Latin American countries have used specific CCT design elements – like
amount of cash transfer or particular conditionalities like attending
school or health check-ups – to foster investment in children’s
development to reduce future poverty. But CCTs' effectiveness depends
on the quality of the programme’s design, and in particular, the synergy
between the chosen design and the desired objective. This brief analyses
the most important CCT design elements from the Latin American
experience - the target population, incentives and conditionalities, and
entry and exit rules - to help other countries as they make design
decisions to adapt CCTs to their own contexts.
- Be specific about the problem to be solved and design the CCT
accordingly. All design decisions must come back to the objective.
- Good information is key, both about the local context and about
families' constraints in investing in human capital. From there,
creative use of design elements will help a CCT best reflect a
country's specific experience and ultimately make it more successful.
Jaramillo, M. ELLA Policy Brief: Designing an Effective CCT. Practical Action Consulting, Lima, Peru (2011) 5 pp.