The Vulnerable Group Development Program, Bangladesh

Impact. Evaluations have shown that the program has been extremely successful in targeting hardcore-poor women aged 15 to 49. However, only about two-thirds of these women seem to have graduated from absolute poverty to becoming confident microfinance clients who have not slipped back to requiring government handouts. 

Lessons. The program has proven that a combination of in-kind transfers and training is an effective way to alleviate poverty in the short run and reduce it in the future. 

SOURCES Ahmed, del Ninno, and Chowdhury 2004 Ahmed 2005 Matin and Hulme 2003. 

The key issue, however, is being able to determine the circumstances in which food transfers are appropriate and how to maximize their impact. Box 7.6 describes four key considerations to keep in mind to help make this assessment—the functioning of food markets, the level of transaction costs, the type and size of the transfer, and the preferences of beneficiaries. 

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