Latin American conditional cash transfers (CCTs) and Scandinavian activation schemes – similar ideas, similar implementation problems?

From a diffusion-of-policy-ideas perspective, Latin American CCTs and Scandinavian activation schemes have both been quite influential, also outside their regions of origin. A joint characteristic of both types of schemes is active conditionality. That is, receipt of a benefit is conditioned on the claimant, or his/her household, doing some specified activity “in return” for accessing the benefit. This activity is meant to boost human capital (broadly defined), or it consists of some type of work effort. The paper compares types of conditionality in a selection of CCTs and activation schemes. The study focuses in particular on CCTs in Mexico (the innovator of CCTs), Brazil and Argentina, compared to activation schemes in Sweden, Norway and Denmark. The paper further investigates crucial aspects in the implementation of such schemes, in particular the relationship between central, regional and local authorities in financing and distributing benefits, and in supervising conditionalities. It ends with a brief summary of perceived challenges to make such schemes work, including if perceived challenges are similar in Scandinavia and Latin America.