Social Safety Nets and Their Effectiveness in Poverty Alleviation: Evidence from Banadir Region, Somalia

Abstract

The paper primarily focuses on social safety nets and their effectiveness in poverty alleviation. Social Safety Net (SSN) programs pertain to social service initiatives aimed at providing temporary assistance to individuals or groups facing vulnerabilities or unexpected hardships, such as those with lower incomes. Poverty poses a significant obstacle to the progress of social development, and its impacts are worsened by various factors including insecurity, frequent flooding, and droughts in Somalia. A total of 342 households in the Banadir region of Somalia were interviewed for the social safety nets (SSN) study. Data collection in the study was facilitated through the utilization of Kobo Toolbox, while the data analysis was conducted using EViews v.12. The results obtained from the ADP and PP tests indicated that all variables exhibited stationarity at the level. The Impact Assessment (IA) reveals a positive correlation with Household Income and Poverty Indices (HIPI), suggesting a risk of dependency without a strategic exit strategy, potentially leading to a 26% increase in poverty levels. A well-executed Program Implementation and Design (PID) can result in a 33% increase in income and poverty indices. Recipients perceive the Social Safety Net (PSSN) as reducing poverty and increasing income by 11%. Therefore, the study recommends integrating beneficiaries into the urban economy through sustainable livelihood options. Finally, the Somali government should prioritize the implementation of sustainable livelihood programs to mitigate dependency and alleviate poverty among SSN beneficiaries.