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Have cash transfers succeeded in reaching the poor in Latin America and the Caribbean?

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  • Marcos Robles
  • Marcela G. Rubio
  • Marco Stampini

Abstract

We present original estimates of the quality of targeting of conditional cash transfer (CCT) and non‐contributory pension (NCP) programmes in Latin America and the Caribbean. Our contribution is novel because we use both national and international poverty lines; provide differentiated estimates for urban and rural areas; and compare the CCT and NCP programmes. We show that leakage to the non‐poor coexists with pervasive under‐coverage of all poor, including the extreme poor. On average, the CCTs cover only 50.5% of the extreme poor in households with children under 18 years of age. Similarly, the NCPs cover only 50.9% of the extreme poor in households with elderly members who do not receive a contributory pension. At the same time, 40.4% of CCT beneficiaries and 50.1% of NCP beneficiaries are not poor, highlighting the potential need for re‐targeting and re‐certification. In most countries, re‐targeting could produce a substantial double benefit in terms of poverty reduction and fiscal savings.

Suggested Citation

  • Marcos Robles & Marcela G. Rubio & Marco Stampini, 2019. "Have cash transfers succeeded in reaching the poor in Latin America and the Caribbean?," Development Policy Review, Overseas Development Institute, vol. 37(S2), pages 85-139, July.
    • Handle: RePEc:bla:devpol:v:37:y:2019:i:s2:p:o85-o139
    DOI: 10.1111/dpr.12365
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    Cited by:

    1. Missbach, Leonard & Steckel, Jan Christoph & Vogt-Schilb, Adrien, 2024. "Cash transfers in the context of carbon pricing reforms in Latin America and the Caribbean," World Development, Elsevier, vol. 173(C).
    2. Kartik Misra, 2022. "No employment without participation: An evaluation of India's employment programme in eastern Uttar Pradesh," Development Policy Review, Overseas Development Institute, vol. 40(6), November.

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