Redefining Aid: The Cash Transfer Revolution

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This chapter explores the author's experiences as the UK's Secretary of State for international development, focusing on the inefficiencies of traditional aid projects in countries like Zambia, Nigeria, and Malawi. It contrasts these experiences with the innovative cash transfer model used by NGO GiveDirectly, illustrating how direct financial assistance led to significant improvements in recipients' lives. The chapter advocates for a paradigm shift in poverty alleviation strategies, highlighting the advantages of allowing communities to control their own financial resources.

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