What role do conditionalities play in income transfer programs, and how do they shape recipients' obligations?

Answer from top 10 papers

Conditionalities within income transfer programs indeed shape recipients' obligations by requiring them to meet certain criteria, typically related to health, education, and nutrition, to receive financial assistance (Adato & Hoddinott, 2011; Zolkifly et al., 2022). These conditions are intended to foster human capital development, with the underlying belief that this will enable beneficiaries to escape poverty permanently (Hughes, 2019).
However, the literature presents a nuanced view of conditionalities. While they can incentivize positive behaviors, such as sending children to school or attending health check-ups (Pavão, 2016), they may also reinforce vulnerability among non-compliers, particularly if non-compliance results in the suspension of benefits and if sanctions are poorly implemented (Pavão, 2016). Moreover, beneficiaries have been known to use program conditionalities tactically, sometimes enacting subtle forms of resistance to state governance (Rossel et al., 2018). This suggests that the relationship between conditionalities and recipient obligations is complex and can lead to unintended consequences.
In summary, conditionalities are a central feature of income transfer programs, designed to encourage investments in human capital. However, they can also create challenges and unintended outcomes, such as reinforcing vulnerabilities or leading to tactical behaviors by recipients. The effectiveness of conditionalities in achieving program goals is contingent upon careful implementation and consideration of the socio-economic context of beneficiaries (Adato & Hoddinott, 2011; Pavão, 2016).

Source Papers

How could conditional cash transfer programme conditionalities reinforce vulnerability? Non‐compliers and policy implementation gaps in Uruguay's Family Allowances

AbstractInfluential research shows that conditionalities could incentivize recipients of conditional cash transfer programmes (CCTs) to send their children to school and to regular health check‐ups. However, a growing literature is elucidating the risks of conditional transfers, from both a philosophical and an empirical perspective. This article highlights the varied deficits that have accompanied the implementation process in some Latin American countries, as well as the consequences that these deficits might have on the beneficiaries. In particular, it suggests that, rather than reducing vulnerability by improving access to services, conditionalities could be reinforcing vulnerability among non‐compliers if non‐compliance leads to the immediate suspension of the cash transfer and if this sanction is poorly implemented.While this hypothesis has gained attention and is part of both an academic and a political debate, empirical research around it is scarce. This article is an attempt to start filling this gap by focusing on the implementation process of conditionalities in a CCT programme in Uruguay (Family Allowances) and how this is experienced by a group of recipients who failed to comply with the conditionalities and were sanctioned with the suspension of the benefit. In particular, it identifies the main reasons why these beneficiaries did not comply, how they experience the sanction and how they managed—when they do—to apply for the benefit to be restored.Based on a qualitative design of in‐depth interviews, it provides empirical evidence to unpack causal relationships linking conditionalities to increased vulnerability among non‐compliers. Our findings offer evidence on the role played by the conditionalities in reinforcing vulnerability and the possible causal mechanisms that could be operating between both phenomena. This picture of policy implementation constraints that could lead conditionalities to reinforce vulnerability among recipients could be relevant to policy‐makers having to deal with non‐compliance and managing sanctions in CCTs.

Ride-hailing Assistance Model for B40 Drivers: The Practical Model for Cash Transfer Recipients

The Malaysian government strives to support the bottom 40 (B40) group by initiating various cash transfer programs, specifically known as household living aid. In 2017, the government introduced a special car rebate to cash transfer recipients who wished to become ride-hailing drivers to increase their monthly household income and promote self-employment. However, the initiative was reported impractical due to the car model and may send the borrowers into more debt. Its return on investments (ROI) was also questionable. Thus, this research aims to identify the mechanism for ride-sharing assistance for cash transfer recipients. The objective is to develop a practical entrepreneurship model based on government cash transfers specifically for ride-hailing services and the B40 group. This research employed a qualitative method through a semi-structured interview with eight ride-hailing drivers. Using Atlas.ti software, themes were created comprising of initiatives (amount, form, and payment procedures), process (information, selection criteria, and monitoring), car (model, attributes, and maintenance,) and car ownership and financing. This model can contribute to self-employment activities, improve the household income, and ultimately the recipients may find their way out of poverty. More significantly, the government can accurately create the incentive policy and enjoy the ROI in the form of poverty reduction.

