Question

In: Economics

How might conditional cash transfers operate to reduce or eliminate inter-generational poverty traps?  Give at least three...

  1. How might conditional cash transfers operate to reduce or eliminate inter-generational poverty traps?  Give at least three mechanisms.

Solutions

Expert Solution

Introduction:

Conditioanal cash transfer are direct and regular predictable non contributory cash payments to help poor and vulnerable household to raise and smooth income,like social pension,public works are done by the government,it is a degin, implementation for financial related one,most of economist suggested this policy is world wide because of its increase pro-poor growth and an opportunity to overcome poverty and break free of intergenerational poverty trap.Over last few years cct system was very popular, it's allocate cash directly to poor household for the basic fulfilling conditions.

Cash transfer scheme preeminent example like China followed minimum living standard scheme.in India Mgnrega.

Some mechanism followed for this scheme:

  • Fixed variable amounts
  • Unconditional subsides
  • Payments frequency

This method issue some way to find assessment of individual income and asserts, assessment of high co-related properly and finally community based mechanism.

Conclusion:

Cct programme have a nature by the development of rebust information system that respond to the need of the operating cycle and use of open source platform has been benefit significantly to the poor,the information through monitoring generated through auditing practices it's vital process for acvountabilacc.


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