Publication: Conditional Cash Transfers :
Reducing Present and Future Poverty
Loading...
Files in English
45,830 downloads
2,171 downloads
423 downloads
Date
2009
ISSN
Published
2009
Author(s)
Schady, Norbert
Keleher, Niall
Olinto, Pedro
Editor(s)
Abstract
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.
Link to Data Set
Citation
āSchady, Norbert; Fiszbein, Ariel; Ferreira, Francisco H.G.; Keleher, Niall; Grosh, Margaret; Olinto, Pedro; Skoufias, Emmanuel. 2009. Conditional Cash Transfers :
Reducing Present and Future Poverty. World Bank Policy Research Report. Ā© World Bank. http://hdl.handle.net/10986/2597 License: CC BY 3.0 IGO.ā
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Madagascar - Three Years into the Crisis : An Assessment of Vulnerability and Social Policies and Prospects for the Future, Volume 1. Main Report(Washington, DC, 2012-05)The report is divided into two volumes. The first volume includes the fundamental content of the report. It is organized as follows. Chapter one provides a conceptual framework to analyze risk and vulnerability and provides a definition of social protection. Chapter two assesses the main risks faced by the Malagasy population as well as its vulnerability profile. Chapter three reviews Madagascar's social protection policies, the institutions responsible for social protection and the financial resources allocated to social protection by the government, donors and Non-Governmental Organizations (NGOs). Chapter four proceeds with a description and analysis of the main social protection programs presently under implementation in Madagascar. Chapter five builds on the previous chapters but also on the experience of other low income countries, especially in Africa. It outlines the main principles of a social protection strategy and recommends priority actions for implementation including in the immediate aftermath of a resolution to the current political crisis. As such, this report is intended to contribute to future governments' own formulation and implementation of a social protection strategy. The second volume includes a number of background papers that were commissioned during the preparation of this report. These papers are as follows: strategic directions for social protection in Madagascar by Anthony Hodges; Poverty, Vulnerability and Sources of Risks by Tiaray Razafimanantena; vulnerability analysis by INSTAT; Review of Social Protection Programs by Julia Rachel Ravelosoa; analysis of public spending on social protection in Madagascar by Maminirinarivo Ralaivelo; description and Analysis of the Tsena Mora Program by Maminirinarivo Ralaivelo; review and analysis of spending on social protection by NGOs by Francis Hary Soleman Kone; case study: cash transfer and other forms of education support for children of poor households by Brigitte Lalasoa Randrianasolo and payment mechanisms to transfer cash to the Poor in Madagascar by Josiane Robiarivony Rakotomanga.Publication Madagascar - Three Years into the Crisis : An Assessment of Vulnerability and Social Policies and Prospects for the Future, Volume 2. Background Papers(Washington, DC, 2012-05)The report is divided into two volumes. The first volume includes the fundamental content of the report. It is organized as follows. Chapter one provides a conceptual framework to analyze risk and vulnerability and provides a definition of social protection. Chapter two assesses the main risks faced by the Malagasy population as well as its vulnerability profile. Chapter three reviews Madagascar's social protection policies, the institutions responsible for social protection and the financial resources allocated to social protection by the government, donors and Non-Governmental Organizations (NGOs). Chapter four proceeds with a description and analysis of the main social protection programs presently under implementation in Madagascar. Chapter five builds on the previous chapters but also on the experience of other low income countries, especially in Africa. It outlines the main principles of a social protection strategy and recommends priority actions for implementation including in the immediate aftermath of a resolution to the current political crisis. As such, this report is intended to contribute to future governments' own formulation and implementation of a social protection strategy. The second volume includes a number of background papers that were commissioned during the preparation of this report. These papers are as follows: strategic directions for social protection in Madagascar by Anthony Hodges; Poverty, Vulnerability and Sources of Risks by Tiaray Razafimanantena; vulnerability analysis by INSTAT; Review of Social Protection Programs by Julia Rachel Ravelosoa; analysis of public spending on social protection in Madagascar by Maminirinarivo Ralaivelo; description and Analysis of the Tsena Mora Program by Maminirinarivo Ralaivelo; review and analysis of spending on social protection by NGOs by Francis Hary Soleman Kone; case study: cash transfer and other forms of education support for children of poor households by Brigitte Lalasoa Randrianasolo and payment mechanisms to transfer cash to the Poor in Madagascar by Josiane Robiarivony Rakotomanga.Publication Costa Rica : Social Spending and the Poor, Volume 1. Summary of Issues and Recommendations with Executive Summary(Washington, DC, 2002-10-31)The report reviews the substantial progress Costa Rica made over the past decade in reducing poverty and improving social indicators. However, while economic growth certainly reduced poverty rates, the country's recent experience shows that relying on economic growth and increased public spending alone will not necessarily yield sufficient reductions in