Tackling poverty? Give people money.

Last year the Overseas Development Institute reviewed 165 studies into 56 cash transfer programs in 30 different countries to find out their true effectiveness.

The findings showed that cash transfers had improved school attendance and reduced child labour, boosted access to healthcare, improved and diversified diets, stimulated local economies and resulted in a reduction in domestic violence. It also found no evidence that they caused workshy tendencies: in fact, the studies showed cash transfers actually increased employment among adults.

A study comparing food aid with cash transfers in Ecuador, Niger, Uganda, and Yemen found that 18 per cent more people could be helped, at no extra cost, if everyone was given cash transfers instead of food.

Source: Why giving people money is a great way to tackle poverty – CapX