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Summary: The paper examines the extent to which emerging social transfer programs in developing countries can improve the productive capacity of households in poverty and contribute to micro-level growth. It introduces a basic framework linking transfers to growth mediating processes and productive capacity outcomes. This is then used to organize and assess relevant findings from program evaluation studies. The paper concludes that social transfer programs can have positive effects on the productive capacity of poor and poorest groups; but further research is needed to identify and measure the size and significance of these effects. [ABSTRACT FROM AUTHOR]

Summary: This paper assesses the effect of the steadily growing remittance flows to sub-Saharan Africa. Though the region receives only a small portion of the total recorded remittances to developing countries, and the volume of aid flows to sub-Saharan Africa swamps remittances, this paper finds that remittances, which are a stable, private transfer, have a direct poverty-mitigating effect, and promote financial development. These findings hold even after factoring in the reverse causality between remittances, poverty, and financial development. The paper posits that formalizing such flows can serve as an effective access point for “unbanked” individuals, and households. [Copyright &y& Elsevier]