A more current and increasingly popular strategy in the world today is a cash transfer directly to the citizen. Through a food subsidy programme, a government rations food. The basic idea of a cash transfer is that instead of spending money on something like subsidies that cause so many market distortions (meaning there are bad consequences for many segments of the economy), the government gives the cash to individuals or households.
Brazil, Mexico, South Africa are among only a few countries that have had great success with cash transfer programmes. These programmes give money directly to the benefit of the elderly, children or households. Women are most often the recipients of the cash, as hundreds of studies have shown women to be more prudent spenders to the better benefit of their households.
These programmes are highly effective and represent great efficiency gains relative to a subsidy system, which means public money is better used to meet the goal of protecting the vulnerable. Efficiency is particularly important given the high budget deficit.
via “Let them eat cake” or “Give them cash” – Daily News Egypt.