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When it comes to combating poverty, the answer is increasingly being given in the form of cash payments. A cash grant for the poor is as good or better than many traditional aid programs when it comes to reducing poverty. As cell phones and satellite signals spread across the globe, the process of transferring money is becoming more and more affordable as a result. And simply asking if a given program is doing more good than it costs puts pressure on the aid sector to be more transparent and accountable. Now is the perfect time for donors to stop thinking of unconditional cash transfers as an outlandish policy and start seeing them for what they really are: an incredibly effective tool for alleviating poverty.

Transfers of cash typically have lower administrative costs and give recipients greater control over their spending options. The program increases the demand for certain goods, but the local supply is not affected. According to a growing body of evidence, cash is the most effective weapon in the fight to end poverty. At the very least, evidence suggests that cash transfers benefit those who are poor. As a case in point, cash assistance has been shown to improve educational and health outcomes. The immediate availability of funds, especially in times of crisis such as a global pandemic, is unquestionably a critical consideration for many people in desperate situations. generally but not always, cash transfers are more effective at a lower cost than other means of transferring funds