World Bank Chief praises cash transfer schemes

NEW DELHI: World Bank President Jim Yong Kim has appreciated the cash transfer schemes being implemented by several nations in the world as an effective way to help poor and reduce poverty.

 

Without mentioning India, which is one of the countries implementing the cash transfer programme, Jim described the scheme as an important step towards inclusive growth.

 

He was addressing the conference on 'Fiscal Policy, Equity and Long-Term Growth in Developing Countries Conference' held at the IMF headquarters on Sunday.

 

"Sometimes, growth is not as inclusive as it should be. Government programmes can play a critical role to correct this failure,” he said.

 

"In Brazil, for example, there is very high inequality in market incomes, but the fiscal system reduces income inequality significantly through conditional cash transfer programmes, like Bolsa Familia."

 

On fiscal policy to help reduce poverty, he said, "we need tools to better understand the impact of programmes on different segments of society.

 

"We should ask ourselves several basic but important questions...How progressive is a government's current tax and transfer system? Who benefits the most from public services? What are the most effective ways for tax and expenditure policies to help reduce poverty and inequality? And how can governments implement these policies in ways that promote sustained growth?"