The spirit of giving (part two)

Unconditional cash transfers improve material and mental well-being

Researchers are halfway through a twelve year experiment about giving unconditional cash transfers (UCTs) in Kenya. Every adult in about 300 communities in Kenya either received (1) long-term UCTs for twelve years, (2) short-term UCTs for two years, (3) a lump-sum UCT that amounted to two years of monthly payments, or (4) served as a control group. Communities receiving UCTs experienced substantial economic and social benefits, such as more business enterprises, higher net revenues, and lower rates of depression. The lump sum had the largest effect on economic outcomes – with lump sums, recipients could invest the money and start businesses. Contrary to some worries, the UCTs did not fuel inflation and people receiving UCTs did not work less or earn less money on their own. This research shows that UCTs can help alleviate poverty and suggests that cash given as a lump-sum is most effective because it enables people to invest in their future.

Gift-giving helps build social bonds within and between groups

Gift-giving (the exchange of objects between people and groups) is ubiquitous in human societies. A classic essay considered gift-giving customs from ancient Rome to contemporary Melanesia, deriving lessons for human relationships. While specific gift-giving customs vary across cultures, gift-giving is nearly always accompanied by an obligation to reciprocate. This reciprocal exchange builds not just wealth and economic alliances, but social bonds and trust. This research shows how norms may be expressed differently across societies, but often indicate the shared values of humanity. Giving people the opportunity to provide value to each other can create cycles of reciprocity that strengthen relations between groups, increase citizen trust in government and government accountability to citizens, and foster social capital in communities.