Conditional Cash Transfers : Reducing Present and Future Poverty

The report shows that there is good evidence that conditional cash transfers (CCTs) have improved the lives of poor people. Transfers generally have been well targeted to poor households, have raised consumption levels, and have reduced poverty, by a substantial amount in some countries. Offsetting adjustments that could have blunted the impact of transfers, such as reductions in the labor market participation of beneficiaries, have been relatively modest. Moreover, CCT programs often have provided an entry point to reforming badly targeted subsidies and upgrading the quality of safety nets. The report thus argues that CCTs have been an effective way to redistribute income to the poor, while recognizing that even the best-designed and best-managed program cannot fulfill all of the needs of a comprehensive social protection system. CCTs therefore need to be complemented with other interventions, such as workfare or employment programs and social pensions. The report also considers the rationale for conditioning the transfers on the use of specific health and education services by program beneficiaries. Conditions can be justified if households are under investing in the human capital of their children, for example, if they hold incorrect beliefs about the returns to these investments; if there is "incomplete altruism" between parents and their children; or if there are large externalities to investments in health and education. Political economy considerations also may favor conditional over unconditional transfers: taxpayers may be more likely to support transfers to the poor if they are linked to efforts to overcome poverty in the long term, particularly when the efforts involve actions to improve the welfare of children.

