Brazil's Bolsa Família: A Double‐Edged Sword?

Abstract

In common with most Latin American countries, as governments embrace safety nets to attack poverty, conditional cash transfer (CCT) programmes have become part of mainstream social policy in Brazil. Under president Fernando Henrique Cardoso (1995–2002), and especially since Luiz Inácio Lula da Silva took office in 2003, targeted assistance in education, health and nutrition, now united under Bolsa Família, have expanded rapidly to benefit forty‐four million (24 per cent of the total population), absorbing almost two‐fifths of the social assistance budget earmarked for the poorest sectors. Despite its operational problems, Bolsa Família appears to have been effective in providing short‐term relief to some of the most deprived groups in Brazil. Yet it could prove to be a double‐edged sword. There is a risk that, due to its popularity among both the poor and Brazil's politicians, Bolsa Família could greatly increase patronage in the distribution of economic and social benefits and induce a strong dependence on government handouts. There are also early signs that it may be contributing to a reduction in social spending in key sectors such as education, housing and basic sanitation, possibly undermining the country's future social and economic development.

The contribution of Bolsa Família to the educational achievement of economically disadvantaged children in Brazil

“…Despite the studies mentioned, authors such as Janvry et al (2007) and Hall (2008) point out the lack of systematic impact evaluations on national CCT programmes in Brazil since the first national programme was adopted (Bolsa Escola). In particular, studies about BF's effects on students' educational outcomes are quite rare.…”

“…Hall (2008), for instance, stresses the strong support by the World Bank and the InterAmerican Development Bank for CCTs in LA as a demonstration that these schemes "fit nicely"…”

“…Several authors have considered CCTs as a new type of social assistance programme, being a part and representing an evolution of the safety net system in developing countries through the association of short-term poverty alleviation with long-term development goals of human capital accumulation (Morley and Coady, 2003;Rawlings, 2005;Britto, 2008;Hall, 2008). Hall (2008), for instance, stresses the strong support by the World Bank and the InterAmerican Development Bank for CCTs in LA as a demonstration that these schemes "fit nicely"…”

Brazil's 'pro-poor' strategies: what South Africa could learn

“…In 1992, as Brazil entered its neoliberal phase, about 35 per cent of Brazil's households were estimated to be living in absolute poverty, earning less than about US$50 per month. Under Cardoso's administration, families living in poverty dropped to about 28 per cent, where it hovered through the next decade; after Lula came to power in 2003, however, the percentage of households living in poverty dropped by 19.2 per cent in three years, leaving about 22 per cent of Brazilian families living in absolute poverty (Economist April 14, 2007, Hall 2008. These changes have a racial dimension, as well.…”

An Agent-Based Simulation of Car Theft: Further Evidence of the Rational Choice Theory of Crime

“…Critics say the system must be temporary, in order to avoid political dependence and exploitation in the long run. In that regard, see Hall (2008).…”