Can giving away money make an entire economy stronger? This real-world experiment in Kenya may change how we think about aid, poverty, and economic growth forever. Watch Money & Macro explore “General Equilibrium Effects of Cash Transfers: Experimental Evidence from Kenya.”
Edward Miguel Kenya direct cash transfers interview on BBC World Service Radio Weekend programme
October 13, 2025
BBC World Service
Other
Audio
A major study in western Kenya has found that unconditional cash transfers to low-income families led to significant improvements in health, including almost a 50% drop in infant mortality. Economist Professor Edward Miguel of the University of California, Berkeley, explains the results of the large-scale trial conducted with the NGO GiveDirectly.
BBC World Service – Weekend Programme
Interview Transcript: Direct Cash Transfers in Kenya
Host: Paul Henley
Guests: Professor Edward Miguel (University of California, Berkeley), Dr. Julie Norman (University College London), Ntombi Zodwa-Nyoni (Playwright and Screenwriter)
Paul Henley (Host):
You’re listening to Weekend on the BBC World Service. My name is Paul Henley, and for the rest of the programme with me here in the studio are Ntombi Zodwa-Nyoni, who is a playwright and film scriptwriter here in the UK, and Julie Norman, Associate Professor of Politics and International Relations at University College London.
It’s specialist subject time, and Julie, at this point, we often ask our guests questions to highlight recent news stories or topics that have caught their attention but that might have been missed by a lot of listeners. And you’ve drawn our attention to the results of a recent study in Kenya that looked at what happened when thousands of low-income families in a rural part of western Kenya were given a direct cash payment by the authorities to spend completely as they wished. It was to see if this sort of support, in the form of basic income, would have clear material outcomes.
Why were you interested, Julie?
Dr. Julie Norman:
In addition to my work on the Middle East, I’ve worked on different humanitarian and conflict research projects in Central Africa. A lot of the programmes I did were with NGOs, and one of the main ideas that’s emerged over the past five years has been to shift the NGO model — away from running projects — towards direct cash transfers.
It’s really become more possible now because technology allows these transfers directly to individuals, even via mobile phones. We’ve already seen economic benefits in the past, but this particular study looked at the health benefits, which I found fascinating.
Paul Henley:
Well, for more on this study, we spoke to Edward Miguel, a Professor of Economics at the University of California, Berkeley, in the United States, and co-author of the published findings. How would he describe the aims first?
Professor Edward Miguel:
The idea of handing out cash has been around in government programmes for a while, but very often there are conditions attached. What was new with the NGO GiveDirectly, starting a bit over a decade ago, was the idea of handing out cash unconditionally to poor households and doing so efficiently.
They transfer money to people via mobile money, so there’s very little staff needed. The underlying idea is that poor households have many needs — so let’s give them the resources and let them choose what’s most important to them.
Paul Henley:
How did you measure the impact? You must have had control families without the money.
Edward Miguel:
That’s right. In development economics, it’s become common to work with NGOs and governments on randomized control trials in settings like this, where there are many poor households and limited resources.
In this case, we randomized which areas and villages would receive the large cash transfers and which would serve as control villages. That allows us to understand the impacts of cash — by comparing those who received assistance with those who did not.
Paul Henley:
Were people good at deciding exactly what to spend the money on?
Edward Miguel:
People spent the money on the kinds of things you would expect — food, clothing, and school fees. One of the things we found in our most recent work is that when there’s a pregnant woman in the household, families also spend a lot on healthcare related to her pregnancy.
In treatment households — those who received the large cash grants — pregnant women were almost 50% more likely to deliver their babies in hospitals. And as a result of the improved nutrition and better access to healthcare, infant and child mortality fell dramatically — by about 45 to 48 percent.
Paul Henley:
You don’t get much more of a concrete result than that, do you?
Edward Miguel:
It was really stunning for us to find this result. We did the analysis many different ways, and it’s a very strong outcome based on a large sample.
We collected data on the birth histories of women across nearly the entire county of Siaia, covering around 100,000 births. That’s what makes the statistical results so robust.
Paul Henley:
And it shows how even the poorest parents prioritise their children.
Edward Miguel:
Exactly. Poor households pay for better healthcare and deliver in hospitals. There’s another interesting finding: women in the third trimester of pregnancy actually work considerably less if they’re in the treatment group that received cash.
In control households, even in late pregnancy, women often have to work long hours on farms or in small businesses. But with the cash transfers, they could work fewer hours at a critical time when work strain and stress could complicate a pregnancy.
