Publication: How Culturally Wise Psychological Interventions Help Reduce Poverty
Loading...
Date
2024-06-28
ISSN
Published
2024-06-28
Author(s)
Thomas, Catherine
Bossuroy, Thomas
Abdoulaye Sambo, Soumaila
Markus, Hazel
Walton, Gregory
Editor(s)
Abstract
Poverty is multidimensional, associated not only with a lack of financial resources, but also often social-psychological constraints, such as diminished agency and aspirations. Through a series of field experiments, this paper assesses the causal impacts of culturally wise interventions designed to build women’s agency on poverty reduction efforts in rural Niger. Moreover, the study identifies a model of agency that is “culturally wise” because it is the most motivational and functional in the study cultural context. Study 1 reports descriptive evidence that an interdependent model of agency—that is grounded in social harmony, respect, and collective advancement and that accounts for relational affordances for individual goals—is predominant in rural Niger. This stands in contrast to a more self-oriented, independent model grounded in personal aspirations, self-direction, and self-advancement that is more common in the West. Study 2 explores the psychosocial mechanisms of a highly effective, multifaceted poverty reduction program that included two psychosocial interventions—a community sensitization and a life skills training, which incorporated both models of agency. Although the results support the role of intrapersonal processes (including enhanced self-efficacy and optimistic future expectations) in driving economic impacts, there is equal, if not greater, support for relational processes (including increased subjective social standing, control over earnings, and social support). Study 3 conducts a mechanism experiment to disentangle the causal effects of interventions grounded in independent agency (“personal initiative”) or interdependent agency (“interpersonal initiative”). The results show that the interdependent agency intervention, which is considered to be most “culturally wise,” led to significant effects on economic outcomes as well as both intrapersonal and relational processes. By contrast, the independent agency intervention showed impacts on intrapersonal processes alone. These findings show the promise of an emerging area of research at the intersection of behavioral science, cultural psychology, and development economics for addressing complex global problems like poverty and inequality.
Link to Data Set
Citation
“Thomas, Catherine; Premand, Patrick; Bossuroy, Thomas; Abdoulaye Sambo, Soumaila; Markus, Hazel; Walton, Gregory. 2024. How Culturally Wise Psychological Interventions Help Reduce Poverty. Policy Research Working Paper; 10824. © World Bank. http://hdl.handle.net/10986/41797 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Global Poverty Revisited Using 2021 PPPs and New Data on Consumption(Washington, DC: World Bank, 2025-06-05)Recent improvements in survey methodologies have increased measured consumption in many low- and lower-middle-income countries that now collect a more comprehensive measure of household consumption. Faced with such methodological changes, countries have frequently revised upward their national poverty lines to make them appropriate for the new measures of consumption. This in turn affects the World Bank’s global poverty lines when they are periodically revised. The international poverty line, which is based on the typical poverty line in low-income countries, increases by around 40 percent to $3.00 when the more recent national poverty lines as well as the 2021 purchasing power parities are incorporated. The net impact of the changes in international prices, the poverty line, and new survey data (including new data for India) is an increase in global extreme poverty by some 125 million people in 2022, and a significant shift of poverty away from South Asia and toward Sub-Saharan Africa. The changes at higher poverty lines, which are more relevant to middle-income countries, are mixed.Publication Geopolitical Fragmentation and Friendshoring(Washington, DC: World Bank, 2025-06-26)This paper examines the relationship between geopolitical fragmentation and friendshoring of foreign investments over time, countries, and sectors. The analysis uses comprehensive data on foreign direct investments covering greenfield projects, mergers and acquisitions, and stocks of affiliates, as well as data on four alternative measures of geopolitical distance between countries. The gravity estimations suggest that, first, geopolitical differences have a negative effect on foreign investments and the magnitude has heightened in the post-pandemic period compared to a decade ago. Second, it is primarily the companies from advanced Western economies whose foreign investment decisions are increasingly shaped by friendshoring forces. Finally, the paper shows that friendshoring is not only confined to strategic industries, implying that allocations of foreign direct investments may not solely reflect national security or resilience considerations.Publication Soaring Food Prices Threaten Recent Economic Gains in the EU(Washington, DC: World Bank, 2025-07-02)The surge in food prices following the 2021 economic rebound has become a significant concern for households, particularly low-income ones, in Bulgaria, Croatia, Poland, and Romania. Food price