From perspectives to policy contingencies: Conditional cash transfers as social investments

Abstract

Despite the popularity of social investment, there remain ambiguities regarding how to design an effective social investment approach. We review evaluations of conditional cash transfers (CCTs) in Latin America in order to draw out lessons of how to improve the effectiveness of social investment. CCTs share many of the objectives of the social investment approach and are targeted at poorer groups. Since research shows that such groups are often not adequately supported through social investment policies, analyzing CCTs holds particular promise. Our analysis finds that architects of social investment policies should consider three questions when designing a social investment approach: how much investment is necessary to fulfill social investment functions, what is the causal mechanism through which the goals of social investment are to be achieved, and what array of policies are necessary for such mechanisms to be effective?