Innovations for Poverty Action

More than one-fifth of the world’s population lives on less than US$1.25 a day. Evidence from a six-country study released in 2015 found that a “big push” intervention that aimed to address the many challenges of poverty simultaneously, boosted livelihoods, income, and health among the ultra-poor. The centerpiece of the program was providing households with an asset to spur self-employment.

One year after the program ended—three years after receiving the assets—program participants on average had significantly more assets and savings, spent more time working, went hungry on fewer days, and experienced lower levels of stress and improved physical health compared to those who did not receive the program.
The program was also cost effective, with positive returns in five of six countries, ranging from 133 percent in Ghana to 433 percent in India. In other words, for every dollar spent on the program in India, ultra-poor households had $4.33 in long-term benefits.

Given the proven success of the approach, governments and development agencies have launched efforts to expand the Graduation approach to millions of people. The program is already being scaled up in Pakistan and India, and the government of Ethiopia plans to expand the program to benefit 3 million people.

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