Brazil's Conditional Cash Transfer for Families

The Bolsa Familia Programme, or Programa Bolsa Família (PBF), is a conditional cash transfer implemented by the Government of Brazil designed to alleviate poverty among low-income families. PBF also offers several complementary services to assist in job-seeking and housing. In the decade that the Bolsa Familia Programme (PBF) was introduced, poverty has been reduced by half, from 9.7 per cent to 4.3 per cent, the coverage of the Bolsa Familia reached out to 50 million low-income Brazillians which accounts for a quarter of the total population of Brazil.

Eligibility for the PBF is defined by the national poverty line and ‘extreme poverty line’. Families with monthly per capita income lower than roughly USD 35 are considered extremely poor, while those earning between USD 30 and roughly USD 70 are considered poor. The PBF has several components: i) the basic transfer of USD 35, focused on families with incomes below USD 35 per month, ii) a complementary variable transfer of USD 16, granted to families with children aged under 15, with monthly income below USD 78, iii) a variable transfer of USD 19 for adolescents aged 16 and 17 from families with monthly income below USD 78. In total, families receive between roughly USD 16 and USD 153, depending on their income before transfers. In 2012, the Brazil Carinhoso Programme (PBC) was introduced to guarantee a minimum transfer to bring all families above the poverty line.

The design of the PBF moves toward an integrated approach, coordinating the public offer of health, education, food security, labour, social assistance and economic development services available for the targeted families. Through a decentralised approach municipalities play a crucial part in identifying the beneficiaries of the programme, determining eligibility with conditionalities, and ensure the delivery of health and education services. Simulations show that with the in 2012 introduced PBC benefits, PBF may be much more effective to combat extreme poverty.

 

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