Conditional Cash Transfer Programs: An Effective Tool for Poverty Alleviation?

The paper highlights a number of issues that countries need to explore in assessing the feasibility of a CCT program: a country needs to assess the current level of specific human capital outcomes and identify key constraints to low outcomes in human capital; cash transfers without conditionality will not be sufficient to increase human capital outcomes significantly; monitoring of operations and rigorous evaluation are critical to ensure effectiveness and success of the program; and good governance and political support at high levels for the program play an important role in implementing a CCT program. This policy brief intends to provide a discussion on these issues. In particular, this brief deals with issues related to the rationale and implementation of CCT programs and an assessment of their effectiveness.