Mariel Amelia Olivo Villabrille CONDITIONAL CASH TRANSFER PROGRAMS: A COMPARISON BETWEEN ILAE AND BOLSA ESCOLA Thesis submitted for the Master Programme in International Social Welfare and Health Policy Faculty of Social Science Oslo University College January, 2012 i TABLE OF CONTENTS Acknowledgements ……………………………………….…………………………… iii Abstract.. ………………………….………………………...……………………………iv List of Acronyms …………………………………………………………………...…....v 1. Background …………………………………………………………………….………2 1.1. Research Focus and Questions ……………………………………………5 1.2. Study Limitations …………………………………………………………6 2. Theoretical Framework ………………..……………………….……………………...6 2.1. Fundamental Elements on Social Protection ………………………………..6 2.2. Capabilities Approach to Social Policies and Social Protection …………..13 2.3. Conditional Cash Transfers as an Enhancement of Capabilities …………..16 3. The CCT Programs: ILAE and Bolsa Escola ………………………………………..19 3.1. Incentivo a la Asistencia Escolar (ILAE – School Attendance Incentive)…19 3.1.1. Context of the Program …………………………………………...19 3.1.2. Objectives, Transfers and Targeting of the Program ……………..20 3.1.3. Conditionalities …………………………………………………...22 3.2. Bolsa Escola ……………………………………………………………….22 3.1.1. Context of the Program …………………………………………...22 3.1.2. Objectives, Transfers and Targeting of the Program ……………..23 3.1.3. Conditionalities …………………………………………………...23 4. Conclusions …………………………………………………………………………...24 References ………………………………………………………………………………26 ii ACKNOWLEDGMENTS I would like to thank to my family and friends for their unconditional support throughout this and other important processes in my life the last year. I would also like to thank to Ivar Lødemel and his support and patience in this process. Thank you all Mariel Olivo Villabrille January 2012 iii ABSTRACT This work is based on the new welfare approach, called Conditional Cash Transfer Programs and their role in contributing to addressing and alleviating poverty. Through health and education components, programs, conditional cash transfers aim to improve human capital thus enabling beneficiaries to break the cycle of poverty in which they usually encounter themselves. This paper compares a successful Conditional Cash Transfer Program - Bolsa Escola in Brazil - with a program of the same type in another country – ILAE in Dominican Republic. With this comparison there are some lessons to be learnt provided by the Bolsa Escola and other regional programs. iv LIST OF ACRONYMS CCT Conditional Cash Transfer CEPAL Comisión Económica para Latinoamerica y el Caribe (Economic Comission for Latin America and the Caribbean) DR Dominican Republic ECLAC Economic Comission for Latin America and the Caribbean GCPS Gabinete de Coordinación de la Política Social (Social Policy Coordination Gabinet) GDP Gross Domestic Product HDI Human Development Index ICV Indice de Calidad de Vida (Quality of Life Index) IDB Inter-American Development Bank IDH Informe de Desarrollo Humano (Human Development Report) ILAE Incentivo a la Asistencia Escolar (School Attendance Incentive) IMF International Monetary Found NGO Non Governmental Organization ODH Oficina de Desarrollo Humano (Human Development Office) OECD Organization for Economic Cooperation and Development PNUD Programa de las Naciones Unidas para el Desarrollo (United Nations Development Program) SIUBEN Sistema Único de Beneficiarios (Beneficiary System) SRM Social Risk Management SP Solidarity Program (Programa Solidaridad) UDHR Universal Declaration of Human Rights TAE Tarjeta Asistencia Escolar v (School Attendance Card 1. BACKGROUND The Solidarity Program is a program designed and developed in the Dominican Republic as part of the social protection actions in the country to secure people. The Program has been run since 2004 and has two main components: “Comer es Primero (Eating comes First*) and Incentivo a la Asistencia Escolar - ILAE – (School Attendance Incentive). The former consists of a monthly in-kind transfer equivalent of RD$ 700 pesos (the equivalent of US$ 18.18) which allows the family to buy products from the basic family basket. The last component consists also of an in kind transfer to the eligible families depending on the number of children, ranging from RD$ 300 to RD$ 600 pesos (the equivalent of US$ 7.7 to US$ 15.54) (GCPS 2008, page 9). The program was developed within a context referred as an emergency, according to the relevant government authorities. This was the result of a domestic economic crisis following the breakdown of three commercial banks in the previously authorities´ government, from the opposition party. Among the conditionalities imposed by international organizations, such as the International Monetary Fund – IMF –, World Bank and the Inter-American Development Bank – IDB - concerning social assistance programs developed in the country at the time of the economic crises, are involved an institutional restructuring of the social assistance sector (Cañete and Dotel, 2007, 39-50). Historically, all types of social policy in the Dominican Republic had followed a political-patronage, and Solidarity Program has not been the exception. Despite the aforementioned restructuring plan, this did not tackle the underlying problems of the social policy in the DR such as bad management, poor efficacy and efficiency (Idem, 44). On the other hand, Bolsa Escola program was developed in Brazil, starting as far ago as 1995, in the Campinhas State. It started to expand to other states independently, and, by 2003 with the new Anti-Poverty National Strategy it was included in a federal program called Bolsa Familia (Villatoro 2004, 13-14). * Free translation -2- According to the definition, “social policy is not a technical term with an exact meaning” (Abel-Smith and Titmuss 1974, 30), but the concept can take different forms according to the theories underpinning it, their purposes, problems, decision–making processes, among others. However, the term can be used to “refer to all policies used by governments for welfare and social protection” (Fleury 2006, 1280). There are some aspects to highlight from the definition. That is, the term refer to policy as an intentional action originated within the public sphere addressed to achieve certain specific goals. It is oriented to social welfare goals, which means that some conception of human well-being underpins it, whether defined in terms of capabilities, human needs, equity, and so on. And it operates through a wide variety of policy instruments across a number of sectors (Gough 2004, 240). From a more operational perspective, social policies are a series of decisions, orientations and priorities from the state, used to generate programs, projects and actions addressed to solve and identified problem in society (Fleury 2006, 1281). In this sense, social policies are the means by which welfare and social security is promoted in a determined society, as specified by Hill (2006) when stated that, the term social security system, refers to a set of policies in a society which contribute to income maintenance (Hill 2006, 1295). According to Ginneken (2003), social security refers to the “benefits that a society provides to individuals and households – through public and collective measures – to guarantee them a minimum standard of living and to protect them against low or declining living standards arising out of a number of basic risks and needs” (Ginneken 2003, 11). Formal social security systems already exists in almost all developing and newly industrialized countries, nevertheless, in most countries, an important share of the population is excluded from any type of statutory social security protection, mainly because they tend to be part of the informal economy. The strategies on extending social security vary; one way to include the non-covered population is through social assistance. -3- Since benefits are not contribution-based nor dependant on long term employment records, Social Assistance schemes can reach the poorest segments of population (Overbye 2005, 305). Although social assistance has a long history of implementation in most OECD countries and some non-OECD countries, Conditional Cash Transfer (CCT) are a new type social assistance measure that represents an innovative approach to the delivery of social services (Rawlings 2005, 134). As it name implies, these programmes‟ aim to make investments in poor families‟ human capital – either by asking the families to send children to school or sending them to health centers on a regular basis – on the condition of receiving the money transfers (Idem). This will be discussed in more depth further, nevertheless, important is to highlight that these kinds of schemes differ from workfare as the latter are “programmes or schemes that require people to work in return for social assistance benefits”. Namely, among others, the primarily emphasis of workfare is put on working, rather than training or other forms of activation (Lodemel & Trickey 2001, 6). The conditionality of investing on human capital makes CCT programmes an instrument not just for short term social assistance but for longer term human capital investment (Rawlings 2005, 134). The first chapter will focus on concepts such as social policies, social assistance and conditional cash transfers, and its linkages to the concept of Amartya Sen‟s capabilities. Also, I will illustrate with Latin American examples, since this concept of social cash transfer and conditional cash transfer had been mainly developed in Latin American countries. The following chapter, I will present the programs that concern us: ILAE and Bolsa Escola, conducted in the Dominican Republic and Brazil. I will approach the characteristics of the programs, their design, the conditionalities, and the target population. I will also focus on the connection between the different programs and the policy context of the programs in the countries. Finally, I‟ll will expose the conclusions arrived concerning the different conditional cash transfers programs. -4- 1.1 RESEARCH FOCUS AND QUESTIONS This thesis focuses on Conditional Cash Transfers programmes from two countries: Bolsa Escola, from Brazil and Incentivo para la Asistencia Escolar – School Attendance Incentive – (ILAE), from Dominican Republic. The rationale underpinning this thesis is a comparison between the two Programmes, both focused on Education. Since the programme developed in the Dominican Republic is in its infancy and Bolsa Escola, conducted in Brazil is more settled, I intend to compare both of them in terms of their design and the social policies framework they respond to. I also intend to compare ILAE program with Bolsa Escola because of the success in achieving the objectives of the latter. According to some evaluations, the program seems to have increased school attendance and prevented dropout (Villatoro 2004, 16). Moreover, the program reduces the poverty gap that affects the beneficiary families (World Bank, in Villatoro 2004, 16). These facts make Bolsa Escola a good case in which mirror and contrast the effectiveness of ILAE and pose a good example for further recommendations and discuss alternatives paths of development for ILAE. In this sense, the research questions elaborated were the following: What are the main similarities and differences of both ILAE and Bolsa Escola Programme? What‟s the social policy framework (broader educational and/or poverty reduction policies) in which the programmes are embedded? Are the programmes a result of a specific policy background in the different countries (DR and Brazil)? What are the main drivers behind the introduction of ILAE? What recommendations can be made to ILAE from the learnings of Bolsa Escola? -5- 1.2 STUDY LIMITATIONS Several practicalities limited the focus of my research. Due to considerations on time and resources, I intended to develop a literature review for making the comparison between the programmes. Since the aim of this thesis was not on assessing the effectiveness of the programmes, and the limited literature regarding this element – especially concerning ILAE, there are no evaluations of the programme available – I will focus only on the design of the different schemes. Another important element to take into consideration is the relatively short time of implementation of these new types of social assistance methods. Therefore, the literature is not conclusive in terms of replicability of their success, for instance. 