ECS3704
ASSIGNMENT 2 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 20 SEPTEMBER 2024
, ECS3704
Assignment 2 Semester 2 2024
Unique Number:
Due Date: 20 September 2024
Public Economics
ANSWER 1
Transfer Payments in Malawi to Alleviate Inequality and Poverty
In Malawi, transfer payments, which include both cash and in-kind transfers, are key
tools used by the government and various organizations to reduce poverty and
inequality. These programmes provide support to vulnerable groups, such as the poor,
elderly, and orphans, aiming to improve their standard of living.
Cash Transfers:
One of the most prominent forms of support is the Social Cash Transfer Programme
(SCTP), which provides direct cash payments to extremely poor and labor-constrained
households. The SCTP is targeted at households that cannot support themselves, often
due to age, disability, or lack of income-generating opportunities. The amount varies
based on household size and the number of school-going children. By giving these
families cash, the government allows them to prioritize their own spending on
necessities like food, healthcare, and education. This programme has been fairly
effective in boosting household consumption and school attendance, which helps to
break the cycle of poverty. Research has shown that families benefiting from cash
transfers are more likely to invest in education and healthcare, which improves long-
term prospects (Miller, Tsoka, and Reichert, 2010).
In-Kind Transfers:
ASSIGNMENT 2 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 20 SEPTEMBER 2024
, ECS3704
Assignment 2 Semester 2 2024
Unique Number:
Due Date: 20 September 2024
Public Economics
ANSWER 1
Transfer Payments in Malawi to Alleviate Inequality and Poverty
In Malawi, transfer payments, which include both cash and in-kind transfers, are key
tools used by the government and various organizations to reduce poverty and
inequality. These programmes provide support to vulnerable groups, such as the poor,
elderly, and orphans, aiming to improve their standard of living.
Cash Transfers:
One of the most prominent forms of support is the Social Cash Transfer Programme
(SCTP), which provides direct cash payments to extremely poor and labor-constrained
households. The SCTP is targeted at households that cannot support themselves, often
due to age, disability, or lack of income-generating opportunities. The amount varies
based on household size and the number of school-going children. By giving these
families cash, the government allows them to prioritize their own spending on
necessities like food, healthcare, and education. This programme has been fairly
effective in boosting household consumption and school attendance, which helps to
break the cycle of poverty. Research has shown that families benefiting from cash
transfers are more likely to invest in education and healthcare, which improves long-
term prospects (Miller, Tsoka, and Reichert, 2010).
In-Kind Transfers:
