To condition or not to condition?
A dilemma that decision makers often face when designing a social cash transfer programme is whether or not to make it conditional. Although a lot of impact evaluations have been carried out on Conditional Cash Transfers (CCTs), none has broken up the relative contributions of the programmes’ components, and it is therefore difficult to know “what works best in the CCT package and what is most important for its success” (Ferdinando Regalia, 2007) Theoretically, the conditions are meant to protect households against the non-Pareto optimal choices they make due to asymmetry of information. Indeed, quite often those who need the transfers the most live in remote areas and despite the campaigns undertaken by the government, they do not know about the programme. Moreover, conditions are supposed to give a longer-term vision to the vulnerable households who are shortsighted, requesting that they invest in education and health. It has also been argued that conditions may help overcome the sti
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