This report reviews the evidence on conditional cash transfers (CCTs)—safety net programs that have become popular in developing countries over the last decade. It concludes that CCTs generally have been successful in reducing poverty and encouraging parents to invest in the health and education of their children.

The report looks at a range of low- and middle-income countries; large and small programs; and those that work at local, regional, and national levels. Despite differences, all CCTs transfer cash while asking beneficiaries to make prespecified investments in child education and health. Key indicators, including levels of consumption, school enrollment, and health care visits, all increased among CCT recipients. However, final outcomes such as academic achievement and height for age were more mixed.