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Cash transfers: affordability and sustainability

Author/s: 
Anna McCord
Organisation: 
Overseas Development Institute
Year of publication: 
2009
Publisher: 
ODI
Publication: 
ODI Project Briefing no.30, November 2009

• Cash transfer programmes in Kenya, Malawi and Zambia reach only 1-4% of the poor
• Targeting is determined largely by donor preferences, and is restrictive, resulting in large exclusion errors
• Given low national funding commitments, existing cash transfer programmes can only be scaled up nationally with donor support equivalent to 1-2% of GDP

Cash Transfers: Targeting

Author/s: 
Rachel Slater
John Farrington
Organisation: 
Overseas Development Institute (ODI)
Year of publication: 
2009
Publisher: 
ODI
Publication: 
ODI Project Briefing no. 27, Nov 2009

• The targeting of cash transfers can increase their impact on poverty, but can be limited by the lack of resources and capacity in low-income countries
• Targeting vulnerable groups is often simpler, more politically acceptable and less socially divisive than means testing
• Good targeting requires an assessment of the distribution of poverty, targeting costs and political acceptability

Cash transfers: lump sums

Author/s: 
John Farrington
Organisation: 
Overseas Development Institute
Year of publication: 
2009
Publisher: 
ODI
Publication: 
ODI Project Briefing no.28, November 2009

• Lump sum transfers work better in post-emergency than development contexts, as long as markets remain functional
• Lump sums can work in development contexts, when complemented by small, regular transfers and advisory services
• Prospects for successful investment decrease when the size of the transfer is many times larger than annual income

Cash transfers in post-conflict contexts

Author/s: 
Rebecca Holmes
Organisation: 
Overseas Development Institute (ODI)
Year of publication: 
2009
Publisher: 
ODI
Publication: 
ODI Project Briefing no.32, November 2009
Country: 

• One key challenge in post-conflict countries is meeting objectives that contribute both to poverty reduction and the peace process
• Cash transfers can address the immediate needs of poor households but there is little evidence about their long-term impact on poverty in post-conflict countries
• The dissemination of emerging evidence on best practice in the delivery of cash transfers in conflict-affected countries should be encouraged

Cash transfers: graduation and growth

Author/s: 
Rachel Slater
Organisation: 
Overseas Development Institute (ODI)
Year of publication: 
2009
Publisher: 
ODI
Publication: 
ODI Project Briefing no. 29, November 2009

• There is an imperative among donors and governments to demonstrate that cash transfers help households graduate from poverty and contribute to growth
• There is a contradiction between providing cash transfers to those who are unable to work, and the simultaneous expectation of graduation
• Cash transfers require complementary interventions if they are to result in graduation and stimulate growth

Cash transfers and political economy in sub-Saharan Africa

Author/s: 
Anna McCord
Organisation: 
Overseas Development Institute
Year of publication: 
2009
Publisher: 
ODI
Publication: 
ODI Project Briefing no.31, November 2009
Abstract: 

The provision of cash transfers to alleviate poverty may not be a policy priority for low-income countries, despite donor enthusiasm to promote such interventions as a cost effective social protection mechanism. This Project Briefing looks at cash transfers and political economy issues, drawing on case studies from Kenya, Malawi and Zambia, low-income countries which have started to implement cash transfer programmes in recent years.

  • Donor enthusiasm, rather than government impetus, drives the growth of cash transfer programming in some countries
  • Government concerns about fiscal prudence and the risk of dependency are limiting national demand for cash transfer programmes
  • Government commitment to cash transfer programmes may be greater where there is a need for social stabilisation and state legitimisation

 

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