2. THEORETICAL FRAMEWORK 2.1. FUNDAMENTAL ELEMENTS ON SOCIAL PROTECTION The Universal Declaration of Human Rights (UDHR) identifies three big categories of rights that correspond to every person, without discrimination of any kind. By signing, a State Member undertakes to ensure compliance and concretion through laws and resources to do so. It can be found thirty rights in the UDHR, some of the most important ones and relevant to this document are Article #25: “Everyone has the right to a standard of living adequate for health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right of security in the event of -6- HUMAN RIGHTS’ CATEGORIES There are three major categories of individual rights that correspond to all persons equally, without discrimination of any type: Civil Rights: identified as first-generation rights. Connote a set of individual liberties (of speech, expression, thoughts, association, etc) that is reaffirmed against any claim of the State or another entity to infringe it. Guarantee the independence and immunity of decisions against the power of the State. Political Rights: also identified as first-generation rights, stand for the assurance of the faculty to participate in the political system, to elect and to be elected. Allow to participate in public decisions. Economic, Social and Cultural Rights: stand for the right to work, protection against the effects of disease, old age, death, disability and involuntary unemployment, receive an income that ensures an existence worthy of human dignity, enjoy a standard of living adequate to ensure health and welfare, have rest and leisure. Adapted from ODH/PNUD 2010 unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control” (UDHR). Article #26: “Everyone has the right to education. […] Education shall be directed to the full development of the human personality and to the strengthening of respect for human rights and fundamental freedoms” (UDHR). Especially the Economic, Social and Cultural Rights, to be effectively achieved by the citizens, demand public intervention in order to assure users‟ access to and utilization of social services (Fleury 2006, 158). Thus, through the Universal Declaration of Human Rights, it‟s proclaimed the right to assistance among the citizens by the State. Thus, and according to Piron (2004), one of the most important elements to highlight from a human rights approach to social policies is the obligations placed on the States on the priority given to citizens and the enforceability by the citizenship of certain life conditions that embody the exercise of rights (Piron 2004, in CEPAL 2006). According to the definition of social policies, these are policies used by governments for welfare and social protection, aimed at promoting equity and well being (Fleury 2006, 1280). Therefore, the ultimate goal of social policy is to generate processes of distribution and re-distribution in order to reduce economic, social, cultural, institutional and spatial inequalities (Cañete, Dotel 2007, 18). Consequently, social policies are a manner in which organize interventions from the State that actually strengthens equitable access to opportunities throughout the life cycle of a person, or a collective (ODH 2010, 23). Although there is still quite bit confusion about the concept of social security, social protection and the scope and limitations of both concepts, it is clear that they aim at promote and protect living standards. Nevertheless, the extent and shape social policies take that generate actions of social security and protection will depend on how the State and society are organized in order to achieve the goal of human development (ODH/PNUD 2011, 17). -7- This is relevant to mention because, as Fleury (2006) declare, social policies are valueoriented. Although in some cases there may not be correspondence between the final outcome and the original intent of a policy (Fleury 2006, 1280), they respond to an operational logic associated with ideologies, power structures, institutional accountability and the extent to which policy is formulated and delivered (ODH/PNUD 2011, 17). Thus, if we refer to the different typological approaches of the welfare regimes in order to look at how the system is organized, it can be noticed how the theory and ideologies underpinned behind it permeates the social services delivery. For instance, in liberal welfare regimes, on one hand, the role of the State is minimal. The risks are individualized promoting market solutions and social assistance measures are considered compensatory (CEPAL 2006 in ODH/PNUD 2011, 12). Assistance is meanstested, entitlement rules are therefore strict. Because the progress of social reform has been limited by traditional, liberal work-ethic norms, benefits cater mainly to a clientele of low-income, usually working class, state dependants, and receipt of these benefits are usually associated with stigma (Esping-Andersen 1990, 26). On the other hand, in the social-democratic regime type, the participation of the State is vast. Principles of universalism and egalitarianism are extended to the whole population. Social protection is seen as a citizenship right and entitlements are universal (EspingAndersen 1990, 27). These broader and universal welfare actions contribute to