Impacts and Spillovers of a Low-Cost Multifaceted Economic Inclusion Program in Chad

Patrick Premand and Pascale Schnitzer

No 11084, Policy Research Working Paper Series from The World Bank

Abstract: This study analyzes the direct effects and local spillovers of a low-cost multifaceted economic inclusion program through a randomized controlled trial in Chad. The intervention included group savings promotion, micro-entrepreneurship training, and a lump-sum cash grant delivered to poor female beneficiaries of a regular cash transfer program. It was designed to address multiple constraints to productivity and livelihoods, but at a much lower cost (approximately $104 per household) than most stand-alone nongovernmental organization graduation pilots and government-led economic inclusion programs. The results show substantial impacts on food consumption 18 months after the intervention. A reallocation of labor between economic activities is observed, along with higher revenues from agriculture and off-farm micro-enterprises. The intervention improved women's empowerment and some dimensions of social well-being. The findings show evidence of positive local spillovers, with improvements in food consumption and economic activities among households that were not assigned to the economic inclusion program in targeted villages. The results are consistent with the intervention broadly improving saving, sharing, and financial support mechanisms, as well as potential demand-side effects in the labor and product markets. Once spillovers are accounted for, the intervention becomes cost-effective without assuming that any impact persists past the follow-up survey at 18 months.

Date: 2025-03-12
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