lessons from conditional cash transfer programmes: bolsa familia and other experiences
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Les programmes de transferts monétaires conditionnels quelles leçons à tirer?
Bolsa Familia et autres expériences
Fabio Veras Soares – IPC-IG
Bolsa Familia:
Origins of Bolsa Familia• Bolsa Familia is the result of a reform (2003) – the merge of 4 Federal cash transfer programmes:
Bolsa Escola (Ministry of Education) ‐ 2001Bolsa Alimentação (Ministry of Health) – 2001 Auxilio Gas (Ministry of Mines and Energy) ‐ 2001Cartão Alimentação (Ministry of Food Security) ‐ 2003
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Bolsa Familia
Bolsa familia consolidates a Conditional Cash Transfer model that started at municipal and state level in Brazil.
Two pioneers: Campinas‐SP: 0‐15 years and case management (meetings with social workers) Federal District: 7‐14 years (school based)
The first experience with CCT at the national level was the PETI (Programme for the Erradication of Child labour) – 1996 (low coverage)
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Bolsa Familia
In 1997 it was approved the legislation that allowed the Federal government to co‐finance (up to 50% of the cots) of municipal level “basic income guarantee linked to education” – for targeted municipalities.
In 2001 the Ministry of education starts the implementation of the Bolsa Escola for children between (6‐15 years): geographical targeting (HDI) and self‐reported income (1/2 of the Minimum wage); no reassessment of eligibility; 85% minimum school attendance; quotas and local authorities involved in the selection of beneficiaries. Benefit: R$ 15.00 up to a maximum of 3 children.
A few months later the Ministry of Health announces the Bolsa Alimentação for children under 7 years of age: similar to Bolsa Familia but health‐related conditionalities.
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Bolsa Familia
Besides these two programmes, in 2002 the Federal government also introduced the auxilio gas (cooking gas grant) managed by the Ministry of Mines and Energy (R$ 7.50 paid bimonthly)
In the first year of the Lula’s first term (2003) – it was created the Special Ministry for Food Security, which started a new cash transfer – Cartão alimentação as part of the Hunger Zero Strategy – conditionality: to use the cash to purchase food.
After 10 months of government, all these 4 cash transfer programmes are merged under Bolsa Familia.
To support the implementation of these programmes it was created the Cadastro Único in September 2001. The cadastro único became the backbone of the Bolsa Familia MIS jointly with the other systems and the payroll information.
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The initial design of Bolsa Familia
Based on the objectives and beneficiaries of the former 4 programmes, the Bolsa Familia programme started being implemented under the newly created Ministry of Social Development (MDS) and had the following benefit structure in 2002:
a) Basic benefit for household living in extreme poverty (cartãoalimentação and auxilio gas)
b) Variable benefit: child‐related benefits: 0‐15 years for families living in poverty (extreme poverty + moderate poverty):Health conditionalities Education conditionalities Cap of three children per household.
In 2008, a new benefit (BVJ) for teenagers between 16‐17 years of age is created at a higher value than the variable benefit. Up to a maximum of 2 per household. 5
Bolsa Familia and Brasil sem Miseria
The eligibility lines: extreme poverty and poverty as well as the value of the benefit structure changed over time in a idiosyncratic manner.
The major change on the structure of benefit of Bolsa Familiacame under the Brasil sem Miseria Plan and entailed the introduction of the Brasil Carinhoso component – including the expansion of the cap to 5 children and not 3 ‐ and later the Benefit to overcome extreme poverty.
The next graph shows what Brasil Carinhoso component and later the Benefit to overcome extreme poverty intended to do –eradicate extreme poverty by complementing the extreme poverty gap.
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Bolsa Familia and Brasil sem Miseria
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Bolsa Familia and Brasil sem Miseria
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Why has Bolsa Familia expanded from 11 to 14 million families while poverty rates were falling down? – chronic and transient poverty (2004 and 2006)
Source: Ipea (2013)Poverty PPP$ 1.25 (MDG) – blue Poverty PP$2.00 ‐ redExtreme Poverty – Bolsa Familia lowest eligibility line (basic benefit) ‐ greenPoverty – Bolsa Familia highest eligibility line (variable benefit) ‐ black 9
Bolsa Familia and poverty
Why has Bolsa Familia expanded from 11 to 14 million families while poverty rates were falling down? – chronic and transient poverty (2004 and 2006)
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15.6% 16.0% 15.9%
19.7%
22.8%24.7%
15.2%14.9%
14.9%
0%
5%
10%
15%
20%
25%
30%
September October November December
Pnad
PME Transversal
PME Longitudinal
13.2%14.2% 14.3% 14.3%
17.7%
19.8%
21.5%
14.0%14.0%
0%
5%
10%
15%
20%
25%
September October November December
Pnad
PME Transversal
PME Longitudinal
Decomposition of the changes in Gini coefficient by incomesource
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Bolsa Familia impacts
• Bolsa Familia accounted for something between 21 per cent and16 per cent of the total fall in Brazilian inequality since 2001
• Bolsa Familia accounted for 8 per cent of the fall in poverty headcount, 18 per cent of the poverty gap and 22 per cent of the fall on the severity of poverty.
