The ecosystem contains several development programmes and substituting existing programmes with cash transfers will lead to a rapid switch-over. Moreover, three broad categories of cash transfer have been identified in development and humanitarian literature—total (direct cash transfer), restricted (conditional cash transfer and vouchers) and contrived (employment programmes).
The trick is to match existing programmes with the right form of cash transfer. Different options are suited to different requirements. Direct, unconditional, cash transfer is the default option. This can be deployed to replace programmes where items citizens need are available in the market, the risk of inflation is low, those chronically poor are in need of repeated and continuing assistance and security of cash transfer is acceptable. Read More