Aiding Social Transfers in Low-income Countries: Is there a Catalytic Effect?

Abstract

“Non-contributory social transfers1 have shown great potential to tackle poverty and inequality and to support inclusive socio-economic development. However, they also represent a long-term financial commitment, and in environments where they are most needed, the capacity of the State to provide them tends to be lower. As a response, foreign aid actors have been allocating resources to support the expansion of social transfers in low-income countries. After over a decade of such aid efforts in sub-Saharan Africa, however, uncertainty over the future of donor-supported social transfers prevailed.2 In particular, the limited degree of institutionalisation, domestic financing and, in most cases, political commitment meant that the prospects for these initiatives to translate into sustainable policy changes were unclear.”(…)