Publication: Savings Facilitation or Capital Injection?: Impacts and Spillovers of Livelihood Interventions in Post-Conflict Côte d’Ivoire
Date
2023-09-12
ISSN
Published
2023-09-12
Author(s)
Abstract
Policy makers grapple with the
optimal design of multidimensional strategies to improve
poor households’ livelihoods. To address financial
constraints, are capital injections needed, or is savings
mobilization sufficient This paper tests the direct effects
and local spillovers of three instruments to relax financial
constraints, each combined with micro-entrepreneurship
training. “Cash grants” and “cash grants with repayment”
directly inject capital, while “village savings and loan
associations” (VSLAs) promote more efficient group saving.
The randomized controlled trial took place in western
regions of Côte d’Ivoire that were affected by a
post-electoral crisis in 2011 and an earlier conflict. The
interventions had differential effects on the dynamics of
savings and productive asset accumulation. The cash grant
modalities generated investments in startup capital,
although nearly 30 percent of the grant was saved. In
contrast, village savings and loan associations did not
increase total savings but gradually induced investments, so
that productive assets caught up with cash grant recipients
after 15 months. Positive local spillovers on savings and
independent activities were also observed. Yet, investments
in independent activities were not sufficient to increase
profits, possibly because they were limited due to high
precautionary saving motives in the post-conflict study setting.
Link to Data Set
Citation
“Marguerie, Alicia; Premand, Patrick. 2023. Savings Facilitation or Capital Injection?: Impacts and Spillovers of Livelihood Interventions in Post-Conflict Côte d’Ivoire. Policy Research Working Papers; 10563. © World Bank, Washington, DC. http://hdl.handle.net/10986/40339 License: CC BY 3.0 IGO.”
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