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Tackling psychosocial and capital constraints to alleviate poverty

Author

Listed:
  • Thomas Bossuroy

    (World Bank)

  • Markus Goldstein

    (World Bank)

  • Bassirou Karimou

    (UGT/Cellule Filets Sociaux)

  • Dean Karlan

    (Northwestern University
    Innovations for Poverty Action
    M.I.T. Jameel Poverty Action Lab)

  • Harounan Kazianga

    (Oklahoma State University)

  • William Parienté

    (M.I.T. Jameel Poverty Action Lab
    IRES/LIDAM)

  • Patrick Premand

    (World Bank)

  • Catherine C. Thomas

    (Stanford University)

  • Christopher Udry

    (Northwestern University)

  • Julia Vaillant

    (World Bank)

  • Kelsey A. Wright

    (Paris School of Economics)

Abstract

Many policies attempt to help extremely poor households build sustainable sources of income. Although economic interventions have predominated historically1,2, psychosocial support has attracted substantial interest3–5, particularly for its potential cost-effectiveness. Recent evidence has shown that multi-faceted ‘graduation’ programmes can succeed in generating sustained changes6,7. Here we show that a multi-faceted intervention can open pathways out of extreme poverty by relaxing capital and psychosocial constraints. We conducted a four-arm randomized evaluation among extremely poor female beneficiaries already enrolled in a national cash transfer government programme in Niger. The three treatment arms included group savings promotion, coaching and entrepreneurship training, and then added either a lump-sum cash grant, psychosocial interventions, or both the cash grant and psychosocial interventions. All three arms generated positive effects on economic outcomes and psychosocial well-being, but there were notable differences in the pathways and the timing of effects. Overall, the arms with psychosocial interventions were the most cost-effective, highlighting the value of including well-designed psychosocial components in government-led multi-faceted interventions for the extreme poor.

Suggested Citation

  • Thomas Bossuroy & Markus Goldstein & Bassirou Karimou & Dean Karlan & Harounan Kazianga & William Parienté & Patrick Premand & Catherine C. Thomas & Christopher Udry & Julia Vaillant & Kelsey A. Wrigh, 2022. "Tackling psychosocial and capital constraints to alleviate poverty," Nature, Nature, vol. 605(7909), pages 291-297, May.
  • Handle: RePEc:nat:nature:v:605:y:2022:i:7909:d:10.1038_s41586-022-04647-8
    DOI: 10.1038/s41586-022-04647-8
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    Citations

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    Cited by:

    1. Danila Medvedev & Diag Davenport & Thomas Talhelm & Yin Li, 2024. "The motivating effect of monetary over psychological incentives is stronger in WEIRD cultures," Nature Human Behaviour, Nature, vol. 8(3), pages 456-470, March.
    2. Lucia Hanmer & Uche Ekhator-Mobayode & Afrah Al-Ahmadi & Laura Rawlings, 2024. "Increasing Gender Equality in Fragile, Conflict, and Violence Settings," World Bank Publications - Reports 41421, The World Bank Group.
    3. Leight, Jessica & Hirvonen, Kalle & Zafar, Sarim, 2024. "The effectiveness of cash and cash plus interventions on livelihoods outcomes: Evidence from a systematic review and meta-analysis," OSF Preprints dnc2r, Center for Open Science.
    4. Premand, Patrick & Stoeffler, Quentin, 2022. "Cash transfers, climatic shocks and resilience in the Sahel," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    5. Costella,Cecilia Valentina & Shabahat,Elham Shirin & Sadiq,Nian & Okamura,Yuko, 2024. "Social Protection and Jobs for Climate Change Challenges : Current Practice and Future Opportunities," Social Protection Discussion Papers and Notes 191318, The World Bank.
    6. Alderman, Harold & Gilligan, Daniel O. & Hidrobo, Melissa & Leight, Jessica & Mulford, Michael & Tambet, Heleene, 2025. "Men can cook: Effectiveness of a men’s engagement intervention to change attitudes and behaviors in rural Ethiopia," World Development, Elsevier, vol. 185(C).
    7. Cecilia Costella & Elham Shabahat & Nian Sadiq & Yuko Okamura, 2024. "Social Protection and Jobs for Climate Change Challenges," World Bank Publications - Reports 41724, The World Bank Group.
    8. Cecilia Costella & Timothy Clay & Manann Donoghoe & Liz Giron, 2023. "Pathways to Climate-Resilient Economic Inclusion," World Bank Publications - Reports 40542, The World Bank Group.
    9. Krekel, Christian & Srisuma, Sorawoot, 2024. "Talking Therapy: Impacts of a Nationwide Mental Health Service in England," IZA Discussion Papers 16839, Institute of Labor Economics (IZA).
    10. Michael Callen & Miguel Fajardo-Steinhäuser & Michael G. Findley & Tarek Ghani & Michael J. Callen, 2025. "Can Digital Aid Deliver During Humanitarian Crises?," CESifo Working Paper Series 11670, CESifo.
    11. Patrick Premand & Dominic Rohner, 2024. "Cash and Conflict: Large-Scale Experimental Evidence from Niger," American Economic Review: Insights, American Economic Association, vol. 6(1), pages 137-153, March.
    12. Sarang Chaudhary & Hugo Martin Brousset Chaman & Jenny Swatton, 2022. "A Standardized Approach to Estimating the Cost of Economic Inclusion Programs," World Bank Publications - Reports 38366, The World Bank Group.
    13. Ana María Muñoz Boudet & Tasmia Rahman & Nour Nasr & Abigail Dalton, 2023. "Addressing Social and Gender Norms to Promote Gender Equality," World Bank Publications - Reports 39992, The World Bank Group.
    14. Yiguo Shen & Xiaojie Chen & Qingxin Yao & Jiahui Ding & Yuhan Lai & Yongheng Rao, 2023. "Examining the Impact of China’s Poverty Alleviation on Nighttime Lighting in 831 State-Level Impoverished Counties," Land, MDPI, vol. 12(6), pages 1-17, May.
    15. World Bank, 2024. "Chad Economic Update April 2024 - Special chapter Hosting Refugees in an Inclusive Manner [Note sur la Situation Economique Avril 2024 - Tchad Chapitre spécial Accueillir les réfugiés demanière inc," World Bank Publications - Reports 41883, The World Bank Group.
    16. Joshua Conrad Jackson & Danila Medvedev, 2024. "Worldwide divergence of values," Nature Communications, Nature, vol. 15(1), pages 1-14, December.

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