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  • Cash transfers are direct payments of money to eligible poor people. Cash transfers are usually provided by the state and federal government. See Conditional Cash Transfer. Cash transfer programmes in developing countries is constrained by three factors: financial resources, institutional capacity and ideology. Governments in poor countries have limited financial resources are therefore highly limited in the amount they can invest in cash transfers and the money required to ensure the programmes are effective. The amount invested is influenced by ‘value for money’ considerations, as well as by political and ideological concerns regarding ‘free handouts’ and ‘creating dependency’. As random allocations as not particularly effective, there are to main forms of targeting: Means testing potential recipients of cash transfers is the more politically acceptable, as money is not perceived to be wasted by including those who do not have a desperate need for the money ("leakage"). This can...
  • Cash transfers
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