Governments desire that over time CCTs will be able to reduce vulnerability and build assets and, further, that recipients will get to a point where they no longer need these transfer payments. Often this transition requires mentoring, financial capabilities, skills development, and a social network of support. BRAC in Bangladesh has designed its “graduation model” to combine all of these elements for those living in extreme poverty. BRAC designed the graduation model to give the ultra-poor some “breathing space” from their immediate challenges, so that they can focus on improving their welfare over the long term.
The graduation program’s holistic approach to poverty alleviation includes :
- Consumption support
- Skills trainings
- Livelihoods asset transfer
Individuals “graduate” from safety nets, like consumption smoothing, to income-generating activities, giving them a stable livelihood, which can include accessing microcredit.
Learn more about BRAC’s graduation program.
Syed Hashemi, executive director of BRAC Development Institute, stated at the 2013 Partnerships against Poverty Summit that “CCTs are efficient as a short-term solution. Over the medium term, CCTs do not offer an exit strategy for the poor.” Hashemi said that linking graduation programs with microfinance provides an exit strategy: the participants not only receive consumption-smoothing support but also graduate at rates of 80 percent and higher. In this way, graduation programs can shorten the timeline for receiving CCTs.
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Table of Contents
- Executive Summary
- Taking Steps to Target the Poorest
- A Global Context for Extreme Poverty
- Microfinance & Health Providers Can Partner for Greater Results
- Commercial & Social Businesses Can Expand Value Chains to Include Those in Poverty
- Mobile Network Operators Can Build Systems that Reach the Poorest and Most Remote
- Regulators & Policymakers Can Build a National Ecosystem for Inclusion
- Social Support Payments Can Become a Bridge to Financial Inclusion
- Being Accountable for Results
- A Commitment to End Extreme Poverty by 2030
- Read the Full Report
- Get Your Copy