The paper shows that self-control, time preferences, and values are malleable in adults, and that investments in these skills and preferences reduce crime and violence.
... See More + The authors recruited criminally-engaged Liberian men and randomized half to eight weeks of group cognitive behavioral therapy, fostering self-regulation, patience, and noncriminal values. They also randomized $200 grants. Cash alone and therapy alone dramatically reduced crime and violence, but effects dissipated within a year. When cash followed therapy, however, crime and violence decreased by as much as 50 percent for at least a year. They hypothesize that cash reinforced therapy's lessons by prolonging practice and self-investment.
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Policy Research Working Paper WPS7648 APR 20, 2016
Liberia underwent two civil wars between 1989 and 2004. During the wars, nearly 10 percent of Liberia’s 3.5 million people died, a majority were displaced, and tens of thousands of young men were recruited into combat.
... See More + Since 2003, Liberia has been at peace, but poor and unemployed young men are among the greatest public safety concerns. This study targeted ‘hard-core street youth’, men typically ages 18 to 35 who were commonly homeless or lived in extreme poverty. The study ultimately recruited 999 young men to participate. Thirty-eight percent had been members of armed groups in the past. On average the men were age 25, had roughly eight years of schooling, earned about 68$ in the previous month, and worked nearly 50 hours per week (mainly in low skill labor and illicit work). More than half reported committing theft in the previous two weeks, and percent 20 sold drugs. Half used marijuana or hard drugs daily and many engaged in violent altercations with police other community members. In Liberia, behavioral therapy programs have the potential to reduce crime and anti-social behavior, especially in combination with cash transfers. The results suggest that character skills, self-image, and values are malleable into adulthood, and that even short, non-expert programs of cognitive behavioral therapy can be an effective tool for instilling such changes. Although the cash did not have a long-term impact, supposedly irresponsible men demonstrated an ability to save and invest the cash. They spent little on drugs and alcohol, and lived better for a short time, meaning cash transfers may have potential and should be explored further. The qualitative stories of business failure suggest that, in addition to an absence of capital, these men’s ability to increase their income is held back by the poor protection of property rights and high levels of risk without insurance.
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What's the most effective way to reintegrate ex-combatants and reduce illegal activities? This policy note reviews an innovative program that had a big impact.
... See More + In Liberia, where civil wars were fought on and off between 1989 and 2003, the non-profit organization, action on armed violence, the Government of Liberia, and the United Nations developed an innovative program to help ex-combatants move into full-time farm work by giving them training, counseling, and start-up capital. The evaluation found that the program successfully shifted high-risk men from criminal activities into farming. The evaluation also showed that skills training aren't always enough. As policy makers in the region look to strengthen their economies and boost stability, the results of this evaluation offer guidelines for crafting successful programs. These findings will likely help development experts to create programs that help the millions of young people entering the labor force find meaningful and productive work. This Evidence to Policy note was jointly produced by the World Bank Group, the Strategic Impact Evaluation Fund (SIEF), and the British government's Department for International Development.
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This brief summarizes the results of a gender impact evaluation study, entitled How to promote order and property rights under weak rule of law?
... See More + : an experiment in changing dispute resolution behavior through community education, conducted between 2009 and 2010 in Liberia. The study observed the impact of mass education campaigns in Liberia, where property disputes are endemic on the community level. In treated communities, land disputes are 29 percent less likely to remain unsolved at the end of the year and 32 percent less likely to result in property destruction. Disputants are 10 percent more satisfied with the outcomes. These effects are strongest among the most longstanding disputes. There are unintended consequences. There are large increases in informal extrajudicial punishment, and increases in fights, youth-elder disputes, and demonstration. These are mostly non-violent, and violent conflict decreases, but not in a statistically significant way. There is a non-significant positive impact on attitudes towards women's and minority rights. Funding for the study derived from the United Nations Peace Building Fund in Liberia, Humanity United, Yale University, and The World Bank's Italian Children and Youth Trust Fund.
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This brief summarizes the results of a gender impact evaluation study, entitled Reintegrating and employing high risk youth in Liberia : lessons from a randomized evaluation of a landmine action an agricultural training program for ex-combatants, conducted between 2009 and 2011 in Liberia.
