How cash transfers activate beneficiaries’ decision-making in livelihood activities: A case of Soweto, South Africa

ABSTRACT

There is a growing pool of evidence showing that cash transfers can promote livelihood activities. Yet there has been limited empirical studies that explore how financial support influences beneficiaries’ decision-making in the construction and operation of livelihood activities in an urban context. This study presents findings from qualitative research conducted in a poor urban community in South Africa. Structuration theory provides an analytical tool to understand how cash transfers enable decision-making of beneficiaries in livelihood activities. The study finds that beneficiaries make different types of initial and ongoing decisions to improve their socio-economic condition. Among the contributions of this paper is that it counters the cynicism that is usually attached to cash transfers. The study’s implications include the incorporation of both social and economic goals in the design of social protection policies as well as the need for greater recognition of the role of the informal economy in eradicating poverty.

KEYWORDS:

• Social protection
• decision-making
• livelihood activities
• unemployment
• poverty
• South Africa

Acknowledgment

The author appreciate the support of South African National Research Foundation, Prof Jimi Adesina, Prof Leila Patel, Dr Sophie Plagerson, and Nomusa Zikalala. The author also acknowledges the supportive role of the editor and the reviewers of this paper.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 Mashonisa is an isiZulu word for a money-lender, who informally lends to clients usually high interest rate.

2 Social grants, or grants, is another name for cash transfers in South Africa.

Additional information

Funding

This work was supported by National Research Foundation.