Cash transfers program design

The health ministry in a developing country is planning to deploy a cash transfer program aimed at mothers of children under age two. These families face two main health-related issues. First, vaccination rates are low, because mothers have to travel long distances to the nearest health center. Second, mothers are often malnourished and anemic, which is bad for both the mother and the nursing child.

10. Give and explain one reason that the government should make the cash transfer a CCT, conditional on the mother bringing the child for scheduled immunizations.

11. Give and explain one reason that the government should instead make the transfer unconditional (a CT).