme Overview The challenges facing Sub-Saharan Africa are daunting. Although the continent experienced strong economic growth in the beginning of the 21st century, poverty and poor human capital indicators still characterize many countries in the region. Challenges related to environmental degradation, agricultural production and food security, climate change, natural and humanmade disasters, volatile prices and terms of trade, high unemployment and population growth, HIV/AIDS and other diseases, and other problems all demand strong responses.

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