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Fabio Veras Soares – International Poverty Centre (UNDP/IPEA)

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). CCT Objectives and features. Objectives : Alleviating poverty in the short run

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Fabio Veras Soares – International Poverty Centre (UNDP/IPEA)

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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

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