• Service: Advisory
  • Type: KPMG information
  • Date: 12/18/2013

Evidence supports policy for conditional cash transfers to the poor 

In Guatemala, the Government has institutionalised the Conditional Cash Transfers (CCTs) programme by creating a new Ministry (of Social Development), as a result of evidence‐based advocacy from GDN’s local partner, FUNDESA. FUNDESA is now working with the Ministry to support a private‐public alliance, to improve the way the CCT programme is implemented and evaluated nationwide, which could ultimately benefit over 900,000 families.
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Key elements of context


  • Governments are, in most cases, the primary providers of health and education services and the leading investors in infrastructure. Therefore, improvements in quality of governance can have a tremendous impact on development outcomes, especially in social services.
  • In 2009 political and economic situation in Guatemala was characterised by a state of transition and high expectations about how to allocate public expenditure effectively to improve social conditions in Guatemala.
  • Elections in 2011 provided a fresh impetus to work towards institutionalising social programs (namely the Conditional Cash Transfer program) introduced by the earlier government with a view to improve their effectiveness.
  • The Government of Guatemala had introduced the Conditional Cash Transfer Program (CCTs) known as the Mi Familia Progresa (MiFaPro) in 2008 in order to improve of children in schools and the health‐seeking behaviour of families in poor municipalities in Guatemala. The government had devoted a large amount of resources to this program, GTQ 809 million in 2009 to around GTQ 1026 million in 2011.
  • The CCTs Program was coordinated by a Social Cohesion Council. The program, drawing a large share of finances from Guatemala’s national budget, raised concerns about the costeffectiveness of the program vis‐à‐vis other programs in the health and education sector and issues of clientelism.