FAMILY AND CASH TRANSFER PROGRAMS IN LATIN AMERICA

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Expert Meeting on Assessing Family Policies UNDESA, 1-3 June 2011 New York FAMILY AND CASH TRANSFER PROGRAMS IN LATIN AMERICA Irma Arriagada CEM CHILE

FRAMEWORK 1. Cash Transfer Programs in Latin America (CTPs), Poverty and extreme poverty in LA, goals, scope, budget and evaluation of CTPs 2. Qualitative evaluation of Mexican (Oportunidades) and Chilean (Chile Solidario- Puente) Programs 3. Concept of Family in CTPs 4. Some proposals

1. CASH TRANSFER PROGRAMS Goals to alleviate poverty through direct income transfers. to provide incentives for investment in human capacity-building. to bring the target population into the social protection and promotion networks. Scope 18 countries of the region, serving more than 25 million families or some 113 million individuals: 19% of the population of Latin America and the Caribbean. Budget There are not expensive programs, their budget range from 1.17% of GDP of Ecuador Bono of Human Development to 0.02% GDP of El Salvador Rural Solidarity Communities. Source of financing governmental and non-governmental.

Poverty in Latin America Latin America 2009:Total population below poverty line Source: ECLAC

Extreme Poverty in Latin America Latin America 2009:Total population below extreme poverty line Source: ECLAC

CTPs in Latin America Percentage of population covered by TCPs

Budget of CTPs CTPs in Latin America 2009: Budget as percentage of GDP Source: ECLAC

IMPACT EVALUATION OF CTPs Impact evaluations of CTPs have shown positive results: Positive impacts on education and health outcomes. Positive impacts on nutrition, mainly when the CTPs have been accompanied by the distribution of food supplements. No major negative impact on labor supply has been observed (despite criticisms that CTPs foster dependency). Large-scale programs have had impressive results in reducing inequality and some impact on poverty measures, especially by narrowing the poverty gap and lessening the severity of poverty. Source: Hailou and Soares, 2008

2. MEXICAN AND CHILEAN PROGRAMS PROGRAMS OPORTUNIDADES PUENTE Started in: 1997 2002 Population covered 24.6 6.8 Budget (% GDP) 0.51 0.11 Social Investment (%) 4.52 0.87 Source of Funding Goals Government, World Bank & Int.Development Bank To reduce poverty and extreme poverty through health, education and food Government To reduce extreme poverty through psycho-social measures, access to social protection, bonuses. Means Selection of the families Transfer of cash to mothers Through scores of survey of SEDESOL Transfer of cash to mothers Through a Social protection index of MIDEPLAN Source: Arriagada and Mathivet (2007)

3. FAMILY CONCEPT IN CTPs The concept of family in the programs Social programs tend to consider the existence of a single model of a happy family: the man as the economic provider and the mother as housewife. That traditional model of family corresponded to only 20% of the total number of households, and to 24% of urban families in 18 Latin American countries. Poor and extreme poor families are mainly woman-headed. Adolescent mothers, extended families, double-income and other types of families are not considered.

3.SOME PROPOSALS FOR CTPs Some proposals derived from qualitative analysis of two programs: To incorporate within the design, the diversity of needs of family members and ways of relating inside the family. To give the opportunities or stimulate poor groups to organize themselves and develop their social capital. To take into account the diversity of poor Latin American families. To develop strategies in order to change the subordinate position of women inside families. Gender awareness is needed. To clarify the mechanisms of selection to enter and leave the programs. To educate and raise awareness in the families over their rights and duties are sine qua non conditions for the success of the program.