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Examining the Economic Impact of the
Social Cash Transfer in Mchinji Malawi
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| A family in Mchinji |
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The Center for International Health and Development (CIHD) at Boston University (BU), in collaboration with the Centre for Social Research (CSR) from the University of Malawi, is examining the potential of the social cash transfer to contribute to economic growth in Mchinji, Malawi. Our goal is to examine whether one instrument (the cash transfer) within the broader social protection policy framework, is a promising component in poverty reduction, with prospects for short and long-term impacts on economic growth.
The study questions are (1) What is the potential of the cash transfer to influence economic growth in the local economy? and (2) Does the cash transfer contribute to poverty alleviation within the wider community among households that benefit indirectly from the scheme.
To answer these questions, we intend to conduct (1) an analysis of existing data, and (2) new data collection where we first conduct a household listing and screen households to determine whether they receive any gifts or loans or provide labor to households receiving the cash transfer. We will then use a quantitative survey to examine how households are indirectly benefiting from the transfer and ask households to keep diaries of these experiences. We will return to households several times over six months to measure seasonal differences in these spillover transactions from cash transfers.
This project will provide evidence for policymakers and donors as they make decisions about social protection policies. It will build on the limited existing literature in this area by explaining the mechanisms by which social protection strategies can directly and indirectly lead to economic growth in communities. In addition, the study will generate evidence quantifying the returns that can be expected for a given level of investment in the form of cash transfers to poor households.
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