Conditionality in public policy targeted to the poor

This paper explores the role of conditionality in policies targeting the poor. By requiring beneficiaries to send their children to school and to undertake regular health visits, proponents argue, conditionalities improve human capital outcomes, promoting resilience. This widespread perception has led to the adoption of conditional cash transfers in many countries. Yet policy debate on conditionality does not always reflect a full appreciation of how behavioural, administrative and political economy variables influence outcomes. This paper identifies the multiple channels through which conditionality determines human capital outcomes and reviews the evidence on linkages between conditionality and processes of resilience.