Discussion Paper
Economics of Early Response and Resilience to COVID-19: Ethiopia
Social Protection Approaches to COVID-19: Expert Advice Helpline, DAI Global and High-Quality Technical Assistance for Results
This paper builds on earlier studies to understand what Ethopia's economic gains could have been of the COVID-19 social protection and humanitarian response.
Summary of Key Findings:
- Routine support already provided under the Ethiopia Productive Safety Net Programme (PSNP) and Humanitarian Assistance (HA) is estimated to have saved $859 million in one year in reduced aid costs, as well as avoided income and livestock losses. An increased investment in cash+/resilience investments would have increased savings to $871 million.
- The economic model suggests that a timely response to expanded caseloads under COVID-19 could have saved upwards of $269 million, depending on the scale of expansion. Savings to program costs alone would have allowed the program to reach an additional 3.1 million people in need. Investment in a package of cash+/resilience building measures would have yielded a return on investment up to $3.50 for every $1 spent.
- The findings suggest that investment in models that can deliver a timely response, complemented by longer term resilience, is critical for delivering effectiveness gains. Crisis financing and shock responsive social protection systems, complemented by delivery via networks of local actors and cash delivery, are fundamentally required.
This paper was authored by Courtenay Cabot Venton (DAI Global).