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Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

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Re: Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

#51
post #11

Earlier quoted context omitted.

The idea that people need to be told to buy food for their kid rather than a big screen TV is paternalistic, yes.

Sadly, some people absolutely need to be told to buy their kid a jacket vs. a large bag of cocaine.

I think this is feeding into a prevalent and false narrative that persons in poverty are all drug addicts or welfare queens.

Christian Parenti really sums it up well when he describes American views on poverty in his book, The Soft Cage:

"In a society that denies the true causes of poverty—low wages and structural unemployment—the poor necessarily show up as objects of mystery to be examined, measured, interrogated, and indexed, or as James C. Scott would put it, made “legible.” In a society that hides the real mechanics of exploitation and sees all social phenomena through the lens of individualism, it is assumed that the poor—their genetics, their habits, or their culture—must be the true cause of poverty."[1]

Specifically with respect to your point about drugs:

"Reports such as the National Survey of Drug Use and Health suggest drug abuse among welfare recipients is hardly widespread. Many states have tried drug testing for welfare recipients with practically nobody testing positive. In Arizona, for example, in 2012, after three years and 87,000 screenings, one person had failed a drug test. Utah's drug screening program spent $30,000 on testing and only 2.5% of recipients turned out positive for illicit drugs. Florida's program had the same results.

"In all cases, the testing -- which assumes all welfare recipients are druggies -- cost much more than the savings in welfare payments."[2]

We need to stop acting paternalistically toward the poor and, instead, treat them as people who are capable of making their own decisions.

[1] http://openlibrary.org/books/OL7593829M/The_Soft_Cage

[2] http://www.cnn.com/2013/09/30/opinion/granderson-michigan-we...

Re: Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

#52
post #49

Earlier quoted context omitted.

Why not hand the next beggar you see a $20?

Presumably because $20 goes further in Kenya than in wealthier countries.

My only point is that to me, giving cash to Kenyans and giving cash to beggars seems morally equivalent. Not saying you shouldn't do either but I do think if you give Kenyans cash but have qualms with giving beggars money, well I don't think that makes much sense.

Re: Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

#53
post #3

If you find this persuasive, consider donating to http://www.givedirectly.org/ , which performs unconditional cash transfers to the poorest people in Kenya. Give Directly is the subject of this writeup[1] on GiveWell, and this excellent episode[2] of This American Life. [1]: http://www.givewell.org/international/top-charities/give-dir... [2]: http://www.thisamericanlife.org/radio-archives/episode/503/i...

It was also covered by Planet Money and written up: http://www.nytimes.com/2013/08/18/magazine/is-it-nuts-to-giv...

PM also followed an American building contractor who was attempting to build a schoolhouse in Haiti. The guy landed in the country pretty gung-ho, ready to apply his extensive experience to building something relatively simple. He had never done aidwork in a developing country. After many delays and run-ins with corruption, he did manage to complete it, but he concluded that just giving them money would have been more efficient.

Re: Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

#54
post #49
post #3

If you find this persuasive, consider donating to http://www.givedirectly.org/ , which performs unconditional cash transfers to the poorest people in Kenya. Give Directly is the subject of this writeup[1] on GiveWell, and this excellent episode[2] of This American Life. [1]: http://www.givewell.org/international/top-charities/give-dir... [2]: http://www.thisamericanlife.org/radio-archives/episode/503/i...

Why not hand the next beggar you see a $20?

Since you couldn't be bothered to read the article before leaving what must apparently be a wisecrack: it was a controlled experiment using groups.

> Blattman, an assistant professor of international and public affairs and political science, recently completed a four-year study of a government-run program in northern Uganda that gave cash to groups of young people so they could learn a trade and start their own businesses. The results surprised him and convinced him that outright grants are the best way to give aid.

> The program, funded by a loan from the World Bank, was designed to boost the Ugandan economy after 20 years of civil strife by encouraging young people—ages 16 to 35—to move from agriculture to skilled trades. The grants were only about $400 per person, the equivalent of a year’s income for most people in the area. To get the cash, applicants had to form a group with others in their village and submit a proposal showing how they planned to use the money, but there was no follow-up to make sure they used it for that purpose.

> Grant recipients became carpenters, metal workers, tailors and hair stylists. Some of the money—about 10 to 20 percent—went for training, either at an institute or as an apprentice to a local artisan, but most of it was used to purchase tools and raw materials. Some of those small businesses grew large enough to hire paid employees, improving the economic situation in an entire village.

Re: Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

#55
post #49
post #3

If you find this persuasive, consider donating to http://www.givedirectly.org/ , which performs unconditional cash transfers to the poorest people in Kenya. Give Directly is the subject of this writeup[1] on GiveWell, and this excellent episode[2] of This American Life. [1]: http://www.givewell.org/international/top-charities/give-dir... [2]: http://www.thisamericanlife.org/radio-archives/episode/503/i...

Why not hand the next beggar you see a $20?

[deleted]

Re: Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

#56
post #52

Earlier quoted context omitted.

Presumably because $20 goes further in Kenya than in wealthier countries.

My only point is that to me, giving cash to Kenyans and giving cash to beggars seems morally equivalent. Not saying you shouldn't do either but I do think if you give Kenyans cash but have qualms with giving beggars money, well I don't think that makes much sense.

[deleted]

Re: Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

#58

Earlier quoted context omitted.

Are there any similar programs for people in developed countries?

Well, there's http://www.nbcnews.com/business/2-800-month-every-adult-it-c... . I wouldn't donate to it, though -- Switzerland doesn't need the money. (And if we're performing a comparison, neither do other developed countries compared to the people being targeted by Give Directly's program. We should give to wherever it will do the most good, right?)

my classmate's half-sister makes $72 every hour on the internet. She has been without a job for eight months but last month her payment was $16159 just working on the internet for a few hours.Here's the site to read more......

------------------->http://www.works23.com

Re: Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

#59
I wonder if requiring applicants to "form a group with others in their village and submit a proposal showing how they planned to use the money" had anything to do with their success. It's not like they just dropped money out of a plane. And the fact that these grants were funded by a World Bank loan seems to undercut the headline even more.

Re: Research Finds Outright Grants of Cash are an Effective Form of Aid to the Poor

#60
post #26

It's all about state of mind. People who actually want to make a living, start businesses, create wealth, and live responsibly VS those who just want to be parasites. Attitude is what matters...

Use of funds makes all the difference.

Sometimes, a person needs a little push - or some initial help to get off the ground.

What are your views on all the entrepreneurs seeking funding - would you consider them parasites?

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