a standard of benefit provision to the population that are less stigmatizing, by eliminating the minority status of social assistance recipients. However, there have been numerous critiques to the different typologies of the welfare regimes developed in the Global North, highlighting that, since it has been defined and shaped by scholars in the Global North it had failed to understand the nature and diversity of social policies in other parts of the world, namely, the so called Global South. James Midgley (2004) points out that the consequences of miscarry such debate between the Western welfarist perspective and the indigenous welfare phenomena in other regions of the world “has impeded the emergence of a multifaceted perspective that recognizes -8- hybridity, incorporates diverse insights and promotes a truly global understanding of social welfare” (Midgley 2004, 217). In the Latin American context, on the other hand, social policies have been closely linked to the ideological and economical reforms that have taken place in recent decades. According to Andrenacci y Repetto (2006), quoted in ODH/PNUD 2010, the global result of the social policy reform in Latin America was a fragmentation of social rights, from a perspective never quite attained of full citizenship based on the right to a minimum socially acceptable standard of living – as a result of the import substitution paradigm in the seventies – to a structural adjustment policies in the eighties and nineties, and the retrenchment of social expenditure as a result of the economic crisis (ODH/PNUD 2010, 13). Nevertheless, since the past decade, there has been developing new frameworks that attempt to re-orient and allow for a better design of social protection. One of these new conceptual frameworks is called Social Risk Management (SRM) developed in the late nineties and beginnings of two thousand by Holzmand and Jørgensen. According to these authors, in a world in constant change, dealing with risks is not a new challenge for humanity. But, new risks are emerging, such as those coming from the development process itself, which can include environmental degradation, and this, in turn, can raise the number of natural catastrophes, such as floods, droughts, hurricanes, among other risks and increase the negative consequences for the population, which is often poor. Also risks related to globalization and globalization-induced income variability, combined with marginalization and social exclusion – with quite high rates in Latin American countries – can, indeed, increase the vulnerability of specific groups in the population (Holzmann and Jørgensen 2001, 531-533). Social Risk Management considers Social Protection as “public interventions to (i) assists individuals, households and communities to better manage risk, (ii) provide support for the critically poor” (Holzmand and Jørgensen 2001, 530). -9- According to Holzman and Jørgensen, in this new framework, Social Protection is considered “As a safety net as well as a spring board for the poor. While a safety net for all should exist, the programs should also provide the poor with the capacity to bounce out of poverty or, at least, resume gainful work. Not as a cost but rather as one type of investment. [It] involves helping the poor keep access to basic social services, avoid social exclusion and resist coping strategies with irreversible negative effects during adverse shocks Focus less on the symptoms and more on the causes of poverty by providing the poor with the opportunity to adopt higher risk-return activities and avoiding inefficient and inequitable informal risk sharing mechanisms” (Idem) This new concept of Social Protection focuses on the poor as a specific group of the society and it does that since the poor are typically more vulnerable and, for instance, more exposed to diverse risks. Also the poor have fewer adequate instruments to deal with these risks, what prevents them – either because of inability or unwillingness – from engaging in higher risk but also higher return-activities (Valdez 2005, 12). Poverty makes the existence of some social groups at permanent risk because of their high vulnerability to get harmed or damaged by changes in their environment or because of individual characteristics (Valdez 2005, 10). Thus, the main instruments that the Social Risk Management framework uses in order to protect people from the diversity of risks along their lifetime are the strategies, the systems and the actors. Risk Management Strategies to address shocks include: A) Prevention Strategies – to reduce the probability of a down-side risk. These are introduced before a risk occurs. B) Mitigation Strategies – to reduce the potential impact of a future down-side risk. Are also employed before the risk occurs, but, whereas preventive strategies reduce the probability of the risk to occur, mitigation strategies reduce the potential impact if the risk were to occur. - 10 - RISK MANAGEMENT MECHANISMS Informal Mechanisms Objective Prevention Risk Mitigation Portfolio Insurance Risk Coping Individuals/ Households/Community - Migration -Grow less risky crops -Engaging in hygiene and other disease preventing activities -Investment in human, physical and real assets -Diversify jobs -Invest in social capital -Marriage/ extended family -Mutual insurance networks -Share tenancy Formal Mechanisms Market-Based -Companybased and market driven labor standards -Invest in multiple financial assets -Microfinance -Private insurance (disability, accident and others) Public Provided -Sound macroeconomic policies -Preventive health care -Education and vocational training policies -Labor market policies -Child labor reduction intervention -Disability policies -Multi-pillar pension system -Protection of property rights -Support for extending financial markets to the poor -Mandated provided insurance (unemployment, old age, disability, survivorship