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Givedirectly GiveDirectly Goldilocks Toolkit Innovations for Poverty Action poverty-action.org/goldilocks Right-fit monitoring and evaluation (M&E) systems embody the principles of Credible, Actionable, Responsible, and Transportable, or CART. In the Goldilocks case study series, we examine the M&E systems of several innovative organizations and explore how the CART Principles can work in practice. GiveDirectly: Developing a Research Agenda after Impact Evaluation Unconditional cash transfers are 1) existing cash transfer programs, an impact evaluation. Specifically, increasingly recognized to be a cost- which can be opaque and suffer from GiveDirectly seeks to improve cost- effective strategy for reducing poverty.1 leakage and design challenges, and 2) effectiveness of its operating model, This is in large part due to a small but international philanthropy, for which the measure longer-run impacts, and growing body of research that shows founders of GiveDirectly aim to establish understand its influence on the larger significant positive welfare effects of direct transfers as the benchmark economy (e.g., market prices, new programs that provide cash to the poor against which all other approaches are business development, etc). However, with no strings attached. This subject measured. while building a robust research agenda sparked a debate in the international into the operations can be fruitful, it has development field about an alternative Since its inception, the leadership of its costs. GiveDirectly must make sure approach to improving social welfare, as GiveDirectly has been committed to that its constituents, or others in the compared to traditional forms of aid. rigorously measuring the impact of its development space, will benefit from the cash transfer program using randomized research in order to ensure their strategy GiveDirectly is a New York-based evaluations. Results from a randomized is responsible. nonprofit that provides secure direct cash evaluation implemented in Kenya found transfers to the extreme poor in Kenya the transfers increased investments by and Uganda primarily via mobile phone. 58 percent in assets such as livestock, Since it was founded in 2009, GiveDirectly furniture, and metal roofs, and also has grown rapidly: as of 2013, it had increased spending on goods including transferred $1.5 million to recipients, food, medical and educational expenses, with $3.4 million scheduled for delivery. and social events. There was no increase The organization has enrolled nearly in expenditures on temptation goods, 10,000 recipients to date and plans to such as alcohol and tobacco.2 However, move $20 million during FY2015. Beyond the study also found that transfers the immediate goal of transforming induced jealousy among neighbors.3 lives of the poor by providing direct cash transfers, the founders of GiveDirectly In this case study, we examine intend to influence two markets: GiveDirectly’s learning agenda following What They Do GiveDirectly provides unconditional cash Typically, recipients receive an SMS alert GiveDirectly shares publically how transfers to the extreme poor in Kenya on their phones to notify them of the much of their budget goes directly and Uganda primarily via mobile phone. transfer and to let them know how they to the poor and how much is spent GiveDirectly’s model contrasts with the can collect the cash from a mobile money delivering the program. Based on our traditional approach to international aid, agent in their village or the nearest town. review of financial statements submitted which delivers specific goods and services GiveDirectly staff check with all recipients to GiveWell, GiveDirectly transfers a to the poor. to make sure they received the transfer high share of funds raised directly to and to assess their experience. After its recipients (close to 90 percent in The program targets families that live in receiving the full transfer amount, the both countries), relative to total costs houses with mud walls and a thatched household is no longer eligible for future (excluding set up costs). roof—these housing materials are transfers. a strong proxy for poverty in these As of early 2015, GiveDirectly has run locations.4 To select who will receive the The cash transfers are equivalent to nine transfer programs in total (seven in transfers, program staff first identify poor approximately one year’s household Kenya and two in Uganda), each with its areas using publically available statistics budget—a large amount compared own recipients, timeline, and objectives. on poverty. They then conduct a village- to a typical government cash transfer Of these programs, 14 campaigns have level census in these areas to collect data program. GiveDirectly’s transfer size was concluded, with all transfers sent and on poverty and enroll recipients. After the designed to be large enough to enable follow-up surveys completed. enrollment process, eligible households the poor to make larger purchases receive a series of cash transfers totaling and investments with the potential to approximately $1,0005 via mobile phones. generate income over time. 4 Theory of Change GiveDirectly’s program is founded on in which they work. The organization decisions based on their individual needs the idea that large unconditional cash sends money to recipients via cell phones and preferences. The ultimate goal of transfers to the extreme poor should using electronic payment services that the program is to improve individual and improve their welfare. GiveDirectly are secure and transparent. Because household well-being. identifies and enrolls beneficiaries the cash transfers GiveDirectly provides by using objective criteria of housing are unconditional, they are expected material (mud and thatch) that correlate to empower poor households to make highly with poverty levels in the areas their own consumption and investment Needs Activities Outputs Impact • Improved individual and • Poor families lack resources to • Identify and enroll poor • Poor households are household well-being: make needed investments in households identified and enrolled education, food, and livelihoods • Increased assets and higher • Cash is transfered income • Traditional development • Send cash transfers • Improved mental health assistance fails to efficiently • Transfer is confirmed improve the welfare of the • Enhanced food security extreme poor • Conduct performance audits • Increased women’s empowerment FIGURE 1. THEORY OF CHANGE* *Organizations use a variety of methods to present their theories of change. To standardize our discussion of these cases, we present our own simplified version of GiveDirectly’s theory of change here. 5 Activity Monitoring GiveDirectly has a strong monitoring organizational priorities, and the is made of mud and has a thatched system that relies on mobile data total amount of funds available roof, a credible proxy for extreme collection and multiple quality controls to be allocated. Next, program poverty—to identify households to ensure that eligible households staff visit villages to introduce the eligible for the cash transfer are correctly identified, only eligible program, answer questions, and programs. households are enrolled into the garner support from community program, fraud and theft are minimized, leaders and local officials. 3. Registration. A separate field and eligible households receive the full GiveDirectly believes such visits team visits eligible households to amount of cash transfers. clarify the program’s goals and help enroll them into the program. In mitigate collusion or gaming the Kenya, enrollment involves giving a The program is implemented in several system. household member a SIM card used stages, with data collection and quality for transfers through the M-PESA controls at each step. 2. Village census. Next, field system6, if they do not already have staff conduct door-to-door visits an M-PESA account. The enrollment 1. Village selection. First, to collect basic demographic process is similar in Uganda. GiveDirectly identifies low-income information from everyone in the GiveDirectly staff may also help villages from national census village and take GPS coordinates eligible households to obtain ID data. Villages are selected based of the houses. The team uses cards or sign up for mobile money on a combination of census data, objective criteria–whether a house accounts. 6 4. Back-checks. An independent Uganda: In Kenya, the first transfer accountability and transparency: enumerator visits eligible is approximately $50, and the next the organization began signing households within the next month two transfers are split into two $475 memorandums of understanding to confirm eligibility and to inform payments, disbursed approximately with local government officials, the recipients of GiveDirectly’s two and six months later. In created a formal mechanism security measures to minimize Uganda, transfers are of equal to capture complaints during fraud. The enumerator also collects amounts and are sent monthly. the enrollment stage (such as personal identifying data and house GiveDirectly staff call all recipients households that felt they were GPS coordinates to compare them to confirm that the first transfers unfairly excluded from the with the village census data; any are received. program), and hired a senior field discrepancies are flagged for audit. manager to improve quality control, 6. Follow-up. Between two weeks among other changes. 4. Audits. Audits can be triggered and two months after
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