That approach didn't wipe out poverty for participants, but they became "significantly less poor," said economist Dean Karlan of Yale University and the nonprofit Innovations for Poverty Action.
"There's no panacea," Karlan said, but the approach is "better than anything else I'm aware of."
Karlan and colleagues conducted an independent evaluation of the anti-poverty strategy, which is widely used in Bangladesh, to see if it would work in a variety of settings. Their review included more than 10,000 households in Ethiopia, Ghana, Honduras, India, Pakistan and Peru.
Key components of the programs include providing assets like livestock and training in how to manage them, a regular stipend to provide basic support, and encouragement to save money.
To evaluate the programme, the study randomly assigned eligible households to participate or not, and then compared the outcomes for the two groups over three years.
Most of the programme's activity was in the first few months. At the two-year mark, when the programme ended, the participating group was doing better across a wide range of measures.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
