Happiness and Alleviation of Income Poverty : Impacts of an Unconditional Cash Transfer Programme using a Subjective Well-Being Approach

This study analyzes the impact of an exogenous, positive income shock on caregivers’ subjective well-being in Malawi using panel data from 3,365 households targeted to receive Malawi’s Social Cash Transfer Programme that provides unconditional cash to ultra-poor, labour-constrained households. The study consists of a cluster-randomized, longitudinal design. After the baseline survey, half of these village clusters were randomly selected to receive the transfer and a follow-up survey was conducted 17 months later. Utilizing econometric analysis and panel data methods, we find that household income increases from the cash transfer can have substantial subjective well-being gains among caregivers. Households use the cash to improve their families’ livelihoods, ensuring provision of their basic needs including food, shelter, and clothing. Reduction of these daily stresses makes caregivers happier about their current situations and gives them hope that the future will continue to get better

Social networks, social participation, and health among youth living in extreme poverty in rural Malawi

Extensive research documents that social network characteristics affect health, but knowledge of peer networks of youth in Malawi and sub-Saharan Africa is limited. We examine the networks and social participation of youth living in extreme poverty in rural Malawi, using in-depth interviews with 32 youth and caregivers. We describe youth’s peer networks and assess how gender and the context of extreme poverty influence their networks and participation, and how their networks influence health. In-school youth had larger, more interactive, and more supportive networks than out-of-school youth, and girls described less social participation and more isolation than boys. Youth exchanged social support and influence within their networks that helped cope with poverty-induced stress and sadness, and encouraged protective sexual health practices. However, poverty hampered their involvement in school, religious schools, and community organizations, directly through lack of required material means, and indirectly by reducing time and emotional resources and creating shame and stigma. Poverty alleviation policy holds promise for improving youth’s social wellbeing and mental and physical health by increasing their opportunities to form networks, receive social support, and experience positive influence

