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What are some of the problems with, and criticisms of Conditional Cash Transfer (CCT) programs?

What are some of the problems with, and criticisms of Conditional Cash Transfer (CCT) programs, which aim to reduce poverty by making welfare programs conditional upon the receivers’ actions?

According to the World Bank, “Conditional cash transfers provide money directly to poor families via a “social contract” with the beneficiaries – for example, sending children to school regularly or bringing them to health centers. For extremely poor families, cash provides emergency assistance, while the conditionalities promote longer-term investments in human capital.” [1]

In April 2007, Mayor Michael Bloomberg announced the launch of a conditional cash transfer pilot program, called Opportunity NYC, in New York City. The first CCT program to be launched in the United States, it is being funded by a number of private partners including The Rockefeller Foundation, Robin Hood Foundation, the Open Society Institute, Starr Foundation, AIG, and Mayor Bloomberg’s personal foundation.

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