Conditional Cash Transfer Program: A Case Study

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Conditional Cash Transfer programs (CCTs) have recently emerged as a central component of social policy across Latin America. The rationale of CCT programmes is to address short term poverty through monthly cash payments, and long term poverty by attaching conditions to mandatory school attendance and healthcare use. Most countries in Latin America have some kind of CCT programme (Cruz and Zigelhofer: 2014). Brazil’s CCT, Bolsa Familia (Family Allowance) is the largest CCT programme in the world. Today, Bolsa Familia covers 13 million households, with about 5 people in each household. This equates to about 25% of the population of Brazil (Hall: 2006). The programme is targeted for those whose income levels fall under the categories of poverty, or extreme poverty in Brazil, defined as those whose income falls under $2.25 USD per day (World Bank: ). The goal is to promote long term ‘human capital accumulation’ (). Since its implementation in 2003, Bolsa Familia has produced …show more content…

The implementation of Bolsa Familia brought an overall reduction in income inequality as a result of the base transfer, and a significant increase in school enrolments and health checks among CCT beneficiaries. CCTs appeal to policy makers and governments as they provide a direct route to human capital accumulation through the use of incentives. Furthermore, Brazil’s Bolsa Familia has done well in targeting the poorest region, the Northeast (Cruz and Ziegelhofer: 2014). To aid donors and policy makers hey are an efficient and well-targeted means of social expenditure. The political economy of conditionality makes beneficiaries responsible for their own development – cash transfers are conditioned on participation which requires the adjustment of beneficiaries behaviour and ideas about schooling and healthcare (Bastalgi:

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