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The relevance of local structures for economic multiplier effects of social pensions in Uganda

Author

Listed:
  • Kuss, Maria Klara

    (UNU-MERIT, Maastricht University)

  • Gassmann, Franziska

    (UNU-MERIT, Maastricht University)

  • Mugumya, Firminus

    (Makerere University, Kampala, Uganda)

Abstract

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.

Suggested Citation

  • Kuss, Maria Klara & Gassmann, Franziska & Mugumya, Firminus, 2018. "The relevance of local structures for economic multiplier effects of social pensions in Uganda," MERIT Working Papers 2018-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2018004
    as

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    File URL: https://www.merit.unu.edu/publications/wppdf/2018/wp2018-004.pdf
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    References listed on IDEAS

    as
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    4. Barrientos, Armando, 2012. "Social Transfers and Growth: What Do We Know? What Do We Need to Find Out?," World Development, Elsevier, vol. 40(1), pages 11-20.
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    More about this item

    Keywords

    Social pension; cash transfer; economic multiplier; Sub-Sahara Africa; Uganda;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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