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Planet Money

The Universal Basic Income experiment in Kenya

Jan 10, 2024
Exploring the concept of giving cash to help people out of poverty, the podcast discusses the positive impacts of receiving a large sum of money in Kenya, the cost-effectiveness of replacing grass roofs with metal roofs, and the concept of buying cows as a form of investment. It also delves into the effectiveness of giving cash without conditions, the potential of universal basic income, and the study on monthly vs lump sum payments in a UBI experiment in Kenya.
24:06

Podcast summary created with Snipd AI

Quick takeaways

  • Giving cash directly to people in poverty can have a positive impact, allowing individuals to make effective use of the funds according to their own needs.
  • Providing a lump sum of money rather than monthly payments shows better results, enabling recipients to start businesses, increase incomes, and experience lower rates of depression.

Deep dives

Giving money directly to people in poverty

The traditional approach of funding specific programs to support people in poverty has been replaced by the idea of giving money directly to individuals. This approach is based on the belief that people know their own situations best and can decide how to use the money effectively. A major study conducted by Give Directly in rural Kenya gave households a lump sum of $1,000, resulting in significant improvements in their lives. Some examples of how the money was used include buying a motorcycle for transportation, investing in a mill to grind corn and sell soap, purchasing a metal roof to replace leaky grass roofs, and buying a cow as a type of bank. Overall, the study showed that giving cash directly to people in poverty can have a positive impact.

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