The World’s Largest No-Strings Cash Experiment Is Paying Out in Malawi
About 230,000 adults in two districts are each receiving around 1.2 million kwacha, with no conditions attached. Researchers from Oxford, Harvard and IDinsight are measuring what happens to the local economy. The post The World’s Largest No-Strings Cash Experiment Is Paying Out in Malawi appeared first on The Rio Times .
The US$198 million cash transfer programme in Malawi is the world's largest trial of unconditional direct cash transfers, according to GiveDirectly. Up to 230,000 adults in two districts receive roughly US$700 each, with no restrictions on how they spend the money. Funded by the Canva Foundation and philanthropic commitments totaling US$150 million, the programme is run by GiveDirectly and measured by researchers from Oxford University, Harvard University, and IDinsight.
The trial is a randomised controlled experiment to assess general equilibrium effects, which means how changes in income impact prices, wages, and local businesses throughout the districts. Recipients have reportedly used the funds to invest in small enterprises, such as buying sewing machines or setting up makeshift cinemas. The trial coincides with a recent migration crisis in Malawi, with over 44,000 Malawians repatriated from South Africa since mid-June.
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