Final dates! Join the tutor2u subject teams in London for a day of exam technique and revision at the cinema. Learn more

Topic updates

Economic Development - Are Cash Transfers Crucial in Cutting Poverty?

Geoff Riley

8th March 2023

Cash transfers have become one of the main social protection tools in the developing world. This short topic video looks at the debate over the effectiveness of cash transfer programmes in low and middle-income countries. We also highlight the work of the NGO Give Directly.

Economic Development - Are Cash Transfers Crucial in Cutting Poverty?
  • 648 million people in the world, about eight percent of the global population, live in extreme poverty, which means they subsist on less than US$2.15 per day (PPP)
  • Almost a quarter of the global population, 23 percent, live below the US$3.65 PPP poverty line
  • 47 percent, live below the US$6.85 PPP poverty line
  • Global median income is US$7.60 PPP per person per day

Cash transfers are a type of social protection programme in low-income countries that provide direct financial assistance to vulnerable households. Cash transfers generally involve providing a set amount of money per month in a local currency or in $s to eligible households.

Conditional cash transfers (CCT) require that the recipients meet certain criteria, such as sending their children to school or attending health checkups and having children immunized

Unconditional cash transfers (UCT) are provided without any such requirements. They are provided universally.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.