International DevelopmentCash transferPositive

BRAC Graduation Programme

BRAC / MIT / multiple governments · Bangladesh (original); replicated in 10 countries · 2007

Summary

The BRAC Graduation Programme tackled a structural gap in anti-poverty programs: existing approaches didn't reach the ultra-poor, who lacked the basic assets and stability to benefit from microfinance or training. The multi-component 'graduation' package—productive assets, consumption support, savings, skills, and intensive coaching delivered together—produced positive results in 5 of 6 countries in a simultaneous international RCT. The parallel multi-country design, published in Science, is methodologically unprecedented in development. The program's name reflects its theory: giving ultra-poor households enough of a push to permanently transition into the economic mainstream.

Research question

"Can a multi-faceted program (asset transfer + training + support) graduate ultra-poor households out of chronic poverty?"

Methodology

Intervention

Productive asset transfer (livestock), skills training, cash stipend for 18 months, savings access, health education, and regular support visits

Assignment

Randomized controlled trial (household); replicated across 6 countries simultaneously

Sample size

10,495 households across 6 countries (Ethiopia, Ghana, Honduras, India, Pakistan, Peru)

Primary outcome

Consumption, assets, food security, financial inclusion, time use

Effect estimate

Consumption: +5% (pooled); assets: +16%; food security: +9%; financial inclusion: +23%; psychological well-being: improved; effects significant in 5 of 6 countries at 3-year follow-up

Decision

Graduation model adopted by World Bank, CGAP, and 50+ governments; now standard ultra-poverty intervention design

Result

Positive

Consumption: +5% (pooled); assets: +16%; food security: +9%; financial inclusion: +23%; psychological well-being: improved; effects significant in 5 of 6 countries at 3-year follow-up

Evidence strength

Strong

Randomized trial, replicated across multiple sites or studies.

Replication status

Replicated

Institution

BRAC / MIT / multiple governments

Location

Bangladesh (original); replicated in 10 countries

Year

2007

Policy area

International Development

Mechanism

Cash transfer