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2 pages/≈550 words
Mathematics & Economics
English (U.S.)
MS Word
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Cash Transfer Programmes (Essay Sample)

This paper provides an analysis of the benefits associated with offering Cash Transfer Programmes in an economy. source..
ECONOMIC DEVELOPMENT By Name Tutor Institution Date Cash Transfer Programmes From the theory of economic welfare, efficiency allocation and distribution of economic resources is healthy for a growing economy (EMEs). Efficiency distribution of resources, in EMEs, is achieved through the use of cash transfer programmes together with redistributive tax policies. For instance, redistributive tax polices reduce the income (poverty) gap in a country by imposing more tax on high income earners as compared to low income earners. Barrientos (2004) argue that cash transfer programmes more of these programmes, are directed to those areas where poverty is dominant. Though cash transfer programs have effects, the may trigger behavioral characteristics among individuals, which may be positive or negative. The first behavioral characteristic is attributed to consumer spending. Behavioral and economic analysts argue that cash transfer programmes re central in promoting effective (rational) consumption expenditure among households. Pingali (2004) argue that these programmes makes people to know how best to spend their money. With cash transfer programmes, individuals will maintain their consumption behavior patterns over a long period, if the cash inflow is certain. Uninterrupted individual spending is healthy in desirable economic decisions. Also, these programmes will helpful in minimizing anti-social behavior (especially in girls and women) associated with poverty such an early marriages and prostitution (Guardian News and Media Limited 2012). This will help to uplift the social status of women in a society. If not property instituted, cash transfer programmes may promote reckless consumption behavior, and waste of economic resources. For men, cash transfer programmes may form a loophole for anti-social spending behaviors (drug and substance abuse) due to existence of ‘excess and free' money. You can relate these programmes to free money given to ‘youths', by politicians, during political campaigns. How do they spend this money? Obviously irresponsibly! The above analysis postulates that cash transfer programmes have varying effects on individuals' behavior. However, emphasis should be placed on how the whole process will occur. This calls for a high degree of supervision, during the st...
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