No. 69: Calibrating Informal Cross-Border Trade in Southern Africa

Informal cross-border trade (ICBT) is a significant feature of regional trade and international mobility in Southern Africa. The exact number of participants and economic importance of this trade is unknown because no official statistics are collected. Despite its obvious presence at every border post throughout the SADC region, ICBT remains largely invisible to policy-makers. Indeed, in government circles it is more often associated with smuggling, tax evasion and illegality than with innovation, enterprise and job creation. On the research side, there is a growing body of case study evidence that ICBT plays a critical role in poverty alleviation, food security and household livelihoods in Southern Africa. But its overall character and significance is unknown. With this in mind, SAMP initiated a project to examine cross-border regional trade at a selection of important border posts throughout the region. This research led to a number of country reports that provided rich insights into ICBT in particular countries. This report combines the data collected by each of the country teams and analyses the data set as a whole. The first issue addressed in the report is whether ICBT traders are a homogenous group. The research shows that this is far from being the case and that more attention needs to be paid to different types of traders and trading activity. Second, the report examines the activities of cross-border traders including the types of goods traded, the sources of those goods and where they are sold. While the majority of traders purchase goods from formal outlets in their countries of destination, most of these goods enter the informal economy on their return home. Third, the report examines financial transactions at the borders showing that most traders pay extremely small amounts of duty, which hardly justifies the effort of collecting it. On the other hand, only a small minority collect the VAT they are owed when they leave the country of purchase. Finally, the report itemizes the problems and challenges faced by informal traders when crossing borders. In total, the SAMP survey covered 20 land border posts connecting 11 Southern African countries using a threefold methodology. First, all people crossing through the selected border posts were monitored over a 10-day period and the number of ICBT traders counted. Second, the interactions of traders with customs officials were observed and the types, value and volumes of goods declared and duties paid were recorded. Third, a sample of traders was interviewed using an origin and destination (O&D) survey. During the course of the exercise, more than 205,000 people, including 85,000 traders, were counted passing through these border posts. The transactions of over 5,500 traders with customs officials were monitored and over 4,500 traders were interviewed. The study demonstrates that informal cross-border is a complex phenomenon and not uniform across the region, or even through border posts of the same country. However, the overall volume of trade, duties paid and VAT foregone, as well as the types of goods and where they are produced, indicate that this sector of regional trade should be given much greater attention and support by governments of the region as well as regional organizations such as the Common Market for Eastern and Southern Africa (COMESA), SADC and the Southern African Customs Union (SACU). The major findings at the regional level were as follows: Demographically, women comprise a significant proportion of traders and constitute the majority of traders crossing through nearly half of the border posts surveyed, including one of the busiest at Beit Bridge between South Africa and Zimbabwe. At the same time, an unexpectedly large number of men were also involved in ICBT. Malawi and Zambia had significantly more male than female traders, for example. Most ICBT is bilateral in character; that is, traders tend to operate between their home country and one other country. Trading into a third country is comparatively rare. At the same time, the vast majority of traders crossing into a country with goods to sell are citizens of that country. ICBT by traders of other nationalities is uncommon. Although South Africa is a major source of goods purchased by traders, the absence of South African informal traders was very noticeable. The reasons why South Africans do not participate in ICBT requires further exploration but it stands in marked contrast to formal sector regional trade where South African companies predominate. ICBT is a neglected market opportunity for small-scale South African entrepreneurs and the obstacles to their participation need to be better understood. The majority of traders travelled frequently to other countries for short visits (sometimes for less than a day) to buy goods to sell in their home country, or to sell goods that they had bought for that purpose in their home country. Only 13% of respondents bought and sold goods while travelling (two-way trading). Frequency of tracel also varied both within and between countries, with traders in the Namibian (42%) and Zambian (25%) surveys being most likely to travel every day. Others travel at least once a week (Mozambique, 67%; Zambia, 34%). Some travel less frequently, but at least once a month. Very few stay more than a month in another country. The types of goods carried by informal cross-border traders vary widely, but at most borders the trade was dominated by food, especially groceries and fresh produce. Again, there was considerable variability at different borders. New clothes, household and electrical goods comprised a significant proportion of the stock of some cross-border traders. Other goods identified in the survey included second-hand clothing, petrol, alcohol, car parts and construction materials. Traders mostly source their goods from the formal sector of destination countries. A small proportion obtain their goods from informal markets in other countries. Many traders acted as wholesale importers of goods, selling the goods they carried across borders to vendors in informal markets. Others sold from their own stalls in informal markets, door to door, or to networks of family, friends and other individuals. A small proportion sold to retailers and restaurants in the formal sector. The value of goods carried by traders indicates the complexity and diversity of this sector. A significant cohort of traders appeared to be survivalists as many said they carried less than ZAR500 worth of goods. However, at least some of these traders travel frequently with low-value loads, rather than infrequently with high-value loads. Most traders travelled with loads in the range of ZAR1,001-5,000. A small cohort of traders travelled with loads worth more than ZAR15,000. Informal traders make a relatively significant contribution to duties collected at border posts. During the 10-day survey period at the 20 border posts, ZAR3,750,000 was collected from 1,780 traders. Duties collected varied between and within border posts. In some surveys the value of duties paid per trader was less than ZAR50. Interestingly, duties were being incorrectly collected at some borders between Southern African Customs Union countries (for example, between Botswana and Swaziland and South Africa). Traders said they were willing to pay duties, but wanted amounts reduced and the process to be more transparent. Although most traders buy their goods in the formal sector, few claim VAT when leaving the country of purchase. Many did not know they could do this while others said that the systems are too complex and time consuming. Traders who do not claim VAT back make an unintended contribution to the fiscus of the country where they buy their goods. Responses to questions about treatment from officials at the borders were generally positive but varied between and within border posts. Larger and busier posts generally received less favourable reviews. The scope and scale of informal cross-border trade across the SADC suggests that it makes a significant contribution to regional trade and the retail economies of the region and is consistent with the stated aims of both the SADC and COMESA to promote intra-regional trade. Small-scale cross-border trade could, if promoted and supported, provide a route to the development of pro-poor trade policies that could have a direct impact at the household level. If trade policies for the region are to be successful, the activities of these entrepreneurs need to be included in planning processes. ICBT comprises a significant component of regional economic activity for most countries in Southern Africa. It is highly visible at border posts throughout the region. Only amongst policy-makers and governments does it remain largely invisible

No. 02: The State of Urban Food Insecurity in Southern Africa

The number of people living in urban areas is rising rapidly in Southern Africa. By mid-century, the region is expected to be 60% urban. Rapid urbanization is leading to growing food insecurity in the region’s towns and cities. This paper presents the results of the first ever regional study of the prevalence of food insecurity in Southern Africa. The AFSUN food security household survey was conducted simultaneously in 2008-9 in 11 cities in 8 SADC countries. The results confirm high levels of food insecurity amongst the urban poor in terms of food availability, accessibility, reliability and dietary diversity. The survey provides important insights into the causes of food insecurity and the kinds of households that are most vulnerable to food insecurity. It also shows the heavy reliance of the urban poor on informal food sources and the growing importance of supermarket chains

Political economy analysis of subnational health management in Kenya, Malawi and Uganda

