CAP en Español
Small CAP Banner

In Defense of the Handout

  • print icon
  • SHARE:
  • Facebook icon
  • Twitter icon
  • Share on Google+
  • Email icon

The International Monetary Fund (IMF) just issued a major report warning that rising levels of income inequality are threatening to undermine global economic growth. In places like the United States and South Africa, the top 1 percent of earners continue to disproportionately expand their wealth, as Latin America and sub-Saharan Africa remain the most unequal regions in the world. Prominent among the handful of steps advocated by the IMF to more efficiently redistribute income and wealth is a plan that is sure to raise some eyebrows: giving cash directly to the poor.

While using what economists and development experts call “conditional cash transfers” to combat poverty and reduce inequality has gained enormous momentum over the last decade (and a huge degree of hype in places like Kenya and Uganda), it still strikes many casual observers as profoundly counterintuitive — particularly coming from traditionalist institutions like the IMF and the World Bank. After all, doesn’t the idea of simply just giving money to the poor run directly in contrast with the old axiom about teaching a man to fish? (This, after all, has been the guiding rule of engagement under which the IMF and most aid agencies have operated.)

Read more here.

This article was originally published in Foreign Policy.

To speak with our experts on this topic, please contact:

Print: Liz Bartolomeo (poverty, health care)
202.481.8151 or

Print: Tom Caiazza (foreign policy, energy and environment, LGBT issues, gun-violence prevention)
202.481.7141 or

Print: Allison Preiss (economy, education)
202.478.6331 or

Print: Tanya Arditi (immigration, Progress 2050, race issues, demographics, criminal justice, Legal Progress)
202.741.6258 or

Print: Chelsea Kiene (women's issues,, faith)
202.478.5328 or

Print: Elise Shulman (oceans)
202.796.9705 or

Print: Benton Strong (Center for American Progress Action Fund)
202.481.8142 or

Spanish-language and ethnic media: Jennifer Molina
202.796.9706 or

TV: Rachel Rosen
202.483.2675 or

Radio: Chelsea Kiene
202.478.5328 or