Ultra-Poor Graduation Approach

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2 Ultra-Poor Graduation Approach Syed M Hashemi May 2017

3 ABOUT BRAC WHERE WE WORK Founded in 1972 in Bangladesh, today BRAC is one of the largest development organizations in the world with 110,000+ staff serving 138 million people in 11 countries.

4 1. Disaster, Environment and Climate Change 2. Health, & Nutrition 3. Water, Sanitation, & Hygiene 4. Education 5. Migration 6. Agriculture and Food Security 7. Integrated Development 8. Microfinance 9. Enterprises and Investments 10. Targeting the Ultra Poor 11. Community Empowerment 12. Gender Justice & Diversity 13. Human Rights and Legal Aid Service ABOUT BRAC WHAT WE DO BRAC Program Areas:

5 EVOLUTION OF GRADUATION In the 1990s, BRAC recognized a salient gap in the ability of our microfinance services to reach the poorest of the poor.

6 DEVELOPING THE APPROACH As a result, in 2002 BRAC pioneered the Targeting the Ultra Poor programme which to date has reached approx. 1.7M households in Bangladesh.

7 BRAC GRADUATION MODEL

8 Graduation provides a multifaceted response to the multidimensional needs of the most vulnerable. GRADUATION THEORY OF CHANGE Identify the poorest or most vulnerable Injection of capital for productive asset Offer holistic wraparound services Provide regular accompaniment and support Time-bound Ultra poor are able to jumpstart sustainable livelihoods and build resilience to future shocks.

9 GRADUATION MISCONCEPTIONS GRADUATION DOES NOT CONSTITUTE: 1. Not exogenous exit event after which all support is withdrawn 2. Not entail crossing an automatic income threshold, such as World Bank poverty line $ Not a silver bullet and singular approach to eradicating poverty 4. Does take into account market dynamics and demand 5. Not an alternative to social protection 6. Not a contradiction to a rightsbased tradition GRADUATION IS DEFINED AS: 1. Time-bound, recognizing many systems affect graduation pathways 2. Multifaceted response to the multidimensional needs of the poorest and most vulnerable 3. One of many strategies in the eradication of extreme poverty 4. Utilizes robust market assessment to create diversified livelihoods 5. Strategic complement to social protection programs 6. Ensures progressive realization of rights for the poorest

10 MEASURING GRADUATION CRITERIA Graduation Pillars Graduation Outcomes Bangladesh Graduation Criteria and Indicators Social Protection Increased security Positive coping strategies Improved health outcomes Greater social inclusion Food Security and Nutrition Access to nutritious meals (2/day) Livelihoods Stabilizing income Sustainable livelihoods Asset diversification Social Inclusion and Empowerment Engagement in householddecision-making Attendance at community events Financial Inclusion Asset accumulation Improved financial management Savings for major shocks Investing in health & education Economic Resilience Improved Hygiene Practices Multiple sources of income Increased value of assets Improvement in home condition Use of sanitary latrine facilities Use of clean drinking water points Case Worker Support Increased self-confidence Improved WASH Greater resilience Positive Behavior Change School enrollment for children Absence of under-age marriage Use of family planning

11 RESEARCH LONGITUDINAL RESULTS 1.7 MILLION HOUSEHOLDS BRAC hosts the longest longitudinal RCT of a Graduation program: 21,000 households over 7 years. 37% Annual income AS OF % 10% 9x Hours in stable, productive work Consumption expenditures Savings 2x Access to land

12 RESEARCH CHILD MALNUTRITION Key Findings in Bangladesh Spillover effects to community. 1. Children under 5: reduction of wasting by 8% and likelihood of being underweight by 19%. 2. Children 6-19: reduction of likelihood of thinness by 4%, and likelihood of being underweight by 10%. 3. Probability of a child receiving a vitamin A supplement increases 26% by ultra poor and 20% by others.

13 Join us in the movement to end ultra-poverty. Contact us to learn more. BRAC Centre 75 Mohakhali Dhaka 1212 Bangladesh BRAC USA 110 William Street, 29 th Floor New York, NY USA

14 14 Components of Social Protection System Labour policy and insurance e.g. contributory pensions, unemployment benefits, health insurance, minimum wage Social sector policy Services and infrastructure for education, health, nutrition, HIV/AIDS, agriculture, etc. e.g. Weather insurance Social Protection Social safety nets Transfer (non contributory) and subsidies e.g. Cash transfers Conditional cash transfers Food transfers Conditional food transfers (e.g. school feeding) Public/community works Vouchers Price subsidies Source: Gentilini, Ugo&Omamo, Steven Were, 2009 e.g. Health clinics, classrooms

15 The Graduation Approach Pre-existing cash-transfer

16 Impacts and Costs: RCT Results The approach drives impacts across diverse indicators Income Savings Food security Health Happiness And has delivered high returns on investments with sustainable outcomes. Honduras Cost/HH: $1,335 ROI: -198% Peru Cost/HH: $2,604 ROI: 190% Ethiopia Cost/HH: $884 ROI: 260% Ghana Cost/HH: $1,777 ROI: 133% Pakistan Cost/HH: $864 ROI: 179% Bangladesh Cost/HH: $436 ROI: 540% India Cost/HH: $330 ROI: 433% Graduation participants reported Working, earning, and eating more than the control group a year after program completion Greater occupational choices Source: Innovations for Poverty Action, Abdul Latif Jameel Poverty Action Lab, London School of Economics, The Economist

17 Overall Achievements -Income generation and diversification -Food security -Safe place to save -Children s education -Breaking cycle of indebtedness -Create vertical social networks -Empowerment

18 Post Graduation Sustainability Combating Risk of Slipping Back 18 Program needs to prepare clients for linkages to: -Social Protection & Government Services -Financial Service Providers -Healthcare/Insurance -Community and Women s Groups -Private Sector Businesses

19 Graduation Programming Growing Rapidly 59 projects ongoing in 37 countries BRAC Bangladesh (1) Since 2002 CGAP-Ford Foundation Pilots (10) NGO-implemented (30) Since 2010 Donor-implemented (7) Since 2010 September 2016 Update Government-implemented (20) Since 2010

20 Some Critical Factors for Scaling Up Lower costs Reduce intensity of home visits Add other vulnerable segments Provide better linkages to health, education, infrastructure programs Photo Credit: Brac USA Ensure convergence of government and other programs for vulnerable

21 21 Context Matters Markets Healthcare Education Infrastructure Natural shocks and resources Macroeconomic shocks

22 Still Learning How do the impacts differ when the approach is adapted to different contexts and segments? How should the program be designed to optimize benefits and cost-effectiveness? How can governments and other stakeholders most effectively operationalize and scale the approach? Photo credit: SKS Fdt. (participatory targeting process 2009)

23 DRAFT Community of Practice World Bank SPJ Platform for Economic Inclusion Financial inclusion Gender Poverty Metrics Conflict/Fragility Agriculture Education Policy makers and govts Other implementers incl. INGOs TA intermediaries/ experts Researchers Funders Illustrative activities POLICY INFLUENCE INNOVATION and LEARNING FUNDING STREAMS KNOWLEDGE MANAGEMENT and BEST PRACTICES Governance Board/ExCom Operations team/secretariat Multi-donor trust fund Partners

24 Thank You! Thank You!