conditional cash transfers

With Strings Attached

Traditionally, government-sponsored social assistance programs usually follow a straightforward model of giving money to qualified citizens. But what if the programs asked for something in return?

Over the past decade, programs that offer funding to poor families based on certain conditions have sprung up all over the world, in countries like Brazil, Mexico, India, and Cambodia. These programs, called conditional cash transfers (CCTs), provide money to qualifying families only if the heads of household commit to certain requirements like sending their children to school or ensuring that their family members get regular health checkups.

According to a World Bank report released last week, CCTs have helped to reduce the number of families in poverty while increasing the rates of health clinic utilization and school attendance. Overall, this is good news. But the report also found that merely attending school or going for a checkup has not translated into better test scores, improved nutrition or more immunizations.

"To actually reduce child mortality or improve learning," the report says, "CCTs need to be complemented by higher-quality education and health services and a strong focus on giving children a head start, such as via better nutrition or preschool programs."


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