Conditional cash transfer programmes and labour inclusion
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Conditional cash transfer (CCT) programmes aimed at families with children sprang up in the mid-1990s in Brazil and Mexico, with the aim of addressing two simultaneous objectives: (i) reduce poverty in the short term, by boosting poor families’ consumption via monetary transfers, and (ii) reduce poverty in the long term by building the human capacities of children, adolescents and young people via conditionalities. The hypothesis was that the combination of transfers and conditionalities would held to prevent poverty form being passed on to the next generation.Keywords:
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ABSTRACT Conditional Cash Transfer programmes aim to alleviate short‐term poverty through cash transfers to poor households, and to reduce longer‐term poverty through making these transfers conditional on household investment in the health and education of children. These programmes have become increasingly popular with institutions such as the World Bank. However, the need for conditionalities has been questioned on a number of levels, including its necessity: it has been suggested that the cash transfer in itself may be sufficient to secure most of the programme's wider aims. The example of Nicaragua supports this contention, demonstrating that only a small incentive is needed to bring the desired changes in the uptake of education, since this is something prized by the poor themselves. In health, the Nicaraguan case suggests that demand‐side initiatives might not be as important as supply‐side changes that improve the affordability and accessibility of services. The Nicaragua case also highlights the long‐term limitations of applying such programmes in countries with high levels of poverty and low economic growth. A gendered analysis of the programme highlights the fact that women ‘beneficiaries’ bear the economic and social cost of the programme without apparent benefit to themselves or even necessarily to the household in the short or longer term.
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Conditional cash transfer (CCT) programs have proved to be effective in inducing chronic poor households to invest in the human capital of their children while helping reduce poverty. They have also protected child human capital from the shocks that affect these households. In this paper, we argue that many non-poor households exposed to uninsured shocks have to use children as risk coping instruments, creating long term irreversibilities in child human capital development. We explore how CCT programs can be designed to serve as safety nets for the vulnerable non-poor when hit by a shock This would help them not use children as risk coping instruments, thus avoiding long term irreversibilities in child human capital development and creation of a source of new poor.
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Conditional cash transfers are a departure from more traditional approaches to social assistance that represents an innovative and increasingly popular channel for the delivery of social services. Conditional cash transfers provide money to poor families contingent upon certain behaviour, usually investments in human capital such as sending children to school or bringing them to health centres on a regular basis. They seek both to address traditional short-term income support objectives and promote the longer-term accumulation of human capital by serving as a demand-side complement to the supply of health and education services. Evaluation results reveal that this innovative design has been quite successful in addressing many of the failures in delivering social assistance such as poor poverty targeting, disincentive effects and limited welfare impacts. There is clear evidence of success from the first generation of programmes in Brazil, Colombia, Mexico and Nicaragua in increasing enrolment rates, improving preventive healthcare and raising household consumption. Despite this promising evidence, many questions remain unanswered about conditional cash transfer programmes, including the replicability of their success under different conditions their ability to address a broader range of challenges posed by poor and vulnerable populations, their within a broader social protection system, and their long-term effectiveness in preventing the intergenerational transmission of poverty.
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Conditional cash transfers are a departure from more traditional approaches to social assistance, that represents an innovative, and increasingly popular channel for the delivery of social services. Conditional cash transfers provide money to poor families, contingent upon certain behavior, usually investments in human capital, such as sending children to school, or bringing them to health centers on a regular basis. They seek both to address traditional short-term income support objectives, as well as to promote the longer-term accumulation of human capital, by serving as a demand-side complement to the supply of health, and education services. Evaluation results from a first generation of programs reveal that this innovative design has been quite successful in addressing many of the criticisms of social assistance, such as poor poverty targeting, disincentive effects, and limited welfare impacts. There is clear evidence of success from programs in Brazil, Colombia, Mexico and Nicaragua in increasing enrollment rates, improving preventive health care and raising household consumption. Despite this promising evidence, many questions remain unanswered about conditional cash transfer programs, including the replicability of their success under different conditions, their role within a broader social protection system, and their long-term effectiveness in preventing the inter- generational transmission of poverty. One of the main challenges facing policymakers today is how to build off of the established success of conditional cash transfer programs, to tackle the more difficult issues of improving the quality of health, and education services, and providing a more holistic approach to both social protection, and chronic poverty.
