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Case Study Evaluation, learning and action: A case study of Targeting Ultra-Poor program South Asian Regional Impact Evaluation Workshop Dhaka, Bangladesh April 27 2014 Munshi Sulaiman, Yale University

Evaluation, learning and action: A case study of Targeting …pubdocs.worldbank.org/pubdocs/publicdoc/2016/5/946071463001125627/Core... · Case Study Evaluation, learning and action:

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Case Study

Evaluation, learning and action: A case study of Targeting Ultra-Poor program

South Asian Regional Impact Evaluation Workshop Dhaka, Bangladesh April 27 2014

Munshi Sulaiman, Yale University

Making impact: An ongoing process

Action

Impact Evaluation

Learning

Brief overview of Targeting Ultra-Poor Program

• Objective – Livelihood development of the ultra-poor

• Target group – Economically active ultra-poor

• Intervention package – Asset transfer, inputs for micro-enterprise, hand-

holding, weekly stipends, health supports, social development, mobilize local supports,

• Duration – 2 years (graduate out of extreme poverty)

Targeting ultra-poor Program: Development and phases

2002 2007 2012

Microfinance experience

Lessons from IGVGD program

Phase 1 of TUP Phase 2 of TUP

Non-randomized Impact evaluation

Randomized impact evaluation

Operational research

Phase 3

CGAP’s graduation program, pilots in 8 countries…

Research on program

optimization

Why & what? How?

Start of Targeting Ultra-Poor program?

• Microfinance do not reach the ultra-poor

• Results in exclusion from other linked services (Rahman and Razzaque, 2000)

• Do not benefit even if they participate (Zaman, 2000)

Start of Targeting Ultra-Poor program?

• Need for sequencing of multiple services (IGVGD program)

Start of Targeting Ultra-Poor program?

• Experiences with IGVG program

• Do these numbers show impact of IGVGD?

75

717

415

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1994 (pre-prog) 1996 (end-prog) 1999 (+3 years)

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Start of Targeting Ultra-Poor program?

• Program design Component Purpose

1. Integrated targeting methodologies Effective targeting of the extreme poor

2. Income generating asset transfer Build economic asset base

3. Training and regular refreshers Ensure good return from asset

4. Technical follow-up of enterprise Ensure good return from asset

5. Provision of all support inputs Ensure good return from asset

6. Weekly stipends Reduce opportunity cost

7. Health support Reduce costly morbidity

8. Social development Awareness of rights and justice

9. Mobilizing local elite support Create an enabling environment

What are the expected outcomes of TUP interventions?

• Each component can have its own ‘theory of change’, for example

Weekly food stipend

Encourage savings

Increased financial assets

Increase food intake

Improve productivity

Reduce incentive to work

Livelihood Outcomes

- Income - Consumption - Assets - Vulnerability

A ‘black-box’ impact evaluation

Package of inputs

Asset Skills Aspirations Incentives

Impact indicators - Income - Consumption - Assets - Vulnerability

Employment Productivity

TUP impact evaluation: Phase 1

Many outcome indicators! Graph shows per capita daily food expenditure (2002 price)

TUP

Comparison group

Tk 2.8

Discussion point:

• Are these the ‘true’ impacts of the program?

• Need to know who are the comparison group to answer this question.

Participatory Wealth Ranking

Geographical Targeting

TUP impact evaluation: Phase 1

Not ultra-poor

Ultra-poor

Screening by poverty indicators

Discussion point:

• Are these the ‘true’ impact of the program?

• Not necessarily

– They may have been on different income growth paths

– Indirect effects of the interventions within the villages

TUP impact evaluation: Phase 2

• Let’s randomize… • How?

– Randomized rollout

• At what level (household vs. village vs. branch) – Operational feasibility (village/branch) – Statistical power (household) – Spillover effects (village/branch) – Anticipation or discouragement effects (branch) – Contamination (branch) – Research costs (household)

TUP impact evaluation: Phase 2

TUP impact evaluation: Phase 2

• Targeting done in all branches in same fashion

• Compare baseline (2007) balance Characteristics Average Normalized

Difference Number of obs Control Treat

Household size 3.105 3.376 0.114 6,819 Number of children below 10 0.729 0.878 0.107 6,819

Male headed HH 0.523 0.628 0.151 6,816 Main female never been in an NGO 0.857 0.886 0.061 6,818 Whether received any govt. benefit 0.191 0.202 0.018 6,819

Respondent is literate 0.067 0.076 0.026 6,789 Years of schooling of main female respondent 0.522 0.599 0.033 6,789

Per capita calorie intake 903.200 901.741 -0.003 6,377 Per capita food expenditure 2877.362 2969.947 0.050 6,377

Per capita non-food expenditure 1034.110 1024.761 -0.004 6,478 Per capita total expenditure 3910.114 3997.606 0.027 6,369 log of wealth 7.038 6.967 -0.031 6,417

TUP impact evaluation: Phase 2

• Maintain compliance with design

– Branch level randomization almost eliminated possibility of contamination

– Less than 1% control households received intervention by 2nd follow-up (in 2011)

• Attrition

– 13% of the eligible households

TUP impact evaluation: Phase 2

0

1000

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Baseline 2-year after 4-year after

Pe

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Treatment Control

Impact on per capita annual income: - Tk. 807 in 2 years - Tk. 1,379 in 4 years

TUP impact evaluation: Phase 2

• The program has impact beyond target households

– Wage rates for house maid job increase by 10% in intervention communities

– Wage employment of other non-beneficiary ultra-poor increases by 8%

– Their total earning increased by 6%

Cost-effectiveness

• Program costs 20,700TK per HH, yields 1754 TK per year

• Return on MFI accounts 4-5%

• 20,700 at 4.5% yields 932<1754

• Would be useful to compare to cash transfer