Can conditional cash transfers boost trust within communities? In Tanzania, they did

“In a recent meeting between a World Bank official and a finance minister from a developing country in which the provision of an income support scheme or safety net was being discussed the minister opposed strongly such scheme. When questioned by the World Bank official about the reason for his opposition, the minister’s reply indicated the worry that such schemes could jeopardize the existence of the support network provided by extended families.” (Attanasio and Ríos-Rull 1999) 

When we began working with the government of Tanzania to evaluate a pilot conditional cash transfer program, we heard similar concerns from policymakers: Would cash transfers provided by the state erode informal safety nets? After several years of evaluation, the answer appears to be no.

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