poverty. Moreover, the rising concern that fiscal pressure will limit possibilities of increasing social spending suggests further efficiency in the sector. Even though coverage of education and health remains almost universal in basic education, and so is access to healthcare services, worrying signs in social sector indicators suggest a decline in the efficiency of social spending. The report addresses three key issues, namely, a) Who are the poor and vulnerable groups in Costa Rica? b) What has been the impact of social spending on programs that aim to improve the welfare of the poor? and c) Which are the improvements required, and how can government spending be used more effectively to reach the poor and reduce poverty? In response to these questions, the report presents an in-depth, multi-dimensional analysis of poverty, examines the effectiveness of government policies, and social sector spending on the poor, and, uses the empirical findings to identify options and priorities for improving social sector spending and reducing poverty in the future. Recommendations emphasize improving the institutional framework, coordinating the implementation of social programs, as well as increasing flexibility in programs so as to be more responsive to the needs of the poor.Publication Examining Conditional Cash Transfer Programs : A Role for Increased Social Inclusion?(World Bank, Washington, DC, 2006-06)Conditional Cash Transfer programs (CCTs) provide money to poor families contingent upon certain verifiable actions, generally minimum investments in children s human capital such as regular school attendance or basic preventative health care. They therefore hold promise for addressing the inter-generational transmission of poverty and fostering social inclusion by explicitly targeting the poor, focusing on children, delivering transfers to women, and changing social accountability relationships between beneficiaries, service providers and governments. CCT programs are at the forefront of applying new social policy theories and program administration practices. They address demand-side barriers, have a synergistic focus on investments in health, education and nutrition, and combine short-term transfers for income support with incentives for long-run investments in human capital. They also are public sector leaders in program administration, using modern targeting, registering, and monitoring systems along with strategic evaluations. Their impact depends on the supply of quality, accessible health and education services and may increase with strengthened links to the labor market, and a greater focus on early childhood and transient support to households facing shocks. CCT programs are facing a number of challenges as they evolve, from reaching vulnerable groups to fostering transparency and accountability, especially at the community level. Centralized programs have been criticized for limiting the engagement of local governments and civil society and it is clear that in limited capacity environments, a greater reliance on communities is warranted. In sum, though promising, these programs are not a panacea against social exclusion and should form part of comprehensive social and economic policy strategies and be applied carefully in different policy contexts.Publication Arab Republic of Egypt : Poverty Assessment Update, Volume 1. Main Report(Washington, DC, 2007-09-16)This report on the Poverty Assessment Update of Egypt is a contribution to the strategy of poverty alleviation pursued by the Government of Egypt. Using data from the two household surveys in 2000 and 2005, this report assesses the nature and dimensions of poverty in Egypt, and discusses the role of macroeconomic policies and labor markets in improving living standards. The report updates the findings of "Poverty Reduction in Egypt: Diagnosis and Strategy," published by the World Bank in 2002. Over the last two years Egypt has achieved remarkably high economic growth. Should this turnaround be sustained, there is hope that poverty can be dramatically reduced. Even though the report does not cover this most recent period, it is important to learn from the lessons of the recent past, and the report provides new information and insights that could be useful for policy-makers: 1) It identifies the overall scope and trends in poverty between 2000 and 2005, focusing on material aspects, but also assessing progress in non-income dimensions; 2) It isolates key correlates to poverty and economic vulnerability, providing detailed analysis of how inflation affected the poor in this period; 3) It links the labor market's developments with changes in living standards and poverty; and 4) It provides the analytical base for mapping poverty in Egypt, which can improve the targeting of social programs. The first chapter examines the evolution of living standards in Egypt during the period of analysis - 2000 to 2005. It also gives the details of the poverty map and where the poor live. Chapter 2 describes who the poor are and provides the poverty correlates: looking at the characteristics of the poor and the relation of these characteristics to education (and access to education), employment, gender, age, or asset characteristics. Chapter 3 continues by providing some background on economic developments between 2000 and 2005 and identifies possible areas of policy interventions in light of economic and social policies and developments after 2005. Chapter 4 offers in-depth analysis of the labor market to attempt to discern longer-term trends in living standards, and links employment with poverty levels. Finally, Chapter 5 looks at the capacity of the monitoring system, and lays the foundations for a future analytical program.