and others) -Sale real assets -Selling of -Social Assistance -Borrow financial assets - Cash Transfers -Child labor -Borrow from -Subsidize important primary -Cut back on consumption banks goods -Dis-saving in human -Public work capital Source: Adapted from Valdez 2005 and Holzmand and Jørgensen 2001 C) Coping Strategies – they seek to relieve the impact of the risk once it has occurred (Holzmand and Jørgensen 2001, 541-542; Valdez 2005, 7-8). System Risk Management can be categorized according to the level of formality, into three: informal arrangements, market-based arrangements and publicly mandated or provided arrangements. And the actors in Risk Management framework goes from individuals, households, communities, NGO, market institutions, government to international institutions (Holzmand and Jørgensen 2001, 542-545; Valdez 2005, 7-8). Other International Organizations, such as the Economic Commission for Latin America and the Caribbean (ECLAC), also advocate for a restructuring of the social protection concept so that it respond to the continuous changes in the society, especially to a globalized world of open economies. This new conception of the social protection, - 11 - according to ECLAC, should try to find the balance between economic growth and social equity, improving competitiveness – through an intensive human capital building process – while ensuring the macroeconomic balance and strengthening the participatory and inclusive political democracy (CEPAL 2006, 5). Social protection should cover the costs of the ruptures of the traditional welfare state paradigms from the 1970 decade and the changes modernity and globalization posts on it, mainly to avoid loss of human capital and core income in periods of cyclical changes, which have negative effects for the individuals and families, and which manifests themselves mostly as dropouts from school, malnutrition and child labor, among many other phenomena. Also, social protection should protect the tenure the access to basic rights in health services and a dignified life in old age (Idem, 11). Ultimately, for ECLAC, the social pact between different actors that generate social protection policies must be based on a human rights approach, and, in its formulation, should be considered the need of a integrated solidarity, for instance, the adoption of a transfer system that offers protection against the risks in life, both through tax and noncontributory manner (CEPAL 2005, 19). It is relevant to highlight at this point that these new approaches to social protection mentioned above deal with poverty through sustainable affirmative action, not as a palliative short response – which in countries like Dominican Republic, respond furthermore to a clientelistic logic, not based on rights. And this is so because, the notion of social protection based on human rights is not limited to palliative responses but it extends to policies promoting development of human capital and risk prevention in an integrated system of universal access to explicitly guaranteed benefits (CEPAL 2005, 14). Thus, this conception of social protection focuses on contributing to the materialization of a series of rights that are obtained by the people based on their humanity and allow them a decent life. Therefore, it gets away from the residual conception, which considers intervention through social policies only to overcome market failures (ODH/IDH 2010, 32). - 12 - 2.2. CAPABILITIES APPROACH TO SOCIAL POLICIES AND SOCIAL PROTECTION This conception of rights-based social protection is closely linked to the Capabilities Approach developed by Amartya Sen. For Sen, capabilities are “the substantive freedoms he or she enjoys to lead the kind of life he or she has reason to value” (Sen 1999, 87). This means that social protection policies should lead to eliminate the hardships that prevent people to have choice. People‟s freedoms are the result of their capacity to have functioning(s). A functioning is an achievement of a person, what she or he manages to do or to be based on goods, while capabilities reveal the person‟s ability to achieve those functioning(s) (Clark 2005, 4). Thus, it can be said that the functioning(s) are related to life condition of the people, and the capabilities are related to freedom and to the actual opportunity a person have to achieve what she or he considers valuable (ODH/IDH 2010, 5). Although Amartya Sen has never established a list of central human capabilities – on the understanding that the selection and weighting of capabilities depend on personal value judgments – some of his followers have attempt to develop such list. In fact, as quoted by Clark (2005) Sen argues that “the problem is not with listing important capabilities, but with insisting on one predetermined and canonical list of capabilities, chosen by theorists without any general social discussion or public reasoning” (Sen 2004, 77-81 on Clark 2005, 7). Although, when exemplifying, Sen mentions intrinsically valuable capabilities such as “being able to live long, escape avoidable morbidity, be well nourished, be able to read, write and communicate, take part in literacy and scientific pursuits and so on” (Sen 1984, quoted in Clark 2005, 5). Nevertheless, the most influential and well-known attempt to complete Sen‟s capabilities approach can be found in feminist philosopher Martha Nussbaum‟s writings. The list developed by Nussbaum includes (Clark 2005, 6): 1. Life. Being able to live to the end of a human life of normal length 2. Bodily Health. Being able to have good health, including reproductive health - 13 - 3. Bodily Integrity. Being able to move freely from place to place. To be secure against violent assault (sexual and domestic violence). Having opportunities for sexual satisfaction and for choices in matters of reproduction 4. Senses, Imagination and Thought. Being able to use the senses, to imagine, think and reason – and to do these things in a „truly human‟ way. 5. Emotions. Being able to have attachment to things and people outside ourselves. In general, to love, to grieve, to experience longing, gratitude and justified anger 6. Practical Reason. Being able to form a conception of the good and to engage in critical reflection about the planning of one‟s life 7. Affiliation. A. Being able to live with and toward others, to recognize and show concern for other human beings. B. Having the social bases to self-respect and non-humiliation. 