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A Lesson from Rwanda: Don't Confuse Scale with Impact (Nonprofit Chronicles)

September 17, 2018

By Marc Gunther 

From the article:

Ah, scale. Foundations, nonprofits, anti-poverty programs all pursue scale. Advice on how to scale abounds, in reports and articles like Getting to ScaleStrategies to Scale Up Social Programs and Three Things Every Growing Nonprofit Needs to Scale.

But scale is not impact. Indeed, there’s often tension between the two. “If you have $1 million to spend, do you want to target 1,000 people or 100 people?” asks Andrew Zeitlin, a development economist who teaches at Georgetown. Unintended consequences arise when governments or nonprofits try to serve too many people with too few dollars, as Zeitlin and Craig McIntosh of UC San Diego found when they did a study in Rwanda comparing a conventional USAID nutrition and sanitation program with a program that simply gives people cash, with no strings attached.

Their study is the first to be released as part of a bold new cash benchmarking initiative at USAID that I wrote about last week in the New York Times, under the headline Is Cash Better for Poor People Than Conventional Foreign Aid? Some coverage of their study, in Vox and Quartz, said, at least in the headlines, that “cash won,” and while that’s arguably true, the study’s findings were more complicated: It found that neither the nutrition program nor the equivalent dollars given away in cash did much good, but that a larger amount of cash had significant impact. 

... 

There’s lots more to say about all this. You can read a summary of the study, a blogpost from Zeitlin and McIntosh, this story from Dylan Matthews in Vox and these thoughts from Sarah Rose and Amanda Glassman of the Center for Global Development. A second study, already underway in Rwanda, will compare a youth workforce training program to cash; plans call for programs in Malawi, Liberia and the DRC to be evaluated rigorously as well. Kudos to USAID, GiveDirectly, Catholic Relief Services, google.org (which helped financed the research), Innovations for Poverty Action and economists Zeitlin and McIntosh for moving this important work forward. 

Read the full article here

 

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