This paper addresses organizations and experts in development cooperation who assist partner countries in the field of poverty reduction and social protection. The following text focuses on social cash transfers – widely regarded as an under-exploited tool for providing cost-effective basic social protection to critically poor sections of the population.
The first part of the paper summarizes the following: 1.) The rationale for establishing social cash transfer programs; 2.) The costs and benefits of existing social cash transfer programs, 3.) An assessment of preconditions for establishing sustainable social cash transfer programs in different categories of countries; and 4.) The options for development cooperation to influence these preconditions and to assist partner countries in establishing social cash transfer programs.
The second part of the paper is entitled “From Theory to Practice“ and presents a case study outlining how development cooperation is assisting the Government of the Republic of Zambia to design, implement and monitor a pilot social cash transfer scheme. In essence, the scheme aims to provide information on the feasibility, cost-effectiveness and impact of cash transfers as a component of the Zambian National Social Protection Strategy. The case study also shows how the results of the pilot scheme have influenced policy decisions taken by the Zambian government and various development partners.
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