Question

Conditional Cash Transfers (CCT). Please discuss the relative pros and cons of CCTs

be throurough please.

Answer 1

-->CCTs are programs aim to reduce poverty by making welfare programs conditional upon the receivers' 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. CCTs seek 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 could help reduce feminization of poverty.

-->PROS :---- CCTs have affected not only the overall level of consumption, but also the composition of consumption. There is enough evidence to show that households that receive CCTs spend more on food and, in the food basket, on higher-quality sources of nutrients than do households that do not receive the transfer but have comparable overall income or consumption. CCTs also help in reducing gender gap by increasing the enrollment of girls in schools. CCTs provide a steady income and have helped protect poor households from the worst effects of unemployment, catastrophic illness, and other sudden income shocks.Making cash transfers to women also leads to increased bargaining power of women.

-->CONS :--- major constraints for implementation of CCTs include -- exclusion of targeted beneficiaries,lack of awareness among masses, change in political leadership, financial crisis and government deficits,natural disasters, corruption etc.