Landscape of non-contributory cash transfers in Latin America and the Caribbean, before and after the Covid-19 pandemic

The Covid-19 pandemic altered the landscape of non-contributory cash transfer programs in Latin America and the Caribbean. Governments in the region widely utilized cash transfers to support households and individuals during the crisis. Using standardized household survey data from 13 countries, we examine changes in the share of the population covered by cash transfers between 2019 and 2022. Our findings show that, after the crisis, the percentage of individuals covered by non-contributory cash transfers was 7.6 percentage points higher compared to pre-pandemic levels, a relative increase of about 30%. The average monthly per capita transfer almost doubled, from US$33 to approximately US$62 (2017 PPP). Cash transfer programs reached 33.2% of the total population, or about 180 million individuals, up from 135 million before the pandemic. This expansion was driven by increased coverage of urban residents, targeted efforts to reach the older population, and the implementation of unconditional cash transfers instead of other program types. Despite this expansion, a significant coverage gap remains among the poorest, with 31.4% of individuals earning less than US$3.65 per day left uncovered (while cash transfer programs have expanded among higher income groups). The region still faces the challenge of developing more flexible and adaptive systems, including to address shocks. Meeting this challenge requires intensifying efforts to create comprehensive and interoperable databases to enhance coverage, especially for those most in need. It also requires creating mechanisms that allow for more seamless entry and exit from existing programs to better address the dynamic nature of poverty and vulnerability.