Onderzoek Welle gepubliceerd in Journal of Alternative Finance
May 14, 2025The Journal of Alternative Finance has published a paper by researchers of Groningen University about the basic income pilot of INclusion and AFARD in the village of Welle in Uganda. Having started in August 2020, it is one of the longest running UBI pilots to date. The intention is to continue for two more years until July 2027.
This article is written in English for our international readers with a special interest in basic income pilots.
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:
- the UBI for children
- a steering committee
- 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., Lensink, R., & Mueller, A. (2025). Effects of Cash-Transfer Programs New Evidence From Uganda. Journal of Alternative Finance, 0(0). https://doi.org/10.1177/27533743251339825
The project still needs funds for the remaining two years.
To contribute follow this link.