Egypt’s experience bridging cash transfers and an economic inclusion program for sustainable social protection

Submitted by pmassetti on
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IFPRI (18.12.2024) Egypt’s experience is a case in point. The country’s Takaful cash transfer program has been a vital source of support for millions, but fiscal space is too limited for cash transfers to serve as a solution to poverty (Breisinger, et al. 2023). The hope is that graduating current cash transfer beneficiaries will free up public resources to reach other impoverished households. To garner support for the new option, the government provided cash transfer recipient households with a choice: Would you rather remain eligible for the monthly cash transfer or opt into the economic inclusion program? In this post, we share evidence from a household survey during the period of recruitment for the economic inclusion program to capture respondent beliefs about their decision. We show that beliefs about the duration of consumption support and the income-earning potential of the program can influence household preferences for the new program. As the number of these programs continues to grow worldwide, such results highlight the importance of designing and communicating compelling economic incentives to encourage take-up of social protection programs by those expected to benefit.
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