Bolsa Família scheme: Income support makes a real difference
By David White
Published: November 4 2009 16:29 | Last updated: November 4 2009 16:29
Benefits of the Bolsa Família: recipients watch the president on television. The scheme also encourages school attendance
Geová da Silva Lima lives with his wife and three children in two small rooms with bare brick walls in a rough, crime-ridden area of Recife, in northeast Brazil. The living room has a battered television and a stove. There is a bathroom but no running water.
After a series of short-lived jobs, he has had no fixed work for well over a year. But the government’s family grant programme, Bolsa Família, a scheme that in the past five years has helped to lift millions of Brazilians out of the most extreme poverty, now provides a small regular income.
The R$114 (US$65) monthly payment is enough to buy beans, rice, eggs and sausage, but the family rarely gets to eat fresh meat. “Brazilians,” Geová explains philosophically, “learn to live with certain difficulties.”
As a condition of the grant, the two-year-old daughter has to be taken for regular health checks, and the two boys, aged 10 and 12, have to show at least an 85 per cent school attendance record. “I think it’s a good idea. It helps to get those who are out of school to return,” Geová says. There is a school close by, and a health centre, even though it does not have a doctor.
The Bolsa Família, the flagship social programme of President Luiz Inácio Lula da Silva’s government, was created by amalgamating and expanding income support schemes started under the previous administration. Comparable with Mexico’s longer-running Oportunidades programme and other schemes in Chile and Colombia, it is designed to widen access to healthcare, education and welfare. While the cost is relatively modest, less than 1 per cent of the national budget, it has become the biggest scheme of its kind providing conditional cash transfers, affecting about a quarter of the 190m population.
According to a recent study by Ricardo Paes de Barros, an economist at the government’s Institute for Applied Economic Research (IPEA), the income of the poorest 10th rose at an annual rate of 8.1 per cent between 2001 and 2008, more than five times the rate of increase for the top decile.
Driven largely by cash transfers and higher basic wages, this not only represented a significant redistribution of income but brought other benefits such as improved education levels and reduced child mortality. The study found that poverty had fallen from 39 to 25 per cent of the population since 2003 and the rate of extreme poverty had halved to below 9 per cent.
Parallel research by the Centre for Policy Studies at the Getúlio Vargas Foundation (FGV) concluded that 32m Brazilians had moved up into the A,B and C income categories – with household incomes above R$1,115 ($652) a month – in the past five years, including 6.7m last year alone.
Figures from six big cities indicated that the consumer middle class kept on growing despite the recent recession, although more slowly, with an increase of almost 2 per cent in the year to July.
Karla Menezes, social welfare secretary at Recife town hall, says R$12m a month is being paid to local family grant beneficiaries through the Caixa Econômica Federal state bank, all of which goes into the local economy.
A third of families in the city have been registered, although the money available does not yet stretch to cover them all. Some 40,000 families, a quarter of those eligible, have yet to be brought into the scheme.
Stringent efforts are made, she says, to ensure the conditions are met, and as many as 25,000 families in Recife currently have payments temporarily blocked.
Recipients are issued with a plastic card enabling them to draw the payments at cash machines The money is almost always paid to the woman in the family, strengthening the place of women at both household and community level. Roughly half of the total goes to the northeast, the poorest region.
The government says it is supporting about 12m families through the programme, out of almost 13m reckoned to qualify. Payments range from R$22 to R$200 a month. All with monthly income of R$140 or less per head are entitled to support, and those in a lower income bracket of up to R$70 per head qualify for a basic payment in addition to payments made according to the number of children. The scheme was expanded last year to include 16- and 17-year-olds.
Means-testing is complex, especially since many are engaged in informal activities. Data are cross-referenced at national level to limit fraud.
Camile Mesquita, director for the management of income transfer programmes at the Ministry of Social Development and Fight against Hunger, rejects the idea that this level of support risks creating dependency. The aid, she says, is designed only as a transitional cushion to help families towards financial autonomy. “The Bolsa Família is for many people the first security they have had.”
The programme is backed up by provisions for microcredit and training, and the government aims to get 200,000 people from these low-income families into jobs in construction and tourism. Seeking work is not, however, a condition of benefit.
“A lot of people don’t want to take up the courses for fear of losing the assistance,” says Geová in Recife, who has just completed a building and decorating course and wants to start another. For him, a permanent job is the only solution. In the interim, the grant provides the family’s only fixed income.
“It is not enough,” he says. “But it is vital.”
Life takes us in many strange directions and wonderful discoveries. It never turns out the way we thought it would.
Showing posts with label President Lula. Show all posts
Showing posts with label President Lula. Show all posts
Thursday, November 5, 2009
Friday, March 27, 2009
President Lula Of Brasil Blasts Wall Street And London Bankers
'White, blue-eyed bankers have brought world economy to its knees': What the Brazilian President told Gordon Brown
By JAMES CHAPMAN
Last updated at 9:41 AM on 27th March 2009
Comments (67)
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Gordon Brown’s efforts to broker an £80billion bailout for world trade on a trip to Brazil hit a stumbling block tonight when the country’s president lashed out at ‘white, blue-eyed’ bankers for bringing the world economy to its knees.