8. Other Species. Being able to live with concern for and in relation to animals, plants, and the world of nature 9. Play. Being able to laugh, to play and enjoy recreational activities. 10. Control over one’s environment. A. Political. Being able to participate effectively in political choices that govern one‟s life. B. Material. Being able to hold property and having property rights on an equal basis with others. According to Nussbaum, this list of central human capabilities “provides basic political principles that should be embodied in constitutional guarantees, human rights legislation and development policy” (Clark 2005, 6). This conception about freedoms and capabilities can be and has been used to investigate on other social topics such as poverty, inequality, well-being, social justice, gender, social exclusion, health, disability, child poverty and identity. Indeed, the Capability Approach is the starting point of the Human Development Paradigm that led to the Human Development Report and, specifically, the Human Development Index (HDI), which covers income (opportunities), life expectancy and education (Idem, 11). - 14 - For instance, using this perspective, a definition of poverty can be seen as a “deprivation on basic capabilities, rather than merely as lowness of income” (Sen 1999, 87). Is important to mention that this perspective do not renounce to the fact that low income is a clear indicator of poverty, indeed, as Sen has argued, lack of income can be a principal reason for a person‟s capability deprivation, nevertheless, there are other indicators of poverty, besides that lowness of income, that are sensible to this perspective. But also the fact that, possessing goods does not necessarily guarantees real accomplishments. That means the two conceptions can be, to some extent, connected. A diminished in one of them would lead to a diminished in the other, and vice versa; but the relationship in not simply directly proportional, but conditional, as Sen refers when affirms that „relative deprivation in terms of incomes, can yield absolute deprivation in terms of capabilities‟ (Sen 1999, 89). Thus, the actual freedoms in which in based the Capability Approach depends on the access to social opportunities and public goods. The supply of these goods is determined by the level of resources of a country and the Rule of Law that regulates the power relations. The level of resources provides the support and the material limits of the opportunities. The Rule of Law guarantees the exercise of options by the people, given the material possibilities. However, in an unequal society, and in a context of a defective Rule of Law, institutions reproduce inequality. As a result, access to opportunities depends on the personal and group power to which the person belongs to and not on rights (ODH/IDH 2010, 6). In the context of inequality in Latin America, where the proportion of the income of the richest 20% group is high in contrast with the 20% of the poorest group in society – Dominican Republic is ranked 24 out of 126 Latin-American nations with the biggest inequality gaps, and according to CEPAL´s estimations, the gap between rich and poor tends to grow (ODH/IDH 2010, 32) – social protection should support social groups that, because of institutional, social, politics or economic conditions, are clearly disadvantaged in terms of opportunities and are less benefited by economic growth and have less access to social institutions (ODH/IDH 2010, 18). - 15 - 2.3. CONDITIONAL CASH TRANSFERS AS AN ENHANCEMENT OF CAPABILITIES Thus in a rights-based social protection system, social programs developed to tackle poverty need to focus not only on short term emergencies, but also encourage the development of networks and capacities to promote medium and long term social inclusion of the beneficiaries. Poverty is a multidimensional social problem, as well as its procesual character and relations, which has to be taken into account when designing policies focused to tackle it. Hence, these programs should complement relief efforts to the manifestations of poverty in the short term, along with measures focusing on the structural and intergenerational causes (Idem, 44). Along with low income, poor families have an insufficient level of human capital in nutrition, health and education, among other aspects, which affects the future prospects of the youth and puts at risk the access to equal opportunities (CEPAL 2005, 44). This is important because poverty condition the development opportunities that families pass on from generation to generation. For instance, the low level of education of broad segments of the population is an important mechanism of intergenerational poverty transmission. Indeed, low levels of education and lack of access to quality education for the young people block their main channel of mobility and social inclusion (Idem, 47). In this context, if we refer back to the Capabilities Approach, it can be noticed that all the elements mentioned as affecting the future prospects of the youth – nutrition, health and education – are considered in Martha Nussbaum‟s lists of central human capabilities. Also is important to mention that as the substantial freedoms are the principal ends of development, the means to achieve those freedoms are the income, technology, institutions and social and environmental