Why the graduation approach could be the key to ending extreme poverty

Poverty persists. That is the sad reality facing those who remain in extreme poverty and for those who work to eradicate it.

Today, approximately 700 million people, or 8.5% of the global population, live in extreme poverty, subsisting on less than US$2.15 per day. Worse still, progress on addressing this issue has significantly stalled. A 2023 UN report shows global ambitions to end extreme poverty by 2030 are falling woefully short. It forecasts that over 600 million people will remain in extreme poverty and 665 million people will be undernourished by 2030, the deadline of the UN’s Sustainable Development Goals. With this lack of progress, the need for effective poverty alleviation programmes is greater than ever. 

The graduation method

You may have never heard of graduation or its inventor, BRAC. Yet, the graduation method has proven to be one of the most effective methods in eradicating poverty worldwide. 

Named after the aim to  ‘graduate’ its participants out of poverty, graduation is a holistic, time-bound programme consisting of a series of targeted interventions. The approach is rooted in BRAC’s belief that poverty is multidimensional, which means more than financial aid is needed to address it. Graduation combines economic empowerment with psychosocial support, recognising that people need both resources and confidence to create lasting change. By addressing the root causes of poverty and building self-sufficiency, the graduation approach seeks to enable people to move permanently out of extreme poverty, rather than relying on ongoing aid.

BRAC first began the graduation approach in 2002. Since then, it has demonstrated significant success. In Bangladesh, where the approach was pioneered, 95% of participants graduated out of extreme poverty, with 93% experiencing sustained benefits even seven years post-programme. Following the success in Bangladesh, graduation has been adopted by over 100 partners, including governments, non-governmental organisations and multilateral institutions across nearly 50 countries. 

With graduation implemented across the globe for over 20 years, a significant body of evidence has developed to support its effectiveness. Rigorous evaluations, including randomised control trials in 16 countries, have consistently shown that the graduation approach leads to significant and lasting economic improvements, such as increased consumption, income, food security, assets, savings, mental health and women’s empowerment. Some studies report effects persisting a decade after the initial intervention.

The case against graduation

Graduation is not without its critics. Given the multifaceted nature of the programme, which includes asset transfers, training and ongoing support, it requires substantial upfront investment. This often bars smaller organisations or governments with limited resources from implementation or achieving scale. 

But we know there is no quick, easy fix to end extreme poverty. According to existing evidence, cash transfers have not delivered long-lasting impacts without being paired with complementary interventions, such as ongoing coaching and basic needs support. It is only when these interventions are provided together as a sequenced package (often referred to as the graduation approach) that we have seen continued upward mobility among participants for 5 to 10 years after the programme. 

Cost aside, graduation has also been criticised for how applicable the approach is in different contexts. Like all programming, graduation depends on local contexts, such as cultural, economic and environmental factors. Implementing the programme in diverse settings requires a deep understanding and careful customisation, making the process both resource-intensive and complex. As such, questions remain over whether the same results could be achieved in refugee settings, conflict zones and climate vulnerable areas or with different demographics.

Still, graduation has shown remarkable adaptability. For instance, UNHCR implemented a graduation programme which improved the economic and social integration of refugees in Mozambique’s Maratane refugee settlement with host communities. Likewise, BRAC has demonstrated a willingness to take risks and learn through doing. It has applied and pioneered disability-inclusive graduation programmes in Uganda and Tanzania which have demonstrated positive results. 

An adaptable and effective approach 

Graduation is by no means a panacea to extreme poverty. Yet, its success and effectiveness as a programme cannot be ignored. As a methodology developed by Bangladesh which has gone on to be applied by an array of organisations and governments, and across geographies and demographics, it offers a uniquely effective approach that should be of interest to development practitioners worldwide.