Liberia Cash Transfer Study Finds Joint Planning Helps Finances, but Violence Risk Persists for Some Couples

Since the early 2000s, countries have tried to lift people out of poverty by giving them cash, the idea being that a lump sum can help the poorest buy food, pay school fees or build a business such as raising livestock. Study after study has shown the transfers are a reliable way to help families in extreme poverty build income and meet basic needs, and Liberia is among the countries that has seen success. The Liberian government gives an average of $250 a year to a needy household, usually through one member, and that member is usually a woman.

Aurelius Butler, Liberia's national coordinator for social protection, said one of the program's key design components is targeting the female in the house. Liberia is among the 10 poorest countries in the world and has a high rate of gender inequality; women face harassment and discrimination and lack workplace opportunities. Butler said the male head of household often controls funds and may not give partners money for basics such as soap or food. Targeting women, he said, is meant to give them some economic control.

Some men were not happy with that setup. "A lot of the men reported that they felt like they were being excluded," Butler said. Liberia then tried a different approach. With funding from the World Bank, the Liberian government and the nonprofit organization GiveDirectly designed an experiment that gave both partners equal money and an equal say in how to spend it.

Sarika Gupta, a senior economist at the World Bank and one of the lead researchers on the project, said the experiment had two goals: help families generate more income and reduce household tension in a country where nearly 35% of women say they face intimate partner violence, compared with a global average of 27%. The study results were released in July.

In 2022, more than 2,300 households in Maryland and Bomi counties received $750 in four installments, more than double the amount typically given in cash aid programs because both partners received an equal payout. Researchers added a joint financial planning element for half of the families. Butler said the session lasted about 45 minutes and asked couples to detail their plan: whether it was to fix something at home, buy food, invest in education or planting, or build a business.

Because literacy rates in rural areas are low, researchers also created posters for each family. Gupta said the poster had a picture of a happy family and empty boxes for couples to list their four top spending priorities for the coming cash transfer. Couples also received stickers to indicate their choices if they could not write: a stack of books meant education, while a stethoscope and syringe meant healthcare. "And the poster stays with the couple, and they can put it on their wall so they can see it. It's like a constant reminder of what they've kind of committed to," Gupta said.

Researchers followed the households for a year after they received the cash. Gupta said the results showed that planning worked. "Households that received the planning actually were even better off economically than households who received only the cash transfer," she said.

One participant, identified only as Christian, works on a farm while her husband gathers latex from trees for rubber making. In their joint planning session, they agreed on education, food and home repairs. Christian used her cash to pay school fees for their five children, buy rice and pay off debt. Her husband bought solar light bulbs and cement to patch their leaky roof.

The study also examined any past history of partner violence. Researchers interviewed participating couples before giving the cash and checked in a year later. For most couples, no incidents were reported. But among couples determined to be at high risk for violence based on previous incidents, researchers found an increase in intimate partner violence even though the cash transfer raised income. The increase was reported only among those who had received the planning session, according to the account.