Bolsa Família
Encyclopedia
Bolsa Família (ˈbowsɐ faˈmiliɐ, Family Allowance) is a social welfare program of the Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

ian government, part of the Fome Zero
Fome Zero
Fome Zero is a Brazilian government program introduced by President Luiz Inácio Lula da Silva in 2003, with the objective to eradicate hunger and extreme poverty in Brazil.-Contents of the program:...

 network of federal assistance programs. Bolsa Família provides financial aid to poor Brazilian families; if they have children, families must ensure that the infants attend school and are vaccinated
Vaccination
Vaccination is the administration of antigenic material to stimulate the immune system of an individual to develop adaptive immunity to a disease. Vaccines can prevent or ameliorate the effects of infection by many pathogens...

. The program attempts to both reduce short-term poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 by direct cash transfers and fight long-term poverty by increasing human capital
Human capital
Human capitalis the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience...

 among the poor
Poor
Poor is an adjective related to a state of poverty, low quality or pity.People with the surname Poor:* Charles Henry Poor, a US Navy officer* Charles Lane Poor, an astronomer* Edward Erie Poor, a vice president of the National Park Bank...

 through conditional cash transfers
Conditional Cash Transfer
Conditional cash transfer programs aim to reduce poverty by making welfare programs conditional upon the receivers' actions. The government only transfers the money to persons who meet certain criteria...

. It also works to give free education to children who cannot afford to go to school to show the importance of education.

The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...

 described Bolsa Família as an "anti-poverty scheme invented in Latin America" (which) "is winning converts worldwide."

The program was a centerpiece of President Luiz Inácio Lula da Silva
Luiz Inácio Lula da Silva
Luiz Inácio Lula da Silva , known popularly as Lula, served as the 35th President of Brazil from 2003 to 2010.A founding member of the Workers' Party , he ran for President three times unsuccessfully, first in the 1989 election. Lula achieved victory in the 2002 election, and was inaugurated as...

's social policy, and is reputed to have played a role in his victory in the Brazilian presidential election, 2006
Brazilian presidential election, 2006
The Brazilian general elections of 2006 were held in two rounds. The first one happened on October 1, in which eligible voters chose all members of the Chamber of Deputies, one-third of the Federal Senate, and members of the Legislative Assemblies of the 26 states and the Federal District...

. Bolsa Familia is currently the largest conditional cash transfer program in the world, though the Mexican
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...

 program Oportunidades
Oportunidades
Oportunidades is a government social assistance program in Mexico founded in 2002, based on a previous program called Progresa, created in 1997. It is designed to target poverty by providing cash payments to families in exchange for regular school attendance, health clinic visits, and nutritional...

 was the first nation-wide program of this kind.

The Bolsa Familia program has been mentioned as one factor contributing to the reduction of poverty in Brazil, which fell 27.7% during the first term in the Lula administration. Recently the Center of Political Studies of the Getulio Vargas Foundation
Fundação Getúlio Vargas
Fundação Getulio Vargas is a Brazilian higher education institution founded on December 20, 1944. It offers regular courses of Economics, Business Administration, Law, Social Sciences and Information technology management...

 has published a study showing that there was a sharp reduction in the number of people in poverty in Brazil between 2003 and 2005. Other factors include an improvement in the job market and real gains on the minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...

.

About 12 million Brazilian families receive funds from Bolsa Família, which has been described as "the largest programme of its kind in the world."

History

Bolsa Escola, a predecessor which was conditional only on school attendance, was pioneered in Brasilia
Brasília
Brasília is the capital city of Brazil. The name is commonly spelled Brasilia in English. The city and its District are located in the Central-West region of the country, along a plateau known as Planalto Central. It has a population of about 2,557,000 as of the 2008 IBGE estimate, making it the...

 by then-governor Cristovam Buarque
Cristovam Buarque
Cristovam Ricardo Cavalcanti Buarque is a Brazilian politician and university professor, member of Democratic Labour Party . He is married and has two children.-Biography:Buarque graduated in mechanical engineering from the Federal University of Pernambuco...

