Are cash transfers the best policy option?

Abstract

Cash transfers are widely considered a promising strategy for improving lives. This presentation summarizes evidence from 17 randomized controlled trials (RCTs) conducted in 11 countries that directly compare cash transfers to other policy options, including in-kind transfers, business grants, and multifaceted programs. The evidence reviewed supports the idea that cash transfers are generally more cost-effective than other policy interventions. However, the impacts of different types of transfers vary by context, and the presentation emphasizes that it is important to consider a wide range of factors when designing poverty-reduction programs. For instance, in-kind transfers may be preferable when the goal is to increase consumption of a particular good, and conditional cash transfers may be most effective when the goal is to encourage investments in human capital. The presentation concludes by discussing some key ethical considerations and potential avenues for future research. – AI-generated abstract.