Attachments
Summary
This case study summarizes an analysis conducted by Catholic Relief Services (CRS) in Malawi using the Dioptra tool to assess the cost-efficiency of the Graduation Model, which is a holistic approach combining consumption support, livelihoods training and start-up provision, financial inclusion, and targeted messaging to reduce extreme poverty and improve economic self-reliance. The analysis revealed the following findings:
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The Graduation Model in Malawi cost $855 per household on average. This was lower compared to similar programs in other countries due to lower amounts of cash distributed, larger program scale, integration with other interventions, and local partnership. Spending patterns were in line with other countries.
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Graduation Model costs were driven by the Livelihoods pillar to improve people’s income sources. The cost per household is expected to be lower when the program is scaled up further, as the spending on Program Management and Support can be spread across more households.
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Social Return on Investment: Comparing costs with the potential impact, each household could sustainably earn a cumulative income within two years that is equivalent to the costs invested in them.
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Using the Dioptra tool for cost-efficiency analysis enabled country program staff to focus on recalling and providing crucial estimates of how different resources were used across activities within a program, which are not captured in any current data system, instead of having to learn a complex costing methodology and assemble data manually in spreadsheets.