Need-Based Transfers Enhance Resilience to Shocks: An Agent-Based Model of a Maasai Risk-Pooling System

Maasai and other Maa-speaking pastoralists in Kenya and Tanzania have a risk-pooling system that they refer to by their word for the umbilical cord (osotua). Gifts from one osotua partner to another are contingent on the recipient's need and do not create any debt. We refer to such gifts as need-based transfers. Maa-speakers also have a system of debt-based transfers (esile) in which gifts must be repaid. We designed an agent-based model to compare the impacts on herd survival of need-based and debt-based transfers on networks of varying topologies and sizes and with different degrees of temporal correlation of shocks felt by the agents. We found that the use of need-based rather than debt-based transfers, greater network modularity, greater network size, and decreased correlation among shocks were associated with increased rates of survival.

Automated summary

The study compared the impacts of need-based and debt-based transfers on herd survival, and found that using need-based transfers, larger network size, and decreased correlation among shocks were associated with increased survival rates.