Matthew Bird: The ultra poor graduation project at fundación capital

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IDRC/IPC, Brasilia, September 10-11, 2014 Matthew Bird Unviersidad del Pacífico The Ultra-Poor Graduation Project at Fundación Capital: Toward an Evaluation of a Public Policy Graduation Model

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This presentation is part of the programme of the International Seminar "Social Protection, Entrepreneurship and Labour Market Activation: Evidence for Better Policies", organized by the International Policy Centre for Inclusive Growth (IPC-IG/UNDP) together with Canada’s International Development Research Centre (IDRC) and the Colombian Think Tank Fedesarrollo held on September 10-11 at the Ipea Auditorium in Brasilia.

Transcript of Matthew Bird: The ultra poor graduation project at fundación capital

Page 1: Matthew Bird: The ultra poor graduation project at fundación capital

IDRC/IPC, Brasilia, September 10-11, 2014

Matthew BirdUnviersidad del Pacífico

The Ultra-Poor Graduation Project at Fundación Capital:

Toward an Evaluation of a Public Policy Graduation Model

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EVOLUTION OF THE GRADUATION MODEL

ORIGINAL MODEL(400,000 households)

REPLICATIONS(RCT)

ADAPTATION(Public policy)

Presenter
Presentation Notes
Scalable and reduce costs. Transfer of assets liquid. Government can’t deliver pigs, manejable. Demand focus más principios. ICT es reducir costos. Food stipend impt for BRAC. Conditional cash transfer replace food stipend. Diferencias de CCT – más fácil escalar con CCT (en AL CCT llega a los más pobres) – es así en Colombia.
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BRAC AND CGAP/FORD MODEL

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FUNDACION CAPITAL PUBLIC POLICY MODEL

DEMAND FOCUS

CASH TRANSFER

ICT

Presenter
Presentation Notes
18 vs. 24 meses. Entrepreneur (más activo). Life plan de otras experiencias.Life plan – taller grupal 3 a 4 horas, van ubicando en forma de pájaro, escriben miembros de su hogar, pegar tres personal (importante, también para ti como persona, e.g. Viajar), familiar (mis hijos estudien), empresarial (muy general, e.g., gallinas)– cuales son los desafíos. Pegar su plan en el hogar. Cartilla para el plan de negocios – plan de negocios. Local support committee. Cada representante diseña una maqueta y la presenta su idea de negocio. No es instancia de rechazo. Desarrollo constructivo. 2 a 3 personas: alguien local, representante del gobierno. CLAR en Peru – es un concurso, es a nivel colectivo. CGAP Ford India – Trickle UP – reunion 10 personas en un círculo – una variante. 40% de representantes de CCT 60% Cash transfer – transfieren en dos disembolsos – 1 de $250, 2do desembolso diciembre/enero. O 2da modalidad - $400 más un incentivo $100 si gastan bien su plata. La controloría – piden comprobantes (organizarse y hacer cuentas bien, un proceso administrativos) – pueden tomar fotos de las facturas. Se puede organizar ferias de proveedores O pueden comprar donde quieran (pueden viajar, los gestores les pueden ayudar), e.g., Barranquilla fueron a hablar con proveedores, les van orientado. Banca Móvil y Banca Agraria: automaticamente se abre la cuenta. Se incentiva el ahorro formal. (Van incentivando) ICT (que formen grupos y van rotando la tableta) (11 meses x 2 modulos al mes) 22 de modulos de capacitación financiera, negocios (decisiones de venta, atención al cliente, etc.), desarrollo personal (auto-estima) Savings Promotion Ahorro formal (y grupos de ahorro, semi-formal, no hay confianza con el sistema bancario) Technical assistance (pueden contratar a ayuda individual O con entidad que puede recibir asistencia el Sena, tomar curso gratis) Productive plan ( Cada gestor tiene 100 – doble lo que es normalmente. (Las tabletas libera tiempo)
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FUNDAK ADAPTATIONS

Demand Focus

Cash Transfer

ICTs

Presenter
Presentation Notes
Reducir costos
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1. DEMAND FOCUS

Belief that it is the participants themselves who best know theirpersonal abilities, interests, previous experiences and the local contextwell enough to determine what economic activity will constitute thebest investment of their time and the project resources.

