Association for Public Policy Analysis & Management

Several studies have established the link between Social Cash Transfers (SCTs) and micro-level growth using aggregate measures. Specifically, it has been argued that the economic contribution of interventions (such as social pensions) directed at less productive groups works mainly through economic multipliers involving recipient households and community members. Yet the extent to which any intervention can make those economic contributions depends on various structural circumstances in which people generate their livelihoods (e.g. daily markets, reliable transport and communication services, and savings and credit facilities). This suggests that studies measuring local economic multiplier effects at an aggregate level may hide significant differences between communities with different structural circumstances.

Using a qualitative inquiry into the differences in local economy multiplier effects of Uganda’s social pension scheme in communities endowed with key sets of infrastructure and services and those without, this study provides in-depth evidence on the factors enabling local multiplier effects. Particular attention is given to the community effects including effects on non-recipients and local structural circumstances.Preliminary findings indicate vital differences in economic multiplier effects between areas that are more integrated into the economy and those with comparatively very limited integration. These findings are highly relevant for policy making in the context of cash transfer programs and can make important contributions to better coordinated policy interventions.

Keywords: Social pensions, structural circumstances, multiplier effects, Uganda