Publication: Conditional Cash Transfers :
Reducing Present and Future Poverty
Loading...
Files in English
46,550 downloads
2,226 downloads
437 downloads
Published
2009
ISSN
Date
2012-03-19
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
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Republic of Uzbekistan : Living Standards Assessment Update(Washington, DC, 2007-08)The purpose of this living standards assessment is to update and expand the first living standards assessment report that documented the poverty situation in Uzbekistan in 2000/2001. Attention has been paid to ensure the comparability of the analysis of the three years of data. The data themselves are largely comparable: the sampling methods have remained the same, as have the questionnaires and the basic implementation of the survey. However, some changes have occurred, primarily due to improved field work: these have been taken into account in the present analysis. The chapter is divided into three parts. An overview of the welfare levels in Uzbekistan from 2000-01 through 2003 is presented in section one, along with a discussion about the data sources and their strengths and weaknesses for multi-year analysis, and an analysis of the relationship between economic growth and welfare. In section two the basic indicators of living standards over the time period are presented. Section three contains information on two topics of interest for short-term and medium-term welfare: labor and education.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 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.
Users also downloaded
Showing related downloaded files
Publication World Development Report 2006(Washington, DC, 2005)This yearās Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a personās chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The reportās main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005ā¹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Europe and Central Asia Economic Update, Fall 2023(Washington, DC: World Bank, 2023-10-05)Europe and Central Asia continues to be negatively impacted by the Russian Federationās invasion of Ukraine, tighter global financial conditions, persistent inflation, and global economic fragmentation. Economic growth in the region is projected to remain weak relative to the long-term trend, delaying the convergence of living standards to those of high-income countries. The impacts of climate change are becoming a serious constraint on growth, as extreme weather events are affecting the region with increased frequency and severity. Economic growth for the emerging market and developing economies of the Europe and Central Asia region has been revised up to 2.4 percent for 2023. The pickup in growth reflects improved forecasts for Ukraine, Central Asia, TĆ¼rkiye and Russia. Downside risks cloud the outlook. High inflation may persist amid heightened volatility in global commodity markets and a surge in energy prices. Global financial conditions may tighten further. And global growth, already the weakest on record for any five-year period since 1990, may slow further.Publication Investing in Human Capital for a Resilient Recovery(World Bank, Washington, DC, 2021-06)This Approach Paper considers the role of public finance to build, protect and utilize human capital as countries seek to recover from the COVID-19 (coronavirus) crisis and lay a foundation for inclusive, resilient and sustainable development. The paper defines the problem in relation to human capital outcomes amid the COVID-19 crisis and outlines three areas for action: policy priorities, governance, and fiscal space for building and utilizing human capital. The paper highlights recent innovations and illustrates actionable steps for the short term as well as directions for the longer term, by country context, with the overarching objective of supporting a resilient recovery.Publication World Development Report 2019(Washington, DC: World Bank, 2019)Work is constantly reshaped by technological progress. New ways of production are adopted, markets expand, and societies evolve. But some changes provoke more attention than others, in part due to the vast uncertainty involved in making predictions about the future. The 2019 World Development Report will study how the nature of work is changing as a result of advances in technology today. Technological progress disrupts existing systems. A new social contract is needed to smooth the transition and guard against rising inequality. Significant investments in human capital throughout a personās lifecycle are vital to this effort. If workers are to stay competitive against machines they need to train or retool existing skills. A social protection system that includes a minimum basic level of protection for workers and citizens can complement new forms of employment. Improved private sector policies to encourage startup activity and competition can help countries compete in the digital age. Governments also need to ensure that firms pay their fair share of taxes, in part to fund this new social contract. The 2019 World Development Report presents an analysis of these issues based upon the available evidence.Publication Asset Recovery Handbook : A Guide for Practitioners(World Bank, 2011-01-18)The handbook is organized into nine chapters, a glossary, and ten appendixes of additional resources. Chapter one provides a general overview of the asset recovery process and legal avenues for recovery, along with practical case examples. Chapter two presents a host of strategic considerations for developing and managing an asset recovery case, including gathering initial sources of facts and information, assembling a team, and establishing a relationship with foreign counterparts for international cooperation. Chapter three introduces the techniques that practitioners may use to trace assets and analyze financial data, as well as to secure reliable and admissible evidence for asset confiscation cases. The provisional measures and planning necessary to secure the assets prior to confiscation are discussed in chapter four; and chapter five introduces some of the management issues that practitioners will need to consider during this phase. Confiscation systems are the focus of chapter six, including a review of the different systems and how they operate and the procedural enhancements that are available in some jurisdictions. On the issue of international cooperation, chapter seven reviews the various methods available, including informal assistance and mutual legal assistance requests; and guides practitioners through the entire process. Finally, chapters eight and nine discuss two additional avenues for asset recovery-respectively, civil proceedings and domestic confiscation proceedings undertaken in foreign jurisdictions.