The world has become more developed and wealthy due to the rapid economic growth and the effect of globalization which increases the opportunity of trade. However, the growth of economy does not reduce the number of impoverished family. Indeed, it adversely widens the income gap between the rich and the poor in the developing countries. The statistics of United Nations reveal that 1.2 billion people live with less than US$1.00 per day, 153 milllion children are below the standard of BMI, 115 million children are not enrolled in school and 97% of these children are in developing countries. The poverty problem is the global issue which alarms the developed countries and NGOS aim to tackle with it.
What is cash transfer?
Cash transfers is an extraordinary anti- poverty program which greatly raise the global attention in a short period of time . It is a program funded by the world bank and other institutions, like inter-American Development Bank. The traditional approach of alleviate the poverty is by food and in-kind subsidies. But the cash transfers program has adjusted the policy in order to solve the short and long term poverty.
Aims of Cash Transfers
The Cash Transfers programs aims to tackle both the short and long term poverty as mentioned above. It aims the raise the impoverished families’ current incomes by 20-30%. The future generations are their targeted group to get them out of poverty by improving their literacy rate and their earning potential in later life.
The aided targets
The target of the Cash Transfers no longer based on the random sampling from the poor. They target the poor of the poorest with minimal exclusion and inclusion errors.
How it works?
The mechanism of Cash Transfers directly grants additional cash to those who are targeted but they are restricted and obliged to follow rules. In Mexico, recipient households must assure that all school- aged children attend classes regularly and that all family members obtain specified health care, including nutritional supplements for pregnant and nursing mothers and young children. Failure to fulfil the requirements will lead to an end of the payments. The targeted poor use the limited cash to maximize and improve their quality of living, such as to invest in their children’s education enable them to be more competitive in future. In addition, the direct cash to the families also improve the malnutrition of the targeted. They could use the extra cash to buy more food. it makes them have the opportunity to absorb more vitamins, calcium and minerals than before.
Impacts on personal growth
The evaluation conducted by the International Food Policy Research Institute of Washington, DC found out the children who are in this program are better for physical endurance, language development and long- and short- term memory. Also, they have fewer behavioural problems.
Impacts on schooling
Overall, there are more children from the rural areas enrolled in the primary, secondary and high school level. Although the education received may be less efficient and effective than in the urban areas, the result is still positive. The number of girls enrolled are greatly increase as the girls are the main target of the program. School enrolment rates have…