One of the World's Poorest Countries Found a Better Way to Do Stimulus

Conditional cash transfers – giving the poor money if they do things that will make their children less poor, such as keep them in school – are the world’s most successful and widespread social program. Could it be possible, however, that the conditions aren’t necessary – just giving the poor money works just as well? In some circumstances, the answer seems to be yes.

A overview of 2014's Fixes columns - connecting the dots between 60 or so ways that people are trying to change the world.

Poverty is a problem that only seems to be increasing in the United States. New York City, though, was the only one of America's 20 largest cities to achieve a decrease in poverty rates from 2000-2013. This piece is the first in a four-part series on New York’s fight against poverty.

Government benefits to aid the poor are frequently left unclaimed, leaving children hungry, young people unable to finish school, and opportunities for stable housing and preventative health care unused. New York City-based program Single Stop connects people to benefits for which they may be eligible. Importantly, Single Stop has served community colleges where disadvantaged students can use the assistance to help get through school.

Family Rewards is a three-year program in Memphis, which aims to stop inter-generational poverty cycles. The program gives low income families funds that are conditional on bettering the next generation.

Organizations in Detroit are piloting a program to apply food stamp credits in grocery stores towards the purchase of nutritious produce, in order to increase access to healthy items. The initiative can also help the local economy prosper through increased promotion of locally grown produce.

A non-traditional program called the Family Independence Initiative (F.I.I.), uses a radically different approach from the traditional American social service model to empower entire families alleviate themselves from poverty. The results in multiple states thus far have been so striking, that this model of self-sufficiency may be able to have a significant impact reducing poverty nationwide.

America is the world’s main supplier of food aid to impoverished countries; however, food aid has the problems of long-distance transportation, the cost of the transportation and storage, and the navigation through dangerous zones. Different programs around the world are experimenting with alternative forms of aid, including vouchers and cash for work.

In a pilot program in a Canadian city, the working poor were given monthly cash supplements to their income. The recipients did not stop working and were able to access opportunities to make a better living long term.

This is a column on an important new development program in use in at least 40 developing countries: give the poor cash payments, contingent on their use of health clinics and their children’s school attendance, to help break the cycle of poverty.