Great points that “cash transfers are driven entirely by the way in which they are invested” and that Graduation programs can drive productive investment of transfers. However, in the Banerjee et al. 2015 article results varied widely, with the 3-year benefit-cost ratio ranging from a high of +433% in IN to a low of -198% in HN. With such a complex program, the risk of non-performance is high. But when given the flexibility and incentives to drive innovation and performance, many service providers will excel. When Village Enterprise had the opportunity to implement at scale with flexible funding tied to results, rather than activities, 6 months to 2.5 years after the end of the program, there continued to be positive, statistically significant, and meaningful impact on the livelihoods of its ultra-poor recipients, despite the devastating economic effects of the Covid-19 pandemic. The intermediary outcome of profitable newly-formed enterprises would be a fantastic result to reward.
Great points that “cash transfers are driven entirely by the way in which they are invested” and that Graduation programs can drive productive investment of transfers. However, in the Banerjee et al. 2015 article results varied widely, with the 3-year benefit-cost ratio ranging from a high of +433% in IN to a low of -198% in HN. With such a complex program, the risk of non-performance is high. But when given the flexibility and incentives to drive innovation and performance, many service providers will excel. When Village Enterprise had the opportunity to implement at scale with flexible funding tied to results, rather than activities, 6 months to 2.5 years after the end of the program, there continued to be positive, statistically significant, and meaningful impact on the livelihoods of its ultra-poor recipients, despite the devastating economic effects of the Covid-19 pandemic. The intermediary outcome of profitable newly-formed enterprises would be a fantastic result to reward.