Graduation strategy for the poor to get out of poverty is one of the major concerns for the policy makers. In particular, it is crucial for them to clearly explain it when it comes to implementing social assistance policies. Tax payers are commonly aware that cash transfer programmes might discourage the recipients to work; and that is the same worry for the development partners especially donors too.
Consultative Group to Assist the Poor (CGAP) released a series of interviews with policymakers last week. In the interviews, 6 policymakers argue what graduation strategies should be for the poor to realise graduation.
In particular, I like the idea that social protection programmes together with vocational training or other livelihood promotion activities would promote their livelihoods up to the level where they can be eligible to access financial markets. The extreme poor cannot access to even micro-finance programmes.
Personally, the graduation programme for the ultra poor in Bangladesh by BRAC is one of my favourite programmes.
The graduation approach has five building blocks – consumption support, savings, the transfer of an asset, skills training, and regular coaching, which are delivered over a period of 18-36 months. It is modeled off the BRAC program in Bangladesh which has reached more than 1.4 million people since it was created in 1972.