What Is Wrong with Conditional Cash Transfer Programs?

Many developing countries have implemented conditional cash-transfers (CCTs) in recent years. This paper explains why there is nothing intrinsically wrong with CCTs. First, it argues that what typically makes such conditions impermissible is not the nature of the conditions themselves, but mainly the ways in which conditionality is implemented, enforced, and monitored. Second, it suggests that conditionality should be understood as a policy instrument rather than as a particular policy goal associated with rightleaning policy positions. Finally, it explains why the standard objections that welfare conditionality produces discrimination and stigmatization and also reduces welfare recipients' self-respect do not necessarily apply to well-designed CCTs programs.