Life plan

Business profile

Local support committee

Presenter
Presentation Notes
Social control – delante de todos Transparency – how ok or no the plan (constructively) Empowerment – present and defend ideas
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• Powerful instrument for empowerment and teaching IFAD

• Various studies validate the proper use of resources Give Directly in Kenya; Blattman, Fiala and Martinez at

NUSAF in Uganda; Hanlon, Barrientos and Hulme’s Just Give Money to the Poor; De Mel, McKenzie and Woodruff (Sri Lanka, De Mel, McKenzie and Woodruff in Sri Lanka, 2008

In-kind transfers do not guarantee proper usage

• More cost-effective for governments• Financial inclusion

2. CASH TRANSFER

Presenter
Presentation Notes
Dejar al receptor la responsabilidad de averiguar proveedores, negociar precios, realizar compras, y rendir cuentas es un poderoso instrumento de empoderamiento y aprendizaje, especialmente para microempresarios Existen varios estudios en diferentes países que demuestran que los receptores de transferencias en efectivo – bien sean condicionadas o incondicionadas – tienden a hacer un bueno uso de los recursos Las transferencias en especie no garantizan que los bienes se usen adecuadamente ya que son susceptibles de ser vendidos a terceros en cualquier momento Las transferencias en efectivo son más costo-eficientes para los gobiernos y generan mayores beneficios para los mercados locales (un operador encargado de comprar los activos cobra un 10-12% de overhead mientras que el operador financiero cobra 4 USD por transacción independientemente del monto). Las transferencias en efectivo favorecen la inclusión financiera Las transferencias en efectivo permiten a los receptores contratar asistencia técnica, un gasto clave para favorecer el éxito de las actividades productivas
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3. INFORMATION AND COMMUNICATION TECHNOLOGIES

Rules of thumb

Colombia LISTAexperience

• Guarantees quality• Reduces costs• Closes digital gap• Creates spillover effects• Enables participants to

learn at their own pace

Presenter
Presentation Notes
La introducción de ICT para la capacitación permitió reducir costos del modelo en un 17%
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GRADUATION PROJECT EVALUATION

Phase 2: Randomized Controlled Trial

Phase 1: Concept evaluation, Process evaluation, Results evaluation

• Pre-Post• Quantitative supported by qualiResults

• Acceptability, salience, effectiveness• Qualitative supported by quantiConcepts

• Implementation of the design• Qualitative supported by quantiProcesses

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CONCEPT EVALUATION: SOME EXAMPLES

Asset-building coach profile

Community versus proxy means test targeting

Business profile format and supporting material

Results: PMT more cost-efficient in Colombian context to identify the extreme poor

Results: Identification and prioritization of 7 factors that make a suitable coach

Results: Need to simplify and strengthen visual codes because of functional anafalbetism

Presenter
Presentation Notes
Plan de vida Plan de negocio CLAP Juego TIC Gestores Participantes Conclusiones y sugerencias
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Testing 2 targeting methods: Proxy means vs. Participatory Wealth Ranking

0.0

2.0

4.0

6D

ensi

ty

0 20 40 60 80Puntaje Sisbén

Unidos/Sisbén Mapas parlantes

0.0

1.0

2.0

3.0

4.0

5D

ensi

ty

0 20 40 60 80Puntaje Sisbén

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PhysicalAssets

Human Assets

AccessSocialAssets

FinancialAssets

LIVELIHOOD RESILIENCE INDEX

Weightingdetermined in

Phase 1

Appropriatevariables

determined in Phase 1

Presenter
Presentation Notes
FAO tiene un resilience index
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INDICATORS

PRODUCTIVE ASSETS

• Participants’ average monthly income is at least USD 45

• Participants have at least 1 profitable productive activity

• Participants have invested in their productive activity from their own income in order to strengthen it

• Participants have at least 1 physical asset more than what they had in the baseline

• If consumption has increased by 10%• If the frequency of households reporting

having lacked money to buy food in the last 3 months has decreased by 10%

FOOD SECURITY

• Participants’ savings balances have increased by 30%

• The proportion of participants’ savings in banks or savings groups has increased by 30%

• During the project duration participants have saved at least once a month

• Participants are 15% more likely to use their savings to cover their non-regular expenses instead of using moneylenders or selling assets

FINANCIAL ASSETS

HUMAN & SOCIAL ASSETS

• The decision-making index for women participants has increased by at least 5%

• The optimism index among participants has increased by at least 9%

• The social capital index among participants has increased by at least 5%

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INSERT SELECT 3-5 SLIDES FROM DESCRIPTIVE RESULTS

SEE ATTACHED FILE

WILL GIVE WARNING TO THE AUDIENCE. JUST PRE-POST. MANY CONFOUNDING FACTORS.

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Working RCT Design

3 Research Questions

(1) Does the Graduation package set the extreme poor on a path out of extreme poverty as measured by a suite of indicators?

(2) Is it more effective to provide cash or asset transfers to the extreme poor as measured by a suite of indicators?

(3) Is it more effective to provide training via a tablet or in-person model?

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Thank you