Across many different contexts, randomized evaluations find that school participation is sensitive to costs: Reducing out-of-pocket costs, merit scholarships, and conditional cash transfers all increase schooling. Addressing child health and providing information on how earnings rise with education can increase schooling even more cost-effectively. However, among those in school, test scores are remarkably low and unresponsive to more-of-the-same inputs, such as hiring additional teachers, buying more textbooks, or providing flexible grants. In contrast, pedagogical reforms that match teaching to students' learning levels are highly cost effective at increasing learning, as are reforms that improve accountability and incentives, such as local hiring of teachers on short-term contracts. Technology could potentially improve pedagogy and accountability. Improving pre- and postprimary education are major future challenges.

In 1991, CARE International, a leading humanitarian organization, launched a unique savings-based microfinance program called a Village Savings and Loan Association (VSLA). Today, the model is being replicated across sub-Saharan Africa. Although previous studies have shown substantial benefits from participating in the VSLA program, these studies likely suffer from selection bias and other methodological weaknesses. This study attempts to improve upon the existing work by examining the impact of one of the first VSLA programs, located in Zanzibar, Tanzania, using both quantitative data from individual surveys, and qualitative data from focus group discussions and key interviews. In order to control for selection bias, this study utilizes a control group of new VSLA members who are still in the initial training phase, and also statistically controls for differences in demographic characteristics including age, gender, religion, marital status and education, which may affect program impact. The results suggest that participation in the program has an overall positive impact on various indicators of household and individual welfare, including asset expenditure levels, the development of income-generating activities (IGAs), education expenses, access to health services, nutritional levels and quality of housing. Such positive results are particularly encouraging given the long-term sustainability of the VSLA model-the program does not rely on outside donor funding and does not require continued support from the founding organization. Overall, these results suggest that the VSLA model is both successful and sustainable. Furthermore, it may offer potential teaching benefits for other microfinance programs in developing countries.

Formal microfinance institutions have been an important tool in the fight against poverty in developing countries, but their reach is necessarily limited. Village Savings and Loan Associations (VSLAs) are an alternative, informal mechanism for saving and borrowing that do not require external capital or ongoing financial or administrative support from a founding organization. This paper evaluates the impact of VSLAs on their members and finds that long-term members fare better along multiple economic, nutritional, and health dimensions compared to a control group of recent joiners.