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This paper assesses the rationale behind Conditional Cash Transfers (CCT) in South Africa. It looks at evidence of the reach and impact of major CCT programmes, particularly in Latin America, and the Child Support Grant (CSG) in South Africa.

Cash transfers (CTs) are one of a range of measures for addressing poverty. A regular amount of money is allocated directly to particular groups such as the elderly, the unemployed, or children. The nature and extent of cash transfers that a country provides can be viewed as a reflection of its welfare regime. In an unconditional CT programme, once a person qualifies to enter the scheme, the amount is an entitlement, for a fixed period. The current South African CSG is an example of a means tested unconditional social assistance transfer in respect of children. This review of the evidence suggests that introducing behavioural inducements to poor people in South Africa to ensure the best educational and health outcomes for their children should not be the main focus of attention for policy makers.

Key points include:

• the new South African government has done much to redress the racism and repressive aspects of apartheid - it has introduced the ‘Batho Pele’ set of principles into administration to ensure fairer and more transparent service to the public, and an Administrative Justice Act, yet procedures in the implementation of the CSG contradict both
  
• the CSG in South Africa has rolled out very rapidly; by stealth, some of the policy intent is being subverted by administrative action - patterns of take-up suggest that the means test is an unnecessary and ineffective measure, and it should be lifted altogether or be replaced by a far simpler measure
  
• a universal categorical grant for children would sit with greater ease in what on paper appears to be a social democratic policy agenda.
  

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