Mchinji

Impact Evaluation

Targeting Assessment

Systems Assessment

Study Team

Training the team

Reports & Presentations

Cash Transfer Links

Evaluation Meeting

Economic Impact Study

Assessing the Targeting Procedures 
Final Targeting Report
Door chalked to show it had been visited
Purpose and Methods

The purpose of assessing the targeting approach is to determine the level of inclusion and exclusion error in the Mchinji Cash Transfer scheme (or the number of households that receive the transfer that do not meet the program's eligibility criteria and the number of households that meet the criteria but do not receive the transfer.) The purpose of this activity is also to estimate the level of household poverty in villages where the cash transfer is operational to determine whether the assumed levels of poverty underpinning the scheme are correct.

The Malawi Government and other stakeholders need to understand whether the scheme is adequately designed to reach the households it was intended for, if the assumption that 10% of the population meets the eligibility criteria is accurate, and what the extent of poverty and ultra poverty is in Mchinji. The government is scaling up the cash transfer scheme to additional districts and will use this information to determine whether there is an acceptable coverage and leakage rate.

In this research activity, we collected a listing of all households within the village groups where the cash transfer is operational in Mchinji. We went door-to-door, boundary-to-boundary listing everyone in every household in the catchment area.


List of all households with number of family members
Next, we selected a systematic random sample of 615 households that would be representative of the entire catchment area. We collected an 18-page survey from all of these households. The survey was designed to obtain information on household economic status based on their reported income, expenditures, and asset ownership, as well as information on whether the household meets the eligibility criteria for the cash transfer, as indicated by the number of household members, member's employment status, level of education, and health status.
Kids in Mchinji
Background Justification and Research Questions

According to the Malawian Integrated Household Survey (IHS) 52% of households in Malawi fall below the poverty line, and of these, 22% fall below the ultra poverty line, so that approximately 7 million people living in an estimated 1.3 million households are absolutely poor and 3 million people living in 550,000 households are ultra poor (NSO, 2005). (In 2005, the poverty line was MK64,659 per person per year (US$461 per year) and the ultra poverty line was below MK40,116 per person per year (US$286 per year).

The Mchinji Social Cash Transfer Pilot is was designed to reach the poorest 10% or 250,000 households in Malawi that are labor constraint (i.e. there is no person aged 19-65 able to work).

The cash transfer scheme is based on the premise that there is a distinction between moderate poverty and ultra poverty such that ultra poor households suffer from severe hunger during most of the year. They may become physically weak, sell or consume their productive assets (e.g. livestock, tools, seed), give up investing in their future (like sending children to school), and die from infections that other people survive. Ultra poor people may be slow to respond to programs such as credit and saving schemes or work programs due to their circumstances. Ultra poor households that are labor constraint are at the greatest disadvantage, while households with an able-bodied worker are less vulnerable and can respond to food-for-work programs, day labor and can find income generating opportunities.

The financial estimates for scaling the cash transfer scheme up throughout the country are based on the assumption that 10% of households are actually below the ultra poverty line are "non viable" because they are labor constraint or have high dependency ratios.

Throughout the world, cash transfer schemes operate in countries at every level of economic development. There are six main methods used to target eligible recipients:
  1. Means testing (based on income);
  2. Proxy means testing (using some indicator as a signal of income;
  3. Community-based targeting (where local knowledge is used to determine vulnerability;
  4. Geographical targeting (when a program is only targeted to a specific region);
  5. Demographic targeting (determined by age, gender or other characteristic); and
  6. Self-targeting (available to all but only real poor are likely to take it up) (Coady, Grosh, Hoddinott, 2004).
The Mchinji Scheme was designed to use community based targeting, which enables local community leaders to determine which households among them are the worst off and most vulnerable, but provides guidance or "proxies" of vulnerability for community members to consider. For example, ultra poor and labor constrained households are likely to eat only one meal per day. They may be unable to purchase items like soap, clothing, and school supplies and they may cope by begging. Critics of community based targeting warn that community members may choose recipients based on nepotism or exclude eligible households out of discrimination. Examining which households are included or excluded will help policymakers determine the appropriateness of community based targeting in Mchinji.

The targeting process is as follows: - The District Secretariat trains a Community Social Protection Committee (CSPC) to help implement the scheme. - The CSPC makes a list of ultra poor labor constrained households based on community knowledge and the local Village Headman signs off on this list. - The CSPC then visits the households to fill out an application for each household. - Next, the CSPC ranks households and chooses the 10% poorest. - A community meeting occurs where the ranking is discussed. - Then Village, District, and National Committees must approve the list of eligible households. - Once fully approved, recipients receive transfers on a monthly basis

This evaluation of the targeting process was developed in order to assess whether the targeting system effectively targets the eligible households and rejects ineligible households. Preliminary data from Round 1 of the baseline survey on the impact of the scheme helps confirm that inclusion error is low, so that there are few recipients receiving the transfer that do not meet the eligibility criteria. Still, with the targeting study, we can confirm or reject the finding that inclusion error is low throughout the villages where the scheme is operational, rather than just in the four village groups in the impact study. Additional outstanding questions include:
  • What percentage of households is excluded, but meets the eligibility criteria?
  • Are the assumptions about the poverty levels correct, such that 52% of households are poor, 22% are ultra poor and 10% are ultra poor and labor constraint?
  • Is there important exclusion such that while recipients appear to be highly vulnerable, it is not clear whether other households are even more vulnerable;
We have the data to answer these questions and expect to have a report ready by October 2007.
Zione, Davdison and Tendai
Notes from the Field: Zione's Supervisory Diary

"We went to Nduwa VDC. We started very late not only because it was very far but because there was not any committee member to help us,  We managed to meet a certain man who helped us by calling the committee chair.  He led us to a village across certain swamps.  Nobody was willing to cross those swamps and I just told every body that everybody was crossing.  We had to walk in dirty, stinking, muddy swamps.  It was really horrible and so disgusting.  Things we do for money.  When we reached the village, we got straight to work for it wa quite big and we were told that some people were living somewhere on their farms.  The chief volunteered to take Chiyembekezo there using his bike.  When Chiyembekezo came back she told us that they reached a point where they had to leave the bike and foot the rest of the journey for even a bike could not reach that place because of the condition of the path.  Poor Chiye.  When going back, Allan got a very long, and big pole, which people were using to jump over the swamps.  The men in the team used this pole and I wanted to follow suit.  It was so bad, I landed right in the swamps and splashed them all over.  My shoes were all soaked and my clothes very dirty with the mud.  When the other women on the team saw this they just took off their shoes and walked through the swamps as they did before. They laughed at me but I don’t think this was supposed to be a laughing matter.  By the time we got into the car we had to open all the windows for it was stinking like a pig."

"It’s been a nice experience though very tough and tiresome.  I wish I could find a better way of applauding my team members who have been working very hard and have been very cooperative through out the household listing programme.  They never tired, the could leave very early and come back very late and still not complain much.  My sincere thanks to them."