Pathways out of Extreme Poverty: Tackling Psychosocial and Capital Constraints with a Multi-Faceted Social Protection Program in Niger

Abstract

This paper analyzes a four-arm randomized evaluation of a multi-faceted economic inclusion intervention delivered by the Government of Niger to female beneficiaries of a national cash transfer program. All three treatment arms include a core package of group savings promotion, coaching, and entrepreneurship training, in addition to the regular cash transfers from the national program. The first variant also includes a lump-sum cash grant and is similar to a traditional graduation intervention (“capital†package). The second variant substitutes the cash grant with psychosocial interventions (“psychosocial†package). The third variant includes the cash grant and the psychosocial interventions (“full†package). The control group only receives the regular cash transfers from the national program. All three treatments generate large impacts on consumption and food security six and 18 months post-intervention. They increase participation and profits in women-led off-farm business and livestock activities, as well as improve various dimensions of psychosocial well-being. The impacts tend to be larger in the full treatment, followed by the capital and psychosocial treatments. Consumption impacts up to 18 months after the intervention already exceed costs in the psychosocial package (the benefit-cost ratio for the psychosocial package is 126 percent; full package, 95 percent; and capital package, 58 percent). These results highlight the value of addressing psychosocial constraints as well as capital constraints in government-implemented poverty reduction programs.