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Shortcut to Accountability? A World Bank Call to Try Cash Transfers

This is a joint post with Stephanie Majerowicz

The World Bank’s Shanta Devarajan and Marcelo Giugale in yesterday’s Guardian Poverty Matters blog write:

Except for Botswana, the track record of Africa's mineral and hydrocarbon exporters is sobering. While Africa's central banks are today better equipped to deal with currency appreciation, and its civil society more alert to environmental hazards, the institutions that control graft are not strong. They must be improved. However, this will take time. Is there a shortcut to better accountability in the management of natural resources? Yes, there is: direct transfers of resource dividends to citizens.

If There Was Ever a Case for Oil2Cash, It’s Post-Qaddafi Libya

The idea of cash transfers—or just giving money to the poor—is gaining ground quickly. The use of conditional cash transfers as a way to assist the poor have shown pretty impressive results in Mexico and Brazil, leading to lots of other copycat programs in dozens of countries. Iran, and now India, are replacing inefficient and costly subsidies of basic goods with cash payments.

Oil to Cash: An Idea to Fight the Resource Curse

Tina Rosenberg has a terrific piece in the New York Times on cash transfer programs in Brazil. She concludes:

For skeptics who believe that social programs never work in poor countries and that most of what’s spent on them gets stolen, conditional cash transfer programs offer a convincing rebuttal.  Here are programs that help the people who most need help, and do so with very little waste, corruption or political interference.