The relevance of local structures for economic multiplier effects of social pensions in Uganda
Maria Klara Kuss, Franziska Gassmann & Firminus Mugumya
#2018-004
This paper provides insights into the differences in economic multiplier
effects of Social Cash Transfers in unequal structural settings. Using a
qualitative approach and the case of Uganda's Senior Citizens Grant
(SCG), the paper confirms that there are considerable differences in the
scope of economic multipliers between structurally integrated and remote
areas. Integrated communities are in a better position to access the
secondary benefits of the SCG since they are better able to respond to
the increased demand by recipients with higher value and more lucrative
investments. Moreover, community members in integrated areas are also
more likely to benefit from improvements of already existing
infrastructures and services than community members in remote areas
where at times growth-enhancing structures and services remain entirely
absent. The paper concludes that the expansion of SCTs in low-income
countries should be accompanied by measures that reduce pre-existing
structural inequalities across areas.
Keywords: Social pension, cash transfer, economic multiplier, Sub-Sahara Africa, Uganda
JEL Classification: H53, H55, I38