Mexico's Model Conditional Cash Transfer

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Mexico’s Model Conditional Cash Transfer (CCT) Program for Fighting Poverty is PROGRESA or Oportunidades, which combines a traditional cash transfer program with financial incentives for positive behavior in health, education, and nutrition specifically in low-income children. The program gives cash exclusively to mothers as long as children regularly attended school and appointments for preventive health care. Mexico’s CCT program reflects the belief that caring for all dimensions of human capital has more socioeconomic returns than considering every impoverished person individually. Better health and nutritional status are not only important by themselves, but have an impact on the effectiveness of education programs (since school attendance and performance are often negatively affected by poor health and nutrition). This is why poor health is seen as a cause and a consequence of poverty. There are studies conducted in different areas of Mexico to evaluate the effectiveness of the PROGRESA program, particularly by looking at boys and girls.
PROGRESA determined household eligibility in two parts, first by identifying underserved communities and then by choosing low-income households within those communities. Approximately, 78% of the households in selected communities were categorized as being eligible. All households in these communities were offered PROGRESA, and 93% enrolled in the program (Parker et al. 2001). Every two months PROGRESA families would get cash transfers usually worth 20-30% of their household income, if conditions are met. An example of these conditions is that: children who are 24-60 months old must attend nutrition monitoring clinics every four months where their growth is measured; they receive supplements ...

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...ortunidades. It now covers 2.6 million families in extreme poverty in rural areas, or about 40 percent of all rural families in Mexico.

Works Cited

Gertler, Paul. “Do Conditional Cash Transfers Improve Child Health? Evidence from PROGRESA's Control Randomized Experiment”. The American Economic Review Vol. 94, No. 2. San Diego: American Economic Association (2004), pp. 336-341.

Parker, Emmanuel Skoufias et al. “Conditional Cash Transfers and Their Impact on Child Work and Schooling: Evidence from the PROGRESA Program in Mexico”. Economía Vol. 2, No. 1. Washington: Brookings Institution Press (2001). pp. 46-96.

Lagarde, Mylene, Andy Haines, & Natasha Palmer. “Conditional Cash Transfers for Improving Uptake of Health Interventions in Low and Middle-Income Countries”. The Journal of the American Medical Association (JAMA) Vol. 298, No. 16. (2007). pp. 1900-10.

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