NPR reported last week on a project that's been going on for a while:
It's one of the biggest experiments in fighting global poverty - now the results are coming in.
"It's an unprecedented – and massive – experiment: Since 2017 the U.S.-based charity GiveDirectly has been providing thousands of villagers in Kenya what's called a "universal basic income" – a cash grant of about $50, delivered every month, with the commitment to keep the payments coming for 12 years. It is a crucial test of what many consider one of the most cutting-edge ideas for alleviating global poverty. This week a team of independent researchers who have been studying the impact released their first results.
"Their findings cover the first two years of the effort and compare the outcomes for about 5,000 people who got the monthly payments to nearly 12,000 others in a control group who got no money. But, just as significantly, the researchers also compared the recipients to people in two other categories: nearly 9,000 who received the monthly income for just two years, without the promise of another decade of payments afterward; and another roughly 9,000 people who got that same two years' worth of income but in a lump-sum payment."
Apparently the folks with lump sum payments had a much greater ability to start businesses and thus prosper, compared to those who just received monthly payments. I was intrigued by the independent research being done, which suggests that those who received monthly payments devised a way by forming a rotating savings club, so they could each have lump sums available...and thus were also able to start businesses. I urge you to read the article.
"The lump sum and the long term [monthly payments] look similar at two years," Suri says. "But the question is, does the lump sum [impact] fade after year five? Year six? Does it just disappear? Or was this enough to keep [the impacts] going forever?"
Because if so, she adds, "Then we're good. I don't have to spend 12 years of money. I just have to spend two years' worth and just structure it correctly."
To find the answers, Suri says she's committed to continuing this study for as long as it takes."
Today's quote:
Real generosity toward the future lies in giving all to the present. |
ALBERT CAMUS |
10 days till Christmas
Some years ago I worked with a man from Zimbabwe who sent a small sum home every month and deposited a similar amount in a savings account. One evening he explained to me just how much difference that made to his family who were setting up a chicken farm. After a few years he planned to go back and take the invested money with him so that the farm could expand. I always wondered if his scheme bore fruit - or rather eggs!
ReplyDelete...too many these days don't view the poor as being worthy. ☃️ 🎄 ❄️ 🎅🏼
ReplyDeleteI like the Albert Camus quote! Take care, have a great day and happy weekend!
ReplyDeleteHi Barbara, This sounds like a worthwhile experiment! The only problem...and its a dandy...is that around 700,000,000 people around the world live in what is termed extreme poverty...or less than $2.15 per day. To help only 7,000,000 of these folks for a year with the same amount would cost $4,200,000,000. That translates to a cost of $420,000,000,000 for the entire group. While helping them could really make a difference, even improving the world's economy, funding of a program like this on a large scale would be more than challenging! Take Care, Big Daddy Dave
ReplyDeleteThat is interesting. We do need to look for some innovative ways of relieving poverty. The same problems have persisted for my entire lifetime! Stopping wars might be a start.
ReplyDelete