Colombian cash transfers: the COVID-19 pandemic challenge

Purpose This paper aims to contribute to the growing body of literature on the effectiveness, or lack thereof, of cash transfers in the challenging context of the COVID-19 pandemic. It evaluates two Colombian cash transfers: Más Familias en Acción and Ingreso Solidario. The conceptual framework is grounded in human capital theory, providing a foundation for the remainder of the study. Design/methodology/approach The research utilized longitudinal and cross-sectional data from various sources to investigate the impact of Colombian cash transfers during the pandemic and to identify their associated trends in socioeconomic indicators. Ingreso Solidario and Más Familias en Acción were the cash transfers that made the largest contribution toward mitigating the impact of the pandemic on poor and vulnerable populations. Findings The findings suggest that the severity of the socioeconomic crisis triggered by the pandemic, combined with the limited effectiveness of cash transfers, will hinder the development of human capital in Colombia. The study also identified deficiencies in the SISBEN system, highlighting the need for changes to enhance its inclusivity, robustness and flexibility. Research limitations/implications Limitations emerged during the evaluation of Más Familias en Acción. Due to lockdown measures. The program's verification process was halted in 2020, necessitating the use of proxy data when direct measurements were unavailable. Practical implications The study emphasizes the need for key administrative and technical reforms within Colombia's SISBEN system to ensure more effective targeting and expedited delivery of benefits. Originality/value Our study reviewed multiple databases and documents containing partial analyses of the impact of Colombian cash transfers during the pandemic. By summarizing this fragmented information, the paper offers a broad understanding of the role of Colombian cash transfers during a severe socioeconomic shock.