STANDARDS

CCSS: 5.NBT.B.7, MP2, MP3, MP8

TEKS: 4.4A, 5.3E

Taking On Poverty

An organization tries a unique financial approach to help people in need

JENNIFER HUXTA

GiveDirectly gives families in Kenya money to help them improve their lives. This family bought a cow and a sewing machine, and paid school fees for the children.

Jim McMahon/Mapman®

Just a few years ago, a single concern overshadowed everything else in Carroline’s life: food. The woman from Kenya constantly wondered where she and her family would get their next meal. “At times we had to go without food,” she says. “It wasn’t easy.”

In this way, Carroline is like the more than 700 million people worldwide who live in extreme poverty. Extreme poverty is defined as living on less than $2 a day. People living in extreme poverty often struggle for access to basic necessities such as food, clean water, clothing, and shelter. 

Many people are working to improve this situation. Large, global projects are designed to help improve things like agriculture, roads, or schools in a region. Governments and organizations donate large sums of money for these projects. But that money doesn’t always reach individuals. 

One organization is trying a different tactic. Known as GiveDirectly, it does just what its name says. It gives money on a regular basis directly to people who really need it, like Carroline. This concept is known as universal basic income (UBI).

Just a few years ago, a single concern overshadowed everything else in Carroline's life: food. The woman is from Kenya. She constantly wondered where she and her family would get their next meal. "At times we had to go without food," she says. "It wasn't easy."

In this way, Carroline is like the more than 700 million people worldwide who live in extreme poverty. Extreme poverty is defined as living on less than $2 a day. People living in extreme poverty often struggle for access to basic necessities. These needs include food, clean water, clothing, and shelter. 

Many people are working to improve this situation. Large, global projects are designed to help improve things like agriculture , roads, or schools in a region. Governments and organizations donate large sums of money for these projects. But that money doesn't always reach individuals.

One organization is trying a different tactic . Their name is GiveDirectly. They do just what its name says. It gives money on a regular basis directly to people who really need it, like Carroline. This concept is known as universal basic income (UBI).

The idea isn’t new. Thomas Paine, one of America’s Founding Fathers, first wrote about the concept in 1797.Since then, many experts have supported this idea. But no one had ever tried it on a large scale and studied whether it works—that is, until GiveDirectly did. 

To test this method of giving, GiveDirectly tried giving money for a short period of time to people in Kenya in 2011. The results were positive. People in the program felt happier and more secure. They went hungry less often and could pay for things such as their children’s education or building new homes. 

The idea isn't new. Thomas Paine is one of America's Founding Fathers. He first wrote about the concept in 1797. Since then, many experts have supported this idea. But no one had ever tried it on a large scale. Nor did anyone ever study whether it works. That is, until GiveDirectly did.

GiveDirectly wanted to test this method of giving. So they tried giving money for a short period of time to people in Kenya in 2011. The results were positive. People in the program felt happier and more secure. They went hungry less often. And they could pay for things such as their children's education or building new homes.

JENNIFER HUXTA

Beatrice used income from GiveDirectly to dig a well that provides her family with fresh water.

Direct cash transfers differ from other donation methods. They’re “more efficient,” says Kirk Prichard. He works at Concern, an organization focused on reducing extreme poverty worldwide. People can “buy the things they need,” he says.

Earlier this fall, GiveDirectly expanded its program. Now, it will give about $300 a year to more than 6,000 people living in villages across Kenya. They will get the money every year for more than 10 years. In the meantime, GiveDirectly will see how they do and whether the contributions made a difference. 

Carroline was part of the program in 2013. With her money, she was able to reliably feed her family and build a home. “My life is different now,” she says. “There is freedom.”

“There are millions of people living in extreme poverty that we can help if we give them the chance to improve their own lives,” says Max Chapnick, who works at GiveDirectly.

Direct cash transfers differ from other donation methods. They're "more efficient ," says Kirk Prichard. He works at Concern. The organization focuses on reducing extreme poverty worldwide. People can "buy the things they need," he says.

Earlier this fall, GiveDirectly expanded its program. Now, it will give about $300 a year to more than 6,000 people living in villages across Kenya. They will get the money every year. This will happen for more than 10 years. In the meantime, GiveDirectly will see how they do. And watch to see whether the contributions made a difference.

Carroline was part of the program in 2013. With her money, she was able to reliably feed her family and build a home. "My life is different now," she says. "There is freedom."

"There are millions of people living in extreme poverty. We can help if we give them the chance to improve their own lives," says Max Chapnick. He works at GiveDirectly.

GiveDirectly hopes to give about $0.75 a day to 6,000 people in Kenya. How much money would one person get for 2 days? Write and solve an equation.

GiveDirectly hopes to give about $0.75 a day to 6,000 people in Kenya. How much money would one person get for 2 days? Write and solve an equation.

Let’s say a family of 6 adults gets $0.75 a day for each person. How much total money does the group receive each day? Write and solve an equation.

Let’s say a family of 6 adults gets $0.75 a day for each person. How much total money does the group receive each day? Write and solve an equation.

How much does the family receive for a week?

How much does the family receive for a week?

Let’s say each student in a class of 30 wants to donate $1.20 to the program. Would the total be enough to cover the income of the family in question 2B for 1 week? Prove your answer with an equation.

Let’s say each student in a class of 30 wants to donate $1.20 to the program. Would the total be enough to cover the income of the family in question 2B for 1 week? Prove your answer with an equation.

Let’s say GiveDirectly wants to give $100 to one person as a short-term donation. In addition, the organization must spend $1.69 to enroll the person in the program and $2.79 to move the person’s money from the U.S. to Kenya. Write and solve an equation for the total costs of these expenses for one person.

Let’s say GiveDirectly wants to give $100 to one person as a short-term donation. In addition, the organization must spend $1.69 to enroll the person in the program and $2.79 to move the person’s money from the U.S. to Kenya. Write and solve an equation for the total costs of these expenses for one person.

GiveDirectly is considering starting a similar program in another country. Let’s say for that program, the organization would give $0.85 per day to a person in need. How much money would 6 adults get for 1 day in this other program?

GiveDirectly is considering starting a similar program in another country. Let’s say for that program, the organization would give $0.85 per day to a person in need. How much money would 6 adults get for 1 day in this other program?

How much more money would 6 people get in this program compared with 6 people in the existing Kenya program (see 2A)?

How much more money would 6 people get in this program compared with 6 people in the existing Kenya program (see 2A)?

Monica is another person who also received money from GiveDirectly, in 2013. With her funds, she bought a cow and became a sugarcane farmer. Why might these investments have a greater impact on her family’s life than if she had gotten food or goods?

Monica is another person who also received money from GiveDirectly, in 2013. With her funds, she bought a cow and became a sugarcane farmer. Why might these investments have a greater impact on her family’s life than if she had gotten food or goods?

agriculture

The raising of crops and animals; farming

overshadow

To make something seem less important or impressive in comparison to something else

efficient

Working very well and not wasting time or energy

transfers

Things that move from one person or place to another

equation

A number sentences that includes an equal sign. The values represented on both sides of the equal sign are the same

 

Example: 5 + 4 = 9

investments

Money, time, or effort a person or group gives to achieve a goal 

tactic

An action or plan to achieve a specific goal

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