opportunities. As mentioned before, the actual freedoms in which is based the Capability Approach depends on the access to social opportunities and public goods (ODH/IDH 2010, 5-6). There‟s an innovative approach to the delivery of social services, namely Conditional Cash Transfers (CCT), that are design as a response to some of the elements identified that reproduce poverty, such as low levels of education and the quality of that education, - 16 - and poor access to health and low levels of nutrition. These programs have been established in numerous countries in recent years, particularly in Latin America and the Caribbean. Several of these programs have acquired an important role in individual countries‟ portfolio of poverty alleviation strategies. CCT, as their name implies, provide money or in kind help to poor families on the condition that they make investments on human capital of their children and invest on improving their capabilities – such as sending the children to school or bringing them to health centers (Rawlings 2005, 134). This is how CCT combine immediate poverty relief – such as lack of income – while strengthening the human capital of the new generations, encouraging positive synergies between this short and long term objectives and between different dimensions of human capital (CEPAL 2005, 47). Strengthening human capital is one of the main mechanisms of poverty and inequalities reduction in the future and in overcoming intergenerational reproduction of poverty, improving the productive capacity of people (Idem, 54). This conception is based on the premise that one of the fundamental reasons on the reproduction of intergenerational poverty is the lack or low inversion on human capital in terms of education, nutrition and health (Villatoro 2004, 10) and low capabilities because failure or inefficient access to social opportunities and public goods (ODH/IDH 2010, 56). In consequence, these kinds of programs seek, by conditioning transfer, develop the necessary incentives to maintain or increment the inversion in human capital on individuals and poor families (Villatoro 2004, 10). Also, enhance the access to the means identified by Sen as the promotion of capabilities and, ultimately, enhance the substantial freedoms of the people. One important element of these types of programs is the role family plays in the development of them, especially women, since they are the main recipients and administrator of the benefits, as well as in the diffusion tasks of the activities (CEPAL 2005, 48). This is important since evidence shows that management of the benefits by women (family‟s mothers) produces better results in the food security and quality of life of the children (Villatoro 2004, 21). - 17 - Although still premature to assess the impact of these CCT programs on the future poverty of the children participating, in some of the programs – namely Bolsa Escola in Brazil and Oportunidades in Mexico – the programs have demonstrated a positive effect on enrolment rates for both boys and girls (Rawlings 2005, 149). For instance, preliminary evidence on Bolsa Escola, shows positives results on school assistance, prevention on drop-outs and reducing the gap age/course level (World Bank 2001, in Villatoro 2004, 15). Other programs refer also this trend, such as Red de Oportunidades (Opportunity Network) in Panama, where when comparing the enrollment rate in the geographical areas participating in the program, the rate goes above 90% in comparison to those areas not participating in the program, with a rate of 78.5% (Rodriguez 2010, 30). There are some critiques to the achievement of these kinds of programs, for instance, although the enrollment rates increase, the evidence does not show significant statistical differences on the level of the learning in children participating on one CCT program – namely, Bolsa Escola – with children not participating in the program (World Bank 2001 in Villatoro 2004, 16). Another relevant element to consider is the conclusions on some studies developed where the results indicate the Bolsa Escola program diminish the poverty gap that affects beneficiary families, but, in terms of reducing the poverty, the evidence is not consistent (Idem, 16). From the information available, it can be concluded that the programs have had a significant effect on the human capital of the beneficiaries in terms of enrollment rates, school assistance, grade promotions and additional schooling years, nevertheless, some further studies most be conducted in order to assess the ultimate impact of the programs, since the results are related not only to human capital accumulation but with work opportunities once the beneficiaries have left the program (CEPAL 2005, 49-54) this is also relevant in terms of assessing the freedoms of the beneficiaries due to the enhancement of their human capabilities. - 18 - 3. THE CCT PROGRAMS: ILAE AND BOLSA ESCOLA 3.1 INCENTIVO A LA ASISTENCIA ESCOLAR (ILAE – SCHOOL ASSISTANCE INCENTIVE). 3.1.1 CONTEXT OF THE PROGRAM The Program Incentivo a la Asistencia Escolar (ILAE because of Spanish acronyms – School Assistance Incentive) started to be implemented in 2004, with the general aim of breaking down the intergenerational transmission of poverty, on the understanding that improving the inversion of poor families on education, health and food provision, will enhance the accumulation of human capital in the family, especially in the children (GCPS 2008, 6). This programs comes to substitute the first conditional cash transfer program in the Dominican Republic, known as Tarjeta de Asistencia Escolar (TAE – School Assistance Card). This program is developed as a result of a new orientation of the social policy in the country as a result of the economic crisis in 2003, which generated a rise of the poverty rate, from between 16 to 20% of the people living under poverty (PNUD quoted in GCPS 