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Conditional cash transfers are a departure from more traditional approaches to social assistance, that represents an innovative, and increasingly popular channel for the delivery of social services. Conditional cash transfers provide money to poor families, contingent upon certain behavior, usually investments in human capital, such as sending children to school, or bringing them to health centers on a regular basis. They seek both to address traditional short-term income support objectives, as well as to promote the longer-term accumulation of human capital, by serving as a demand-side complement to the supply of health, and education services. Evaluation results from a first generation of programs reveal that this innovative design has been quite successful in addressing many of the criticisms of social assistance, such as poor poverty targeting, disincentive effects, and limited welfare impacts. There is clear evidence of success from programs in Brazil, Colombia, Mexico and Nicaragua in increasing enrollment rates, improving preventive health care and raising household consumption. Despite this promising evidence, many questions remain unanswered about conditional cash transfer programs, including the replicability of their success under different conditions, their role within a broader social protection system, and their long-term effectiveness in preventing the inter- generational transmission of poverty. One of the main challenges facing policymakers today is how to build off of the established success of conditional cash transfer programs, to tackle the more difficult issues of improving the quality of health, and education services, and providing a more holistic approach to both social protection, and chronic poverty.
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Since the mid-1990s a new trend in social policies has appeared in Latin America: the provision of grants to targeted poor households on condition that they engage in human capital investments, such as sending children to school and making periodic visits to health centres. These programmes, known as conditional cash transfers (CCTs), address demand-side constraints for structural poverty reduction, through an incentive scheme that combines the short-term objectives of safety nets with long-term goals of breaking intergenerational poverty traps.
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Conditional cash transfers are a departure from more traditional approaches to social assistance that represents an innovative and increasingly popular channel for the delivery of social services. Conditional cash transfers provide money to poor families contingent upon certain behaviour, usually investments in human capital such as sending children to school or bringing them to health centres on a regular basis. They seek both to address traditional short‐term income support objectives and promote the longer‐term accumulation of human capital by serving as a demand‐side complement to the supply of health and education services. Evaluation results reveal that this innovative design has been quite successful in addressing many of the failures in delivering social assistance such as poor poverty targeting, disincentive effects and limited welfare impacts. There is clear evidence of success from the first generation of programmes in Brazil, Colombia, Mexico and Nicaragua in increasing enrolment rates, improving preventive healthcare and raising household consumption. Despite this promising evidence, many questions remain unanswered about conditional cash transfer programmes, including the replicability of their success under different
Conditional cash transfer
Cash transfers
Consumption
Social Protection
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Citations (172)
Conditional cash transfer (CCT) programmes aimed at families with children sprang up in the mid-1990s in Brazil and Mexico, with the aim of addressing two simultaneous objectives: (i) reduce poverty in the short term, by boosting poor families’ consumption via monetary transfers, and (ii) reduce poverty in the long term by building the human capacities of children, adolescents and young people via conditionalities. The hypothesis was that the combination of transfers and conditionalities would held to prevent poverty form being passed on to the next generation.
Conditional cash transfer
Cash transfers
Boosting
Chronic poverty
Consumption
Cite
Citations (0)
Conditional cash transfer (CCT) programs have proved to be effective in inducing chronic poor households to invest in the human capital of their children while helping reduce poverty. They have also protected child human capital from the shocks that affect these households. In this paper, we argue that many non-poor households exposed to uninsured shocks have to use children as risk coping instruments, with the risk of creating long term irreversibilities in child human capital development. We review recent experiences to explore how CCT programs could be designed to serve as safety nets for the vulnerable non-poor when hit by a shock. This would require a number of modifications to the way rules of operation of CCT programs are currently designed.
Conditional cash transfer
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Chronic poverty
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