From Project Management Institute: "The GiveDirectly team wanted to observe the outcome of giving money to the world’s poor without assessing a recipient’s 'worthiness' or placing conditions on how it was used... It didn’t take long for studies about its work to substantiate what they suspected — unconditional cash transfers work. People used the money wisely. Many invested the funds in entrepreneurial projects that could boost their income.
But even a robust body of research didn’t fully help GiveDirectly address resistance to the model. 'There have been a lot of studies of cash transfers that prove their viability, but when you take these studies to government, they will say, ‘Yes, great, but that’s in Kenya. The local context is different,’' says Nkurunziza Richard, MBA, GiveDirectly’s senior manager of Rwanda programs.
The nonprofit decided to launch an even more audacious project in 2023, taking the unconditional cash transfer idea from the village-level to a larger scale. The purpose of the project, says Nkurunziza, is to swiftly and effectively lift Rwandan families out of extreme poverty.
The unconditional cash transfer project in Rwanda centered recipients, extending them the trust and dignity to best choose how to improve their lives with the cash. GiveDirectly’s Rwanda team worked closely with local and national governments and village leaders to roll out the program in line with their development goals. 'The only condition [to receiving the cash] is that you fall below the poverty line,' Nkurunziza explains. 'We opt for saturation, covering an entire village, so we aren’t making decisions about the [relative worth] of one family or household or another.'
His colleague, Nathalie Bintu, GiveDirectly’s external relations lead, adds that one year into the project, GiveDirectly is seeing a big pay-off. 'We’ve already started observing outcomes: improved health, massive drops in food insecurity, and a general ability for recipients to meet basic needs,' she says. Nkurunziza agrees, 'Cash transfers impact so many other areas: child mortality, gender equity. Cash transfers are respectful. They provide agency. They are unconditional. And they’ve been proven to work.' Bintu concludes that 'if we can do this at the national level successfully, we can do this in other countries.'"
More from our recognition by Project Management Institute at https://lnkd.in/eJrFD5NM
More on our work in Rwanda at GiveDirectly.org/rwanda