Following the declaration of COVID-19 as a pandemic in 2020, governments and humanitarian organizations ramped up their adoption of cash transfer services in order to reach vulnerable populations.
As of April 2020, a total of 151 countries had planned, introduced, or adopted 684 social protection measures in response to COVID-19. But experts say recipients of cash transfers find it difficult to save and cater to their long-term goals.
Research found that poverty can increase risk aversion and discourage long-term investments. Kate MacLeod, a behavioral scientist with ideas42, a nonprofit design and consulting firm, said she has seen this happening with cash transfer beneficiaries.
Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).
About the author
Anthony Langat
Anthony Langat is a Kenya-based Devex Contributing Reporter whose work centers on environment, climate change, health, and security. He was part of an International Consortium of Investigative Journalism’s multi-award winning 2015 investigation which unearthed the World Bank’s complacence in the evictions of indigenous people across the world. He has five years’ experience in development and investigative reporting and has been published by Al Jazeera, Mongabay, Us News & World Report, Equal Times, News Deeply, Thomson Reuters Foundation, and Devex among others.
