Debunking Cash Transfer Myths

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This chapter addresses skepticism about cash transfer programs, emphasizing that they often lead to improved savings, business growth, and educational outcomes instead of misuse for non-essential items. It presents empirical evidence from studies in Kenya and Rwanda, highlighting that cash infusions do not induce significant inflation and can empower recipients to invest in their futures. The discussion also sheds light on the severity of poverty worldwide, urging a respectful recognition of the dignity of those affected.

Extreme poverty, defined as living on less than $2.15 a day, has long been seen as an intractable problem. But what if the solution is simple? What if you could eradicate extreme poverty by just giving people cash? That’s what Rory Stewart believes. He’s the former UK Secretary of State for International Development and now a senior advisor to GiveDirectly, a non-profit that has distributed $800 million — in cash — to 1.6 million people around the world, including right here in the US. Today on the show, Rory charts his evolution from cash transfer skeptic to evangelist, shares what he wishes philanthropists like Bill Gates would do with their billions, and explains why he thinks it’s possible to end extreme poverty in our lifetimes.

🎙️ Check out Rory's previous appearance on this show on Apple Podcasts or Spotify

💸 Learn more about GiveDirectly at www.givedirectly.org

🎬 Watch Rory’s new TED Talk, “To End Extreme Poverty, Give Cash — Not Advice”

🎁 Get 20% off a Next Big Idea Club membership when you use code PODCAST at nextbigideaclub.com