1. Can Poverty Graduation Programs Truly Free the Poor from Poverty? Reflections on International and Regional Experiences
- Author:
- Howaida Adly Roman
- Publication Date:
- 10-2024
- Content Type:
- Special Report
- Institution:
- Arab Reform Initiative (ARI)
- Abstract:
- Poverty is an intractable structural issue, which raises a question that has been perplexing for many years: Why have multiple efforts to combat poverty not liberated the poor from its bond and captivity, allowing them the freedom of sufficiency and human dignity? Does the reason lie in the inadequacy of these efforts, or because the efforts did not address the issue of poverty from its structural causes, instead only dealing with its symptoms? The reasons for questioning this issue are varied. This uncertainty has led to the emergence of a new type of intervention that has been tested initially on limited populations, known as the “graduation out of poverty” approach. This approach was motivated by the recognition in the late 1990s that traditional poverty reduction and microfinance programs could not reach the poorest because, in addition to the barrier of income marginalization, the poor face multidimensional social, economic, and political poverty, as well as psychological and cultural barriers.1 Poverty graduation programs offer an integrated package of interventions aimed at lifting the poor out of their situation and ensuring the sustainability of their emancipation over a specific time, ranging from 24 to 36 months. In 2002, the Bangladesh Rural Advancement Committee (BRAC) developed a program to target the poorest of the poor to free them from their situation and ensure sustainable livelihoods.2 BRAC is a non-governmental organization founded in 1972; its work continued until 2001 when it expanded to include many other countries in the global south, applying its experience in poverty alleviation and establishing branches in many other countries.3 The interventions of these programs seek to combine addressing the immediate needs of those targeted with long-term investment in technical skills, life skills, asset transfer, entrepreneurial development, promoting savings opportunities, and planning for the future to ensure a sustainable exit from poverty and a stable life for these social groups.4 This paper aims to examine poverty exit programs that have been implemented in diverse social, economic, and cultural contexts around the world to draw key conclusions about the ability of these programs to deal with the root causes of poverty and vulnerability. The paper also seeks to investigate the extent to which these programs are scalable, meaning that they can be applied to larger populations; their sustainability; and the guarantee that the poor will not fall back into poverty. The paper focuses on analyzing three experiences from the Arab region, two from Egypt and one from Yemen. Yemen’s program, which is the earliest in the region, dates back to 2006 when the Consultative Group to Assist the Poor (CGAP) and the Ford Foundation decided to expand the approaches to graduation out of poverty through various contexts. In Egypt, the Bab Amal program was implemented by a group of NGOs, while the Forsa program was a government program for graduating beneficiaries of conditional cash transfers (CCT) – the Takaful program – that was implemented in partnership between the Ministry of Social Solidarity and NGOs. Bab Amal was started earlier and has undergone preliminary evaluations, while Forsa is still in its infancy. Research into global poverty graduation programs may help these two experiments avoid making similar mistakes, especially in the context of scaling up. Based on the above, this paper will shed light on what poverty graduation programs are, how they emerged and for what reasons, what role NGOs played, how governments began to adopt these programs and apply them and later expand them, and what the challenges and issues of expansion are. The paper concludes by analyzing a number of challenges facing these programs – chief among them of course the challenge of sustainability – and finally, the lessons learned.
- Topic:
- Development, Poverty, Economic Inequality, and Social Programs
- Political Geography:
- Middle East, Yemen, North Africa, and Egypt