Conditional Cash Transfer Programs in Latin America

Abstract

This paper discusses the nature and political impact of two anti-poverty programs, Bolsa Familia in Brazil and Oportunidades in Mexico. These programs are two examples of a new brand of anti-poverty programs, known as conditional cash transfer schemes (CCTs). Under CCTs, a government gives cash to poor households in exchange for the beneficiaries fulfilling certain conditions, such as ensuring that their children maintain a given level of school attendance, bringing their children to health clinics for regular visits, etc. CCTs aim to alleviate poverty in the short-term, through the redistribution of wealth by cash transfers, and in the long-term, by building up human capital among the poor through improved education, health, and nutrition. President Luiz Ignacio Lula da Silva initiated Bolsa Familia in Brazil in 2003, and President Vicente Fox of the Partido Accion Nacional (PAN) initiated Oportunidades in Mexico in 2002. This paper investigates the relationship between the federal government and the beneficiaries of these programs, specifically aiming to uncover to what extent the programs can be used—and are being used—for political gain. It concludes with a comparison of the impact of the respective programs on the most recent presidential elections in Brazil and Mexico.