SSL-CCT:Potential Roles and Limitations of CCT

7/30/2019 SSL-CCT:Potential Roles and Limitations of CCT

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CCTs Potentials, Limitation

and Opportunities forInnovations

By Vicente Paqueo, Ph.D


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Summary

CCT works, but it is not a panacea

Its effectiveness depends on the the issues being addressed and objectives aimed for choice of conditionalities attached

cultural and historical background

political support for efficient targeting and good governance

implementation and institutional capacity

supply conditions and cooperation of other agencies

financial constraint Realism and adaptive/learning-by-doing strategies have been crucial to CCT

CCT has reasonably worked well in a wide variety of country circumstances situations with capacity challenges (from Brazil to Bangladesh)

Looking forward, it appears desirable to design a second generation (2G) CCon proven strengths and mitigating, if not avoiding, current limitations


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CCTs strengths

Simple, focused and easy to communicate

Strongly pro-poor through explicit targeting (societal welfareenhancing re-distribution, particularly appropriate in high inenvironment)

Rule-based, not driven by patronage

More efficient (lower deadweight loss): cash rather in kind aallows households to allocate resources as needed and resobe transferred electronically

Reduced corruption and leakages due to CCTs direct transfeto beneficiary households and greater transparency andaccountability


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CCT strengths continue

Improved utilization of existing capacity (greater efficiency) due increased demand

Reduced sense of entitlement due to emphasis on co-responsibi

Enabling incentives to stimulate households to raise investmentspublic value

Balance between immediate alleviation of urgent needs and genlong term benefits (facilitating escape from intergenerational po

Credible empirical findings on CCTs impact, providing good inforevidence-based decision-making

High popularity and political sustainability


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Limitations Attaching conditionalities to activities that have already been op

reach larger number of poor households affected by economic d

Cost and inconvenience of conditionalities, targeting and good g(must be weighed against benefits)

Cumbersome and not ideal for a quick crisis response assistanceaffected households

Need to tailor CCT to special population groups (e.g. street peoppermanent addresses, poor in isolated areas, persons in conflict

Mixed impact on final outcomes Failure to develop accompanying transition promotion strategies

support exit/graduation

Danger of making CCT a panacea and abusing its popularity to pinappropriate solutions

Institutional capacity building requirements (can be mitigated by

adaptive implementation strategy)


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So, what more could be done, building on acomplementing CCT? The challenges

Raising the reliability and strength of CCTs impact on final outco Ensuring that CCT beneficiaries get onto a sustainable trajectory

intergenerational poverty (need for a plan early on)

Improving crisis response to economic crisis and natural disaster

Ensuring that isolated and difficult to identify households and chincluded and appropriate assistance (IPs, children in adverse con

provided Expanding access of the poor to social health insurance with ade

support value for dealing with crippling illnesses

Adaptation of CCT to better address gender-specific issues

In short, there is need to develop further innovations on CCT andcomplementary measures


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Possibilities for Second Generation (2G) CC Broadening of objectives to include not just poverty reduction and a

managing vulnerabilities to risk factors, e.g.

Adequate insurance against crippling health expenditures (e.g. PhilHealth)

Insurance against natural disasters Going beyond MDGs in education, aiming for secondary education completio

Flexible crisis response mechanisms to dealing with transitory poverty

Greater attention to quality of services provided to improve outcom

Incentive-linked performance contract between CCT program and service pro

Recognition of childrens performance and provision of incentives anopportunities for development of character, talents and excellence Uattention and intensification of transition promotion strategy, e.g.

Linkages to effective livelihood and employment programs, access to asset trprograms, promotion of savings and investment (e.g. Gerter, Caraga experim

Complementary measures to promote rapid expansion of good jobs accessib

(improved context matters)


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Possibilities continued

Special programs for special population groups, e.g. Outreach for inclusion of persons without permanent addresses, IPS, iso

population, and people in conflict areas

Resiliency development for children in adverse conditions (new form of

Greater and better engagement of CSOs

Use of CCT to facilitate reforms of existing distortionary economand subsidies that crowd out pro-poor programs

Adaptation of CCT to better address gender-specific issues, e.g. Gender differentiated grants

Agency of women in public affairs

Revisit of roles of women


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Caution!

Be selective

Ensure focus and coherence

Stretch targets but do not over promise

Choose only feasible objectives and strategies

Ensure effective and efficient public accountability but avoid

Follow adaptive/learning-by-doing strategies to implement:small, evaluate, learn, expand, etc

Documents

SSL-CCT:Potential Roles and Limitations of CCT