Report on the Socio-Economic Effects of Unconditional Cash Transfers in Maniema, DRC

Introduction

This report details the findings of a controlled study on the impact of an Unconditional Cash Transfer (UCT) program in an artisanal mining zone in Maniema province, Democratic Republic of Congo (DRC). The program, initiated in 2021 by the non-profit organization Eight, provides households with monthly unconditional cash payments via mobile money for a two-year period. This study, conducted by IPIS, builds upon a previous pilot study to statistically validate the socio-economic effects by comparing a village receiving UCTs with a control village.

Key Findings and Impact on Sustainable Development Goals (SDGs)

The study reveals significant positive impacts across several domains, directly contributing to the advancement of multiple United Nations Sustainable Development Goals (SDGs).

SDG 1: No Poverty & SDG 8: Decent Work and Economic Growth

The UCT program has demonstrated a substantial positive effect on local economic conditions and household financial stability, aligning with SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth).

• Poverty Reduction: Financial resilience improved sharply, evidenced by reduced debt levels among households.
• Economic Growth: A marked increase in small business creation was observed, fostering local entrepreneurship.
• Financial Inclusion: There was a surge in participation in community savings groups (tontines).
• Resilience: A greater perceived ability to cope with unexpected financial shocks was reported by beneficiaries.

SDG 2: Zero Hunger

Significant improvements in food security and nutrition were recorded, directly addressing the targets of SDG 2 (Zero Hunger).

• Improved Nutrition: Households reported consuming more meals per day.
• Dietary Diversity: Beneficiaries experienced greater dietary variety.
• Food Production: The program led to increased ownership of livestock, enhancing household food sources and potential income.

SDG 3: Good Health and Well-being & SDG 11: Sustainable Cities and Communities

The program positively influenced the health, housing, and overall well-being of the community, contributing to SDG 3 (Good Health and Well-being) and SDG 11 (Sustainable Cities and Communities).

• Health Outcomes: Respondents reported better overall health and an improved ability to afford necessary medicine.
• Adequate Housing: Widespread investment in housing improvements was a primary use of funds, with 70% of respondents reporting such investments.
• Community Safety: A significantly improved sense of safety was noted within the UCT village.
• Subjective Well-being: The study confirmed a substantial rise in overall life satisfaction and subjective well-being among participants.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 1: No Poverty

• The article’s central theme is the implementation of Unconditional Cash Transfer (UCT) programmes, which are described as a strategy to “fight poverty” and “strengthen social protection.” The study’s findings show improved financial resilience, reduced debt, and increased asset ownership (livestock, housing), all of which are directly related to poverty alleviation.

SDG 2: Zero Hunger

• The article explicitly states that the UCT programme led to “better nutrition,” which was measured by “more meals and greater dietary variety.” This directly addresses the goal of ending hunger and improving nutritional outcomes.

SDG 3: Good Health and Well-being

• The study found that in the UCT village, “respondents reported better overall well-being and greater ability to afford medicine.” Furthermore, the “sense of safety and life satisfaction improved significantly,” contributing to the overall well-being aspect of this goal.

SDG 8: Decent Work and Economic Growth

• The article highlights a “marked increase in small business creation” and a “surge in participation in savings groups (tontines).” These outcomes point towards enhanced economic activity, entrepreneurship, and access to financial services, which are key components of SDG 8.

SDG 11: Sustainable Cities and Communities

• The findings show “widespread investment in housing improvements (70% of respondents).” This directly relates to improving living conditions and ensuring access to adequate and safe housing.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 1: No Poverty

• Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. The article addresses this by showing “reduced debt levels” and improved “financial resilience,” which are dimensions of poverty beyond just income.
• Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property… The article connects to this target through the findings of “increased livestock ownership” and “investment in housing improvements,” which represent control over property and economic resources.

SDG 2: Zero Hunger

• Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round. The article’s finding of “more meals and greater dietary variety” directly supports the achievement of this target.

SDG 3: Good Health and Well-being

• Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines… The “greater ability to afford medicine” reported by respondents is a direct contribution to this target.

SDG 8: Decent Work and Economic Growth

• Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation… The “marked increase in small business creation” is a clear indicator of progress toward this target.
• Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all. The “surge in participation in savings groups (tontines)” demonstrates expanded access to informal financial services, which is a step towards this target.

SDG 11: Sustainable Cities and Communities

• Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services… The finding that 70% of respondents made “investment in housing improvements” directly addresses the need for adequate and safe housing.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

SDG 1: No Poverty

• Implied Indicator: Change in household debt levels. The article states there were “reduced debt levels.”
• Implied Indicator: Change in asset ownership. The article mentions “increased livestock ownership.”
• Implied Indicator: Perceived financial resilience. The article notes a “greater perceived ability to cope with unexpected events.”

SDG 2: Zero Hunger

• Implied Indicator: Frequency of meals. The article mentions “more meals.”
• Implied Indicator: Dietary diversity score. The article refers to “greater dietary variety.”

SDG 3: Good Health and Well-being

• Implied Indicator: Self-reported health status. The article mentions “better overall well-being.”
• Implied Indicator: Access to affordable medicine. The article notes a “greater ability to afford medicine.”
• Implied Indicator: Subjective well-being/life satisfaction score. The article states that “life satisfaction improved significantly.”

SDG 8: Decent Work and Economic Growth

• Implied Indicator: Rate of new business creation. The article points to a “marked increase in small business creation.”
• Implied Indicator: Proportion of population participating in formal/informal savings mechanisms. The article highlights a “surge in participation in savings groups (tontines).”

SDG 11: Sustainable Cities and Communities

• Specific Indicator: Percentage of households making housing improvements. The article explicitly states “70% of respondents” invested in this area.

4. Table of SDGs, Targets, and Indicators

Source: reliefweb.int