One of the challenges faced by the microfinance sector is whether and how to reach the very poor. While microfinance institutions have had great success at reaching poor and low-income households, casual evidence suggests that outreach to the very poor is much less successful. The very poor suffer from greater instability, a less developed skill set, fewer social and institutional connections, and fewer economic opportunities, relative to households among the "better off" poor. These circumstances suggest that the poorest of the poor may need additional support and preparation to participate successfully in regular microfinance programs.

Targeting the Ultra Poor (TUP) is intended to accomplish precisely this aim and is based on BRAC's Income Generation for Vulnerable Group Development (IGVGD) program.  The program combines an intensive period of training, asset transfer, financial education and saving, with the intention that participants will eventually graduate (after 18 months) into a standard microfinance program.  The study evaluates the impact of the different program components on socioeconomic outcomes including: income, assets, school attendance, of children, health, and food security.  In addition, this study will provide some evidence regarding the impact and viability of "graduating" the ultra poor to microfinance.

1600 households in the Sindh province of Pakistan participate in this study. Eight hundred households are randomly selected through public lottery to be provided with the asset and training (treatment group) and the remaining 800 households serve as the control group.