GiveDirectly: Nonprofit Cash Transfer | Joe Huston | Talks at Google

TL;DR

Giving cash transfers to people living in extreme poverty has consistently resulted in positive outcomes, debunking misconceptions about its impact. Cash transfers can be used in various contexts, such as humanitarian aid, universal basic income, and disaster relief. The evidence shows that giving cash is sustainable and beneficial, with recipients using the funds wisely and even experiencing increased income and assets.

Transcript

[MUSIC PLAYING] [APPLAUSE] JOE HUSTON: Yes. So thank you, guys, so much for having me. In general, Google was super early in supporting GiveDirectly and the Google community broadly and in helping people out who are extremely poor by sending cash through our platform. And so we've always felt really close to the Google community. And it's nice to b... Read More

Key Insights

• 🧑‍⚕️ Cash transfers have consistently shown positive impacts on various outcome variables such as income, nutrition, and health.
• 💦 Concerns about increased corruption or decreased work effort due to cash transfers have been debunked by evidence from 165 different studies.
• 👤 Mobile money has made delivering cash transfers easier and more efficient, with users in 93 countries and over 400 million current users.
• ☕ The decision to provide cash transfers in specific contexts, such as disaster relief or coffee farming, has resulted in significant benefits for the recipients.

Questions & Answers

Q: Are cash transfers sustainable?

Yes, studies have consistently shown that cash transfers have a positive impact without leading to increased corruption or decreased work effort. Recipients use the funds wisely, leading to increased earnings and assets.

Q: How does cash transfer affect different sectors?

Cash transfers can have a wide-ranging impact, including addressing humanitarian issues, providing a universal basic income, supporting disaster relief efforts, and even improving productivity in industries like coffee farming.

Q: How does GiveDirectly evaluate the impact of its cash transfer programs?

GiveDirectly uses Randomized Controlled Trials (RCTs) to assess the effects of cash transfers on various outcome variables. These evaluations are conducted by external researchers and have shown consistent positive results.

Q: How does the funding for cash transfers compare to other forms of aid?

While the evidence and rhetoric around cash transfers have changed dramatically, the funding allocation has not. Less than 1% of US aid funding and less than 2% of UK aid funding is allocated to cash-based programs, indicating a need for better resource allocation.

Summary & Key Takeaways

• GiveDirectly sends unconditional cash grants to people in extreme poverty, raising almost $150 million and enrolling over 80,000 households.

• Research studies have consistently shown that cash transfers lead to increased earnings, improved nutrition, decreased stress, and better health outcomes.

• Mobile money has made delivering cash transfers easier, with 93 countries using the service and over 400 million users worldwide.