. Not long after, other municipalities and states adopted similar programs. President Fernando Henrique Cardoso
Fernando Henrique Cardoso
Fernando Henrique Cardoso – also known by his initials FHC – was the 34th President of the Federative Republic of Brazil for two terms from January 1, 1995 to December 31, 2002. He is an accomplished sociologist, professor and politician...

 later federalized the program. In 2003, Lula formed Bolsa Família by combining Bolsa Escola with Bolsa Alimentação and Cartão Alimentação (all part of Lula's Fome Zero anti-hunger program) and Auxílio Gas (a transfer to compensate for the end of federal gas subsidies). This also meant the creation of a new Ministry – the Ministério do Desenvolvimento Social e Combate à Fome (Ministry of Social Development). This merge reduced administrative costs and bureaucratic complexity for both the families involved and the administration of the program.

Objectives

Programs of conditioned transference against poverty are social policies currently employed in many places in the world to fight and reduce poverty. In the short term, they aim at mitigating the problems resulting from the situation of poverty, and, in the long term, investing in human capital, interrupting intergenerational (i.e.: from one generation to another) cycle of poverty. The idea of programs of conditioned transference began to gain strength in 1997, when there were only three countries in the world with this experience: Bangladesh, Mexico and Brazil.

Benefit

Bolsa Família currently gives a monthly stipend of 22 reais (about $12 USD) per child attending school, to a maximum of three children, to all families with per-capita income below 140 reais a month (poverty). Furthermore, to families whose per-capita income is less than seventy reais per month (extreme poverty), the program gives an additional flat sum of 68 reais per month. This is called the Basic Benefit, and has no conditionalities

This money is given preferentially to a female head of household, through so-called Citizen Cards which are mailed to the family. This card operates like a debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...

 and is issued by the Caixa Econômica Federal
Caixa Econômica Federal
Caixa Econômica Federal , also referred to as Caixa or CEF, is a Brazilian bank. It is the largest government-owned financial institution in Latin America. It is the largest bank in Brazil and in Latin America by assets....

, a government-owned savings bank (the second largest bank in the country). The money can be withdrawn in over 14,000 Caixa
Caixa Econômica Federal
Caixa Econômica Federal , also referred to as Caixa or CEF, is a Brazilian bank. It is the largest government-owned financial institution in Latin America. It is the largest bank in Brazil and in Latin America by assets....

 locations. This practice helps to reduce corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

, long a problem in Brazil, and helps to dissociate the receipt of money from individual politicians or political parties. The names of every person enlisted in the program and the amount given to them can be found online at the Portal da Transparência
Portal da Transparência
Portal da Transparência is a Brazilian government portal dedicated to making public all expenditures of the federal government. It has a list of all expenses and money transfers the federal government has made, including the list of all people receiving Bolsa Família benefits and how much they...

, the program's website.

Political structure

Brazil has a strong federal system defined as the resource base of states, the power of governors, the articulation of subnational interests within the Brazilian National Congress, and the distribution of government across three levels of government. Hence, state governors are able to constrain the central government. This is allowed because of a weak, fragmented institutionalized party system. Fragmentation makes it difficult for a non consensual form to reach the central level, creating a policy challenge for national leaders. Fragmentation makes it difficult for national leaders to reach a consensus when creating policies.

Cash transfer programs had previously existed in the Cardoso administration- Bolsa Escola, Bolsa Alimentacao, Auxilio Gás. Most of these early programs faced internal organization challenges. Bolsa Escola was superior to other programs because it applied to all citizens and both supported and was associated with education.

During Lula’s first administration, his goal was to create a social program to replace the three previously existing programs of Cardoso’s government. He unified all prior programs to create one and provided monetary amount per month that would allow households to rise above the poverty line.

As a redistributive program, it depends on central-local collaboration. Municipal governments act as the main agents of the federal government. Bolsa Familia avoids negotiations between the executive and legislative branches. The central government’s ability to bypass twenty-seven powerful governors demonstrates that federalism in Brazil is a three level game. In addition, state brokers cannot claim credit because it cuts out the intermediaries. Bolsa Familia resolved intrabureaucratic chaos by creating one program controlled by the national executive branch. It reduced administrative costs and facilitated user access.