Mr Brown watched on uneasily as his host, President Luiz Inacio Lula de Silva, launched a bizarre tirade in which he warned that next week’s G20 summit in London would be a ‘spicy’ affair.
President Lula said it was completely unfair that the poorest people in the world were suffering most for the mistakes of wealthy, Western financiers.
Luiz Inacio Lula da Silva embraces Gordon Brown after the press conference where the Brazilian president made the comments about 'a crisis that was caused by people, white with blue eyes'
‘This was a crisis that was fostered and boosted by irrational behaviour of people that are white, blue-eyed, that before the crisis looked like they knew everything about economics,’ he declared.
‘Now they have demonstrated that they don’t know anything about economics.’
President Lula, head of Brazil’s main left-wing party, said that ‘no black man or woman, no indigenous person, no poor person’ had been in any way culpable for the global banking crisis.
More...
Brown to borrow £351billion in the next two years (that's more than Britain's total debt from 1691 to the 1997 election)
‘I’m not acquainted with any black banker,’ he said. ‘The part of humanity that’s responsible should pay for the crisis.’
The president, who apologised for coughing at the start of his joint press conference with Mr Brown because he had been snacking on ‘cheese bread’ immediately beforehand, lavished praise on the Prime Minister’s role in trying to rebuild world economies.
But he said he favoured tougher regulation of the financial sector than Mr Brown and celebrated the chance the crisis gave governments to create a bigger state.
Turning to the G20 summit in London, he added: ‘Normally we are very polite with each other – but this meeting in London, it has to be a little bit spicy, a little bit of heat.’
Mr Brown meets former Brazlian footballer Socrates (left) during his visit at the Pacaembu stadium in Sao Paulo
And Mr Brown also appeared to be criticised from within his own government.
Foreign Office Minister Lord Malloch Brown appeared to issue a warning to the Prime Minister ahead of the G20 summit next week that words needed to be backed up with action.
In an interview with the Associated Press newswire, he said: 'We can't again engage in meaningless, empty commitments which don't survive the flight home.
The global economy is going to go on descending on April 3, the massive destruction of wealth that is going on is not going to be stopped by any leaders' communiqué.'
The Prime Minister included Brazil on his whistlestop world tour ahead of the G20 because it is the world’s tenth largest economy and relatively open to free trade.
He warned that world trade is already shrinking for the first time in 30 years in the latest phase of the financial crisis.
Mr Brown set out plans for an £80billion trade guarantee scheme to try to keep the global economy moving. The fund would involve money from governments, the World Bank and private capital and being used to increase credit flows that underpin trade deals.
Take a look at yourselves: Brown and Lula examine their reflections before the joint press conference
The Prime Minister said that was the ‘minimum’ amount needed to prevent a full-scale collapse in world trade that could prove catastrophic for many economies.
Underwriting world trade deals, Mr Brown said, is the fourth weapon at the disposal of governments and central banks as they try to halt their financial decline.
It follows moves to cut interest rates, use tax cuts and spending hikes as a ‘fiscal stimulus’ and print money, so-called ‘quantitative easing’.
The Prime Minister’s focus on trade came after he appeared to retreat from the idea of another big debt-funded Budget giveaway following Bank of England Governor Mervyn King’s unprecedented warning that Britain could not afford one.
Doubts have also been cast over whether the UK's public finances could stretch to a further fiscal stimulus, if one was required.
Yesterday the Tories moved to exploit the apparent breakdown in relations between Downing Street, the Treasury and the Bank of England.
Shadow Chancellor George Osborne claimed there was now a serious 'crisis' of confidence' at the heart of the Government following Mervyn King's warning that debt was so high there is no room for further tax cuts and spending rises.
He seized on Alistair Darling's refusal to fully back the Bank of England Governor when challenged by a Tory MP in the Commons. Mr Osborne said: 'A dire situation for the Government just got worse.
'When a Chancellor pointedly refuses in Parliament to express confidence in the Governor of the Bank of England, or agree with the statements he makes on the Budget, then we have reached a crisis of confidence in the Government's economic policy and its ability to lead us into a recovery.'
To drive the message home the Tories also released a two-page dossier on the rift, showing that it proved Mr Brown's policies had failed.
Tory Party Chairman Eric Pickles said the intervention from Lord Malloch Brown challenged the Mr Brown's leadership and his stewardship of the economy. 'This Government and its economic policies are falling apart by the minute,' he said.
Brazil is the third leg of Mr Brown's whistle-stop tour, which started with a speech to the European Parliament in Strasbourg on Tuesday before moving on to New York.
However, his efforts to lay the groundwork for the summit have been beset by signs of tension between the US and Europe over how to tackle the downturn.
Czech Prime Minister Mirek Topolanek - current holder of the EU presidency - has branded US President Barack Obama's fiscal stimulus package and financial bail-out 'the way to hell'.
