Child Deprivation and the Power of Cash: Evidence from Northern Uganda’s NUSAF3 Programme

This paper presents the first empirical analysis of the Northern Uganda Social Action Fund 3 (NUSAF3) using a Consensual Approach child deprivation index based on socially perceived necessities. Panel data on a sample of NUSAF3 beneficiaries shows that between 2016 and 2021, child deprivation declined significantly among beneficiaries, especially among those receiving cash transfers. These reductions outpaced those seen among recipients of enterprise grants or skillstraining, and exceeded national trends. The findings support growing evidence on the effectiveness of direct cash transfers in reducing poverty and show the potential of the Consensual Approach for effective poverty reduction assessment.