Executive Summary 

Cash transfer programs emerged as a powerful tool during the COVID-19 pandemic, benefiting 1.36 billion people globally and providing essential social protection. Lasting an average of 4.5 months, these programs demonstrated their effectiveness in adapting to crises, leading to a surge of scholarly interest. Belize’s successful initiatives like BOOST and BOOST+ underscored the potential of such programs. This paper delved into the potential of targeted cash transfer programs in mitigating inflation’s consequences for vulnerable households.

Belize’s experience highlighted the importance of practical, cost-effective, and locally-grounded policy proposals. Notably, the BOOST program, launched in 2010, showcased a conditional cash transfer model that targeted specific demographics, including school-aged children, pregnant women, the elderly, and disabled individuals. Its success in improving education and well-being, backed by UNICEF evaluations, demonstrated the positive impact of such focused programs. The BOOST+ extension, aiding families with additional services, further demonstrated the adaptability of these initiatives.

The case of the COVID19 Unemployment Relief Program underscored the rapid development of targeted cash transfer programs in times of crisis. Despite its short-lived nature, the program’s efficient implementation within three months demonstrated the potential for quick response mechanisms to address urgent societal challenges.

Drawing from international examples, Canada’s targeted relief measures showcased the value of tailored policies in mitigating inflation’s effects. Unlike broad price controls, Canada’s approach provided relief to low-income citizens and small businesses, ensuring that assistance met individual needs and avoided market distortions. Similarly, the Philippines’ Targeted Cash Transfer Program aimed to protect the purchasing power of the poor in the face of inflation and socioeconomic challenges.

Research on cash transfer effects, particularly in mental health, health services use, and child nutrition outcomes, indicated significant potential for positive impact. These programs demonstrated the ability to enhance subjective well-being, improve health outcomes, and alleviate poverty-related challenges. While cash transfers might trigger mild inflationary effects in specific regions, research suggested that the overall influence on purchasing power remains modest.

In conclusion, targeted cash transfer programs offer a promising approach to addressing inflation’s impact on vulnerable households. The paper’s exploration of international case studies highlighted the adaptability, effectiveness, and potential benefits of such initiatives. By focusing on specific conditions, local contexts, and the unique needs of beneficiaries, these programs have the capacity to positively transform lives and contribute to societal resilience.