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By JAMES CHAPMAN
Last updated at 9:41 AM on 27th March 2009
Comments (67)
Add to My Stories
Gordon Brown’s efforts to broker an £80billion bailout for world trade on a trip to Brazil hit a stumbling block tonight when the country’s president lashed out at ‘white, blue-eyed’ bankers for bringing the world economy to its knees.
Mr Brown watched on uneasily as his host, President Luiz Inacio Lula de Silva, launched a bizarre tirade in which he warned that next week’s G20 summit in London would be a ‘spicy’ affair.
President Lula said it was completely unfair that the poorest people in the world were suffering most for the mistakes of wealthy, Western financiers.
Luiz Inacio Lula da Silva embraces Gordon Brown after the press conference where the Brazilian president made the comments about 'a crisis that was caused by people, white with blue eyes'
‘This was a crisis that was fostered and boosted by irrational behaviour of people that are white, blue-eyed, that before the crisis looked like they knew everything about economics,’ he declared.
‘Now they have demonstrated that they don’t know anything about economics.’
President Lula, head of Brazil’s main left-wing party, said that ‘no black man or woman, no indigenous person, no poor person’ had been in any way culpable for the global banking crisis.
More...
Brown to borrow £351billion in the next two years (that's more than Britain's total debt from 1691 to the 1997 election)
‘I’m not acquainted with any black banker,’ he said. ‘The part of humanity that’s responsible should pay for the crisis.’
The president, who apologised for coughing at the start of his joint press conference with Mr Brown because he had been snacking on ‘cheese bread’ immediately beforehand, lavished praise on the Prime Minister’s role in trying to rebuild world economies.
But he said he favoured tougher regulation of the financial sector than Mr Brown and celebrated the chance the crisis gave governments to create a bigger state.
Turning to the G20 summit in London, he added: ‘Normally we are very polite with each other – but this meeting in London, it has to be a little bit spicy, a little bit of heat.’
Mr Brown meets former Brazlian footballer Socrates (left) during his visit at the Pacaembu stadium in Sao Paulo
And Mr Brown also appeared to be criticised from within his own government.
Foreign Office Minister Lord Malloch Brown appeared to issue a warning to the Prime Minister ahead of the G20 summit next week that words needed to be backed up with action.
In an interview with the Associated Press newswire, he said: 'We can't again engage in meaningless, empty commitments which don't survive the flight home.
The global economy is going to go on descending on April 3, the massive destruction of wealth that is going on is not going to be stopped by any leaders' communiqué.'
The Prime Minister included Brazil on his whistlestop world tour ahead of the G20 because it is the world’s tenth largest economy and relatively open to free trade.
He warned that world trade is already shrinking for the first time in 30 years in the latest phase of the financial crisis.
Mr Brown set out plans for an £80billion trade guarantee scheme to try to keep the global economy moving. The fund would involve money from governments, the World Bank and private capital and being used to increase credit flows that underpin trade deals.
Take a look at yourselves: Brown and Lula examine their reflections before the joint press conference
The Prime Minister said that was the ‘minimum’ amount needed to prevent a full-scale collapse in world trade that could prove catastrophic for many economies.
Underwriting world trade deals, Mr Brown said, is the fourth weapon at the disposal of governments and central banks as they try to halt their financial decline.
It follows moves to cut interest rates, use tax cuts and spending hikes as a ‘fiscal stimulus’ and print money, so-called ‘quantitative easing’.
The Prime Minister’s focus on trade came after he appeared to retreat from the idea of another big debt-funded Budget giveaway following Bank of England Governor Mervyn King’s unprecedented warning that Britain could not afford one.
Doubts have also been cast over whether the UK's public finances could stretch to a further fiscal stimulus, if one was required.
Yesterday the Tories moved to exploit the apparent breakdown in relations between Downing Street, the Treasury and the Bank of England.
Shadow Chancellor George Osborne claimed there was now a serious 'crisis' of confidence' at the heart of the Government following Mervyn King's warning that debt was so high there is no room for further tax cuts and spending rises.
He seized on Alistair Darling's refusal to fully back the Bank of England Governor when challenged by a Tory MP in the Commons. Mr Osborne said: 'A dire situation for the Government just got worse.
'When a Chancellor pointedly refuses in Parliament to express confidence in the Governor of the Bank of England, or agree with the statements he makes on the Budget, then we have reached a crisis of confidence in the Government's economic policy and its ability to lead us into a recovery.'
To drive the message home the Tories also released a two-page dossier on the rift, showing that it proved Mr Brown's policies had failed.
Tory Party Chairman Eric Pickles said the intervention from Lord Malloch Brown challenged the Mr Brown's leadership and his stewardship of the economy. 'This Government and its economic policies are falling apart by the minute,' he said.
Brazil is the third leg of Mr Brown's whistle-stop tour, which started with a speech to the European Parliament in Strasbourg on Tuesday before moving on to New York.
However, his efforts to lay the groundwork for the summit have been beset by signs of tension between the US and Europe over how to tackle the downturn.
Czech Prime Minister Mirek Topolanek - current holder of the EU presidency - has branded US President Barack Obama's fiscal stimulus package and financial bail-out 'the way to hell'.
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