Are Cash Transfers a Silver Bullet? Evidence from the Zambian Child Grant

How effective can cash transfers be in combating poverty and social inequality in developing countries? This study is one of the first to demonstrate both protective and productive impacts of a national unconditional cash transfer program.

The Zambian Government’s Child Grant, the focus of this study, is an unconditional cash transfer to families with small children in three of the poorest districts of Zambia. This study attempts to document the outcomes of the programme from livelihoods to child welfare.

Results show that outcomes such as child nutritional status and schooling are impacted depending on the initial condition of the household. Poor, rural households were not seen to benefit in these areas, indicating that complementary programmes are needed to achieve these specific outcomes.