Helping reduce poverty in the short- and long-term: The experience of Conditional Cash Transfers . Norbert Schady The World Bank September, 2007. Motivation. What are conditional cash transfer (CCT) programs? CCTs transfer cash to poor households, but impose conditions on recipients
The World Bank
1. Why transfers?
2. Why cash?
3. Why conditions?
Evidence from existing CCTs—mostly in lower-income or lower middle-income countries in Latin America and South Asia
Is this evidence relevant for Eastern Europe and Central Asia? (some very brief thoughts)
The impact of CCTs on consumption poverty depends on:
2. Magnitude of benefits
4. Whether households productively invest transfers
Nicaragua (RPS) Honduras (PRAF)
(transfer: 17%) (transfer: 4%)
Long-term CCT effects on consumption poverty
Policy implication 1:
Examples from Latin America:
Examples from “stipends” for girls in secondary school in Asia:
1. In Mexico, Children who were randomly assigned to receive two more years of CCT have approximately 0.2 more years of schooling
2. However, in Mexico, Ecuador, and Cambodiano effect of CCT program on test scores—either in the short run, or the long run
Policy implication 2
Policy implication 3:
2. Conditional programs—with different conditions: the 1996 US welfare reform
3. Niche programs—with different conditions: The New York Opportunity program
The importance of impact evaluation