Complex issues call for comprehensive solutions. The significance of this logic cannot be overstated when tackling the most multifaceted issues worldwide, such as extreme poverty. BRAC, a large Bangladeshi nonprofit organization working to support the rural poor, has recently actualized the benefits of such all-inclusive problem-solving.
In recent years, BRAC has implemented a new “graduation” program worldwide, in an effort to fight extreme poverty. BRAC’s carefully crafted approach targets the poorest households within smaller communities. Over a fixed period of time, the program provides these households with the wide-ranging set of services they need.
Beneficiaries of the program first choose from a list of productive assets, such as livestock or goods needed to start a small business. Then, the program provides appropriate training and support, life skills coaching, weekly consumption support, access to savings accounts, as well as health and information services.
The thinking behind this approach is that the most extreme cases warrant the most all-encompassing forms of aid. Providing the ultra-poor with a set of such complementary services lays the groundwork for self-employment activities. In this way, the program can additionally achieve its primary goal: increased consumption.
An MIT study analyzing the implementation of the graduation model in six different countries has evidenced the wide-ranging success of BRAC’s strategy. Randomized control trials conducted on more than 21,000 participants in Ethiopia, Ghana, Honduras, India, Pakistan, and Peru reveal the program’s long-term impact.
Results of the study showed that, across the board, increased consumption was not only achieved but also typically maintained one year after the program’s end. In some cases, gains in areas like food security and household assets remained for as long as three years after “graduation”.
Although BRAC’s graduation approach is criticized for being relatively expensive; however, positive returns were seen in five out of the six countries. In short, the program benefits outweigh the costs. In all six countries, experimenters witnessed the program bringing dramatic improvements to the lives of the ultra-poor.
BRAC prides itself in creating a program that is not only comprehensive, but also “codified, scalable, and replicable”. The study’s results certainly serve as a testament to the model’s versatile workability. In fact, groups like Heifer International, Trickle Up, and Fonkoze are currently implementing the graduation model.
By following BRAC’s lead, such organizations have taken a major step in the worldwide fight against poverty. They have followed suit in combating a deeply complex issue with an astutely comprehensive perspective.
The world’s poorest people commonly lack more than just income. Typically, the ultra-poor face challenges that have to do with health, education, and, perhaps most importantly, morale. The most effective way of breaking the poverty cycle is to acknowledge each of these moving parts by attacking from all sides.
The study’s success story helps to show policy-makers what works. The wide-ranging needs of the world’s poorest people necessitate an extensive set of tools. With time, extreme poverty could very well become a thing of the past. With this goal in mind, however, we must remember to always look at the bigger picture.
– Sarah Bernard
Sources: Humanosphere, World Bank, MIT
Photo: Erol Foundation