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The Fiavota Cash Transfer Program: Alleviating Poverty in Madagascar

Fiavota Cash Transfer ProgramMadagascar’s Grand Sud region, the country’s poorest area, faced severe hardship due to a devastating drought spanning from 2013 to 2015, followed by a 75% drop in rainfall in 2016, leading to a loss of 95% of crops, pushing more than a million people into food insecurity. Rainfall gaps in 2018, 2019 and 2020, compounded by the impact of COVID-19, have exacerbated this crisis.

By March 2023, more than 2 million people in Madagascar will likely face acute food insecurity. The Fiavota cash transfer program, with support from the World Bank and UNICEF, emerged as a lifeline for those affected by the drought by providing cash transfers disbursed by the government in combination with nutrition services and recovery funding.

Aiding Hundreds of Thousands and Alleviating Poverty

The Fiavota cash transfer program has made a monumental impact in Madagascar, benefiting more than 450,000 individuals, a significant portion of whom are women. These women, often the most vulnerable to poverty, have found opportunities to improve their families’ living conditions. The impact on poverty is profound, as families struggling with finances have witnessed a remarkable transformation.

The financial support provided by Fiavota has allowed households to increase their income, leading to beneficiary households now enjoying an average income 40% higher than non-beneficiary households. This substantial boost in income directly contributes to the alleviation of poverty.

Furthermore, Fiavota has played a pivotal role in empowering women and facilitating the establishment of small family enterprises, exemplified by businesses. In 2018, nearly two-thirds of recipient households engaged in a minimum of two small, family-operated income-generating ventures, typically led by women, directly contributing to poverty reduction.

Enhancing Food Security and Nutrition To Tackle Poverty

Amid the drought aftermath, one of the most pressing concerns was food security, a direct link to poverty alleviation. Fiavota swiftly addressed this issue by providing food and nutrition workshops and introducing households to a more diversified diet. This initiative has played a pivotal role in reducing cases of acute childhood malnutrition, ultimately enhancing overall food security in the region.

There have been significant improvements in food insecurity among beneficiaries. These improvements include a reduction in households skipping meals due to lack of money (3% reduction), having no food in the household due to a lack of money (9% reduction) and going to bed hungry (11% reduction). By mitigating food insecurity, Fiavota takes substantial strides in the battle against poverty.

Investing in Education

In Madagascar, 40% of children have no access to education, and 70% of students drop out before the final grade of primary school. Education is a powerful means to break the cycle of poverty, and the program’s positive effects on educational outcomes are well-documented, with evidence suggesting substantial improvements in school enrollment and attendance.

Beneficiary children have experienced a remarkable 29% increase in school enrollment, reaching an impressive 72% enrollment rate. Additionally, these children attend school more regularly, with an average increase of 0.34 days per week compared to their peers. The program has had massive success in increasing access to education and helping break the cycles of poverty.

Improving Child Health

Children in Madagascar often suffer from serious malnourishment, with more than one-fourth of children being severely malnourished. Fiavota has demonstrated its effectiveness in improving child health, a critical factor in the fight against poverty, as spending levels, particularly basic spending needs for food and necessities, influence health, nutrition and well-being. Children’s health improved significantly, with almost a 10% difference compared to non-recipients.

Furthermore, beneficiary households were 26% more likely to visit health centers, representing a nearly 100% increase over non-beneficiary households, further underscoring the program’s contribution to poverty alleviation by enhancing the health and well-being of children.

Continued Impact on Poverty Reduction

The impact of the Fiavota cash transfer program extends far beyond immediate relief. By addressing multiple dimensions of poverty, including food security, economic empowerment, education and child health, Fiavota improves the lives of individuals and families and contributes to the broader development of the Grand Sud region in Madagascar. This holistic approach offers a promising path toward sustainable poverty reduction.

Conclusion

The Fiavota cash transfer program in Madagascar is a powerful tool for alleviating poverty. Through its multifaceted interventions, Fiavota directly addresses the root causes of poverty, providing essential support to the most vulnerable populations in the Grand Sud region. As Madagascar continues to grapple with its unique challenges, programs like Fiavota exemplify the transformative impact that targeted interventions can have on those living in poverty.

 – Marnie Woodford-Venables 
Photo: Flickr