Universal or Targeted: the role of CCTs in Latin American Countries


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Presentation by Fabio Veras Soares (IPC-IG) at the ESCWA Workshop on Social Protection as Development in Beirut, Lebanon. 6-7 September 2011.

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Universal or Targeted: the role of CCTs in Latin American Countries

  1. 1. <ul><ul><li>Universal or Targeted: the role of CCTs in Latin American Countries </li></ul></ul><ul><ul><li>ESCWA workshop on Social Protection as Development. Beirut – Lebanon </li></ul></ul><ul><ul><li>6-7th September 2011 </li></ul></ul><ul><ul><li>Fabio Veras Soares – IPC-IG (UNDP/SAE/IPEA) </li></ul></ul>
  2. 2. What are CCTs? <ul><li>Common Features : </li></ul><ul><li>Targeting mechanisms : geographical, categorical and means testing; </li></ul><ul><li>Co-responsibilities : education and health; </li></ul><ul><li>Cash : regular payment of cash to women/mother </li></ul><ul><li>Rationale : immediate poverty alleviation and stop the intergenerational cycle of poverty. </li></ul><ul><li>Beyond commonalities : </li></ul><ul><li>Differ with regard to the emphasis in the two objectives and with regards to... </li></ul><ul><li>… its place in the social protection system: permanent welfare policy or short-term safety net </li></ul>
  3. 3. CCTs in Latin America: an overview
  4. 4. CCTs in Latin America: an overview <ul><li>Origins and political motivation… </li></ul><ul><li>Safety nets to alleviate the effect of the structural reforms of the 1990’s (Honduras) </li></ul><ul><li>Institutional reforms (Mexico, Chile, Brazil, Uruguay) </li></ul><ul><li>Response to a crisis (Argentina, Colômbia, Uruguay); </li></ul><ul><li>Strategy to reduce poverty in the context of the MDGs (Paraguay and El Salvador) </li></ul>
  5. 5. CCTs in Latin America: targeted v universal <ul><li>How targeted CCTs fit into universal discourse? </li></ul><ul><li>Pros: </li></ul><ul><li>To facilitate access to social services, reducing opportunity and direct costs. </li></ul><ul><li>In the absence of a strategy to target the most vulnerable they will not be able to fulfill their universal rights </li></ul><ul><li>Business as usual reinforces inequalities. </li></ul><ul><li>Cons: </li></ul><ul><li>Competing resources with universal social policies </li></ul><ul><li>Generating stigma </li></ul><ul><li>Disincentives to work (poverty traps) </li></ul>
  6. 6. CCTs in Latin America: an overview <ul><li>Design options </li></ul><ul><li>Target population and coverage level: </li></ul><ul><li>Incorporation of new beneficiary; </li></ul><ul><li>Value of the benefit (lump-sum or per capita/per children) </li></ul><ul><li>The way conditionality is implemented; </li></ul><ul><li>Degree of coordination with the line ministries (supply side); </li></ul><ul><li>Graduation rules, minimum and maximum permanence in the programme. </li></ul>
  7. 7. CCTs in Latin America: an overview <ul><li>Some examples of intersectoral approches… Bolsa Família under Brazil sem Miséria strategy : </li></ul><ul><li>Three components: 1) minimum income guarantee; 2) access to basic services, including water and sanitation; and 3) productive inclusion </li></ul><ul><li>Increase the value of the transfers received by extreme poor families and minimize exclusion errors (under-coverage) </li></ul><ul><li>Better inform the policy of other ministries on the needs of the extreme poor population – scalling-up programmes in underserved areas </li></ul><ul><li>Match single registry with existing registries of productive inclusion initiative at rural and urban areas in order to match opportunities with beneficiaries of the programme. </li></ul>
  8. 8. CCTs in Latin America: an overview <ul><li>An old example reshaped: Puente, Chile Solidario and the new Asignación Social </li></ul><ul><li>Puente : entry door of the system. Focus on the extreme poor that were not able to profit from the growth process in 1990’s. </li></ul><ul><li>Chile Solidario : link supply and demand for services. </li></ul><ul><li>Asignación Social : per capita benefit and a new conditional component. Including incentives to work for woman. </li></ul><ul><li>This system relies heavily on Information systems: integrating supply and demand data </li></ul>
  9. 9. CCTs in Latin America: an overview <ul><li>CCT and dependency: what do the evaluations say? </li></ul><ul><li>The evaluations of Progresa/Oportunidades and Familias en Acción show no impact on labour market participation; </li></ul><ul><li>Evaluations of Bolsa Familia also did not find any negative impact on labour force participation. Some impact on hours of work for women in the informal sector accompanied of an increase in time spent in domestic chores. </li></ul><ul><li>In rural contexts, evaluations have found that the transfer lead to investment in production and therefore an increase in consumption and autonomous income. </li></ul>
  10. 10. <ul><li>Many Thanks </li></ul>