MYTH 01

Cash transfers increase spending on alcohol & tobacco

REALITY 01

No evidence of increased spending.

Spending on alcohol actually decreased in Lesotho.

MYTH 02

Cash transfers are handouts that are spent rather than invested

REALITY 02

Cash transfers increase overall production and investment in farms and education.

MYTH 03

Cash transfers increase fertility

REALITY 03

Cash transfers have no impact on fertility.

In some countries early pregnancies are actually reduced.

MYTH 04

Cash transfers create inflation

REALITY 04

No inflation detected.

In Ethiopia, for every $ transferred, $1.50 generated for the local economy.

MYTH 05

Cash transfers create dependency

REALITY 05

Cash transfers increase productive activities and have positive multiplier effects, boosting growth in rural areas.

MYTH 06

Cash transfers are too costly to sustain

REALITY 06

At scale, cash transfers are feasible and well within the budgets of any government.