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Do the Ultra-Poor Benefit from Receiving Income Generating Assets as Grants? Image

Promoting Inclusive Markets and Financial Systems

Do the Ultra-Poor Benefit from Receiving Income Generating Assets as Grants?

Do the Ultra-Poor Benefit from Receiving Income Generating Assets as Grants?

Summary

The Millenium Development Goals target halving, between 1990 and 2015, the proportion of those living on less than a dollar a day. Although less prevalent in popular discussions about poverty reduction strategies, studies going back to at least Lipton (1988) have systematically documented the idea that programs and policies targeted at the "poor" as a homogenous group have often not only had no affect on the poorest among the poor, but also often impacted them adversely. This group, often called the "ultra poor", presents the most significant challenge for development practitioners and policy makers as they evaluate existing strategies and grope for new solutions - removing credit constraints via micro-loans being one of the most promising ones in recent history.

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