The Social Cash Transfer Pilot Programme (SCTPP) was launched by the
Tigray Bureau of Labour and Social Affairs (BOLSA) with support from the
United Nations Children’s Fund (UNICEF) in the Tigray region of Ethiopia
in 2011. The goal of the SCTPP is to improve the quality of life for
orphans and vulnerable children, the elderly and those with
disabilities, and to enhance their access to essential services such as
healthcare and education. Specific objectives include contributing to
the reduction of poverty, hunger and starvation, increasing school
enrolment and attendance, improving the health and nutrition of
children, and generating information on the feasibility,
cost-effectiveness and impact of the SCTPP.
Local economy-wide impact evaluation (LEWIE) simulation methods are used
to assess the likely impacts of cash transfers on the local economy.
When the Social Cash Transfer Pilot Programme (SCTPP) gives money to
beneficiary households, they spend it, buying goods and services. As the
cash circulates within wards and districts it also creates benefits for
non-recipient households that can provide the goods and services
purchased by beneficiary households.
This study found that each birr distributed by the Tigray SCTPP in
Hintalo-Wajirat woreda generated an extra 1.52 birr via local economic
linkages, for a total income multiplier of 2.52 birr. Similarly, each
birr distributed in Abi-Adi woreda generated an additional 0.35 birr,
for a total income multiplier of 1.35 birr.
FAO. Impacts of the Social Cash Transfer Pilot Programme (SCTPP) on the LocalEconomy in Ethiopia. Food and Agriculture Organization of the United Nations, Rome, Italy (2014) 2 pp.