The impact of integrated micro-credit programs and its linkage

The minimalist approach that once dominated microfinance outreach in the past is now a fading memory. A growing number of studies are suggesting a more integrative approach to support the marginalized and ultra-poor households. This study highlights the impact of the integrated programs, namely Productive Safety Net Program-PLUS (food aid plus microcredit) and food aid from the Eastern part of Ethiopia. Quasi-panel data-set were used to evaluate the impact of the integrated projects. The result from the endogenous switching regression as well as the recursive bivariate probit models revealed that households who chose to participate in the integrated programs showed a positive & significant impact in their livestock holdings and consumption expenditure, and they better afforded education and health costs. Nevertheless, beneficiaries of non-integrated (food aid) program did not show significant impact on the consumption expenditure & livestock holdings, and they are less likely to afford education and health cost compared to the non-beneficiaries.

Autorentext

Fekadu Nigussie Deresse obtained his Master Degree in Development Evaluation and Management from University of Antwerp in 2010, his M.A in Development Studies and his B.SC in Mathematics from Addis Ababa University in 2008 & 2004 respectively. He is currently working as Private Sector Development Consultant in Japan International Cooperation Agency