Effectiveness and Economic Development Impact of Policy-Based Cash Transfer Programs: The Case of the Dominican Republic

摘要

The Agency for International Development (AIDS's) Cash Transfer program in the Dominican Republic is evaluated. First, background information is provided on macro-economic trends during the early 1980s. The study then explains the theory behind cash transfers, which provide balance of payments assistance in support of policy reform programs. The Cash Transfer program must be judged primarily in terms of progress towards economic stabilization. By this criterion, the program has provided crucial support to government policy reforms designed to attain the goal. Five elements contributing to the success are identified: the size of the cash transfers, the terms of the transfers, the timing of disbursements, the use of sanctions to enforce conditions precedent and covenants, and effective policy dialogue. In conclusion, the cash transfers have resulted in sustainable economic growth, stimulated exports and agricultural production, and promoted equity by benefiting rural, relatively poor people, including women.