The International Development Association, the arm of the World Bank that delivers aid to the poorest countries, has approved credit of USD 70 million to implement a “social safety net” in Niger, wherein cash transfers and employment guarantees will provide income to one million poor people over the course of five years. Cash worth XOF 10,000 (approximately USD 20) will be disbursed to each of 80,000 poor households every month, using existing infrastructure and networks such as microfinance institutions (MFIs) and mobile phone operators. Through a cash-for-work program, an additional 15,000 people will be assured of employment for 60 days per year, earning them a wage of about USD 2.20 per day in exchange for work on public projects including soil conversation and rehabilitation of infrastructure.
Individuals from households receiving the cash transfers will be asked to attend training sessions run by unspecified NGOs that focus on improved health and nutrition practices for families. According to Carlo del Ninno, a senior economist focusing on Africa for The World Bank, “Analysis suggests that cash transfers to poor people for at least 18 months have a positive impact; and that essential family practices campaigns do improve overall family health and children’s nutritional status.”
By Rohan Trivedi, Research Associate
About The World Bank Group:
The World Bank Group consists of five institutions, all of which are owned by member countries. The Group’s mission is to improve living standards for people in the developing world. The World Bank Group encompasses the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); the International Centre for Settlement of Investment Disputes (ICSID) and the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
About The International Development Association (IDA):
Established in 1960, the International Development Agency (IDA) is the arm of the World Bank that provides interest-free credits and grants for programs in the world’s poorest countries. Loans from IDA have repayment terms stretching over 35 to 40 years, including a 10-year grace period. IDA also provides grants to countries at risk of debt distress. IDA provides assistance to 79 of the world’s poorest countries, 39 of which are in Africa. In 2009, IDA disbursed USD 14 billion for 173 projects in 63 countries.
Sources and Additional Resources:
[1] The World Bank Press Release: “World Bank to finance safety net for a million people in Niger”, http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22919588~pagePK:64257043~piPK:437376~theSitePK:4607,00.html?cid=3001_2
MicroCapital Universe Profile: The World Bank Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group
MicroCapital Universe Profile: The International Development Association (IDA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Development+Association+%28IDA%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: World Bank’s IDA Lending $15m to Djibouti for Low-income Housing Finance, Policy Reform
- MICROCAPITAL BRIEF: Vanuatu Launches Vanklia System to Automate Large, Small Payments
- MICROCAPITAL BRIEF: Money Transfer Firms Suspend Fees for Payments to Libya, Morocco in Response to Disasters
- MICROCAPITAL BRIEF: G20, SME Finance Forum Showcase Digital Finance Solutions for MSMEs Via Online Database, Seek Submissions
- MICROCAPITAL BRIEF: World Bank ARISE Program Includes $230m Loan for Farmers in Ukraine
