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Exploring the Impact of Unconditional Cash Transfer Programme on Cognitive and Relational Well-Being

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Exploring the Impact of Unconditional Cash Transfer Programme on Cognitive and Relational Well-Being Bethan Kell M.Sc. International Development Studies Graduate School of Social Sciences University of Amsterdam Cover Photo: View over Northern Rwanda, whilst collecting baseline survey data (February 2020) Exploring the Impact of Unconditional Cash Transfer Programme on Cognitive and Relational Well-Being A Study of Female Beneficiaries in Rwanda 2 Master’s Thesis Exploring the Impact of Unconditional Cash Transfer Programme on Cognitive and Relational Well-Being A Study of Ultra-Poor Female Beneficiaries in Rwanda. In collaboration with Name: Bethan Kell Student Number: 12651184 Email: [email protected] Course: Master of Science in International Development Studies Supervisor: Nicky Pouw Second Reader: Josh Maiyo Date: 19th June 2020 3 Abstract Unconditional cash transfers as a form of development aid have shown to have positive impacts on a person’s material and physical health. However, there is a clear knowledge gap on whether unconditional cash transfers significantly improve a person’s psychological health. This research aims to analyse the effects of unconditional cash transfers on relational and cognitive well-being of beneficiaries in Rwanda. The Capabilities Approach and Well- Being Approach are used to explore how the combination of unconditional cash transfers and weekly skills training build economic capabilities and contribute to cognitive and relational well-being. This study uses a mixed method approach including focus group discussions and semi-structured in-depth interviews, alongside secondary baseline data. This research finds that beneficiaries and non-beneficiaries consider material well-being to be the most important well-being dimension, along with family, kinship and community. In regard to relational well-being the findings show that the marital relationships of beneficiaries improved as they were able to provide a stable income which lessons tensions in the household related to poverty. Loneliness was curbed through the project as beneficiaries formed friendships with other beneficiaries and felt able to share their problems with other members and project staff. Beneficiaries of the project felt more included in society because they felt unashamed to attend social events. However, the project also had negative community spill over effects. Friends and community members experienced high levels feeling of jealousy towards beneficiaries. Cognitive well-being improved as beneficiaries’ levels of happiness increased. Beneficiaries were able to develop high levels of self-belief and thus created the capacity to develop aspirational hopes and dreams for themselves and their family. Financial goals included; buying land, investing in more animals and educating kids. Controversially, many beneficiaries believed they were not completely satisfied with their life as they still had the desire to grow and achieve more personally and for their family and business. Despite building economic capabilities uncertainty and worry was still felt for the future by beneficiaries in the project. Key words Unconditional cash transfers Economic capabilities Cognitive well-being Relational well-being Trade-offs Rwanda 4 Table of Contents 1 INTRODUCTION ................................................................................................................ 11 1.1 THE PROBLEM .................................................................................................................... 11 1.2 RELEVANCE ........................................................................................................................ 12 1.2.1 PRACTICAL RELEVANCE .......................................................................................................... 12 1.2.2 ACADEMIC RELEVANCE .......................................................................................................... 13 1.3 RESEARCH APPROACH ....................................................................................................... 14 1.4 OUTLINE OF THESIS ........................................................................................................... 14 2 THEORETICAL FRAMEWORK ....................................................................................... 16 2.1 INTRODUCTION ................................................................................................................... 16 2.2 WHAT DOES IT MEAN TO BE ‘ULTRA-POOR’, THE CAPABILITY APPROACH? .................... 16 2.3 LITERATURE REVIEW ON UNCONDITIONAL CASH TRANSFER PROGRAMMES .................... 18 2.4 COMBINING THE CAPABILITIES APPROACH AND WELL-BEING APPROACH ....................... 20 2.5 DIFFICULTIES COMBINING APPROACHES ........................................................................... 21 2.6 KEY CONCEPTS ................................................................................................................... 22 2.6.1 FREEDOMS ............................................................................................................................... 22 2.6.2 PROTECTIVE SECURITY ............................................................................................................ 22 2.6.3 SOCIAL OPPORTUNITY ............................................................................................................. 22 2.6.4 ECONOMIC CAPABILITIES ........................................................................................................ 23 2.6.5 ENTREPRENEURSHIP ................................................................................................................ 23 2.6.6 FINANCIAL LITERACY .............................................................................................................. 24 2.6.7 WELL-BEING ........................................................................................................................... 24 2.6.8 MATERIAL WELL-BEING ......................................................................................................... 25 2.6.9 COGNITIVE WELL-BEING ........................................................................................................ 25 2.6.10 RELATIONAL WELL-BEING .................................................................................................... 25 2.7 CONCEPTUAL SCHEME ....................................................................................................... 26 2.8 CONCLUSION ...................................................................................................................... 27 3 RESEARCH METHODOLOGY ......................................................................................... 28 3.1 INTRODUCTION ................................................................................................................... 28 3.2 RESEARCH QUESTIONS ....................................................................................................... 28 3.3 ONTOLOGY AND EPISTEMOLOGY ....................................................................................... 29 3.4 UNIT OF ANALYSIS AND SAMPLING STRATEGY .................................................................. 30 3.5 METHODS ........................................................................................................................... 31 3.5.1 FOCUS GROUP DISCUSSIONS ................................................................................................... 31 3.5.2 IN-DEPTH INTERVIEWS SEMI STRUCTURED INTERVIEWS ........................................................ 32 3.5.3 NON-PARTICIPANT AND PARTICIPANT OBSERVATION ............................................................ 33 3.5.4 FIELD NOTES AND ADDITIONAL SOURCES ................................................................................ 33 3.6 DATA ANALYSIS ................................................................................................................. 33 3.7 ETHICAL CONSIDERATIONS AND POSITIONALITY .............................................................. 34 3.8 QUALITY CRITERIA AND LIMITATIONS .............................................................................. 35 3.9 CONCLUSION ...................................................................................................................... 36 4 EMPIRICAL CONTEXT ..................................................................................................... 38 5 4.1 INTRODUCTION ................................................................................................................... 38 4.2 POLITICAL CHARACTERISTICS ........................................................................................... 38 4.3 ECONOMIC CHARACTERISTICS AND DEVELOPMENT POLICIES .......................................... 39 4.4 EMPLOYMENT OPPORTUNITIES AND LEVELS OF FORMAL/INFORMAL ENTERPRISE .......... 41 4.4.1 FEMALE PARTICIPATION .......................................................................................................... 41 4.5 SOCIAL CHARACTERISTICS ................................................................................................ 41 4.6 RESEARCH LOCATION ........................................................................................................ 43 4.7 CONCLUSION ...................................................................................................................... 44 5 ECONOMIC CAPABILITIES ............................................................................................. 46 5.1 INTRODUCTION ..................................................................................................................
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