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What is a Conditional Cash Transfer? A Conditional Cash Transfer (CCT) is a welfare program in which the government provides cash benefits to individuals or households that meet specific criteria The purpose of the transfers is to reduce poverty, improve health, and encourage people to invest in their future. CCTs are targeted toward low-income and vulnerable populations, including people with disabilities, the elderly, and families with young children. The criteria for receiving a CCT vary by country but can include requirements such as attending school, receiving a preventive health checkup, or seeking employment. The implementation of a CCT is often structured as a three-way partnership between the government, the provider (often a non-profit organization), and the recipient family. The government typically provides the funds for the transfer and sets the criteria, while the provider is responsible for administering the transfer and ensuring that the criteria are met. CCTs are designed to provide short-term economic relief, but with the intention that recipients will be able to eventually become self-sufficient by taking advantage of other government services and programs. CCTs are also meant to incentivize individuals to invest in their future, such as by participating in educational activities, seeking health care, or finding employment. Five Examples of How Conditional Cash Transfers are Used 1. Mexico: Mexico's Programa Oportunidades is one of the most well-known CCTs in the world. It provides cash payments to families in exchange for meeting certain criteria, such as attending school and health care check-ups. The program has improved educational outcomes for students enrolled in the program and has reduced poverty for the country's most vulnerable populations. 2. Brazil: Brazil's Bolsa Família program provides cash transfers to families in exchange for school attendance, health care check-ups, and other criteria. The program has reduced poverty and malnutrition, and has also improved educational outcomes for children enrolled in the program. 3. India: The government of India has implemented a number of CCTs to reduce poverty, including the Pradhan Mantri Matru Vandana Yojana (PMMVY), a maternity benefit program that provides cash transfers to pregnant women and new mothers in exchange for meeting certain criteria. The program has been credited with reducing maternal mortality rates in the country. 4. Bangladesh: Bangladesh's Takaful program provides cash transfers to families in exchange for their children attending school and receiving health check-ups. The program has been credited with reducing poverty and improving educational outcomes for children enrolled in the program. 5. United States: The United States has several CCTs, including the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). These programs provide financial assistance to low-income individuals and families in exchange for meeting certain criteria, such as attending school and seeking employment.