Working Paper

The social impact of cash transfers

Abstract

This study explores one aspect of the broader issues of social networks. It is specifically concerned with whether a minimal cash grant selectively provided to some extremely poor households as part of a social safety network programme may impact the social networks of receiving families. An underlying concern is that assistance to the most vulnerable is constructive and does not undermine already fragile family coping systems. To explore the issue of social networks and cash transfers, a qualitative study was carried out in Kenya in November 2007. Interviews were conducted with 6 recipient families of the Kenya Government Cash Transfer Programme (CTP)—3 families in an urban setting and 3 in a rural setting, This study attempted to answer the question, do cash transfers enhance or disrupt informal social networks?