Conditional Cash Transfer programmes (CCTs) have been at the core of the
remarkable expansion of social protection in Latin America in the early
twenty-first century. Our article reviews the origins of CCTs in the Social
Investment (SI) approach to social policy design, explores their characteristics
and traces their expansion in Latin America. It further questions whether CCTs
designed under the influence of SI can generate long-term substantial
improvements in social outcomes. Our analysis suggests that while CCTs have
evidently produced a number of positive outputs they are not, on their own,
enough to achieve the aim of reducing poverty. CCTs appear to be more effective
in poverty alleviation when they are accompanied by – or form part of
– a wider package of measures that enhance social and employment
rights, integrating workers into the formal economy under better conditions. We
conclude that unless the structural deficiencies that shape many of the Latin
American welfare regimes are addressed, the potential of social investment
policies, like CCTs, to combat poverty will remain limited.
Welfare policy in Mexico has been transformed in recent decades. During the years of the import‐substitution industrialization economic strategy and the hegemonic party political regime, social policy was based on social insurance programs of limited coverage to urban formal sector workers and their families. In the mid‐1990s, an unprecedented expansion of social protection through social assistance programs was triggered, along with social insurance reform. This article assesses the effects at the household level of social policy changes, in combination with changes in taxes and the minimum wage, which also impact the welfare of the population. The research applies “model families” to establish effects of social, tax, and minimum wage policy changes across population groups, and their combined potential to combat poverty. Findings show that although taxation and social policy changes increased redistribution towards poor families, their capacity to lift and keep them above poverty thresholds was limited by the drop in the real value of the minimum wage and by strict targeting mechanisms, which exclude families that do not meet eligibility criteria but still fall below poverty lines. Social policy expansion merely subsidized the drop in real minimum wage, and poor families at best remained at similar income levels. Hence, the logic of the design of welfare policy changes can be characterized as aiming to keep poor families on the breadline, but no higher.
Conditional cash transfers (CCTs) have become the main instrument to combat poverty in Latin America, they have been exported around the globe and are one of the most popular social policies of the twenty-first century. CCTs deliver cash transfers to poor families with conditionalities like attendance to school and health appointments. This article aims to explain the creation of CCTs. The research applies arguments from theories of social policy development to explain the formulation of the first two CCTs introduced in Brazil at the sub-national level and in Mexico at the national level during the mid-1990s. Findings show that the original formulation of CCTs can be explained by the emergence of a new policy paradigm based on a conceptualisation of the nature of poverty as lack of human capital among poor population, enabled by critical junctures created by the transitions to democratic regimes.
Mexican social policy has been transformed in recent years with the introduction and expansion of social assistance programmes, causing a diversion from the trajectory based on social insurance since the first decades of the twentieth century. This article aims to understand the outcomes of that transformation, by applying welfare regime theory to establish how social policy reforms have affected the distribution of welfare responsibilities among the state, markets and families. The research identifies (de)commodification and (de)familialisation outcomes of policy changes in pensions, healthcare, unemployment and family support. Results suggest that the expansion has not produced significant reductions in decommodification or defamilialisation because of: a) the explicit or implicit role assigned to markets in policy design and implementation, and b) the reliance of the process of economic liberalisation on the welfare role performed by families. The case of Mexico may illustrate the current welfare challenges faced by societies across Latin America.
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