The purpose of this study was to explore the role that social cash transfers play in reducing chronic poverty in developing countries. The study was set up following an upsurge in development policy on the use of social protection measures including cash transfers as effective means for reducing deep poverty levels and curtailing trans-generational transmissions of poverty. The study was in a form of a case, using the Malawi Social Cash Transfers (SCTs) Scheme.
It specifically aimed at exploring the targeting mechanism of the Malawi SCTs scheme, beneficiaries’ use of cash transfers, and on identifying synergies in the scheme. Using a mixed methods approach, the study was mostly based on the review of literature. This was supplemented by key informant interviews conducted by phone. The study found that overall, the Malawi SCTs scheme plays a significant role in moving chronically poor households out of their deprivations. Beneficiaries of the scheme were found to have increased capabilities in accessing food, education and health services and in acquiring assets such as livestock and permanent houses.
However, the study also found that despite its positive impacts, the scheme fails to reach out to all chronically poor households in the country. This was found to be a result of the targeting mechanism followed by the scheme. As such, it was found that the scheme faces a lot of challenges in implementing complimentary services since communities, based on the understanding that everyone is poor, exclude SCT beneficiaries from benefiting from other social protection programmes. Furthermore, it was found that erratic provision of transfers to beneficiary households erodes the positive impacts of the scheme. Therefore the study concluded that although SCTs play a significant role in reducing chronic poverty, better operational designs, such as use of domestic financing and universal targeting measures, would make the schemes more effective.
Table of Contents
CHAPTER 1: INTRODUCTION
1.1. Introduction
1.2. Background to Country of Study
1.3. Statement of the Problem
1.4. Purpose of the Study
1.5. Study Design and Methodology
1.6. Justification of the Study
1.7. Limitations of the Study
1.8. Dissertation outline
CHAPTER 2: LITERATURE REVIEW
2.1. Introduction
2.2. Conceptualising Social Cash Transfers
2.3. Conceptualising Chronic Poverty
2.4. Linking Social Cash Transfers and Chronic Poverty
2.5. What Rationale for Social Cash Transfers?
2.6. What is known of Social Cash Transfers so far
2.6.1. Impact on Poverty Gap, Hunger and Illness
2.6.2. Impact on Gender Equality
2.6.3. Impact on Human Capital Development
2.6.4. The Wider Impacts of cash transfers
2.7. Conclusion
CHAPTER 3: THE MALAWI SOCIAL CASH TRANSFERS SCHEME
3.1. Introduction
3.2. Introduction to the Malawi SCTs Scheme
3.3. Targeting Mechanism of the Malawi SCTs Scheme
3.4. Use of SCTs by Beneficiaries
3.5. Are there Synergies in the Scheme?
3.6. Conclusion
CHAPTER 4: DISCUSSION
4.1. Introduction
4.2. Does the Targeting Mechanism of the Malawi SCTs scheme aid in chronic poverty reduction?
4.3. Does the usage of transfer money by beneficiaries support chronic poverty reduction?
4.4. What is the implication of the issue of synergies on chronic poverty reduction in Malawi?
4.5. Conclusion
CHAPTER 5: CONCLUSION AND AREAS FOR FURTHEER RESEARCH
5.1. Conclusion
5.2. Suggested Areas for Further Research
Research Objectives and Key Topics
The primary objective of this dissertation is to assess the role of social cash transfer schemes in reducing chronic poverty, using the Malawi Social Cash Transfers (SCTs) scheme as a case study. The research explores the effectiveness of targeting mechanisms, how beneficiaries utilize these transfers, and identifies potential synergies between the cash transfer scheme and other poverty reduction strategies.
- The effectiveness and challenges of the targeting mechanisms within the Malawi SCTs scheme.
- Analysis of how beneficiaries utilize cash transfers to improve their living standards and capabilities.
- Examination of synergies between social cash transfers and broader social protection programs.
- The impact of deep poverty and financial instability on the success of cash transfer schemes.
- Recommendations for improving operational designs, including the role of domestic financing.
Book Excerpt
3.3. Targeting Mechanism of the Malawi SCTs Scheme
According to Coady et al., (2004) as cited in Miller et al., (2010), there are six main targeting approaches in SCTs. These are: means testing which identifies the chronically poor through income analysis; proxy means testing which identifies the chronically poor though some chosen poverty indicators; community led targeting which identifies the chronically poor through local people’s understanding of poverty; self-targeting in which anyone who feels chronically poor claims the transfers; geographical targeting which is done on location basis; and demographic targeting which is done based on population characteristics such as age, orphan-hood or gender. A review of the literature as well as results of the key informant interviews indicates that the Malawi SCTs scheme uses the community led targeting approach based on a nationally set criterion (Miller et al., 2010; IPRSE, 2011).
