Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa

This paper summarizes evidence on six perceptions associated with cash transfer programming, using eight rigorous evaluations conducted on large-scale government unconditional cash transfers in sub-Saharan Africa under the Transfer Project. Specifically, it investigates if transfers: 1) induce highe...

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Main Authors: Handa, Sudhanshu, Daidone, Silvio, Peterman, Amber, Davis, Benjamin, Pereira, Audrey, Palermo, Tia, Yablonski, Jennifer
Format: Journal Article
Published: Published by Oxford University Press on behalf of the World Bank 2020
Subjects:
Online Access:http://hdl.handle.net/10986/33275
id okr-10986-33275
recordtype oai_dc
spelling okr-10986-332752021-05-25T10:54:40Z Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa Handa, Sudhanshu Daidone, Silvio Peterman, Amber Davis, Benjamin Pereira, Audrey Palermo, Tia Yablonski, Jennifer PUBLIC EXPENDITURE CASH TRANSFERS POVERTY REDUCTION WELFARE PROGRAM INCOME DISTRIBUTION INEQUALITY HUMAN CAPITAL ALCOHOL CONSUMPTION TOBACCO CONSUMPTION DEPENDENCY FISCAL SUSTAINABILITY This paper summarizes evidence on six perceptions associated with cash transfer programming, using eight rigorous evaluations conducted on large-scale government unconditional cash transfers in sub-Saharan Africa under the Transfer Project. Specifically, it investigates if transfers: 1) induce higher spending on alcohol or tobacco; 2) are fully consumed (rather than invested); 3) create dependency (reduce participation in productive activities); 4) increase fertility; 5) lead to negative community-level economic impacts (including price distortion and inflation); and 6) are fiscally unsustainable. The paper presents evidence refuting each claim, leading to the conclusion that these perceptions—insofar as they are utilized in policy debates—undercut potential improvements in well-being and livelihood strengthening among the poor, which these programs can bring about in sub-Saharan Africa, and globally. It concludes by underscoring outstanding research gaps and policy implications for the continued expansion of unconditional cash transfers in the region and beyond. 2020-02-03T20:09:26Z 2020-02-03T20:09:26Z 2018-08 Journal Article World Bank Research Observer 1564-6971 http://hdl.handle.net/10986/33275 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article Africa Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
topic PUBLIC EXPENDITURE
CASH TRANSFERS
POVERTY REDUCTION
WELFARE PROGRAM
INCOME DISTRIBUTION
INEQUALITY
HUMAN CAPITAL
ALCOHOL CONSUMPTION
TOBACCO CONSUMPTION
DEPENDENCY
FISCAL SUSTAINABILITY
spellingShingle PUBLIC EXPENDITURE
CASH TRANSFERS
POVERTY REDUCTION
WELFARE PROGRAM
INCOME DISTRIBUTION
INEQUALITY
HUMAN CAPITAL
ALCOHOL CONSUMPTION
TOBACCO CONSUMPTION
DEPENDENCY
FISCAL SUSTAINABILITY
Handa, Sudhanshu
Daidone, Silvio
Peterman, Amber
Davis, Benjamin
Pereira, Audrey
Palermo, Tia
Yablonski, Jennifer
Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa
geographic_facet Africa
Sub-Saharan Africa
description This paper summarizes evidence on six perceptions associated with cash transfer programming, using eight rigorous evaluations conducted on large-scale government unconditional cash transfers in sub-Saharan Africa under the Transfer Project. Specifically, it investigates if transfers: 1) induce higher spending on alcohol or tobacco; 2) are fully consumed (rather than invested); 3) create dependency (reduce participation in productive activities); 4) increase fertility; 5) lead to negative community-level economic impacts (including price distortion and inflation); and 6) are fiscally unsustainable. The paper presents evidence refuting each claim, leading to the conclusion that these perceptions—insofar as they are utilized in policy debates—undercut potential improvements in well-being and livelihood strengthening among the poor, which these programs can bring about in sub-Saharan Africa, and globally. It concludes by underscoring outstanding research gaps and policy implications for the continued expansion of unconditional cash transfers in the region and beyond.
format Journal Article
author Handa, Sudhanshu
Daidone, Silvio
Peterman, Amber
Davis, Benjamin
Pereira, Audrey
Palermo, Tia
Yablonski, Jennifer
author_facet Handa, Sudhanshu
Daidone, Silvio
Peterman, Amber
Davis, Benjamin
Pereira, Audrey
Palermo, Tia
Yablonski, Jennifer
author_sort Handa, Sudhanshu
title Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa
title_short Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa
title_full Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa
title_fullStr Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa
title_full_unstemmed Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa
title_sort myth-busting? confronting six common perceptions about unconditional cash transfers as a poverty reduction strategy in africa
publisher Published by Oxford University Press on behalf of the World Bank
publishDate 2020
url http://hdl.handle.net/10986/33275
_version_ 1764478374412025856