Institute of Development Studies

Local Economy Effects of Social Cash Transfers on Low-Income Countries

'Comissioned literature review of how and to what extent social cash transfer programmes have had effects upon the local economy.'

There is growing interest in the effectiveness of cash transfers in reducing poverty and vulnerability in developing countries. The knowledge and evidence base around cash transfers is growing rapidly, facilitated by the strong impact evaluation processes of some of the large cash transfer programmes in Latin America.

To date research has focused on identifying the poverty reduction and prevention effectiveness of social cash transfers for actual or potential beneficiaries. Less is known about the wider effects of social cash transfers on non beneficiaries and the local economy, except for a few studies considering labour supply among beneficiary households.

IDS were commissioned by the UK Department for International Development to conduct a literature review of how and to what extent social cash transfer programmes have had effects upon the local economy.

Outputs

Barrientos, Armando and Sabates-Wheeler, Rachel (2006) 'Local Economy effects of Social Transfers' briefing note, Briefing Note, IDS

Barrientos, Armando and Sabates-Wheeler, Rachel (2006) 'Local Economy effects of Social Transfers' final report, Final Report, IDS

• IDS key contact: Rachel Sabates-Wheeler
• Project dates: December 2005 - December 2006
• Project status: Closed
• Funder: Department for International Development (DFID)

Researchers

• Rachel Sabates-Wheeler
• Armando Barrientos, University of Manchester