PROGRESA Presentation

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I will be introducing PROGRESA, going over the benefits, the costs or the cash transfer schedule. Evaluating the demand and supply side interventions and conclusion.

Introduced by the federal government of Mexico in 1997. Before Progresa, poverty was so severe, especially in rural areas, that a third of the Mexican people could not afford adequate food. Unlike other earlier social programs in Mexico, PROGRESA contains focuses on 3 objectives. Improve the educational, health, and nutritional status of poor families.

For my final paper I’m only looking at the education component.

SO. Cash transfers are given to mothers every two months and all children between 7 and 18 years of age are eligible for these subsidies.

To receive the grant, parents must enroll their children in school and ensure regular attendance (maintain a minimum attendance rate of 85% both monthly and annually)

Slide 2
Benefits of education are enormous, but just to name a few:

More specifically:

By making it a part of their policy to give the grants only to the women of the family, progresa aims to increase the power and status of women in their families and communities through the regular source of cash

Slide 3
Graph shows the school enrollment and labor force participation of boys before PROGRESA.
Mexico’s children typically maintain a high enrollment rate in primary school of about 93%. But for the rural poor, education stops there. They begin dropping out of school after completing the sixth grade when enrollment rates decline to 55 percent.

Slide 4
The same is the case for girls. Even though labor participation rate of girls is pretty low prior to program implementation, it increases at the same time as the school enrollment rates drop.

Slide 5
Cash transfer schedule lists the benefits that are given out every 2 months. The monthly amount varies by age and sex of the child.

In poor areas of Mexico, girls tend to drop out earlier than boys. In order to reverse this tendency, PROGRESA grants were structured to be about 15 percent higher in the secondary school level for girls.

The most critical objective of PROGRESA’s education program is to increase the transition of poor rural youth into secondary school (grades 7-9). Because of which, educational grants for enrolling in the first year of junior secondary school increase by 75 pesos in the case of boys and 85 pesos in the case of girls.

Slide 6:
After a number of studies and statistical tests, it was concluded that in all cases PROGRESA had a positive enrollment effect for both boys and girls at the primary and secondary level.

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