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Not to be a downer but an academic study found this to have limited effect. I heard about it on freakonomics so can't vouch for how biased it was. Just an interesting point against the economist article. http://freakonomics.com/2013/09/26/would-a-big-bucket-of-cas...


The Economist article talks about someone in Kenya being given $1000USD. That's about 84800KSH.

Minimum wage for Kenya varies, but 4855KSH ($57USD) per month is what a general laborer gets.[1]

That person is getting very roughly 17 months income. That's very different to "winning the lottery".

But perhaps this man is one of the 50% of Kenyans living below the poverty line.[2] ($2USD per day) So, if he gets $1.25USD per day a $1000USD lump sum would be a bit more than 2 years income.

Microfinance is not the wonder that people once thought it was[3], but giving money to people directly seems to work quite well.

[1] http://www.wageindicator.org/main/salary/minimum-wage/kenya

http://www.ruralpovertyportal.org/country/home/tags/kenya

[2] http://c2050922.cdn.cloudfiles.rackspacecloud.com/images/172...

[3] http://www.irinnews.org/report/95067/development-microfinanc...




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