A multifaceted program causes lasting progress for the very poor: Evidence from six countries

Abhijit Banerjee , Esther Duflo, Nathaneal Goldberg, Dean Karlan, Robert Osei, William Parienté, Jeremy Shapiro, Bram Thuysbaert, and Christopher Udry.

ABSTRACT

Authors present results from six randomized control trials of an integrated approach to improve livelihoods amongst the very poor. The approach combines the transfer of a productive asset with consumption support, training and coaching plus savings encouragement and health education and/or services. Results from the implementation of the same basic program, adapted to a wide variety of geographic and institutional contexts and with multiple implementing partners, show statistically significant, costeffective impacts on consumption (fueled mostly by increases in self-employment income) and psychosocial status of the targeted households. The impact on the poor households lasted at least a year after all implementation ended. It is possible to make sustainable improvements in the economic status of the poor with a relatively short-term intervention.