Aside from the ability to bypass state involvement, there are additional enabling factors such as the interaction of a non-majoritarian system of government and fiscal incentives for central-local collaborations. Because of these factors, Bolsa Familia helped reduce hunger and poverty. The dynamic relationship between the federal center and municipalities enabled a direct relationship between citizens and the government. The hardening budget constraints put in place by Cardoso’s administration to stabilize macroeconomic performance gave municipalities incentive to collaborate with the central government. Their collaboration helps them meet their required percent that they are legally required to spend on social assistance. Municipalities that adhere to the program sign a covenant with the federal government, which guarantees the program’s promotion and availability of public services.

The federal center and municipalities’ abilities to collaborate with each other have facilitated Brazil’s capability to build an effective welfare policy for the poor. The existence of power sharing logic in Brazil enabled a widespread means tested social program that was able to achieve success nationwide.

Cost and coverage

In 2006, Bolsa Familia is estimated to cost about 0.5% of Brazilian GDP and about 2.5% of total government expenditure. It will cover about 11.2 million families, or about 44 million Brazilians.

The Bolsa Família was criticized by political opponents of President Lula for allegedly using the revenues of the CPMF tax (which was originally created under the pretext of financing the public health system during the Fernando Henrique Cardoso
Fernando Henrique Cardoso
Fernando Henrique Cardoso – also known by his initials FHC – was the 34th President of the Federative Republic of Brazil for two terms from January 1, 1995 to December 31, 2002. He is an accomplished sociologist, professor and politician...

 administration, but never actually did; the CPMF tax expired in December 2007, and was not renewed) for political and electoral purposes, to the detriment of the public health system that currently faces enormous difficulties.

Perception

The reaction from multilateral institutions to Bolsa Família has generally been enthusiastic. During a trip to Brazil in 2005, the former president of the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

, Paul Wolfowitz
Paul Wolfowitz
Paul Dundes Wolfowitz is a former United States Ambassador to Indonesia, U.S. Deputy Secretary of Defense, President of the World Bank, and former dean of the Paul H. Nitze School of Advanced International Studies at Johns Hopkins University...

 said, "Bolsa Familia has already become a highly praised model of effective social policy. Countries around the world are drawing lessons from Brazil’s experience and are trying to produce the same results for their own people."

Criticism

Certain sectors of the Brazilian society, both among the conservatives and the progressives, as well as the Catholic Church, oppose the concept of money transfers to the poor:
"This concept has always been controversial in Brazil. In other countries it is not this way, but in Brazil there has always been resistance. When I was in college they (the opponents to the concept of money transfers) used to say: 'the first thing the poor will do with the money is to get themselves drunk'. Later on, it was no longer getting drunk that people talked about; they would say the money transferred would be used by the poor to buy a battery radio. They assumed that people with less education would not use their money wisely."

Q. Does that resistance make sense? A: No. In the 1980s (São Paulo State) Governor Franco Montoro had created a money transfer program to benefit families which were receiving their sons back home, coming out of "FEBEM" (the Brazilian punitive institution for minors). As it was very, very little money, families would get together to do house-raising, each month on somebody's house. Or families would save for months, to be able to buy a popcorn wagon for a youth who now had to start working. At the same time other programs, which provided food, failed because they did not take into account regional habits. Here in São Paulo, for instance, the Federal Government distributed tons of black beans, which are only eaten in Rio. People threw it away.


The Bolsa Família Program is far from being universally accepted by the Brazilian society. Among the various criticisms it receives, one of the most recurrent is the assertion that it could discourage the search for employment, encouraging laziness of people. Under this premise, many people would give up trying to find a job, content, instead, to live on the Bolsa Família program. The Catholic Church, through its powerful National Conference of Bishops of Brazil
Roman Catholicism in Brazil
The Roman Catholic Church in Brazil is part of the worldwide Roman Catholic Church, under the spiritual leadership of the Pope, curia in Rome, and the very influential Brazilian Conference of Bishops , composed by over four hundred primary and auxiliary bishops and archbishops. There are over 250...

