Conditional Cash Transfers (CCTs) are programs that transfer cash, generally to poor households, on the condition that they make certain pre-specified investments in the human capital of their children. Over the last decade, these kinds of programs have expanded dramatically in the developing world. Almost every country in Latin America has such a program, and many countries in other regions also have nationwide or pilot programs. The largest programs cover millions of households, and make relatively generous transfers, accounting for as much as 20 percent of the consumption of the median recipient household. Proponents of CCTs argue that they can serve both to reduce current consumption poverty, and to promote investments in child education, health, and nutrition.

The Research Department of the World Bank has recently released a Policy Research Report, Conditional Cash Transfers: Reducing Present and Future Poverty, which reviews the experience of countries with CCTs. The report assesses the economic rationale for CCTs, in particular whether imposing conditions on transfers makes sense; reviews the evidence on the impacts of CCTs, focusing both on monetary poverty and on education, health, and nutrition outcomes; and discusses where CCTs fit in the context of a country's social protection policy.

An event to be held on May 26, co-sponsored by the World Bank and IFS, will discuss these and other policy issues surrounding CCTs. The principal authors of the World Bank report, Ariel Fiszbein and Norbert Schady, will present the main messages. The event will also include panel sessions on a variety of topics, including CCTs and the financial crisis; CCTs and the supply of social services; and critical design features of successful CCTs.