... See More + The study observed the impact of landmine action an agricultural training program on ex-combatants and other high-risk youth on the individual level. The program has a large and significant impact on engagement in agricultural activities. The program had little impact on illicit activities like mining, but those who participated in the program spent fewer hours engaged in illicit activities. The program led to no significant changes in crime or aggression, but the participants are less likely to be interested in or mobilized into violence after the election in Cote d'Ivoire. Funding for the study derived from the United Nations Peace Building Fund, Yale University, Spanish Impact Evaluation Fund, and Italian Children and Youth Trust Fund.
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This brief summarizes the results of a gender impact evaluation study, Building women's economic and social empowerment through enterprise an experimental assessment of the Women's Income Generating Support (WINGS) program in Uganda, conducted between time periods April 2009-August 2012 in Uganda.
... See More + A year after the intervention, the average cash earnings doubled, cash savings tripled, and short-term spending on durable assets increased 30 to 50 percent. The treatment has the greatest impact on individuals with the lowest initial levels of capital. There are no effects on women's independence, status in the community or freedom from partner violence. Close supervision from Non-Governmental Organizations (NGOs) leads to only slight increases in economic success. Funding for the study derived from Learning on Gender and Conflict and Africa (LOGICA), AVSI Uganda, a Vanguard Charitable Trust, and Yale University's Institution for social and policy studies.
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This brief summarizes the results of a gender impact evaluation study, entitled Employment generation in rural Africa : mid-term results from an experimental evaluation of the youth opportunities program in Northern Uganda, conducted in the year 2008, in Uganda.
... See More + The study observed that mid-term results after two years suggest four main findings. First, despite a lack of central monitoring and accountability, most youth invest the transfer in vocational skills and tools. Second, the economic impacts of the transfer are large. Third, the evidence suggests that poor access to credit is a major reason youth cannot start these vocations in the absence of aid. Finally, these economic gains result in modest improvements in social stability. The outcomes are split into three themes: Economic, Alienation, and Subjective Well-being. For each theme, the results are summed and presented as a z-score. The economic impacts are large with an increase in .28 standard deviations. The male and female economic impacts are similar. Funding for the study derives from Gender Action Plan, Uganda Social Action Fund, Spanish Impact Evaluation Fund.
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This brief summarizes the results of a gender impact evaluation study, entitled Credit constraints, occupational choice and the process of development : long run evidence from cash transfers in Uganda, conducted in the year 2008 in Uganda.
... See More + The study observed that poor, unemployed men are commonly associated with social dislocation and unrest, and governments routinely justify employment programs on reducing such risks. Despite huge economic effects, we see little impact on cohesion, aggression, and collective action. The treated youth invest most of the grant in skills and business assets. After four years, they are 65 percent more likely to practice a skilled trade, mainly small scale industry. The gains are the largest amongst those with the fewest assets. Women earn higher returns than men compared to control (84 percent for women, 31 percent for men). Funding for the study derived from Uganda Social Action Fund, Spanish Impact Evaluation Fund.
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In Uganda, researchers evaluated a government program that gave unsupervised cash grants to youth for small business development and training. Based on final results four years after the intervention, the cash transfers achieved nearly all the goals.
... See More + Beneficiaries invested most of the cash in building business opportunities. While they still did agricultural work, they spent more time working in skilled industry and services and their incomes rose. The study also illustrates the important weaknesses of microfinance. This impact evaluation and a host of other studies show that many young adults have high returns on investment when they have access to capital. Microloans are poor vehicles for small business growth and the development of cottage industry. As governments and the private sector work to develop this financial sophistication, cash transfers are likely to be important drivers of poverty alleviation and development for youth. This Evidence to Policy note was jointly produced by the World Bank Group, the Strategic Impact Evaluation Fund (SIEF), and the British government's Department for International Development.
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This study investigates an attempt to economically and socially empower some of the poorest and most vulnerable young women in one of the poorest and most fragile places in the world: northern Uganda.
... See More + Investing in women is said to be a key to development. Educate her, buy her a cow or goat, or help her start a business and great things will follow: sustained increases in income, greater empowerment and social inclusion, health and education for the children, and (especially in war-affected regions) mental health and happiness. This report provides provisional answers to these questions based on data collected from April 2009 to August 2012. The questions will continue to be explored and analyzed in academic papers in future, but the authors attempt to draw out the key findings and policy lessons as close to the end of the intervention and data collection as possible.