• Evaluations of Bolsa Familia also did not find any negative impact on labour force participation.
• Some impact on hours of work for women in the informal sector accompanied of an increase in time spent in domestic chores.
• Reduction on child mortality • Positive impacts on school attendance and drop out rates• No impacts on fertility rates.
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Real Minimum Wage (1985-2011)
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Targeting of the two main social assistance programmes BPC and Bolsa Familia
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CCTs in Latin America: an overview
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Cobertura de los PTCs
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Gasto com los PTCs
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CCTs and Bolsa Familia in LAC
Common Features:• Targeting mechanisms: geographical, categorical and means testing;
• Co‐responsibilities: education and health;• Cash: regular payment of cash to women/mother• Rationale: immediate poverty alleviation and stop the intergenerational cycle of poverty.
Beyond commonalities:• Differ with regard to the emphasis in the two objectives and with regards to...… its place in the social protection system: permanent welfare policy or short‐term safety net
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CCTs and AI in LAC
Three ideal types of CCTs in LAC
• Human capital accumulationStrong role of conditionalities, not very regular verification, benefit structure, no concerns about current generation – only as parents.
• Poverty alleviation/eradicationStrong role of the transfers, regular verification, benefit structure of unconditional elements, weak conditionalities, concern about income generation for current generation
• Eradication of extreme povery and case management
Focus on extreme/chronic poverty, social exclusion, access to social services, focus on linking with complementary programmes for all family member and not only children, case management – regular visits by social workers
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Bolsa Familia
What is next for Bolsa Familia:• Challenges of Brasil sem Miseria• Targeted basic income component • Child benefit – the example of Argentina and Uruguay
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Bolsa Familia and CCT in LAC
How does Bolsa Família differs from other LAC CCTs:• It has an unconditional component for the extreme poor and a
minimum permanence of two years, • It does not use proxy means test and has large coverage (25%) • It is implemented in places where there is no supply of health and
education services (and conditonalities are not required in this case),
• Several steps are taken before exclusion from the programme for non‐compliance with conditionalities (only after visit of the social workers)
• Line Ministries in charge of conditionality monitoring• Strong role at the local level – Use of New Public Management
tools to involve municipalities (IGD) – quality of the CadastroÚnico.
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References
• The Dual Nature of Bolsa Familia and its implications for the programme’s future: http://www.ipc‐undp.org/pub/IPCOnePager243.pdf
• The impact of the Programa Bolsa Familia on Grade repetition: Results from Single Registry, Attendance Project and School Census: http://www.ipc‐undp.org/pub/IPCOnePager233.pdf
• Oportunidades and Bolsa Familia: a comparative perspective of their evolution: http://www.ipc‐undp.org/pub/IPCOnePager177.pdf
• No child left behind: a Universal Benefit for Children in Brazil: http://www.ipc‐undp.org/pub/IPCPolicyResearchBrief27.pdf
• Bolsa Familia: A Summary of its Impacts: http://www.ipc‐undp.org/pub/IPCOnePager137.pdf
• Assessment of the implications of the Bolsa Familia Programme for the Decent work agenda: http://www.ipc‐undp.org/pub/IPCOnePager133.pdf
• Conditional Cash Transfer and the Basic Income Grant in Brazil: Will they ever merge? http://www.ipc‐undp.org/pub/IPCOnePager124.pdf
• Targeting and Coverage of the Bolsa Familia Programme: What is the meaning of Eleven Million Families? : http://www.ipc‐undp.org/pub/IPCOnePager117.pdf
• Empowering or Reinforcing Traditional roles: Can CCTs address gender vulnerabilities? http://www.ipc‐undp.org/pub/IPCOnePager115.pdf
• Conditional Cash Transfer in Brazil, Chile and Mexico: Impacts Upon Inequality: http://www.ipc‐undp.org/pub/IPCWorkingPaper35.pdf
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Many Thanks
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