Effect of Bicycle on Poverty Alleviation
Quantitative Field Study-1: Uganda
Organization: Institute for Transportation & Development Policy, Europe
- Cost-benefit analysis of bike ownership.
- We gave 300 low-income households in diverse parts of Uganda discounted bikes and a one-time instruction on how to use the time they saved to work on related activities.
Results:
- All households either increased the amount of land used for farming or improved their farming methods.
- About half of all households started or improved non-farming activities during the survey period, which helped diversify their household income.
- Each household saved nearly two hours of transportation time per day, enabling.
- Them to visit markets and medical facilities more often.
- The household income increased by 35%.
Quantitative Field Study-2: Tanzania
Organization: International Labour Office
- The Integrated Rural Transport Project in Makete District, Tanzania was conducted because it was understood that “Roads Are Not Enough.”
- A survey was conducted among approximately 100 households to assess the impact of owning bicycles.
Results:
- Bicycles have a significant impact on production by enabling farmers to cultivate larger fields and use more fertilizer.
- Households with bicycles marketed 40% more than comparable households without non-motorized transportation.
- Bicycles provide monetary benefits equal to 55% of a household’s income.
- The primary barrier to purchasing a bicycle is the high cost.
- 80-90% of households that desire a non-motorized transportation cannot afford the price.
Quantitative Field Study-3: Srilanka
Organization: World Bicycle Relief, USA.
- After the tsunami, 24,000 bicycles were distributed for free.
- We surveyed 221 bicycle owners to assess the impact.
Results:
- More than two years after the tsunami, 88% of respondents still use bicycles as a means of livelihood.
- Bicycles are cost-effective as compared to other transportation alternatives, saving between 10 and 20 percent of the household’s annual income.
- In the poorest households, bicycles save as much as 30 percent of the annual income, which contributes significantly to livelihood security.
- Distribution of bicycles has successfully empowered women, with 82% of female recipients using them for generating income.
Bicycles save 18% of a recipient’s average monthly income of $71 by replacing alternative transportation costs. - If time saved by using a bicycle is utilized for productive work, an additional income of $0.52/day can be produced, resulting in over a 17% increase.
- While this survey did not calculate the cost savings of a bike recipient’s ability to reach regional markets, other surveys indicate additional significant cost savings.