Cash Transfers: Mere 'Gadaffi Syndrome', or Serious Potential for Rural Rehabilitation and Development?

Abstract

"There has been a stark dichotomy between development approaches concerned with the productive sectors, usually focusing on enhancing the supply side, and those concerned with social protection, which have been widely regarded as a drain on public resources. This paper argues that the two are complementary and that social protection is less of a drain than previously thought. Transfers to the poor under social protection have generally been in kind, often taking the form of free or subsidised food. Nevertheless, recent experience in both development and rehabilitation contexts suggests a larger niche for cash transfers than many suppose, sometimes instead of in-kind transfers, at other times, in parallel with them. This paper reviews the evidence, drawing out implications for agriculture and natural resource development."