The cost of conditional cash transfers

A common criticism of antipoverty programs is that a large proportion of their budgets never reaches the intended beneficiaries but is absorbed by administration costs. Yet, there is little empirical evidence on the costs, and even less on the cost structures, of such programs. This paper outlines a...

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Main Authors: Caldés, Natàlia, Maluccio, John
Format: Journal Article
Language:Inglés
Published: Wiley 2005
Subjects:
Online Access:https://hdl.handle.net/10568/172315
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author Caldés, Natàlia
Maluccio, John
author_browse Caldés, Natàlia
Maluccio, John
author_facet Caldés, Natàlia
Maluccio, John
author_sort Caldés, Natàlia
collection Repository of Agricultural Research Outputs (CGSpace)
description A common criticism of antipoverty programs is that a large proportion of their budgets never reaches the intended beneficiaries but is absorbed by administration costs. Yet, there is little empirical evidence on the costs, and even less on the cost structures, of such programs. This paper outlines and implements a replicable methodology for a disaggregated cost analysis of a pilot conditional cash transfer program in Nicaragua, examining the administration and private costs associated with a one-unit transfer to a beneficiary—referred to as the cost-transfer ratio. We find that for a meaningful assessment of cost-efficiency, it is misleading to make calculations using only the typically available raw accounting data. Rather, one must delve into the details and specific activities of the program. This is particularly important for pilot programs, which typically have many up-front fixed costs associated with design and setting up operations. It is also important for conditional cash transfer programs, which have additional costs associated with their specific design features and require changes in beneficiary behavior that may engender substantial private costs.
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spelling CGSpace1723152025-02-19T14:08:19Z The cost of conditional cash transfers Caldés, Natàlia Maluccio, John cash transfers poverty cost analysis poverty alleviation A common criticism of antipoverty programs is that a large proportion of their budgets never reaches the intended beneficiaries but is absorbed by administration costs. Yet, there is little empirical evidence on the costs, and even less on the cost structures, of such programs. This paper outlines and implements a replicable methodology for a disaggregated cost analysis of a pilot conditional cash transfer program in Nicaragua, examining the administration and private costs associated with a one-unit transfer to a beneficiary—referred to as the cost-transfer ratio. We find that for a meaningful assessment of cost-efficiency, it is misleading to make calculations using only the typically available raw accounting data. Rather, one must delve into the details and specific activities of the program. This is particularly important for pilot programs, which typically have many up-front fixed costs associated with design and setting up operations. It is also important for conditional cash transfer programs, which have additional costs associated with their specific design features and require changes in beneficiary behavior that may engender substantial private costs. 2005-03 2025-01-29T12:59:46Z 2025-01-29T12:59:46Z Journal Article https://hdl.handle.net/10568/172315 en Limited Access Wiley Caldés, Natàlia; Maluccio, John. 2005. The cost of conditional cash transfers. Journal of International Development 17:151-168. https://doi.org/10.1002/jid.1142
spellingShingle cash transfers
poverty
cost analysis
poverty alleviation
Caldés, Natàlia
Maluccio, John
The cost of conditional cash transfers
title The cost of conditional cash transfers
title_full The cost of conditional cash transfers
title_fullStr The cost of conditional cash transfers
title_full_unstemmed The cost of conditional cash transfers
title_short The cost of conditional cash transfers
title_sort cost of conditional cash transfers
topic cash transfers
poverty
cost analysis
poverty alleviation
url https://hdl.handle.net/10568/172315
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