Cash transfer

[2] Cash transfers constitute a critical element in the realm of global social policy, addressing needs ranging from poverty alleviation to crisis response.

These transfers target various demographic groups, including the unemployed, single parents, and individuals facing disabilities or old age challenges.

[7] Likewise, Joel Ruiz Butuyan also questioned the effects of increasing cash transfer budgets on the annual national debt.

[4] Governments in poorer countries tend to have restricted financial resources, and are therefore limited in the amount they can invest both directly in cash transfers and in measures to ensure that such programmes are effective.

‘Participatory monitoring and evaluation’ (PM&E) techniques and mechanisms are particularly effective at giving a voice to the people who receive the money, and, when they work well, they serve increase the accountability of governments, local officials and programme implementers.

Qualitative and participatory research carried out by the Overseas Development Institute (in Kenya, Mozambique, the Occupied Palestinian Territories, Uganda and Yemen) investigating individual and community perceptions of cash transfer programmes[11] reveals that the money has a number of positive, and potentially transformative, effects on the lives of the individuals and families that receive them, including: • People prefer to receive cash than other forms of assistance (food aid, public works, etc.)

• Particularly vulnerable or excluded beneficiaries felt that they were now able to meet the basic needs of their families, giving them greater economic freedom, security and enhanced psychological well-being.

Cash transfer programs have been criticized for enabling political patronage between legislators and voters and serving as a conduit for legalised vote buying.

[20][21] Research has been carried out by the Overseas Development Institute into the challenges of implementing cash transfers in Sierra Leone and in ensuring their success.

[25] Given the poverty and the high levels of fragmentation in society, cash transfer schemes have been small scale to date, but include: Any expansion of the system has to take into account:[25] Researchers at the Overseas Development Institute found that the perceived risk of dependency was very high and that transfers of tools, sewing machines, or agricultural inputs have proved to be more popular.

[25] Cash transfers are no more prone to corruption than other sources of government spending, yet specific parts of the process of implementation must be carefully monitored.

[25] GiveDirectly is a non-profit organization, headquartered in the United States and currently operating in Kenya, that aims to help people living in extreme poverty by making unconditional cash transfers to them via mobile phone (through m-Pesa).

The first comprehensive systematic review of the health impact of unconditional cash transfers included 21 studies, of which 16 were randomized controlled trials.

[31] An update of this landmark review from 2022 confirmed these findings, plus concluded that there is now sufficient evidence that such cash transfers also reduce the likelihood of recipients living in extreme poverty.

[33] In 2022, a systematic review and meta-analysis of 45 studies examined the impact of cash transfers on self-reported subjective wellbeing and mental health outcomes, covering a sample of 116,999 individuals.

[34] After an average follow-up time of two years, the study found that cash transfers have a small but statistically significant positive effect on both subjective wellbeing and mental health among recipients.