Cash in Hands

Conditional Cash Transfers (CCTs) are widely implemented in Latin America and increasingly in Africa. CCTs are programs that transfer cash to poor households on the condition that those households make prespecified investments in the human capital of their children. This BBC documentary shows the effects of Familias en Accion (Families in Action), a CCT program in Colombia. Families received grants if their children remained in school and attended primary health check-ups. Monthly education grants to families (US$6 per primary student and $12 per secondary student) were based on their children being enrolled, having good attendance, and not repeating a grade more than once. Health grants (US$20 for families with children 0-6 years old) were linked to regular growth monitoring and immunizations. Payments were made directly to the families via the mothers.

The second part of this documentary shows how a CCT program is implemented in New York City’s poorest neighborhood. You can also read this book which provides a very comprehensive overview of CCTs in the world and their mechanisms.

What are your thoughts on CCTs? Have you participated in the implementation of a program which delivered services or money based on performance and respect of conditionalities?