Institutional and legal frameworks help ensure program and funding sustainability, continuity across political regimes, adequacy and predictability of benefits, and accountability during budget processes. Importantly, these frameworks should provide sufficient flexibility to allow programs to adapt, particularly during times of crises such as COVID-19, and to improve based on socioeconomic trends. For instance,a key feature of the 4Ps law provides for a mechanism to periodically review and adjust benefit levels. The actual amount must balance the objectives of the program while working within the available fiscal space. Evidence suggests that most successful CCT programs have transfers that are at least 20% of household consumption. Similarly, benefit levels should be inflation-adjusted to ensure that the real value of transfers does not erode over time.
Social Protection Support Project