Born in Latin America, Conditional Cash Transfer (CCT) programmes target
poor families, offering cash subsidies in exchange for a commitment by
households to invest in the human capital of their children. Backed up
by country examples, this guide provides an overview to CCT programmes
in Latin America, including their history, objectives and use, evidence
of their impact, and finally, the main lessons coming out of Latin
America that can be useful for policymakers considering implementing
CCTs in their own countries.
Although cash transfers help families confront short-term poverty, it
is the establishment of conditionalities that motivate human capital
investments - CCTs’ principal innovation - that can help beneficiary
households escape long-term poverty.
Latin American experience suggests that it is possible and indeed
necessary to adapt the programmes to a country's particular context
in order to be successful.
Including rigorous impact evaluations as part of CCT implementation is
an effective way to assess programme effectiveness, make improvements
and promote CCTs worldwide.
Jaramillo, M. ELLA Guide: CCT programmes: An overview to the Latin American experience. ELLA, Practical Action Consulting, Lima, Peru (2011) 7 pp.