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Cash is no cure-all

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Cash transfers are terrific at what cash transfers are terrific at — a pure and direct transfer of purchasing power. If the goal of transferring resources to citizens is simply to attain a socially desirable distribution of money and ability to buy things, cash works very well.

However, if the idea is to tackle market failures and attain a socially desirable form of behaviour, where administrators allocate benefits to the poorest and the poorest are able to use the subsidy amounts for good nutrition and health outcomes, the idea of cash as a cure-all is problematic…….Read More

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