Effects of Cash Transfers on Community Interactions: Emerging Evidence

Abstract

This article examines evidence of the effects of national cash transfer programmes on community interactions and discusses the transformative potential of such programmes. The findings indicate positive effects of social transfers on strengthening ‘bonding’ social capital and on breaking patterns of exclusion, but also point to negative effects, particularly in fuelling intra-community tensions and generating feelings of unfairness resulting – for the most part – from targeting-related issues. Evidence remains limited on the formation of ‘bridging’ and ‘linking’ social capital and on the development of mobilisation processes to drive broader processes of social transformation and changes in the status quo.