Paul Henley:
What you’ve just described sounds like a glowing endorsement of cash transfers to the poor — but governments and NGOs are still cautious about the idea, aren’t they?
Edward Miguel:
In many cases, yes, although the idea is spreading. More government programmes are now providing cash transfers.
There was recently a programme in South Africa that was scaled up to millions of households, inspired by findings like these — showing that unconditional cash transfers can truly improve lives.
We’ve also found that these transfers benefit the broader economy: poor households spend locally, in shops and on food, so there’s a positive spillover effect for local businesses as well.
Paul Henley:
Edward Miguel, Professor of Economics at the University of California, Berkeley.
Dr. Edward Miguel: US Tariffs: What Is The Impact?
On The Brain Surgeon’s Take, Dr. Rick Komotar and Prof. Edward Miguel break down how today’s U.S. tariffs affect prices, jobs, and America’s role in the global economy.
Watch an economics professor explain foreign aid in 101 seconds
Edward Miguel, faculty co-director of UC Berkeley’s Center for Effective Global Action, has made it his life’s work to figure out how to improve the lives of some of the poorest people on earth.
Edward Miguel on the Developing Practice of Development Economics
In this episode of Sean Carroll’s Mindscape Podcast, Ted Miguel dives deep into the world of development economics, sharing how randomized controlled trials (RCTs) are transforming the way we understand and tackle global poverty. Drawing on decades of fieldwork in sub-Saharan Africa, Ted unpacks the power of simple, cost-effective interventions like deworming pills and cash transfers. He reflects on the evolution of development economics, and how science can meaningfully inform public policy.
Lancet Profile: Sarah Baird – understanding, action, and optimism
This recent Lancet profile featuring Sarah Baird traces her personal and professional journey that led her to become a leading voice in global health and development economics. As featured in the article, a pivotal moment came during her PhD at UC Berkeley, when she spent six months in Busia, Kenya, working under the mentorship of Edward Miguel during the first data collection round of the Kenya Life Panel Survey (KLPS). That immersive fieldwork experience shaped her commitment to causal evidence and policy impact, launching a career focused on improving adolescent health through rigorous research.
Publication in The Economic Journal
February 5, 2025
NHH
Other
Document/Website
A recent study published in The Economic Journal investigates the direct impact of temperature on economic decision-making and destructive behavior by Ingvild Almås, Maximilian Auffhammer, Tessa Bold, Ian Bolliger, Aluma Dembo, Solomon M Hsiang, Shuhei Kitamura, Edward Miguel, Robert Pickmans.
Allegedly does not replicate | Episode 9
In this episode, we sit down with Ted Miguel, a prominent economist and a leading voice in open science, to explore the transformative role of pre-analysis plans and other open science initiatives in research. We discuss how these practices are reshaping the social sciences by fostering transparency, reproducibility, and collaboration. Ted shares his insights on the challenges and opportunities that come with implementing open science frameworks and reflects on their broader impact on academic integrity and policy relevance.
Whether you’re a researcher, a student, or simply curious about the future of scientific inquiry, this episode offers valuable perspectives on how we can all contribute to a more transparent and reliable body of knowledge. Tune in to join the conversation!
Listen to the podcast episode here.
Watch the podcast episode here.
A massive basic income experiment in Africa | Dennis Egger (Oxford University)
Visit this page to join a village fundraiser and help send life changing cash to 164 families in a Kenya directly, no strings attached.
The effects of these transfers are studied and recorded in detail, revolutionizing our understanding of the macroeconomic effects of cash transfers.
How economic history can benefit people today and generations to come
In the segment at 4:34, Professor Ted Miguel offers a concise analysis on conflict and recovery, drawing lessons from economic history to highlight resilience and growth.
TBCLIVE: TBC News, July 11, 2024 | From 10:00pm – 10:30pm
Ted’s talk starts at 19:30. He mentioned that Artificial Intelligence is the future and will impact research world and policy.
TBC: Africa Evidence Summit | Lakutanisha Watafiti | Tathimini Katika Sera Yapigwa Chapuo
Ted’s talk begins at 04:48. He highlighted why the Africa Evidence Summit is so exciting: 1. Most of the research presented is conducted by African scholars within a global collaborative framework, and 2. CEGA is at the forefront of utilizing high-quality data and advanced methodologies, while the new generation is generating a wealth of new insights.