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Direct transfer policies for the poor

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  • Maitreesh Ghatak

    (London School of Economics)

Abstract

We discuss various anti-poverty policies which involve direct transfer policies for the poor, focusing on their different dimensions—namely the size and time sequence of the transfers, whether it is cash or in kind, any conditionality involved, whether they are means-tested. We argue that their pros and cons depend on what is the underlying aspect of poverty that the policy is aiming to address, namely what is the cause of it, what is the time horizon, what is the social objective, and what, if any, limitations on state capacity might be present. We illustrate the issues involved by discussing two transfer policies in detail, a rural asset transfer programme in Bangladesh and a hypothetical universal income support programme in India—and highlight the dual nature of such policies as both redistributive and potentially productive investments. We conclude by discussing the potential complementarities between different types of anti-poverty policies.

Suggested Citation

  • Maitreesh Ghatak, 2024. "Direct transfer policies for the poor," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(1), pages 17-27, October.
    • Handle: RePEc:spr:jsecdv:v:26:y:2024:i:1:d:10.1007_s40847-023-00306-4
    DOI: 10.1007/s40847-023-00306-4
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    1. Oriana Bandiera & Robin Burgess & Narayan Das & Selim Gulesci & Imran Rasul & Munshi Sulaiman, 2017. "Labor Markets and Poverty in Village Economies," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 811-870.
    2. Dennis Egger & Johannes Haushofer & Edward Miguel & Paul Niehaus & Michael Walker, 2022. "General Equilibrium Effects of Cash Transfers: Experimental Evidence From Kenya," Econometrica, Econometric Society, vol. 90(6), pages 2603-2643, November.
    3. Dennis Egger & Johannes Haushofer & Edward Miguel & Paul Niehaus & Michael Walker, 2022. "General Equilibrium Effects of Cash Transfers: Experimental Evidence From Kenya," Econometrica, Econometric Society, vol. 90(6), pages 2603-2643, November.
    4. World Bank, 2018. "The State of Social Safety Nets 2018," World Bank Publications - Books, The World Bank Group, number 29115.
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    Keywords

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    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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