Publication in the Journal of Alternative Finance; Insights from the Basic Income Pilot in Uganda

Unique project characteristics
The project is particularly interesting for research and comparative analysis, because it differs in several ways from other UBI projects. In addition to the seven-year duration, the researchers mention three distinguishing characteristics:

1. the UBI for children
2. a steering committee
3. a community fund

UBI children: All people in Welle, including children, receive a UBI of 13.50 euro a month. In other UBI projects children are usually excluded or receive a lower amount. The UBI of the children goes into the account of their mothers.

Steering committee: At the start of the project a steering committee was democratically chosen. The committee advises on how to best use the UBI and mediates when conflicts arise in the village. This happens, for example, when men feel threatened by the increased financial power of the women.

Community fund: The community fund is unique to this project. Of the unconditional cash transfer (UCT) of 15 euro a month, 10% - 1.50 euro - goes to the fund. The fund is a partial answer to the common criticism of UBI that it falls short when public goods and services are lacking. It enables the villagers to invest in public goods. The researchers conclude that the fund has greatly contributed to the success of the project. The people of Welle have used it to invest in two boreholes which now provide clean drinking water and save the women of Welle a lot of time. Time which they now spend on agriculture, livestock, small businesses, family, and socializing.

Key Findings and Recommendations
The researchers conclude that the pilot thus far has had “… largely positive effects on the residents of Welle, in terms of sustainable livelihoods, consumption, food security, savings, physical health, emotional well-being, and various dimensions of social cohesion.”

The paper concludes with recommendations that are particularly relevant when unconditional cash transfers are applied in development projects:

“Local institutional incentives and enforcement mechanisms for tackling communal challenges and emerging conflicts, as well as community-managed funds, are of key importance for cash transfers to succeed.”

Read the full paper for more insights and recommendations:

van Dongen, E.M.A., Lensink, B.W., Mueller, A., (2025). New evidence from a cash transfer program in Uganda. Journal of Alternative Finance 2 (2), 211–236.

The full text of this article is freely available via Pure (https://pure.rug.nl/ws/portalfiles/portal/1466823671/van-dongen-et-al-2025-effects-of-cash-transfer-programs-new-evidence-from-uganda.pdf) under the Taverne licence. Supplementary materials are freely accessible via the DOI (10.1177/27533743251339825); a link to the supplementary file can be found at the bottom of the publisher’s webpage.