The need to bolster primary health care (PHC) to achieve the Sustainable Development Goal (SDG) targets for health is well recognized. In Eastern and Southern Africa, where governments have progressively decentralized health decision-making, health management is critical to PHC performance. While investments in health management capacity are important, so is improving the environment in which managers operate. Governance arrangements, management systems and power dynamics of actors can have a significant influence on health managers' ability to improve PHC access and quality. We conducted a problem-driven political economy analysis (PEA) in Kenya, Malawi and Uganda to explore local decision-making environments and how they affect management and governance practices for health. This PEA used document review and key informant interviews (N = 112) with government actors, development partners and civil societies in three districts or counties in each country (N = 9). We found that while decentralization should improve PHC by supporting better decisions in line with local priorities from community input, it has been accompanied by thick bureaucracy, path-dependent and underfunded budgets that result in trade-offs and unfulfilled plans, management support systems that are less aligned to local priorities, weak accountability between local government and development partners, uneven community engagement and insufficient public administration capacity to negotiate these challenges. Emergent findings suggest that coronavirus disease 2019 (COVID-19) not only resulted in greater pressures on health teams and budgets but also improved relations with central government related to better communication and flexible funding, offering some lessons. Without addressing the disconnection between the vision for decentralization and the reality of health managers mired in unhelpful processes and politics, delivering on PHC and universal health coverage goals and the SDG agenda will remain out of reach

Three eyes on Malawi poverty: A comparison of quantitative and subjective wellbeing assessments

This dissertation aims at improving the official measurement of wellbeing in Malawi by proposing the incorporation of popular understanding of wellbeing. The objective is to reduce targeting errors that come due to differences in the understanding of wellbeing and poverty between those that identify the poor (villagers) and those who evaluate the quality of the targeting (experts). The dissertation compares the official measure of household wellbeing (consumption expenditure) against subjective measures of wellbeing (self and peers assessments) that are applied on the same households at the same time. Four comparisons are made; household rankings, poverty rates, households determined as poor, and characteristics of poor households. The comparisons determine similarities and differences and, where different, whether the characteristics unique to subjective assessments can be incorporated in the official wellbeing assessment. The dissertation finds that the three assessments are not similar, although there are some overlaps. The ranking of the households based on consumption expenditure is significantly different from that based on peers-assessment. Likewise, poverty rates for three assessments are different. While some households identified as poor are the same, these are less than discordant households. In terms of characteristics, some are common in all the three assessments while some features associated with subjective assessments are absent in the official wellbeing assessment system. An assessment of the absent features shows that it is possible to improve the official assessment without radical changes. Modifications can be made in data collection and analysis, and wellbeing profiling. In particular, qualitative aspects of wellbeing like type and frequency of meals, food security, quality and quantity of clothing would improve the relevance of the operational definition of poverty. Likewise, wellbeing profiling that includes subjective wellbeing assessment is likely to resonate with what is on the ground

The impact of the Social Cash Transfer Scheme on food security in Malawi

The Malawi Social Cash Transfer Scheme (SCTS) was launched in 2006 to improve food security by directly providing cash transfers to the country's most destitute households. Although government-implemented cash transfer schemes have gained popularity throughout Latin America, these schemes are just emerging in Africa. While where there is evidence of the beneficial impact of cash transfers on food security from Latin American countries, there is a dearth of evidence from resource poor countries in Africa. In order to fill this gap, we conducted a longitudinal, randomized community control study of the pilot SCTS in Mchinji, Malawi from March 2007 to April 2008. In this study, we describe the impact of approximately US$14 per month on food security among recipient households compared to control households using indicators of food consumption and expenditures and dietary diversity. We present compelling evidence, whereby each of the tested outcomes yields large effect sizes that are highly statistically significant, demonstrating a sizeable impact of cash transfers on food security and food diversity in rural Malawi. The SCTS appears to be an effective tool within the National Social Welfare Policy for improving food security in the country's destitute households.Cash transfer Social protection Impact evaluation Food security Food expenditures Africa

Poverty reduction strategy processes in Malawi and Zambia

Malawi and Zambia are poor and heavily indebted countries whose dependence on foreign aid is pronounced. They both qualify for debt relief in terms of the Heavily Indebted Poor Country (HIPC) initiative under the auspices of the Bretton Woods institutions, provided they formulate a Poverty Reduction Strategy Paper (PRSP) that satisfies the new ‘process’ conditionality which emphasises broad participation. In grappling with the PRSP process the stakeholders (the state, non-state actors, and donors) appear to have produced credible policy documents with a measure of ‘national ownership’. On a comparative note, it is significant that civil society organisations played an active role in both Malawi and Zambia in formulating the PRSP and thus lent the outcome some legitimacy. It is also significant that in both countries the national assemblies were marginalised in these policy-making exercises, which were driven by the respective executive branches of government, notably the Ministries of Finance. In the case of Malawi the modest involvement by parliament was attributable mainly to its general subordination to the executive in a presidential system of government, while the coincidence of the PRSP process and the 2001 elections was the main explanatory factor in Zambia. The donors found themselves in an ambivalent position. On the one hand, in the interest of creating national ownership of the PRSP they were expected to keep their hands off. On the other hand, they were apprehensive that the substantive nature of the final document would not satisfy the World Bank and IMF eligibility criteria for debt relief. Hence, they took active part in the process