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Working Paper (Numbered Series) 86059 APR 01, 2013
Can cash transfers promote employment and reduce poverty in rural Africa? Will lower youth unemployment and poverty reduce the risk of social instability?
... See More + The authors experimentally evaluate one of Uganda's largest development programs, which provided thousands of young people nearly unconditional, unsupervised cash transfers to pay for vocational training, tools, and business start-up costs. Mid-term results after two years suggest four main findings. First, despite a lack of central monitoring and accountability, most youth invest the transfer in vocational skills and tools. Second, the economic impacts of the transfer are large: hours of non-household employment double and cash earnings increase by nearly 50 percent relative to the control group. The authors estimate the transfer yields a real annual return on capital of 35 percent on average. Third, the evidence suggests that poor access to credit is a major reason youth cannot start these vocations in the absence of aid. Much of the heterogeneity in impacts is unexplained, however, and is unrelated to conventional economic measures of ability, suggesting we have much to learn about the determinants of entrepreneurship. Finally, these economic gains result in modest improvements in social stability. Measures of social cohesion and community support improve mildly, by roughly 5 to 10 percent, especially among males, most likely because the youth becomes a net giver rather than a net taker in his kin and community network. Most strikingly, we see a 50 percent fall in interpersonal aggression and disputes among males, but a 50 percent increase among females. Neither change seems related to economic performance nor does social cohesion a puzzle to be explored in the next phase of the study. These results suggest that increasing access to credit and capital could stimulate employment growth in rural Africa. In particular, unconditional and unsupervised cash transfers may be a more effective and cost-efficient forming of large-scale aid than commonly believed. A second stage of data collection in 2012 will collect longitudinal economic impacts, additional data on political violence and behavior, and explore alternative theoretical mechanisms.
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Working Paper (Numbered Series) 66523 DEC 01, 2011
In Uganda, researchers evaluated a government program that gave unsupervised cash grants to youth for small business development and training. Based on final results four years after the intervention, the cash transfers achieved nearly all the goals.
... See More + Beneficiaries invested most of the cash in building business opportunities. While they still did agricultural work, they spent more time working in skilled industry and services and their incomes rose. The study also illustrates the important weaknesses of microfinance. This impact evaluation and a host of other studies show that many young adults have high returns on investment when they have access to capital. Microloans are poor vehicles for small business growth and the development of cottage industry. As governments and the private sector work to develop this financial sophistication, cash transfers are likely to be important drivers of poverty alleviation and development for youth. This Evidence to Policy note was jointly produced by the World Bank Group, the Strategic Impact Evaluation Fund (SIEF), and the British government's Department for International Development.
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In Uganda, researchers evaluated a government program that gave unsupervised cash grants to youth for small business development and training. Based on final results four years after the intervention, the cash transfers achieved nearly all the goals.
... See More + Beneficiaries invested most of the cash in building business opportunities. While they still did agricultural work, they spent more time working in skilled industry and services and their incomes rose. The study also illustrates the important weaknesses of microfinance. This impact evaluation and a host of other studies show that many young adults have high returns on investment when they have access to capital. Microloans are poor vehicles for small business growth and the development of cottage industry. As governments and the private sector work to develop this financial sophistication, cash transfers are likely to be important drivers of poverty alleviation and development for youth. This Evidence to Policy note was jointly produced by the World Bank Group, the Strategic Impact Evaluation Fund (SIEF), and the British government's Department for International Development.
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The objectives of the ICA are to assess the current performance of formal manufacturing firms, to identify the key constraints on their growth and competitiveness, and to prioritize and assess policy priorities to promote private sector development.
... See More + While attention is often drawn to the large and growing informal sector, the formal manufacturing sector remains of crucial interest because it is one of the largest and most productive sectors in the economy. The formal manufacturing sector represents roughly 13 percent of GDP in spite of employing less than 1.5 percent of the workforce. Policies that promote improvement and expansion of the formal sector can therefore have a disproportionately large impact on national wealth. By size and rate of growth the informal manufacturing sector is larger- as a whole it employs roughly 40 percent of the workforce, and more than three quarters of all manufacturing workers are employed there. These firms tend to be very small and unproductive, however, which is why the formal sector accounts for such a large share of GDP.
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Working Paper (Numbered Series) 33664 NOV 01, 2004
