Conditional cash transfer programs : a "magic bullet" for reducing poverty?
Date
2007
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Publisher
IFPRI, Washington, DC, US
Abstract
In 1997, the Government of Mexico introduced a
conditional cash transfer (CCT) program called
Programa de Educación, Salud, y Alimentación
(Progresa), providing assistance to about 300,000
extremely poor households. The essential premise of
a CCT program is a cash transfer to households,
conditioned on their participation in health, nutrition,
and education services. Ten years later, Progresa,
now Oportunidades, covers more than 5 million
households in all 31 Mexican states. Approximately
20 countries have adopted a pilot or full-scale CCT
program, and another 20 countries have expressed
interest in starting one. Most current programs are in
Latin America, but others can be found in Asia,
Africa, and the Caribbean, and interest is increasing
among African countries struggling with extreme
poverty and low human capital. CCT programs are
increasingly perceived as being “a magic bullet in
development.” Are they? This brief presents a review
of the rationale and operation of CCT programs, an
assessment of their effectiveness, and a discussion
of key issues facing countries considering these
interventions or reforming existing programs.
Description
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IDRC-Related Report
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Keywords
GOVERNMENT PROGRAMMES, POVERTY ALLEVIATION, PROGRAMME EVALUATION, ECONOMIC AND SOCIAL DEVELOPMENT, GLOBAL