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cash versus conditions

More on the “just give them cash” debate for small business growth

David McKenzie's picture
There has been a lot of recent debate and discussion about the role of cash grants in aid, and whether aid is more effective when simply given as unrestricted cash compared to approaches such as conditional transfers which try to restrict how recipients use any money received. Traditionally this debate has centered around food aid and education funding, but more recently this discussion has also arisen with respect to funding small businesses.