KNOWLEDGE MANAGEMENT SPOTLIGHT Ultra-Poor Graduation Programs July 2022
SUMMARY The CHALLENGE: Ultra-poor families face deep multidimensional poverty that hinder paths toward sustainable liveilhoods. Featured Solution: The GRADUATION PROGRAM offers a long-term solution whereby ultra-poor families receive a mix of assets – consumption support, access to savings-and loans, mentorship, community linkages, and skills for a holistic path out of poverty. What SUCCESS looks like: u At least one hot meal a day u At least two sustainable sources of income u A secure home with a roof u Children in school u Increased self-confidence and community connections u A plan for the future LOOKING FORWARD: Opportunity supports Graduation Programs in: u HAITI: Fonkoze plans to expand u MALAWI: OIM programming began in 2021 and runs through 2023 u COLOMBIA: AGAPE is in the research phase and hopes to begin programming December 2022
ASCENT OUT OF POVERTY FOR THE ULTRA POOR: GRADUATION PROGRAMS THE CHALLENGE: DEEP, MULTI-DIMENSIONAL POVERTY
The Graduation Model aims to serve ultra-poor families facing deep, multidimensional poverty. An example of a starting candidate may be a woman with dependents or any person with a disability. Targeted families are bereft of basic human needs such as food, clean water, and safe shelter. They also often suffer from low self-esteem and isolation. The Partnership for Economic Inclusion (PEI) estimates that 92 million people have benefitted from graduation programs, which have a broad cost per participant of $41 - $2,253.i In this context, interventions used previously are not sufficient. u Microcredit: does not always reach the poorest communities and addresses only income generation, without other interventions around water, housing, self-esteem, and so on. u Cash-Transfers: Without training, linkages to community support, or empowerment interventions, these programs only solve one of the dimensions of poverty facing the ultra-poor. THE SOLUTION: GRADUATION PROGRAMS
The Graduation Model (or Economic Inclusion Programs, as referred to by PEI) grew out of an evidence-based program created by BRAC in Bangladesh to target the ultra-poor. The model is a multifaceted approach to address immediate needs, catalyze income generation, spark positive behavior change, and promote increased savings and other assets. ii Clients also receive regular guidance of a case-manager who works with each family to prepare them for success after the end of the program.iii Research by the London School of Economics found favorable outcomes for participants, seven years post-graduation, in comparison to a control group. This model aims to increase skill development and provide for a more sustainable way of life. Households that have been positively impacted by the graduation model have shown an increase in school attendance for their children, food security, access to health care, and confidence.iv PEI reports this model has reached nearly 20 million households in over 75 countries. Nevertheless, the need is substantially higher. Because of generally high cost per participant, organizations are experimenting with less intensive approaches which offer cash-plus-training, for example.v
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