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Conditional Cash Transfers in Latin America: Strategies for Poverty Reduction and Income Security

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britanni-oliver
8 diapositives · 209 Views · Nov 08, 2014

This symposium addresses the role of Conditional Cash Transfers (CCT) in alleviating poverty in Latin America. Key objectives include short-term poverty alleviation and breaking intergenerational poverty cycles through human capital investment. Features such as targeted cash transfers, gender bias considerations, and conditionalities enable broad adoption by diverse governments. Evaluation shows significant impacts on consumption, education, health, and inequality reduction. The discussion also highlights challenges in implementation, financial sustainability, and evolving towards permanent policies like child allowances and minimum income guarantees.

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  1. Symposium 7: Minimum Income Policies and Poverty Reduction: The Case of the Conditional Cash Transfers in Latin America Fabio Veras Soares – International Poverty Centre (UNDP/IPEA)

  2. CCT Objectives and features • Objectives: • Alleviating poverty in the short run • Break the intergenerational cycle of Poverty through investments in human capital • Features: • Targeting approach • Cash transfer (gender bias) • Conditionalities

  3. Reasons for its Quick Expansion • Earlier impact evaluation of Progresa/Oportunidades – impacts on consumption, education and health/nutrition outcomes. • Support from international financial organizations – IADB, World Bank, bilateral agencies. • Adoption by a variety of different governments: right and left wing governments. • No unique model

  4. Impact on Poverty and Inequality • It has contributed with 21 per cent of the fall in inequality observed in Mexico and in Brazil: mid 1990’s to mid 2000’s. • Besides having good targeting the programmes need to be large enough to really contribute for poverty and inequality reduction. • Real challenge for smaller countries

  5. CCT in Smaller countries • Loans limits: 3- to 4- year cycles • Programme’s discourse keeps the focus on long-term capital accumulation, but short spell of exposition to the programme contradicts those long-term objectives. • Lack of internal buy-in: technical teams and international support. • More recent programmes have witnessed a move to medium-term poverty alleviation: the role of complementary activities and graduation rules

  6. Institutionalizing CCTs • Project versus Programme versus Policy • Government versus State: use of the programme by incumbent governments • Temporary versus permanent • Eligibility versus right • Financial sustainability and political support

  7. Role of CCT in Social Protection • Complementary programme and conditionalities can have a positive aspects rather than being only self-disciplinary tools • Potential to break two-tier system and evolve into permanent policies: child allowance and targeted minimum income guarantee programmes.

  8. Merci BeaucoupThank you • www.undp-povertycentre.org/cct