Near cash transfers programs

The main objective of cash and near cash transfer programs is to increase poor and vulnerable households real incomes. The main difference between cash, near cash—such as food stamps, coupons, or vouchers that may be used to purchase food—and in-kind transfers is the amount of choice given to beneficiaries in acquiring the types of commodities they want to consume. Cash transfers obviously allow recipients to purchase anything they wish near cash transfers, such as food stamps, can restrict recipients choices to certain types of commodities while in-kind transfers limit the selection to the commodities received. Some programs deliver transfers that are partially in cash and partially in kind and others provide vouchers, coupons, or stamps, which are something in between in cash and in kind. 

Cash transfer programs include the provision of assistance in the form of cash and other instruments almost like cash that can be used to transfer resources to the poor or to those who, in the absence of the transfer, face a probable risk of falling into poverty. For a list of cash and near cash programs, see table B.l in appendix B. 

The compensation policies for which this book is pertinent are mostly cash transfers or near cash transfers such as food stamps or heating vouchers. Other compensatory mechanisms, such as lifeline utility pricing for low-volume users or training programs for workers laid off from state enterprise reform, are common elements accompanying such reforms, but are outside the scope of this book. 

Transfer prog tams in cash and in kind include programs that help protect poor households by providing them with the resources they need to maintain a minimum level of consumption. Properly crafted, they can help ensure livelihoods for the very poor and assist them in case of shocks. They include programs that deliver unconditional transfers to households in the form of cash or near cash, which includes vouchers, coupons, and stamps that provide almost the same purchasing power as cash. These are the most flexible programs and can be shaped... 

The following presents ways to make cash and near cash programs more effective in helping poor people given local conditions and to ensure that transfers reach the intended beneficiaries, that they are not captured by nondeserving people, and that they are not subject to corruption ... 

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