 (CNBB), maintains that "the program is addictive" and leads its beneficiaries to an "accommodation". This, however, is not what the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

 finds. Having conducted several surveys on the subject, the World Bank came to the conclusion that the program does not discourage work, nor social ascension. On the contrary, says Bénédicte de la Brière, responsible for the program monitoring at the institution:
"Adult work is not impacted by income transfers. In some cases adults will even work harder because having this safety net encourages them to assume greater risks in their activities"'


Another heavy criticism of the government program is the fact that it is perceived by opponents of the currently ruling party as a program meant to "buy" votes of poor people.

Many Brazilians, though, recognize that the Bolsa Família program has a potential for reducing absolute poverty and to reduce inter-generational transmission of poverty. For one example among many, Renata de Camargo Nacimento (heir to the powerful, Brazilian multi-billionaire Camargo Correa Group), when asked in an interview if she agreed that Bolsa Família is just a form of charity, answered as follows: "I travel a lot around Brazil and see many places where the average monthly income is BRL 50 (approximately US$ 26.32). In these places the Bolsa Familia comes in and adds an extra BRL 58. It makes all the difference in the world and adds a lot for the needy population. What is more important is that it promotes a virtuous circle. If there is more money in circulation, the local market heats up, the purchasing power is increased and the effects spread throughout the whole economy. But only to give money is not enough.(...)" HAAG, Carlos. O Discreto Charme Da Solidariedade, an Interview with Renata de Camargo Nascimento, São Paulo: Private Brokers, Year IV, Nr. 16, SEPT/OCT/NOV 2007, P. 41

Surveys conducted by the Federal Government among Bolsa Família's beneficiaries indicate that the money is spent, in order of priority, on food; school supplies; clothing; and shoes. A study conducted by The Federal University of Pernambuco, using sophisticated statistical methods, inferred that 87% of the money is used, by families living in rural areas, to buy food.

Effects

The program has clearly contributed to Brazil's recent improvements in its fight against poverty, according to research promoted by some universities and the Brazilian Institute of Geography and Statistics (IBGE). An ex ante econometric evaluation of Bolsa Escola did find significant effects on both school attendance rates and the number of children involved in child labor
Child labor
Child labour refers to the employment of children at regular and sustained labour. This practice is considered exploitative by many international organizations and is illegal in many countries...

.

The World Bank, which provided a loan to assist the Brazilian government in managing the Bolsa Família Program, declares that "Although the program is relatively young, some results are already apparent, including: (...) contributions to improved education outcomes, and impacts on children’s growth, food consumption, and diet quality".

A study by the UNDP's International Policy Centre for Inclusive Growth
International Policy Centre for Inclusive Growth
The International Policy Centre for Inclusive Growth , formerly the International Poverty Centre, is a partnership between the Poverty Practice of the Bureau for Development Policy, UNDP and the Government of Brazil...

 found that over 80% of the Bolsa Familia benefits go to families in poverty (making under half the minimum wage per capita), thus most of the benefits go to the poor. Bolsa Familia was also found to have been responsible for about 20% of the drop in inequality
Economic inequality
Economic inequality comprises all disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among countries. The issue of economic inequality is related to the ideas of...

 in Brazil since 2001, which is welcome in one of the most unequal countries on the planet.
Research promoted by the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

 shows a significant reduction in child labor
Child labor
Child labour refers to the employment of children at regular and sustained labour. This practice is considered exploitative by many international organizations and is illegal in many countries...

exploitation among children benefited by the Bolsa Família program.

One positive effect of the program which is not immediately apparent is that it makes a significant impact on the ability of the poorest families to eat. Children in public schools receive one free meal a day—two in the poorest areas—and so less of their family's limited income is needed to pay for food. In a survey of Bolsa Familia recipients, 82.4% reported eating better; additionally, it was reported to increase the incomes of the poorer families by about 25%.

External links

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