4ps Documentation

Topics: Conditional Cash Transfer, Poverty, Welfare Pages: 3 (1003 words) Published: August 23, 2013
Conditional cash transfer (CCT) program aim to reduce by making welfare programs conditional upon the receiver’s actions. The government only transfers the money to persons who meet certain criteria. These criteria may include enrolling children into public schools, getting regular check-ups at the doctor's office, receiving vaccinations, or the like. ACCTs are unique in seeking to help the current generation in poverty, as well as breaking the cycle of poverty for the next through the development of human capital. Conditional cash transfers exist in the following countries, among many others like Brazil, Chile, Columbia, Honduras, Jamaica, Indonesia, Mexico, Guatemala, Nicaragua, Panama, Philippines, Peru, Turkey, Egypt, United States of America, Bangladesh and Cambodia. Many countries in Latin America are now using CCT programs as a major tool of their social policy since they have been proven to be very effective in helping poor families. Although the conditions and amounts of money may vary from country to country, ranging from $5 to $33 per child, in general these programs provide money to poor families under the condition that those transfers are used as an investment on their children’s human capital, such as regular school attendance and basic preventive health care. The purpose of these programs is to address the inter-generational transmission of poverty and to foster social inclusion by targeting the poor, focusing on children, delivering transfers to women, and changing social changing relationships between beneficiaries, service providers and governments. Most of these transfer schemes are now benefiting around 110 million people in the region, and are considered relatively cheap, costing around 0.5% of their GDP. Conditional cash transfer programs can be very effective in reducing poverty in the short term since they have helped to increase household income and consumption in poor families they have also worked effectively in...
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