Users also downloaded
Showing related downloaded files
Publication World Development Report 1984(New York: Oxford University Press, 1984)Long-term needs and sustained effort are underlying themes in this year's report. As with most of its predecessors, it is divided into two parts. The first looks at economic performance, past and prospective. The second part is this year devoted to population - the causes and consequences of rapid population growth, its link to development, why it has slowed down in some developing countries. The two parts mirror each other: economic policy and performance in the next decade will matter for population growth in the developing countries for several decades beyond. Population policy and change in the rest of this century will set the terms for the whole of development strategy in the next. In both cases, policy changes will not yield immediate benefits, but delay will reduce the room for maneuver that policy makers will have in years to come.Publication World Development Report 2017(Washington, DC: World Bank, 2017-01-30)Why are carefully designed, sensible policies too often not adopted or implemented? When they are, why do they often fail to generate development outcomes such as security, growth, and equity? And why do some bad policies endure? This book addresses these fundamental questions, which are at the heart of development. Policy making and policy implementation do not occur in a vacuum. Rather, they take place in complex political and social settings, in which individuals and groups with unequal power interact within changing rules as they pursue conflicting interests. The process of these interactions is what this Report calls governance, and the space in which these interactions take place, the policy arena. The capacity of actors to commit and their willingness to cooperate and coordinate to achieve socially desirable goals are what matter for effectiveness. However, who bargains, who is excluded, and what barriers block entry to the policy arena determine the selection and implementation of policies and, consequently, their impact on development outcomes. Exclusion, capture, and clientelism are manifestations of power asymmetries that lead to failures to achieve security, growth, and equity. The distribution of power in society is partly determined by history. Yet, there is room for positive change. This Report reveals that governance can mitigate, even overcome, power asymmetries to bring about more effective policy interventions that achieve sustainable improvements in security, growth, and equity. This happens by shifting the incentives of those with power, reshaping their preferences in favor of good outcomes, and taking into account the interests of previously excluded participants. These changes can come about through bargains among elites and greater citizen engagement, as well as by international actors supporting rules that strengthen coalitions for reform.Publication Supporting Youth at Risk(World Bank, Washington, DC, 2008)The World Bank has produced this policy Toolkit in response to a growing demand from our government clients and partners for advice on how to create and implement effective policies for at-risk youth. The author has highlighted 22 policies (six core policies, nine promising policies, and seven general policies) that have been effective in addressing the following five key risk areas for young people around the world: (i) youth unemployment, underemployment, and lack of formal sector employment; (ii) early school leaving; (iii) risky sexual behavior leading to early childbearing and HIV/AIDS; (iv) crime and violence; and (v) substance abuse. The objective of this Toolkit is to serve as a practical guide for policy makers in middle-income countries as well as professionals working within the area of youth development on how to develop and implement an effective policy portfolio to foster healthy and positive youth development.Publication Ten Steps to a Results-Based Monitoring and Evaluation System : A Handbook for Development Practitioners(Washington, DC: World Bank, 2004)An effective state is essential to achieving socio-economic and sustainable development. With the advent of globalization, there are growing pressures on governments and organizations around the world to be more responsive to the demands of internal and external stakeholders for good governance, accountability and transparency, greater development effectiveness, and delivery of tangible results. Governments, parliaments, citizens, the private sector, Non-governmental Organizations (NGOs), civil society, international organizations, and donors are among the stakeholders interested in better performance. As demands for greater accountability and real results have increased, there is an attendant need for enhanced results-based monitoring and evaluation of policies, programs, and projects. This handbook provides a comprehensive ten-step model that will help guide development practitioners through the process of designing and building a results-based monitoring and evaluation system. These steps begin with a 'readiness assessment' and take the practitioner through the design, management, and importantly, the sustainability of such systems. The handbook describes each step in detail, the tasks needed to complete each one, and the tools available to help along the way.Publication Africa's Future, Africa's Challenge : Early Childhood Care and Development in Sub-Saharan Africa(Washington, DC : World Bank, 2008)This book seeks to achieve a balance, describing challenges that are being faced as well as developments that are underway. It seeks a balance in terms of the voices heard, including not just voices of the North commenting on the South, but voices from the South, and in concert with the North. It seeks to provide the voices of specialists and generalists, of those from international and local organizations, from academia and the field. It seeks a diversity of views and values. Such diversity and complexity are the reality of Sub-Saharan Africa (SSA) today. The major focus of this book is on SSA from the Sahel south. Approximately 130 million children between birth and age 6 live in SSA. Every year 27 million children are born, and every year 4.7 million children under age 5 die. Rates of birth and of child deaths are consistently higher in SSA than in any other part of the world; the under-5 mortality rate of 163 per 1,000 is twice that of the rest of the developing world and 30 times that of industrialized countries (UNICEF 2006). Of the children who are born, 65 percent will experience poverty, 14 million will be orphans affected by HIV/AIDS directly and within their families and one-third will experience exclusion because of their gender or ethnicity.