Benefit Levels

Determining benefit levels

CT programs must set transfer levels so that the programs’ objectives can be achieved. For instance, CTs that aim to eliminate food insecurity in Sub-Saharan Africa have typically tried to set transfers at a level that allows eligible households to meet their nutritional needs. Kenya’s HSNP selected its transfer level on the basis of the five-year average price of cereals (HSNP 2008), and Zambia’s Social Cash Transfer (SCT) programs set transfers to allow households to purchase a 50-pound bag of maize monthly, presumably enough to allow a household of six to eat an additional meal each day (Schüring 2010). Malawi’s SCT, which hopes to reduce poverty, provides an average transfer deemed large enough to fill the extreme poverty gap in target households (Schubert and Huijbregts 2006). In line with its objectives specific to the orphans and vulnerable children (OVC) crisis, Kenya’s CT for OVC set transfer levels that were believed to cover enough of the needs of OVC to help keep them in their households (World Bank 2009b). For more information on Transfers and trade-offs, see here.