Another advantage from global poverty and health projects is demonstrating clearly the multiplier effect of donations. The base case is a cash transfer to a person with one hundredth of the donor’s income, which should give a one hundred times boost to welfare. From this compelling starting point we can then proceed to argue why in expectation other projects may do even better. We can picture a range of projects from those with good evidence base but returns only a modest multiple above cash transfers (bed nets) to project which could produce higher returns but have limited evidence (charity start ups). Doners may want to fund along this continuum.
Another advantage from global poverty and health projects is demonstrating clearly the multiplier effect of donations. The base case is a cash transfer to a person with one hundredth of the donor’s income, which should give a one hundred times boost to welfare. From this compelling starting point we can then proceed to argue why in expectation other projects may do even better. We can picture a range of projects from those with good evidence base but returns only a modest multiple above cash transfers (bed nets) to project which could produce higher returns but have limited evidence (charity start ups). Doners may want to fund along this continuum.