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conditional cash transfers

How is the conditional cash transfers program changing the politics of service delivery in Philippines?

Motoky Hayakawa's picture
Photo: Kenneth Pornillos / World Bank

Vote buying has shaped much of Philippine politics throughout history. For many politicians, distributing private goods and cultivating patronage to individual supporters is one of the most effective electoral strategies.

While the line between public and private is traditionally blurry, people who are used to this relationship with those who hold positions in government tend to measure politicians’ performance in terms of how much they provide private goods as opposed to broad public goods.
 
But though it may have been prevalent, vote buying has been a serious constraint in the country. Research has shown that practices such as vote buying and political dynasties undermine public service delivery and poverty reduction. How can these practices, which are so deeply embedded in Filipinos’ political way of life, begin to change?

Madagascar: Expanding the bandwidth of the extreme poor

Andrea Vermehren's picture
​Photo: Laura B. Rawlings / World Bank


It is 8 AM. The winter sun begins to appear over the gray-green mass of trees above the village of Tritriva in Madagascar’s central highlands. The courtyard of a stone church is already filled with women, many holding still-sleeping children in their arms. They have assembled for the first time in two months to receive a cash payment from the Malagasy state.

The women are poor and all live on less than $2 per day. The money they receive from the government amounts to about a third of their cash income for the two months in between each payment: it will go a long way in helping them support their families for the rest of the winter.
 
Initiated by the Madagascar government,  with support from the World Bank, the payments are part of a new program implemented by the Fonds d'Intervention pour le Développement (FID) to combat poverty in rural Madagascar and provide sustainable pathways to human development.

East Asia’s challenge: ensuring that growth helps poor

Axel van Trotsenburg's picture

Unprecedented economic growth in the last three decades propelled East Asia into an economic powerhouse responsible for a quarter of the world’s economy.

Hundreds of millions of people across the region, including in China, Indonesia, Malaysia, Thailand and Vietnam, lifted themselves out of extreme poverty and enjoyed greater prosperity, largely because of more labor-intensive and inclusive growth.

The success didn’t come without challenges. As of last year, 100 million people in East Asia still live on $1.25 a day. About 260 million still live on $2 a day or less, and they could fall back into poverty if the global economy takes a turn for the worse or if they face health, food and other shocks at home. Their uncertain future shows the increasing inequality of East Asia’s galloping growth.

Risk, Sex and Lotteries. Can lotteries be used as incentives to prevent risky behaviors?

Damien de Walque's picture

This post is jountly authored by Martina Björkman Nyqvist, Lucia Corno, Damien de Walque and Jakob Svensson.
 
Conditional cash transfers (CCTs) and other types of financial incentives have been used successfully to promote activities that are beneficial to the participants such as school attendance and health check-ups for children. CCTs pay a certain amount if the condition is verified.
 
Lotteries can also be used as an incentive. Instead of being paid a certain amount, the participants who satisfy the condition receive a lottery ticket, a random draw is performed among the tickets, and a predetermined number of winners earn a lottery prize. The value of the lottery prizes would be higher than the typical CCT amount, but the number of recipients of the prizes would be lower.

Reflections on social protection and poverty alleviation from the long term impact of Chile Solidario

Emanuela Galasso's picture
Productive inclusion is the buzzword taking shape in social policy circles in Latin America, and other middle income countries. Graduation out of social assistance does not equate with (or presume) a sustained exit from poverty.

As many middle-income countries are moving towards embracing cash transfers with or without co-responsibilities attached (and the recent hype of handing cash directly to the poor), there is an important wave of programs that provide “cash plus” intervention.

Biking to more education in India

Markus Goldstein's picture
"Let me tell you what I think of bicycling. I think it has done more to emancipate women than anything else in the world. I rejoice every time I see a woman ride by on a wheel. It gives her a feeling of self-reliance and independence the moment she takes her seat; and away she goes – the picture of untrammeled womanhood." - Susan B Anthony
 

Defining Conditional Cash Transfer Programs: An Unconditional Mess

Berk Ozler's picture
Many policymakers are interested in the role of conditions in cash transfer programs. Do they improve outcomes of interest more than money alone? Are there trade-offs? Is there a role for conditions for political rather than technocratic reasons? It’s easy to extend the list of questions for a good while. However, before one can get to these questions, there is a much more basic question that needs to be answered (for any policymaker contemplating running one of these programs at any level): “What do you mean by a conditional (or unconditional) cash transfer program?”

Conditions work! But are they a good thing? (Part II)

Berk Ozler's picture

Yesterday, in Part I of this post, we argued the extant empirical evidence suggests that the conditions cause a substantial amount of the desired behavior change intended by CCT programs. In other words: the “substitution effect” due to the condition may well be larger than the “income effect” of the transfers. For example, in the case of the Malawi experiment, the income effect was responsible for less than half of the total impact on school enrollment.

Conditions work! But are they a good thing? (Part I)

Berk Ozler's picture

One of the questions discussed at the recent World Bank workshop on the "Second Generation of CCT Evaluations" (website, complete with at least some of the presentations, here) was the role of the first C in the performance of the CCT: how important is the condition in accounting for the outcomes of conditional cash transfer programs?


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