IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-03486-4.html
   My bibliography  Save this article

The impact of unconditional cash transfers on enhancing household wellbeing in Pakistan: evidence from a quasi-experimental design

Author

Listed:
  • Abdul Hameed

    (Health Services Academy)

  • Tariq Mahmood Ali

    (Health Services Academy)

  • Muhammad Omar Najam

    (Health Services Academy)

Abstract

Cash transfer programs have emerged as potent tools for alleviating poverty and enhancing the living conditions of the most deprived households in developing nations. Such initiatives have now become integral components of social protection systems in many developing countries, including Pakistan. Evaluating the efficacy of these safety nets is crucial to comprehend their value in terms of public expenditure. This research employed a well-being index to gauge the impact of unconditional cash transfers on the socioeconomics of recipients. By employing three rounds of the BISP impact assessment survey conducted in 2011, 2016, and 2019. The study measured the overall impact of cash transfers on well-being by utilizing Principal Component Analysis in conjunction with a Difference-in-Differences Quasi-Experimental design over the years. The findings of the study indicate that between 2011 and 2016, the socioeconomic status declined for both treatment and control groups, but the reduction was less pronounced among those who received treatment compared to the control group with insignificant. From 2016 to 2019, there was a marginal positive increase in socioeconomic status, although it was of insignificance. Overall, the well-being of both the control and treatment groups decreased from 2011 to 2019, with a slightly more pronounced improvement observed in the treatment group. This trend suggests that the impact of the BISP unconditional cash transfer program had a limited effect on altering the well-being of the beneficiaries. The lack of substantial impact from the BISP’s cash transfers on household well-being can be attributed to factors such as inflation, unemployment, economic slowdown, payment challenges, insufficient funding, and gaps between installments. The government of Pakistan should reconsider the substantial investment in BISP within the context of value for money. It is advisable for the government and policymakers to channel this substantial investment into income generation, capital asset development, microbusinesses, climate-resilient agriculture, and livestock in order to stimulate the real economy sectors.