The criterion of the scheme for identifying chronically poor households has three elements, namely: ultra-poor, labour constrained, and a 10 % ceiling (Ellis, 2012, p. 204; also corroborated by key informant interviews). Ultra-poor in the scheme is defined as referring to households who “eat one meal per day; not able to purchase essential non-food items like soap, clothing, school utensils; prone to begging [and have] no valuable assets” (UNICEF, 2007, P. 9). The labour constrained element is operationalized as discussed in Chapter One, Section 1.3 of this dissertation. Based on these two elements, chronically poor households are identified but only 10 % of them get selected to benefit from the scheme (Miller et al., 2010). This process involves several steps that are done between district councils and communities as discussed below.
Summary of Chapters
CHAPTER 1: INTRODUCTION: This chapter provides the background of the study, highlighting the global rise of social cash transfers and the specific context of poverty in Malawi that necessitates such interventions.
CHAPTER 2: LITERATURE REVIEW: This chapter examines the conceptual frameworks of social cash transfers and chronic poverty, summarizing debates regarding universal versus targeted approaches and conditional versus unconditional designs.
CHAPTER 3: THE MALAWI SOCIAL CASH TRANSFERS SCHEME: This chapter provides a detailed case study of the Malawi SCTs scheme, exploring its specific targeting mechanisms, beneficiary usage of funds, and the integration with other poverty intervention measures.
CHAPTER 4: DISCUSSION: This chapter analyzes the research findings, evaluating the effectiveness of targeting mechanisms, the impact of transfer usage on poverty reduction, and the implications of existing synergies within the scheme.
CHAPTER 5: CONCLUSION AND AREAS FOR FURTHEER RESEARCH: This chapter synthesizes the findings, confirming the role of cash transfers in poverty reduction while acknowledging challenges such as targeting flaws and financial reliance on donors, followed by suggestions for further research.
Keywords
Social Cash Transfers, Chronic Poverty, Malawi, Social Protection, Targeting Mechanism, Human Capital, Poverty Reduction, Labour Constrained, Millennium Development Goals, Beneficiary Usage, Synergies, Domestic Financing, Vulnerability, Ultra-Poor, Development Policy
Frequently Asked Questions
What is the core focus of this research?
The research fundamentally assesses the role of social cash transfer schemes in alleviating chronic poverty, specifically through a case study of the Malawi Social Cash Transfers (SCTs) program.
What are the primary themes addressed in this study?
Key themes include the targeting efficiency of the scheme, the impact of transfers on household assets and consumption, the importance of complementary social services, and the challenges of sustainability and implementation.
What is the main objective or research question?
The primary objective is to evaluate how effectively the Malawi SCTs scheme reaches the ultra-poor, how beneficiaries use these funds to improve their capabilities, and what synergies exist between the scheme and other poverty reduction strategies.
Which scientific methodology was utilized?
The study employs an intrinsic exploratory case study design using a mixed-methods approach, primarily based on an extensive review of existing literature, supplemented by in-depth telephone interviews with District Social Welfare Officers.
What is covered in the main body of the work?
The main body covers the conceptual framework of poverty and social transfers, a detailed description of the Malawi SCTs scheme's structure and targeting, an analysis of how beneficiaries spend the funds, and a critical discussion of the program's successes and operational shortcomings.
What are the characterizing keywords of the study?
Important keywords include Social Cash Transfers, Chronic Poverty, Malawi, Social Protection, Targeting Mechanism, Human Capital, and Poverty Reduction.
How does the targeting mechanism currently function in the Malawi SCTs scheme?
The scheme utilizes a community-led targeting approach based on specific criteria including being "ultra-poor," "labour-constrained," and a "10% ceiling" per community, though the study finds this process often leads to exclusion errors and instances of elite capture.
Why is the "10% ceiling" a point of contention in this study?
The research suggests that the 10% ceiling is insufficient to capture all chronically poor households in the context of pervasive poverty in Malawi, leading to social friction and the exclusion of households with similar poverty levels.
What role do complementary services play according to the findings?
The findings indicate that cash transfers alone are constrained without complementary services (such as health, education, and well-functioning markets), as the impact of the transfers is heavily reliant on the availability of these broader social services.
- Arbeit zitieren
- Tuntufye Brighton Ndambo (Autor:in), 2013, Can Social Cash Transfers Reduce Chronic Poverty? A Case Study of the Malawi SCT Program, München, GRIN Verlag, https://www.grin.com/document/317792
