Results of Universal Basic Income Study in Kenya

[wesleycrusher]

www.npr.org/sections/goatsandsoda/2023/12/07/1217478771/its-one-of-the-biggest-experiments-in-fighting-global-poverty-now-the-results-ar


It's one of the biggest experiments in fighting global poverty. Now the results are in

It's an unprecedented – and massive – experiment: Since 2017 the U.S.-based charity GiveDirectly has been providing thousands of villagers in Kenya what's called a "universal basic income" – a cash grant of about $50, delivered every month, with the commitment to keep the payments coming for 12 years. It is a crucial test of what many consider one of the most cutting-edge ideas for alleviating global poverty.

Their findings cover the first two years of the effort and compare the outcomes for about 5,000 people who got the monthly payments to nearly 12,000 others in a control group who got no money. But, just as significantly, the researchers also compared the recipients to people in two other categories: nearly 9,000 who received the monthly income for just two years, without the promise of another decade of payments afterward; and another roughly 9,000 people who got that same two years' worth of income but in a lump-sum payment.



There are 5 findings in the article, I think many people would be surprised by the finding with the lump sums. 

[sonrisa]

I found this interesting:

"2. Lump sums are so useful that even those who didn't get them have banded together to create their own version.
...
They did this by making use of a creative financing tool known as a "rotating savings club." Every month members of the club pool their money and then take turns getting the entire payout from that pot.
Rotating savings clubs are enormously popular among Kenyans who don't have access to traditional banking. Even people who got the monthly income for just two years managed to put about 8% more money in a rotating savings club than those who got no aid.
But people in the 12-year-monthly income group used the clubs at an astonishing rate – contributing nearly 70% more money than those in the control group."

[BlondeSpiders]

I didn't want to read and not comment, but this is fascinating. What an amazing idea for poverty-stricken locations where the small business barriers to entry are relatively minimal.

[mcmel]

Dec 8, 2023 13:00:22 GMT -5 sonrisa said:

I found this interesting:

"2. Lump sums are so useful that even those who didn't get them have banded together to create their own version.
...
They did this by making use of a creative financing tool known as a "rotating savings club." Every month members of the club pool their money and then take turns getting the entire payout from that pot.
Rotating savings clubs are enormously popular among Kenyans who don't have access to traditional banking. Even people who got the monthly income for just two years managed to put about 8% more money in a rotating savings club than those who got no aid.
But people in the 12-year-monthly income group used the clubs at an astonishing rate – contributing nearly 70% more money than those in the control group."

I used to have a bunch of friends who participated in la tanda. I didn’t realize it was so popular.

[aurora]

I'm not surprised about the positive impacts but very interested to read about the difference between lump sum and monthly payments. I hope the impacts are long-term and more of this kind of UBI programs are initiated.

[bugandbibs]

This is fascinating and it will be interesting to see how it all shakes out long term.

[neverfstop]

This is really fantastic & I'm glad to see more experiments. UBI is really wonderful thing that I think should get more publicity and use. There are a quite a few UBI experiments going on & I hope this issue gains popularity. I know that it's expensive on a cost basis, but the the returns on investment and the economic growth show that UBI money is so much more beneficial for a society as a whole that tax breaks for the wealthy. It's just a matter of priorities and we could really eliminate poverty if that was the policy choice that we wanted.
basicincome.stanford.edu/experiments-map/

More on poverty as a policy choice podcasts.apple.com/us/podcast/matthew-desmond-on-americas-addiction-to-poverty/id1548604447?i=1000610068247