inflation, which surpasses general inflation rates, risks worsening poverty and food insecurity in these countries. This paper explores the distributional impacts of rising food prices and the effectiveness of government response measures. Low-income households, who allocate a larger share of their income to food, are disproportionately affected and are struggling to cope with unexpected expenses, leading to increased difficulties in accessing proper nutrition. Simulations indicate that rising food prices contribute to higher poverty rates and greater income inequality, especially among vulnerable populations. They also suggest that the main poverty-targeted social assistance schemes offer critical support for the extreme poor, but expanding both coverage and benefits is vital to shield all at-risk individuals. Targeted policies that balance immediate relief with long-term resilience-building are essential to addressing the challenges posed by escalating food prices.Publication Disentangling the Key Economic Channels through Which Infrastructure Affects Jobs(Washington, DC: World Bank, 2025-04-03)This paper takes stock of the literature on infrastructure and jobs published since the early 2000s, using a conceptual framework to identify the key channels through which different types of infrastructure impact jobs. Where relevant, it highlights the different approaches and findings in the cases of energy, digital, and transport infrastructure. Overall, the literature review provides strong evidence of infrastructure’s positive impact on employment, particularly for women. In the case of electricity, this impact arises from freeing time that would otherwise be spent on household tasks. Similarly, digital infrastructure, particularly mobile phone coverage, has demonstrated positive labor market effects, often driven by private sector investments rather than large public expenditures, which are typically required for other large-scale infrastructure projects. The evidence on structural transformation is also positive, with some notable exceptions, such as studies that find no significant impact on structural transformation in rural India in the cases of electricity and roads. Even with better market connections, remote areas may continue to lack economic opportunities, due to the absence of agglomeration economies and complementary inputs such as human capital. Accordingly, reducing transport costs alone may not be sufficient to drive economic transformation in rural areas. The spatial dimension of transformation is particularly relevant for transport, both internationally—by enhancing trade integration—and within countries, where economic development tends to drive firms and jobs toward urban centers, benefitting from economies scale and network effects. Turning to organizational transformation, evidence on skill bias in developing countries is more mixed than in developed countries and may vary considerably by context. Further research, especially on the possible reasons explaining the differences between developed and developing economies, is needed.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Pathways Out of Extreme Poverty(World Bank, Washington, DC, 2021-03)This paper analyzes a four-arm randomized evaluation of a multi-faceted economic inclusion intervention delivered by the Government of Niger to female beneficiaries of a national cash transfer program. All three treatment arms include a core package of group savings promotion, coaching, and entrepreneurship training, in addition to the regular cash transfers from the national program. The first variant also includes a lump-sum cash grant and is similar to a traditional graduation intervention (“capital” package). The second variant substitutes the cash grant with psychosocial interventions (“psychosocial” package). The third variant includes the cash grant and the psychosocial interventions (“full” package). The control group only receives the regular cash transfers from the national program. All three treatments generate large impacts on consumption and food security six and 18 months post-intervention. They increase participation and profits in women-led off-farm business and livestock activities, as well as improve various dimensions of psychosocial well-being. The impacts tend to be larger in the full treatment, followed by the capital and psychosocial treatments. Consumption impacts up to 18 months after the intervention already exceed costs in the psychosocial package (the benefit-cost ratio for the psychosocial package is 126 percent; full package, 95 percent; and capital package, 58 percent). These results highlight the value of addressing psychosocial constraints as well as capital constraints in government-implemented poverty reduction programs.Publication Tackling psychosocial and capital constraints to alleviate poverty(Springer Nature, 2022-04-27)Many policies attempt to help extremely poor households build sustainable sources of income. Although economic interventions have predominated historically 1,2, psychosocial support has attracted substantial interest 3,4,5, particularly for its potential cost-effectiveness. Recent evidence has shown that multi-faceted ‘graduation’ programs can succeed in generating sustained changes 6,7. Here we show that a multi-faceted intervention can open pathways out of extreme poverty by relaxing capital and