» Conditional Cash Transfers
 
 
 
Conceptually, cash transfers are regular, non-contributory payments of money provided by government or non-government organizations to individuals or households. Many schemes are designed around payments to families, often the women, with the objective of decreasing chronic or shock-induced poverty, addressing social risks and reducing economic vulnerability (see, for example, DFID, and IDS, Devereux, 2005). Cash transfers are increasingly recognized by national governments and the international community as a social protection tool furthering progress towards the Millenium Development Goals.

"The Commission for Africa identifies social transfers as a key tool in tackling extreme poverty in sub-Saharan Africa. The greater use of social transfers in developing countries worldwide is endorsed by the World Bank's World Development Report for 2006 which recognizes their potential impact on poverty and inequality as well as their contribution to promoting and distributing growth" (DFID, 2005).

It is possible to distinguish between two main types of social transfer programmes:
  • Unconditional cash transfers, which are paid without specific conditionalities by the transfer provider (government or NGO);
  • Conditional cash transfers, or cash for human development programmes, which are paid only if the recipients meet specific conditions. Many schemes are designed around so-called 'public works', where the beneficiaries contribute their labour towards a particular scheme (see, for example, A. McCord).
Designing a scheme of social cash transfers involves many aspects. Key questions must be answered, and information is needed about the institutional and policy context of the country. The process is outlined in the following flow-chart, developed in Samson, van Niekerk and Mac Quene (2006):

Main Resources


The Program "Bolsa Familia" in Brasil and "Oportunidades" in Mexico

 


The President of Brazil at the International Labour Conference (in Portuguese)

 
 
 
 
 
Key Questions
  • Are cash transfers an appropriate tool for the extension of social security?
    Just like mandatory social insurance, promotion of microinsurance and universal systems, cash ... More info
  • Can low-income countries afford cash transfers?
    It is often assumed that low-income countries cannot afford social transfer programmes, but a ... More info
  • To condition or not to condition?
    A dilemma that decision makers often face when designing a social cash transfer programme is ... More info
  • Tanzanian Social Fund pilot of conditional cash transfers: experimenting on poorest people?
    The ILO/DfID project in Tanzania has received documents describing a Community-Based ...   More info
Library
  • Cash benefits in low-income countries. Simulating the effects on poverty reduction for Senegal and Tanzania
    Issues in Social Protection. Discussion Paper 15
    F. Gassmann, C. Behrendt; ILO, Social Security Department,  2006     More info...
  • Designing and Implementing Social Transfer Programmes
    A Guide to Management Arrangements for Social Transfers in the Form of Cash
    M. Samson, I. van Niekerk, K. Mac Quene,  2006     More info...
  • Les prestations en espèces dans les pays à faible revenu: Simulation des effets sur la réduction de la pauvreté au Sénégal et en Tanzanie
    Questions de Protection Sociale. Document de réflexion 15
    F. Gassmann, C. Behrendt; BIT, Département de la sécurité sociale,  2006     More info...
  • Making Cash Count
    Lessons from cash transfer schemes in east and southern Africa for supporting the most vulnerable children and households
    IDS, Help Age International, Save the Children,  2005     More info...
Links
Training
Training course: Social Transfers

A two-week course on designing and implementing social transfer programmes
will be held in Thailand in October 2009.

More information