ECS3704 ASSIGNMENT 2
(CORRECT ANSWERS)
SEMESTER 2 DUE 20
SEPTEMBER 2024
GUARANTEED DISTINCTION.
Discuss the transfer payments (cash and in-kind transfer) in Malawi to alleviate inequality
and poverty. In the discussion include the effectiveness of the programmes. Write a
maximum of 400 words for 20 marks. Use your textbook, search on Google Scholar and the
Unisa library, and use the Harvard method of referencing for any sources used, cited, and
for the reference list.
INTRODUCTION
In Malawi, transfer payments, both cash and in-kind, play a critical role in addressing poverty
and reducing inequality. These payments are designed to support vulnerable populations,
particularly those living below the poverty line. The major transfer programmes include the
Social Cash Transfer Program (SCTP) and the Food Assistance Programme, which have shown
varying degrees of effectiveness in alleviating poverty.
, In Malawi, transfer payments, both cash and in-kind, play a critical role in addressing poverty
and reducing inequality. These payments are designed to support vulnerable populations,
particularly those living below the poverty line. The major transfer programmes include the
Social Cash Transfer Program (SCTP) and the Food Assistance Programme, which have shown
varying degrees of effectiveness in alleviating poverty.
The SCTP provides cash transfers to low-income households, especially those with chronically
ill individuals, orphans, and the elderly. According to the World Bank (2020), analyses of the
SCTP indicate that it has significantly improved household consumption and food security, with
recipients reporting increased spending on essential goods. The program has also been praised
for its impact on educational outcomes; families are more likely to invest in their children's
schooling, reflecting a long-term reduction in poverty through improved human capital
(Chinsinga, 2019).
In-kind transfers, primarily in the form of food assistance, address immediate nutritional needs
among the most vulnerable. The World Food Programme (WFP, 2021) states that food aid has
improved caloric intake among recipients, thereby enhancing health outcomes and mitigating
hunger. However, the reliance on food aid can create dependency, which complicates its overall
effectiveness as a long-term poverty alleviation strategy.
Despite these positive influences, challenges remain. Liñán and Moller (2021) argue that
administration inefficiencies and corruption can reduce the overall impact of transfer
programmes. Furthermore, while cash transfers enable beneficiaries to allocate resources