Suggested Citation

  • Abdul Hameed & Tariq Mahmood Ali & Muhammad Omar Najam, 2024. "The impact of unconditional cash transfers on enhancing household wellbeing in Pakistan: evidence from a quasi-experimental design," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03486-4
    DOI: 10.1057/s41599-024-03486-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-03486-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-03486-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hou, Xiaohui & Ma, Ning, 2011. "Empowering women : the effect of women's decision-making power on reproductive health services uptake -- evidence from Pakistan," Policy Research Working Paper Series 5543, The World Bank.
    2. Saeed, Muhammad Kashif & Hayat, Muhammad Azmat, 2020. "The Impact of Social Cash Transfers on Poverty in Pakistan-A Case Study of Benazir Income Support Programme," MPRA Paper 99805, University Library of Munich, Germany.
    3. Xiaohui Hou, 2016. "How Does Women’s Decision-Making Power Affect Budget Share, Nutrition and Education in Pakistan?," Journal of Family and Economic Issues, Springer, vol. 37(1), pages 115-131, March.
    4. Sudhanshu Handa & Benjamin Davis, 2006. "The Experience of Conditional Cash Transfers in Latin America and the Caribbean," Working Papers 06-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    5. Vivi Alatas & Abhijit Banerjee & Rema Hanna & Benjamin A. Olken & Julia Tobias, 2012. "Targeting the Poor: Evidence from a Field Experiment in Indonesia," American Economic Review, American Economic Association, vol. 102(4), pages 1206-1240, June.
    6. Menno Pradhan & Laura B. Rawlings, 2002. "The Impact and Targeting of Social Infrastructure Investments: Lessons from the Nicaraguan Social Fund," The World Bank Economic Review, World Bank, vol. 16(2), pages 275-295, August.
    7. Durr-E-Nayab & Shujaat Farooq, 2014. "Effectiveness of Cash Transfer Programmes for Household Welfare in Pakistan: The Case of the Benazir Income Support Programme," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(2), pages 145-174.
    8. Agnes Quisumbing & Bob Baulch & Neha Kumar, 2011. "Evaluating the long-term impact of anti-poverty interventions in Bangladesh: an overview," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 3(2), pages 153-174.
    9. Mohammad Abdul Munim Joarder & Mark Harris & Alfred M. Dockery, 2017. "Remittances and Happiness of Migrants and Their Home Households: Evidence Using Matched Samples," Journal of Development Studies, Taylor & Francis Journals, vol. 53(3), pages 422-443, March.
    10. Shujaat Farooq & Usman Ahmad, 2020. "Economic Growth and Rural Poverty in Pakistan: A Panel Dataset Analysis," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 1128-1150, September.
    11. Abdul Hameed & Zara Qaiser, 2019. "Estimating Social Exclusion in Rural Pakistan: A Contribution to Social Development Policies," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 11(1), pages 103-122, March.
    12. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2005. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 83-120, February.
    13. Tehmeena Iqbal & Padda, Ihtsham Ul Haq & Farooq, Shujaat, 2020. "Unconditional Cash Transfers and Women Empowerment: The Case of Benazir Income Support Programme (BISP) in Pakistan," Journal of Business and Social Review in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 6(2), pages 401-418, June.
    14. Guush Berhane & Daniel O. Gilligan & John Hoddinott & Neha Kumar & Alemayehu Seyoum Taffesse, 2014. "Can Social Protection Work in Africa? The Impact of Ethiopia's Productive Safety Net Programme," Economic Development and Cultural Change, University of Chicago Press, vol. 63(1), pages 1-26.
    15. Sarah Baird & Francisco H.G. Ferreira & Berk Özler & Michael Woolcock, 2014. "Conditional, unconditional and everything in between: a systematic review of the effects of cash transfer programmes on schooling outcomes," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 6(1), pages 1-43, January.
    16. repec:bla:devpol:v:24:y:2006:i:5:p:553-569 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Etienne Lwamba & Shannon Shisler & Will Ridlehoover & Meital Kupfer & Nkululeko Tshabalala & Promise Nduku & Laurenz Langer & Sean Grant & Ada Sonnenfeld & Daniela Anda & John Eyers & Birte Snilstveit, 2022. "Strengthening women's empowerment and gender equality in fragile contexts towards peaceful and inclusive societies: A systematic review and meta‐analysis," Campbell Systematic Reviews, John Wiley & Sons, vol. 18(1), March.
    2. Marta Favara & Catherine Porter & Tassew Woldehanna, 2019. "Smarter through social protection? Evaluating the impact of Ethiopia’s safety-net on child cognitive abilities," Oxford Development Studies, Taylor & Francis Journals, vol. 47(1), pages 79-96, January.
    3. Mumbunan, Sonny & Maitri, Ni Made Rahayu, 2022. "A Review of Basic Income for Nature and Climate," OSF Preprints bre43, Center for Open Science.
    4. Stephan Klasen & Simon Lange, 2015. "Targeting Performance and Poverty Effects of Proxy Means-Tested Transfers: Trade-offs and Challenges," Ibero America Institute for Econ. Research (IAI) Discussion Papers 231, Ibero-America Institute for Economic Research.
    5. Bauchet, Jonathan & Undurraga, Eduardo A. & Reyes-García, Victoria & Behrman, Jere R. & Godoy, Ricardo A., 2018. "Conditional cash transfers for primary education: Which children are left out?," World Development, Elsevier, vol. 105(C), pages 1-12.
    6. Dr. Shabana Tunio & Dr. Ghazala Shoukat & Dr. Muniza Shaikh, 2020. "Women empowerment through BISP: An analysis of the National Cash Transfer Program (NCTP) in Sindh from 2008-2018," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 16(2), pages 38-46.
    7. Swamy, Vighneswara, 2014. "Financial Inclusion, Gender Dimension, and Economic Impact on Poor Households," World Development, Elsevier, vol. 56(C), pages 1-15.
    8. Jules Gazeaud & Victor Stephane, 2023. "Productive Workfare? Evidence from Ethiopia's Productive Safety Net Program," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 265-290, January.
    9. Haseeb, Muhammad & Vyborny, Kate, 2022. "Data, discretion and institutional capacity: Evidence from cash transfers in Pakistan," Journal of Public Economics, Elsevier, vol. 206(C).
    10. Palacios, Alfredo, 2016. "Impacto de los Programas de Transferencias de Ingresos en la Calidad de la Vivienda Familiar: Evidencia para el Plan de Inclusión Social, Argentina [Impact of Cash Transfer Programs on the Quality ," MPRA Paper 102482, University Library of Munich, Germany.
    11. Muhammad Haseeb & Kate Vyborny, 2016. "Imposing institutions: Evidence from cash transfer reform in Pakistan," CSAE Working Paper Series 2016-36, Centre for the Study of African Economies, University of Oxford.
    12. Tadesse, Getaw & Zewdie, Tadiwos, 2019. "Grants vs. credits for improving the livelihoods of ultra-poor: Evidence from Ethiopia," World Development, Elsevier, vol. 113(C), pages 320-329.
    13. Tehmeena Iqbal & Shujaat Farooq & Ihtsham Ul Haq Padda, 2021. "Can Empowerment be Enhanced by Putting Cash in the Hands of Poor Women? Learning from Pakistan’s BISP Program," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 760-792, June.
    14. Unnikrishnan, Vidhya & Imai, Katsushi S., 2020. "Does the old-age pension scheme improve household welfare? Evidence from India," World Development, Elsevier, vol. 134(C).
    15. Simons, Andrew M., 2022. "What is the optimal locus of control for social assistance programs? Evidence from the Productive Safety Net Program in Ethiopia," Journal of Development Economics, Elsevier, vol. 158(C).
    16. Scarlato, Margherita & D'Agostino, Giorgio, 2016. "The political economy of cash transfers: a comparative analysis of Latin American and sub-Saharan African experiences," IDOS Discussion Papers 6/2016, German Institute of Development and Sustainability (IDOS).
    17. Basil Msuha & Luitfred D. Kissoly & Arnold Kihaule, 2024. "Design and Implementation of Social Safety Nets in Tanzania: A Systematic Review," International Journal of Economics and Financial Issues, Econjournals, vol. 14(1), pages 180-203, January.
    18. Zhou, Lei & Jiang, Bo & Wang, Jingxi, 2020. "Do cash transfers have impacts on student Academic, cognitive, and enrollment outcomes? Evidence from rural China," Children and Youth Services Review, Elsevier, vol. 116(C).
    19. Galdo, Virgilio & Briceño, Bertha, 2005. "Evaluating the Impact on Child Mortality of a Water Supply and Sewerage Expansion in Quito: Is Water Enough?," IDB Publications (Working Papers) 2833, Inter-American Development Bank.
    20. Saeed, Muhammad Kashif & Hayat, Muhammad Azmat, 2020. "The Impact of Social Cash Transfers on Poverty in Pakistan-A Case Study of Benazir Income Support Programme," MPRA Paper 99805, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03486-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.