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.
