This article uses evidence from successful cash-plus programs to derive lessons for linking the best interventions with existing cash transfer programs and reducing poverty. The development community has been heavily researching and discussing cash transfers over the past decade, publishing hundreds of studies and scores of articles on their impacts and potential to alleviate poverty. At BRAC, the world’s largest NGO in the Global South working to combat inequality worldwide, we have seen the value of cash transfers firsthand. We have also seen how augmenting cash with a holistic set of interventions—a “cash plus” approach—can enhance their long-term impacts. “Cash plus” interventions can empower people who face the greatest marginalization to build long-term, resilient livelihoods and create a pathway out of extreme poverty. BRAC’s Graduation approach is one such “cash plus” intervention, developed in 2002 upon our realization that existing microfinance and anti-poverty programs were not meeting the unique needs of people in the deepest states of poverty. For people to escape the poverty trap and stay out, they must not only receive a “big push” in the form of a capital transfer but also be equipped with the skills, resources, and tools to avoid losing their livelihoods or going into debt when a crisis strikes. This is why building a resilience lens into program design is essential. By combining temporary support for basic needs like cash transfers with training on coping with crises, saving money, and setting up multiple income streams, “cash plus” programs enable people in extreme poverty to withstand major shocks like natural disasters, disease, or economic downturns.
Author: Matin, Imran
Year: 2022