Bibliographic Details

Main Authors:	Schady, Norbert, Fiszbein, Ariel, Ferreira, Francisco H.G., Keleher, Niall, Grosh, Margaret, Olinto, Pedro, Skoufias, Emmanuel
Language:	English
Published:	Washington, DC: World Bank 2009
Subjects:	ABSENTEEISM, ABUSE, ACCESS TO EDUCATION, ACCOUNTING, ADVOCACY CAMPAIGN, AGING, ATM, BANKS, BASIC EDUCATION, BENEFICIARY, BULLETIN, CALCULATIONS, CASH TRANSFER, CASH TRANSFER PROGRAMS, CASH TRANSFERS, CHILD HEALTH, CHILD LABOR, CITIZEN, CITIZENS, CONFLICT, CONFLICT OF INTEREST, CONTRIBUTIONS, COST­BENEFIT ANALYSIS, COUNTERFACTUAL, CRIME, CURRENT PROGRAM, DEBIT CARD, DECISION TREE, DEMAND FOR SERVICES, DEPENDENT CHILDREN, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DISSEMINATION, DISTRIBUTION OF WEALTH, EARLY CHILDHOOD, EARLY INTERVENTION, EARNINGS, ECONOMIC GROWTH, ECONOMIC SHOCKS, ELDERLY, EMPLOYMENT GUARANTEE SCHEME, EMPLOYMENT PROGRAMS, ENTRY POINT, EPIDEMIC, EXCHANGE RATES, EXPERIMENTAL METHODS, EXTREME POVERTY, EXTREMELY POOR HOUSEHOLDS, EXTREMELY POOR PEOPLE, FAMILIES, FAMILY INCOME, FEMALE EDUCATION, FERTILITY, FINANCIAL CRISIS, FINANCIAL SUPPORT, FOOD BASKET, FOOD CONSUMPTION, FOOD FOR EDUCATION, FOOD SUBSIDIES, GENDER DIFFERENCES, GENDER DISPARITIES, GENDER DISPARITIES IN EDUCATION, GENDER GAP, GENDER GAP IN EDUCATION, GEOGRAPHIC TARGETING, GLOBAL DEVELOPMENT, GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, HEALTH CARE, HEALTH CENTERS, HEALTH FACILITIES, HEALTH OUTCOMES, HEALTH PROVIDERS, HEALTH SERVICES, HOUSEHOLD CONSUMPTION, HOUSEHOLD LEVEL, HOUSEHOLD SURVEY, HUMAN CAPITAL, HUMAN CAPITAL FORMATION, HUMAN DEVELOPMENT, HUSBANDS, ILLNESS, IMMUNIZATION, IMMUNIZATIONS, IMMUNODEFICIENCY, IMPACT EVALUATION, IMPACT ON POVERTY, IMPERFECT INFORMATION, IMPORTANT POLICY, INCOME, INCOME LEVELS, INCOME SUPPORT, INEQUALITY, INSTRUMENTAL VARIABLES, INTERNATIONAL ORGANIZATIONS, INTERVENTION, INVESTING, INVESTMENT IN CHILDREN, JOB SEARCH, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LABOR SUPPLY, LEARNING, LEGAL STATUS, LIVING STANDARDS, LOAN, LOCAL GOVERNMENTS, LOW-INCOME, LOW-INCOME COUNTRIES, MALNUTRITION, MARKET FAILURES, MARKETING CAMPAIGN, MEANS TESTING, MILLENNIUM DEVELOPMENT GOALS, MONETARY INCENTIVES, MOTHER, NATIONAL LEVEL, NATIONAL LEVELS, NEEDY FAMILIES, NGO, NONGOVERNMENTAL ORGANIZATIONS, NUTRITION, NUTRITION OUTCOMES, NUTRITIONAL STATUS, OLD-AGE, OLDER CHILDREN, ORPHANS, PARENTING, PARTICIPATION OF BENEFICIARIES, PAYMENT SCHEDULES, PENSION, PENSION SCHEME, PENSIONS, PER CAPITA CONSUMPTION, PER CAPITA INCOME, PERINATAL CARE, POLICY MAKERS, POLICY RESEARCH, POLITICAL ECONOMY, POLITICAL PROCESS, POOR, POOR CHILDREN, POOR FAMILIES, POOR HOUSEHOLDS, POOR INFRASTRUCTURE, POOR PEOPLE, POOR RURAL AREAS, POPULATION EDUCATION, POPULATION GROUPS, POPULATION SUBGROUPS, POSITIVE BEHAVIORS, POVERTY GAP, POVERTY IMPACT, POVERTY INDEXES, POVERTY LEVEL, POVERTY LINE, POVERTY MAPS, POVERTY MEASURES, POVERTY PROGRAMS, POVERTY REDUCTION, PREGNANT WOMEN, PREVENTIVE HEALTH CARE, PRICE INDEX, PRIMARY EDUCATION, PRIMARY SCHOOL, PRIVATE INVESTMENT, PRIVATE INVESTMENTS, PROBABILITY, PROGRAM EFFECTS, PROGRAM IMPLEMENTATION, PUBLIC GOODS, PUBLIC INVESTMENTS, PUBLIC POLICY, QUALITY OF SERVICES, RATE OF RETURN, RATES OF RETURN, REMITTANCES, RESPECT, RESPONSIBILITIES, RISK MANAGEMENT, RURAL, RURAL FAMILIES, RURAL POOR, RURAL POPULATIONS, SAFETY NET, SAFETY NET PROGRAMS, SAFETY NETS, SAVINGS, SAVINGS ACCOUNT, SCHOLARSHIP, SCHOOL ATTENDANCE, SCHOOL CHILDREN, SECONDARY EDUCATION, SECONDARY SCHOOL, SENIOR, SERVICE PROVIDERS, SOCIAL ASSISTANCE, SOCIAL EXCLUSION, SOCIAL INDICATORS, SOCIAL MARKETING, SOCIAL POLICIES, SOCIAL POLICY, SOCIAL PROTECTION, SOCIAL RISK MANAGEMENT, SOCIAL SERVICES, SOCIAL WELFARE, SOCIAL WORKERS, SOCIOECONOMIC STATUS, SUPPORT PROGRAM, TARGETED TRANSFERS, TARGETING, TEENS, TRADITIONAL PRACTICE, TRANSFER AMOUNTS, TRANSFER PROGRAMS, TRANSPARENCY, UNEMPLOYMENT, URBAN AREAS, VACCINATION, VICIOUS CYCLE, WAGES, WELFARE PROGRAMS, WORTH, YOUNG CHILDREN,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20090227075314 https://hdl.handle.net/10986/2597
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