Conditional Cash Transfer

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Conditional Cash Transfer, or CCT programs aim to reduce poverty by making welfare programs conditional upon the receivers actions. The government only transfers the money to persons who meet a certain criteria. These criteria may include enrolling children into public schools, getting regular check-ups at the doctor's office, vaccinations, etc.

According to the World Bank, "Conditional cash transfers provide money directly to poor families via a “social contract” with the beneficiaries – for nexample, sending children to school regularly or bringing them to health centers. For extremely poor families, cash provides emergency assistance, while the conditionalities promote longer-term investments in human capital."[1]

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