Reducing poverty through cash transfer

Related pages: Brazil country page | Back to Transforming Partnerships in Brazil

In Brazil the Bolsa Familia programme is the government's flagship poverty reduction programme.

It's an income transfer scheme - known as conditional cash transfer (CCT) - largely inspired by successful models that have been developed in other countries, particularly Mexico. The scheme gives poor people receiving a monthly cash allowance from the government, provided that they meet certain criteria, which are:

• that the children in the benefiting household are enrolled in primary school
• that they receive regular vaccination
• mothers-to-be in the benefiting household must receive full pre-natal care. 

The programme represents an important incentive for parents to invest in their children's education and health. It provides financial incentives to keep their children in school. Brazil has high levels of child labour, with children withdrawing the school to give financial contribution to their households. Bolsa Familia is helping to change this situation.

In 2006, the Bolsa Familia is entering a year of evaluations, with a big quantitative survey promoted by the Ministry of Social Development involving 15,000 households. DFID is contributing to this process by commissioning two complementary qualitative studies on gender and empowerment.

Through this support, DFID is helping Brazil to use CCTs to target new populations and take on new challenges.

Exchanging experiences

Image courtesy of IADB

DFID has also helped Brazil to share lessons about CCTs with countries outside Latin America, by creating a space for dialogue for discussion between Brazil and African countries.

In response to a strong request from the Brazilian Government and several countries (such as Ghana, Zambia, South Africa, Nigeria, Mozambique and Guinea Bissau), DFID, in collaboration with the Inter-American Development Bank (IADB) and through the Regional Inequality Facility, have been promoting dialogue and knowledge sharing on the issue of social transfer programmes.

Brazil's Ministry of Social Development hosted the first missions from Africa in 2005, in order for them to exchange operational experiences, visit programmes such as Bolsa Familia and apply this knowledge towards the improved operation of their programs.

As a result, CCTs are taking on a growing policy role in safety net reform in many countries.

• A new approach to social assistance: Latin America’s Experience with Conditional Cash Transfer Programs(World Bank, Aug 2004)
• Education, child labour and shocks: children benefit from cash transfers (Eldis, 2004)
• Conditional cash transfer programmes in Southern Africa and Latin America (Eldis, 2005)

Back to top

Key facts

• Brazil hosted a second study visit in January 2006 for delegates from several African countries
• Bolsa Familia celebrated its second anniversary in October 2005. It improves living conditions for eight million poor families throughout the country. The government hopes to achieve universal coverage to
  around 11.2 million families by 2006
• As part of itsregional strategy for Latin America (298 KB), DFID is keen to facilitate lesson-learning between Latin America and the rest of the developing world, giving particular attention to the role Brazil plays as a regional leader in global policy negotiations and lesson-sharing.