Conditional cash transfers: A critical review

Abstract

Motivation In areas of the world where poverty and inequality are deep and pervasive and social protection systems comparatively fragile, cash transfers are becoming commonplace and often promoted by international institutions and aid agencies as a viable instrument for social protection. Particularly, conditional cash transfers (CCTs) are being looked to as a means of reducing poverty while also investing in human capital. Purpose To capture some of the main critiques of CCTs from conception to evaluation, while identifying both gaps and opportunities for research and consideration for the future of CCTs. Methods A rapid review process was used. The initial search was conducted using a number of online peer‐reviewed databases. The initial search process yielded 993 sources, results were then limited to full‐text, English language, and to sources published between 2008 and 2017. Sources were then screened. Finally, 44 articles were chosen for in‐depth review. Findings This review captures some of the main critiques of CCTs from conception to evaluation, while identifying both gaps and opportunities for research and consideration for the future of CCTs. Policy implication We discuss responsibilities and implications for social work professionals who may be involved in the design, implementation or evaluation of CCT programmes domestically or internationally.

Welfare Stereotypes and Conditional Cash Transfer Programmes: Evidence from Brazil’s Bolsa Família

“…It is important to note that despite these explanations for how CCTs may reduce stigma, targeted programmes require eligibility screening, which can be invasive and demeaning for potential beneficiaries (Rothstein, 1998;Soss, 2000). Adding conditions may prove to be more stigmatising and no more effective than if policy-makers simply extended unconditional cash benefits to recipients; consequently, there are potential ethical concerns with the programme design (Hanlon et al, 2010;Krubiner and Merritt, 2017;Ladhani and Sitter, 2020;Lunze and Paasche-Orlow, 2013). Thus, although there may be several reasons to believe that CCT programmes will be able to undercut social tendencies to stereotype and stigmatise assistance beneficiaries, whether they do so is an open empirical question.…”

“…After all, it is society's advantaged groups that predominantly structure and distribute power and the corresponding costs and benefits of public policy (Schneider and Ingram, 1993). What is more, other scholars have been more critical of the CCT approach and point to important ethical concerns with "conditionalities," including the possibility that conditions may increase the stigma that (van, 2000)beneficiaries confront (Ladhani and Sitter, 2020). The level of self-esteem amongst the poor is certainly important, but if the non-poor stigmatise the recipients of benefits, economic, social, and political opportunities will likely remain constrained for those who are disadvantaged no matter what they think of themselves.…”

The Latin American and Nigerian Conditional Cash Transfer Experience: A Comparative Analysis

“…The foregoing reveal that low demand in assessing health and education services is one of the foremost reasons for attaching conditionality to cash transfers in Latin America. The assumption is that an adequate supply of these services is available, and therefore demand must be created (Ladhani and Sitter, 2020). Interestingly, there is an already high demand for these services in Nigeria.…”

“…The exit strategy adopted by these Latin American countries raises a number of concerns. For instance, one contention is whether it is ethical to terminate benefits to households based on a small rise in income; or whether the imposition of short durations and arbitrary exit strategies are in line with the overall objectives of short-term and long-term poverty reduction (Ladhani and Sitter, 2020).…”

The Role of Gender-Targeted Cash Transfers in Increasing School Enrollment in Punjab, Pakistan

“…As of 2017, 149 countries are offering cash transfers (World Bank, 2017) 1 . Various CCT programs are started in developing countries to tackle the issue of poverty (Bastagli et al, 2016;Ladhani & Sitter, 2020;Molyneux et al 2016;Sajid & Khan, 2016). These programs include cash transfers to poor households conditional upon various income-generating and/or expenditure purposes (Duclos & Tiberti, 2016;Fiszbein & Schady, 2009;Notten & Guio, 2019;Slater, 2011).…”