Open Access
Conditional cash transfers in Latin America

Conditional cash transfer programs (CCTs) have become increasingly popular in low-income countries, particularly in Latin America. CCTs involve cash payments to poor families when they participate in educational, health-related, nutritional, or other services that could help lift them out of poverty. The apparent success of CCTs has led some development specialists to refer to CCTs as magic bullet. Conditional Cash Transfers in Latin America evaluates the effectiveness and reliability of CCTs in reducing poverty. The contributors synthesize evidence and analysis from four case studies of Brazil, Honduras, Mexico, and Nicaragua. Using state-of-the-art quantitative and qualitative methods, the studies examine various aspects of CCTs, including the trends in development and political economy that fostered interest in them; their impacts on education, health, nutrition, and food consumption; and how CCT programs affect-and how their outcomes are affected by-social relations shaped by gender, culture, and community. Throughout, the authors identify the strengths and weaknesses of CCTs and offer guidelines to those who design them. Successful programs depend on a clear definition of program goals, adapting program design to a particular country's circumstances, effective communication with CCT beneficiaries, high-quality services, and an appreciation of social relations within a given community. This new study is a valuable resource for anyone trying to understand, implement, improve, and build on the success of established conditional cash transfer programs.

Open Access
Reexamining the Influence of Conditional Cash Transfers on Migration From a Gendered Lens.

Past research on the influence of conditional cash transfers-widespread antipoverty programs-on migration has tended to focus on beneficiaries as a homogenous unit. Drawing on feminist critiques of the contemporary international antipoverty agenda, this article views both conditional cash transfer programs and migration patterns from a gender-sensitive lens. Conditional cash transfers rely on a gendered division of labor in which the informal work of women is particularly called upon in order to fulfill program requirements. This work contends that conditional cash transfers emphasize gender responsibilities for women as mothers and caretakers, which mark their belonging in the domestic sphere and limit the likelihood of their migration while making no such demands on beneficiary men or nonbeneficiaries. Using logistic and multinomial logistic regression models and data from the Mexican Family Life Survey, the analysis finds evidence supporting the hypothesis that conditional cash transfer participation disproportionately limits migration for beneficiary women. This study broadly argues that the impact of such antipoverty programs is more gendered than previously thought and emphasizes the importance of examining previously studied outcomes in ways that consider the specific subject locations of recipients in order to better understand both the logics underlying development policy and the process of migration itself.

Open Access
Relevance of conditional cash transfers for the implementation of sustainable development goals in developing countries

Conditional cash transfer schemes were identified as one of the major driving forces behind poverty reduction in most developing countries during the implementation of the Millennium Development Goals and the subsequent Sustainable Development Goals . However, relevance of conditionality obligations of beneficiaries and service providers to sustain the conditional cash transfer schemes and make them relevant to the Sustainable Development Goals appeared to have encountered a number of challenges. This paper examined the circumstances under which beneficiaries and service providers fulfilled their conditionality obligations in conditional cash transfer schemes and its relevance to the Sustainable Development Goals implementation in developing countries. A systematic review technique was employed to analyse 60 articles. It was found that, improved health care, improved educational level, increased consumption level, poverty reduction, and among others are relevant to the implementation of Sustainable Development Goals . Policy dilemma, time frame dilemma, infrastructural capacity and poor macroeconomic policies were some of the constraints in conditional cash transfers to be addressed to secure better implementation of Sustainable Development Goals . It is therefore suggested that expansionary and contractionary policies be instituted to control macroeconomic indicators where necessary, more infrastructure should be provided and timelines of cash transfers should be monitored in order to make the intervention more relevant in the implementation of the Sustainable Development Goals . Keywords: Relevance, Conditionalities, Cash Transfers, Sustainable Development Goals , Developing Countries

Open Access
The role of rules and norms in conditional cash transfer programs – Latin American experience

The most important element of conditional cash transfer (CCT) programs is conditioning the social transfer on some pre-defined requirements concerning healthcare and education. The conditioning (co-responsibility) is justified by the belief that higher accumulation of human capital will allow the beneficiaries to permanently lift out of poverty. The literature on the subject is ample, focused mostly on the cost effectiveness of CCTs and their impact on poverty rates and income inequalities. Usually ignored are the rules and norms – important from the institutional perspective – that affect the behavior of participants as well as non-participants and influence their attitudes towards work, childcare, social responsibility, etc.
 The aim of the paper is twofold. First, to identify rules and norms that matter for the effects and efficiency of CCTs. Second, to define the channels through which they impact the behavior of economic agents. The research hypothesis assumes that conditionality of transfers increases the efficiency of public social spending and can be applied broadly, in many contexts. To verify the hypothesis, an extensive meta-analyses of available studies was performed. The initial conclusions suggest that CCTs could be successfully used in developed countries as well as in poorer regions.

Open Access