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Analyzing conditional cash transfer programs

Author

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  • Prasetyono, Pipin

Abstract

The emergence of Conditional Cash Transfer (CCT) programs in the 1990s has marked the shifting in poverty alleviation strategy globally from a state-centered to people-centered strategy. Directing cash benefits to the targeted households with certain conditionality through CCT programs is considered as an effective means in combating poverty and inequality since CCT programs are equipped with redistributive character. This paper attempts to (1) identify the features of CCT programs so that they become a social policy instrument which effectively reduces inequality and alleviates poverty, and (2) identify the circumstances needed to make CCT programs become more successful. By examining Brazil’s practical experience in implementing Bolsa Familia, this paper argues that CCT programs are an effective means in combating poverty and reducing inequality because of: (1) their ability to better target the beneficiaries, and (2) their ability to affect the behavior of the beneficiaries. In addition, to be more successful, implementation of CCTs presupposes a good administrative capacity, an adequate supply side policy, and a well-defined exit rule.

Suggested Citation

  • Prasetyono, Pipin, 2016. "Analyzing conditional cash transfer programs," MPRA Paper 97788, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:97788
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    File URL: https://mpra.ub.uni-muenchen.de/97788/1/MPRA_paper_97788.pdf
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    References listed on IDEAS

    as
    1. Era Dabla-Norris & Kalpana Kochhar & Nujin Suphaphiphat & Franto Ricka & Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality; A Global Perspective," IMF Staff Discussion Notes 15/13, International Monetary Fund.
    2. Fran??ois Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2002. "Ex-ante Evaluation of Conditional Cash Transfer Programs: The Case of Bolsa Escola," William Davidson Institute Working Papers Series 516, William Davidson Institute at the University of Michigan.
    3. Glewwe, Paul & Kassouf, Ana Lucia, 2012. "The impact of the Bolsa Escola/Familia conditional cash transfer program on enrollment, dropout rates and grade promotion in Brazil," Journal of Development Economics, Elsevier, vol. 97(2), pages 505-517.
    4. Jishnu Das, 2005. "Reassessing Conditional Cash Transfer Programs," The World Bank Research Observer, World Bank, vol. 20(1), pages 57-80.
    5. Brière, Bénédicte de la & Rawlings, Laura B., 2006. "Examining conditional cash transfer programs : a role for increased social inclusion?," Social Protection Discussion Papers and Notes 90341, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    conditional; cash; transfer; poverty; inequality; policy;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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