Book Event: Just Give Money to the Poor

On September 21, 2010 The Global Assets Project hosted a book event for Just Give Money to the Poor: The Global Development Revolution from the Global South with co-author David Hulme and a panelists Paul Francis, Julie T. Katzman, and David Roodman.

Dr. Hulme and co-authors Hanlon and Barrientos are advocates of cash transfer programs, where cash is distributed directly to the poor, instead of continuing social protection schemes like food vouchers, grain delivery, and large development projects that are often mired in corruption and have lacked impact. The idea behind cash transfers as a development approach is, essentially, that impoverished people are just as capable of properly budgeting their household assets as wealthy people, they just lack the basic income to make positive, long-term decisions like continuing a child’s education, eating a healthy diet, or making regular trips to the doctor.

His presentation, based off of the hotly-debated book, supported the case for this new aid paradigm, with a range of statistical evidence showing the positive economic and social effects of giving destitute families small, monthly stipends. While Dr. Hulme highlighted successful CT programs in Mexico, Brazil, and South Africa, he was careful to mention that there is no magic formula for CT programs and that each should be tailored to meet the unique needs of the poor in particular countries and regions.

A diverse panel made up of economist David Roodman, IADB executive Julie Katzman, and Paul Francis of the World Bank, then commented on the book, presentation, and cash transfers more generally. While the panel agreed on the great potential of cash transfers in fighting extreme poverty, there was some debate as to whether condition based cash transfer programs might be more effective in improving social conditions and human capital, rather than simply giving cash to the BOP.

While it may be too early to tell whether condition-less cash transfers will always bring the intended consequences of a conditions-based program, all agreed that additional debate and research on cash transfer programs is a positive sign that they are increasingly regarded as effective tools to combat global poverty.

Participants

Featured Speaker
David Hulme
Professor, Development Studies
Founder-Director of the Chronic Poverty Research
Centre and the Brooks World Poverty Institute

Commentators
Paul Francis
Senior Social Development Specialist, Fragile States, Conflict and Social Development Unit
The World Bank

Julie T. Katzman
Interim Executive Vice President
General Manager of the Multilateral Investment Fund
Inter-American Development Bank

David Roodman
Senior Fellow
Center for Global Development

Moderator
Jamie M. Zimmerman
Director, Global Assets Project
New America Foundation