psychosocial constraints. We conducted a four-arm randomized evaluation among extremely poor female beneficiaries already enrolled in a national cash transfer government program in Niger. The three treatment arms included group savings promotion, coaching and entrepreneurship training, and then added either a lump-sum cash grant, psychosocial interventions, or both the cash grant and psychosocial interventions. All three arms generated positive effects on economic outcomes and psychosocial well-being, but there were notable differences in the pathways and the timing of effects. Overall, the arms with psychosocial interventions were the most cost-effective, highlighting the value of including well-designed psychosocial components in government-led multi-faceted interventions for the extreme poor.Publication Psychology, Skills, or Cash?(World Bank, Washington, DC, 2023-07-13)Growing evidence on the links between poverty and psychology has prompted increased interest in the psychosocial impacts of economic interventions and the economic impacts of psychologically motivated interventions. In practice, psychologically motivated programs typically comprise one of many components in multifaceted poverty alleviation programs. This paper asks, what are the benefits of allocating complementary, marginal investments in anti-poverty programs towards skills development or psychologically-targeted interventions versus direct economic assistance The paper benchmarks two program-based investments against an unconditional cash transfer by randomly assigning participants in an existing anti-poverty program to one of three groups. The first is psychologically-targeted. It focuses on promoting self-confidence, sense of value and self-worth, and perceived social status. The second targets specific skills: goal setting, public speaking, and networking. Both program-based investments cost around USD \$35 per participant, motivating a benchmark, cost-equivalent unconditional cash transfer. The findings show that the psychologically-targeted intervention significantly improves psychosocial outcomes but shows no economic gains relative to cash, while the skills-based program improves economic outcomes with few effects on psychosocial outcomes. The results illustrate that low-cost psychologically-targeted and skills-based interventions can be effective marginal investments relative to a small cash transfer, but their benefits may accrue in different domains.Publication Interventions to Prevent or Reduce Violence Against Women and Girls : A Systematic Review of Reviews(World Bank, Washington, DC, 2014)Violence against Women and Girls (VAWG) is a pervasive global problem. It is a violation of basic human rights and a drag on development. Much of the research to-date on the topic-including a major recent World Health Organization study to produce global prevalence rates has focused on better understanding the scale and nature of the problem. The present study builds on this body or research while shifting focus to synthesizing global evidence on potential solutions. This paper, a systematic review of reviews, breaks new ground by synthesizing evidence on the effects of VAWG prevention interventions. It examines the diversity of geographical context, the types of violence addressed, and the numerous approaches that have been used to combat VAWG. Additionally the review summarizes the quality of evidence on efficacy and effectiveness in order to highlight strengths and gaps of interventions on a global scale and could serve as a point of reference for those intending to undertake future design, implementation, and evaluation of interventions. This paper finds that knowledge of intervention impacts on VAWG prevention is growing, but is still highly limited. Nonetheless, a small but growing body of rigorously tested interventions demonstrates that preventing VAWG is possible and can achieve large effect sizes. The interventions with the most positive findings used multiple, well-integrated approaches and engaged with multiple stakeholders over time. They also addressed underlying risk factors for violence, including social norms regarding gender dynamics and the acceptability of violence. These examples point to the imperative of greatly increasing investment both in innovative programming in primary prevention, as well as in high-quality experimental and quasi-experimental evaluations to guide international efforts to end VAWG.Publication Impact Evaluation in Practice, First Edition(World Bank, 2011)The Impact Evaluation in Practice handbook is a comprehensive and accessible introduction to impact evaluation for policymakers and development practitioners. The book incorporates real-world examples to present practical guidelines for designing and implementing evaluations. Readers will gain an understanding of the uses of impact evaluation and the best ways to use evaluations to design policies and programs that are based on evidence of what works most effectively. The handbook is divided into three sections: Part One discusses what to evaluate and why; Part Two outlines the theoretical underpinnings of impact evaluation; and Part Three examines how to implement an evaluation. Case studies illustrate different methods for carrying out impact evaluations.
Users also downloaded
Showing related downloaded files
Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.