Conditional Cash Transfers : Reducing Present and Future Poverty

by Fiszbein, Ariel; Schady, Norbert; Ferreira, Francisco H. G.; Grosh, Margaret; Kelleher, Nial

• ISBN13: 9780821373521
• ISBN10: 0821373528
• Format: Paperback
• Copyright: 2009-02-06
• Publisher: World Bank

Summary

Conditional Cash Transfer (CCT) programs aim to reduce poverty by making welfare programs conditional upon the receivers' actions. That is, the government only transfers the money to persons who meet certain criteria. These criteria may include enrolling children into public schools, getting regular check-ups at the doctor's office, receiving vaccinations, or the like. They have been hailed as a way of reducing inequality and helping households break out of a vicious cycle whereby poverty is transmitted from one generation to another. Do these and other claims make sense? Are they supported by the available empirical evidence?This volume seeks to answer these and other related questions. Specifically, it lays out a conceptual framework for thinking about the economic rationale for CCTs; it reviews the very rich evidence that has accumulated on CCTs; it discusses how the conceptual framework and the evidence on impacts should inform the design of CCT programs in practice; and it discusses how CCTs fit in the context of broader social policies. The authors show that there is considerable evidence that CCTs have improved the lives of poor people and argue that conditional cash transfers have been an effective way of redistributing income to the poor. They also recognize that even the best-designed and managed CCT cannot fulfill all of the needs of a comprehensive social protection system. They therefore need to be complemented with other interventions, such as workfare or employment programs, and social pensions.

Table of Contents

Foreword	p. xi
Acknowledgments	p. xv
Acronyms	p. xvii
Overview	p. 1
The CCT Wave	p. 3
The Arguments for CCT	p. 8
The Impacts of CCT Programs	p. 11
Policy and Design Options	p. 22
Complementary Interventions	p. 24
CCTs in the Context of Social Protection Policies	p. 26
Conclusion	p. 27
Introduction	p. 29
The CCT Wave	p. 31
Theme and Variations	p. 34
Outline of the Report and Issues Covered	p. 40
The Economic Rationale for Conditional Cash Transfers	p. 45
Cash Transfers: Arguments in Support and Against	p. 46
The Microfoundations of Paternalism	p. 51
A Political Economy Argument	p. 59
Social Efficiency Arguments	p. 64
Conclusion	p. 65
Design and Implementation Features of CCT Programs	p. 67
Targeting in Practice	p. 67
Benefit Systems	p. 80
Conditions: Their Definition, Compliance Monitoring, and Enforcement	p. 86
Monitoring and Evaluation	p. 91
Intersectoral and Interinstitutional Challenges	p. 97
Conclusion	p. 100
The Impact of CCTs on Consumption Poverty and Employment	p. 103
Impact of CCTs on Household Consumption and Poverty	p. 104
Analyzing Offsetting Behavioral Responses to CCTs	p. 114
Long-Term Impacts of CCTs on Consumption	p. 123
Conclusion	p. 124
The Impact of CCT Programs on the Accumulation of Human Capital	p. 127
CCT Program Effects on the Use of Education and Health Services	p. 128
Impact of CCTs on "Final" Outcomes in Education and Health	p. 141
Cash, Behavioral Changes, and Outcomes	p. 155
Conclusion	p. 160
CCTs: Policy and Design Options	p. 165
When Is a CCT Program the Right Policy Instrument?	p. 166
Designing an Efficient CCT Program	p. 172
Adapting the Supply of Social Services	p. 186
CCT Programs As Components of Social Protection Systems	p. 195
Conclusion	p. 200
Summary Tables	p. 205
Review of CCT Impact Evaluations	p. 297
Notes	p. 315
References	p. 329
Index	p. 351
Boxes
Efficient Redistribution in the Presence of Market Failure	p. 49
Investing Early in the Life Cycle	p. 55
Fairness, Merit, and the "Deserving Poor"	p. 61
Proxy Means Testing Where Administrative Capacity Is Low: Cambodia's Scholarship Programs	p. 71
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