Cash transfers--do they work? A study of flexivouchers in Malawi

Transferring resources to poor farmers in developing countries has often involved little choice on the part of the framer. In Malawi, the government gives a starter pack of seeds and fertilizers to poor farmers and this paper examines the consequences of giving a voucher of similar value, which can be exchanged for a variety of goods. The subsequent choices make sense in the real world of the farmer and suggest that cash transfers may be a more appropriate way of transferring resources and delivering aid to the poor.