SOCIAL CASH TRANSFERS: SOME UNDERLYING DEBATES AND IMPLICATIONS FOR POLICY MAKING

Abstract

Social cash transfers as a strategy for poverty reduction acquired prominence in Latin America but spread later to the rest of the developing world because earlier poverty reduction strategies did not make many gains. Most studies on cash transfer schemes seem tilted towards evaluating their impacts while neglecting the arguments surrounding their design and operations. As such, this paper reviews some of the debates that engulf social cash transfers as a form of social assistance. The review showed that debates about social cash transfers generally centre on targeting, affordability, conditionalities, poverty reduction ability, utilisation of cash, market effect, cash versus food stamp, and dependency. It is concluded that the debates are crucial as they lay the pedestal upon which policy makers take the decision as to whether to set up, change or end an existing cash transfer programme.