“CCTs are particularly attractive policy options during economic downturns, because they provide counter–cyclical funds into the hands of the most vulnerable, who are likely to spend the money on essential items such as food and housing,” Ms. Schaefer-Preuss said at the opening of the Regional Forum on Social Assistance in Manila.
"They, therefore, have an immediate welfare and poverty reducing effect – through provision of cash – and a longer term developmental effect through their potential to improve human health and education."
CCT programs have been successfully implemented in Latin American countries such as Brazil, Mexico, and Nicaragua. Many countries in Asia and the Pacific region are currently establishing or expanding similar schemes.
Ms. Schaefer-Preuss noted that despite Asia's remarkable success in sustaining growth, reducing poverty and improving living standards over the past two decades, the region still faces major challenges of extreme poverty in several countries.
Some 900 million people in Asia still live below the poverty line of $1.25 a day. With the global economic slowdown now spreading to the region, ADB estimates that at least 60 million people who would otherwise have been lifted out will remain mired in extreme poverty.
Investment in social assistance is a key priority in ADB's response to the crisis. Earlier this year, ADB approved loans on social protection measures for Mongolia, the Philippines, Pakistan and Viet Nam worth more than $1.1 billion. ADB has also approved a series of grant support, worth about $55 million, to Bangladesh, Indonesia, Mongolia, and Nepal.
