A presentation by Mr. Fábio Veras Soares, Coordinator of Social Protection and Cash Transfers at the UNDP-Brasilia based International Policy Centre for Inclusive Growth (IPC-IG) to the Delegation of Uganda participating in the Uganda-Brazil Study Tour on Social Development in Brasília on 26-30 March 2012.

1. International Policy Centre for Inclusive Growth (IPC-IG)
Unit of measure
Uganda-Brazil Study Tour on Social Development
Cash Transfers in Latin America
and Africa – an overview
Brasilia, 26 March 2012
Fabio Veras Soares – IPC-IG
(UNDP/SAE/IPEA)
* Footnote
Source: Source 1

2. CCT programmes in Latin America
Unit of measure
 Conditional Cash Transfer programmes have been adopted by a
variety of countries in Latin America… with different designs… and
for different reasons…
 Common features: targeting, cash transfers paid to women, and
conditionalities (health, education, plus…)
 Double objective: poverty alleviation and stop intergeneration
transmission of poverty
Beyond commonalities:
• Differ with regard to the emphasis in the two objectives and with
regards to...
… its place in the social protection system: permanent welfare
policy or short-term safety net
* Footnote
Source: Source 2

3. CCTs in Latin America: an overview
Unit of measure
* Footnote
Source: Source 3

4. CCTs in Latin America: an overview
Unit of measure
* Footnote
Source: Source 4

5. CCTs in Latin America: an overview
Unit of measure
* Footnote
Source: Source 5

6. CTs Africa: an overview
Unit of measure
• Before the 2000’s Social Cash Transfers were restricted to middle-
income countries – old age pension and/or child support grant in
South Africa, Mauritius Namibia and Botswana… expect for PSA in
Mozambique… early 1990’s.
• In the 2000’s with the Livingstone declaration pilot CT
programmes start being implemented mostly in Eastern and
Southern Africa (Zambia, Kenya, Malawi, Lesotho)… but also some
pilots in Ghana, Nigeria, and Senegal.
• Many doubts about whether CCT could work in SSA: concerns
about dependency, administrative capacity, feasibility of having
conditionalities, local inflation…
• Focus on vulnerable groups
* Footnote
Source: Source 6

7. CTs in Africa: an overview
Unit of measure
* Footnote
Source: Source 7

8. Old age grants and (C)CTs: LA and Africa
Unit of measure
Latin America: old age grant + CCT
 Some countries in Latin America do not have a non-contributory
social pension and have attached them to CCT programmes… e.g.
Paraguay ; El Salvador; Ecuador and even Oportunidades in
Mexico which evolved into 70+ programme…
Africa: old age grants + SCT
 Middle income countries had non-contributory pensions
(Mauritius, South Africa, Namibia, Botswana)… and even low
income like Mozambique with PSA…
 However, focus in demographic criteria based on high dependency
ratio have been prevalent in most Social Cash transfer in Africa. In
practice it has led to the implementation of Social Pensions in
many countries…
 Alternative model: Orphans and Vulnerable Children (Kenya OVC-
CT) Footnote
*
Source: Source 8

9. Transfers as share of total expenditures of benef. families
Unit of measure
* Footnote
Source: Source 9

10. CCTs in Latin America: impacts
Unit of measure
• Improved food consumption (quality) and food security of
beneficiary households; but nutrition puzzle.
• Increase in the share of expenditure in child-related goods (e.g.
child clothing)
• Increase in school attendance and fall in drop-out rates, specially
for pupils in secondary education
• Fall in poverty (poverty gap) and inequality – particularly where
the programme covers large segments of the population and
transfer is not very low
• No evidence of sizable negative impacts on labour market
participation, some positive in rural areas… possibly due
to…..some evidence of productive impacts: part of the transfer is
invested in livestock and small business– Mexico and Paraguay.
* Footnote
Source: Source 10

11. SCTs in Africa: Impacts
Unit of measure
• Community targeting seems to work fine when combined with other
mechanisms (categorical and geographical targeting)
• Improved food consumption (quality – away from tubers towards dairy
products) and food security of beneficiary households (Mozambique and
Kenya);
• Increases share of expenditures with health (Kenya)
• Increase in school attendance for secondary students and for those who face
higher costs in primary education; (Kenya)
• Fall in the proportion of children who are behind in terms of age-for-grade
indicators (Kenya) – starting school at the right age.
• Some evidence of positive impact of the transfers on asset accumulation:
ownership of agricultural tools and livestock. (Malawi)
• Households reduced participation in low-skilled activities outside the
household, such as agricultural wage labour and ganyu work, generally
associated with vulnerability in Malawi .
* Footnote
Source: Source 11

12. Uganda: Social Assistance Grant for Empowerment (SAGE)
Unit of measure
 Focus on high dependency ratio (many children, specially
OVC, elderly, and disabled) and in old age grants.
 Pilot to phase to assess implementation and short-term
impacts.
 It can benefit from experience of other countries, specially
Kenya, Zambia and Malawi and it can benefit other
programmes too through its own evaluation:
 Can the transfer value make a difference…
consumption/food security and other outcomes?
 Targeting and deliver mechanisms are working?
 Are there impacts on human capital and productive
investments (value of the transfer)?
* Footnote
Source: Source 12

13. CTs challenges in Africa
Unit of measure
 How to integrate with other interventions – food security,
employment programmes, OVC support, access to health and
education?
 Use of the registries for the consolidation of MIS as well as a
planning tool to improve social policies as a whole.
 Attention to outcomes of the mixed models that combine Social
Cash Transfers and predictable public works – Ethiopia, Tanzania
(TASAF), Rwanda and Mozambique.
* Footnote
Source: Source 13

14. References
Unit of measure
Latin America:
• Conditional Cash Transfer Programmes: The recent experience in Latin America and the Caribbean
http://www.cepal.org/cgi-bin/getProd.asp?xml=/publicaciones/xml/6/45096/P45096.xml&xsl=/dds/
• Conditional Cash Transfer Programmes and Gender Vulnerabilities: Case Studies of Brazil, Chile and Co
AFRICA:
• Impact Evaluation of the Expansion of the Food Subsidy Programme in Mozambique http://www.ipc-
• Covarrubias et al. (2012). ‘From Protection to Production: Productive Impacts of the Malawi Social
Cash Transfer’, Journal of Development Effectiveness. Forthcoming.
• Ashu et al. (2012). The Impact of Kenya’s Cash Transfer for Orphans and Vulnerable Children on
Human Capital. Journal of Development Effectiveness . Forthcoming.
• Handa et al. (2012). ‘Targeting effectiveness of Social Cash Transfer Programmes in Three African
Countries’, Journal of Development Effectiveness. Forthcoming.
• CT-OVC Evaluation Team (2011). The impact of the Kenya Cash Transfer Program for Orphans and
Vulnerable Children on household spending. Mimeo.
• García and Moore (2012). The Cash Dividend – The Rise of Cash Transfer in Sub-Saharan Africa.
World Bank.
• IPC-IG Poverty in Focus: Cash Transfers – Lessons from Africa and Latin America http://www.ipc-
undp.org/pub/IPCPovertyInFocus15.pdf
 For More info on Impact Evaluations : http://www.cpc.unc.edu/projects/transfer
* Footnote
Source: Source 14

15. Unit of measure
Many Thanks
* Footnote
Source: Source 15