The Graduation Approach

 “It’s called the Graduation Approach, because the idea is to graduate people from poverty, not just treat its symptoms.” - Nicholas Kristof, New York Times, 2019  

The Coalition uses the ​well proven poverty alleviation model​, The Graduation Approach. ​The model has been extensively used in the development community, and, as noted by ​the Economist is one of the few poverty alleviation strategies that works consistently across countries, cultures, and conditions. Economists argue that the model’s success is due to a combination of consumption support, seed capital/ asset/ cash transfers and financial inclusion facilitated, accompanied by up to two years of mentoring and coaching, as well as training and capacity building. The consumption support ensures that the ultra-poor are not forced to spend, sell, or consume their future asset transfer – be this in the form of cash or in-kind for entrepreneurial activities. Further, continuous mentoring ensures capacity building for the extremely poor. This ensures that the program participant is on the right path to self-reliance and builds the skills necessary. An impact evaluation to assess the impact of the graduation program on targeted refugees and host community members is conducted once the program is completed, from month 18 to 36. 

The approach was pioneered by ​BRAC in Bangladesh in 2002 with a success rate of 95% poverty graduation. It has since been tested in over 43 countries worldwide​. The approach guides households step-by-step from poverty to self-reliance. 

The duration of a graduation programme is approximately 18-36 months per household. It includes a minimum consumption support, market-oriented skills training for self- or wage employment, asset transfer, access to inclusive financial services through savings groups and/or linkages to formal services, access to social and legal services and continuous mentoring. Graduation programs are most effective when they build on existing services/programs. 

The UNHCR and Trickle Up have piloted the programme in 8 countries with the support of the US State Department's Bureau for Population, Refugees and Migration (PRM) since 2013 and have found that the model significantly impacts self-reliance of refugees. It is seen to work best when programmes mobilize all relevant partners, such as governments, financial institutions or NGOs with longstanding experience of implementing in the specific context. 

With an average cost of US$ 1,400, a CGAP study shows, it is highly cost effective as there is a clear end date to the programme.