Micro credits and cash transfers as development tools

A research project in partnership with the Trans European Policy Studies Association (TEPSA)

This month the report ‘Cash for Development: The use of microcredits and cash transfers as development tools’ was published by the European Parliament Committee on Development. It was co-authored by ECOPER consultants, following a meta-evaluation of previous studies on cash-for-development tools.The report aimed to provide an overview of cash transfers and microcredits as poverty reduction instruments in order to inform EU development policy ahead of the EU’s reshaping of development finance tools in the 2021-27 period. The study considered the current level of EU support for cash transfers and microcredits, and the efficiency and design of the support provided.

The study found considerable evidence to confirm cash-for-development tools’ contribution to poverty reduction. It also identified a further layer of positive economic effects resulting from their use that may be particularly pertinent given the COVI-19 pandemic. Furthermore, it concludes that the EU’s use of cash-for-development tools remains limited, despite their exponential growth in their use globally, and recommends that their more extensive use be explored by the EU institutions.

Ecoper is also providing evaluation and consulting services to humanitarian NGOs which are providing cash aid in the Sahel region in the context of the COVID-19 crisis.