2008, 6). It is important to highlight that, in the Dominican Republic social policy has not been part of a development strategy, but social policy has been reduce to assistance aid, which have debilitated the public awareness of the society of rights, has encouraged individual responses to the social problems and weaknesses empowerment of society to participate in the social decisions that affect them (ODH/IDH 2010, 40). This context along with the use of the social benefits for politics as a culture based on primary relations, encouraging political patronage, in the long run has made social policy in the Dominican Republic residual, disarticulated and eminently assistencialist (Idem). But there have been some attempts to strengthen the rights based approach to social policy in the country. For instance, in 2000 was born the Gabinete de Coordinación de la Política Social (GCPS – Social Policy Coordination Gabinet) and, along with the first poverty map developed in 1997 and the development of the Sistema Único de Beneficiarios (SIUBEN – Beneficiary - 19 - System) represented a huge step on identifying the beneficiaries of the programs based on objective criteria. Also in 2002, the first CCT program (TAE) was designed and implemented. This first step moved forward and in 2004 with the interest of promoting welfare programs targeted at the poor, was developed the Solidarity Program, under the leadership of the GCPS. It is noteworthy the efforts made in education, health and social security with the development of the Education Law in 1997, General Health Law in 2001 and the Dominican Social Security System that same year, which have found a tortuous path for their development (ODH/IDH 2010, 40). 3.1.2 OBJECTIVES, TRANSFERS AND TARGETING OF THE PROGRAM The ILAE program is part of the Solidarity Program. The program´s main objective is to “Promote the breakdown of the intergenerational transmission of poverty, improving the investment that households make in education, health and nutrition” (Sánchez et al 2009, 3). This program has two main components: 1) Comer es Primero (Eating Comes First) and 2) Incentivo a la Asistencia Escolar (School Attendance Incentive). Eating Comes First consists on a monthly transference of RD$ 700 pesos (the equivante of US$ 18.18) to the household head through a debit card oriented to buy food and conditioned to the compliance of the conditionalities of the program (Manual Operativo del Programa de Transferencias Condicionadas de Solidaridad 2009, 25). ILAE program, on the other hand, has its own objective which is to “Promote and encourage attendance, retention and school performance through a monthly monetary incentive to be given to poor mothers living in rural and marginal urban areas” (Cañete and Dotel 2007, 111). The transfers in ILAE are variable, depending on the number of children beneficiaries of the program. For families with 1-2 children between 6 and 16, the transfers reach RD$ 300 pesos. For families with three eligible children, the transfers reach RD$ 450 pesos, and for families with four or more children, transfers reach RD$ 600 pesos (Manual Operativo del Programa de Transferencias Condicionadas de Solidaridad 2009, 25). It is - 20 - important to say that transfers are paid through a debit card that can be used in a specific network of authorized shops. Targeting of the beneficiaries is made through the SIUBEN, is made based on a socioeconomic assessment of the potential beneficiaries to prioritize and select them so that are allowed to access to the different social programs. In this way households are arranged according to socio-economic gap criteria. Solidarity program households‟ beneficiaries are identified and classified according to the SIUBEN in moderate (ICV-II) or extreme poverty (ICV-I). This classification is performed according to the Quality of Life Index (ICV for its Spanish acronym). Active beneficiaries of the program correspond to eligible households in which there are children among 6 and 16 years old enrolled in public education between 1st and 8th grade. In which households´ heads holds a Dominican identity document and accepts to be part of the program and to comply with the conditionalities (Manual Operativo del Programa de Transferencias Condicionadas de Solidaridad 2009, 12; GCPS 2008, 7). By June 2010, the households being beneficiaries of the Solidarity Program were 525,578, this evidence an important expansion if it is compared to the 193,988 households receiving the benefits in 2005 (Programa Solidaridad 2010, 2). It is important to mention that this data is not disaggregated by component, which is hard to say how many households receive benefits from ILAE program. The Solidarity Program (both components: Eating Comes First and School Attendance Incentive) holds an annual budget of US$16.4 million which corresponded to approximately 0.4% of the GDP of 2005. By 2009, the annual budget reached US$119.9 million, which corresponded to 2.36% of the GDP of 2009 (Idem). Contrary to the information regarding the scope of the Solidarity Program, the budget is disaggregated around the different components. Thus, for 2005 Eating Comes First had a budget of RD$576,428,600 (approximately US$14.9 millions) and ILAE had a budget of RD$57,286,800 (approximately US$1.49 million). By 2009 the numbers behind the different components of the programs were RD$ 3,890,322,800 (approx. US$101.04 millions) for the Eating Comes First component. ILAE had a budget of RD$728,719,200 - 21 - (aprox.US$18.93 millions) (Idem, 3). If we compare the budget allocated at the beginnings of the implementation of the program and the one allocated 4 years later, it can be noticed the increase in the budget which should reflect the importance of the program for the State and for the poverty alleviation strategy. 3.1.3. CONDITIONALITIES As a Conditional Cash Transfer, ILAE is based upon a conditionality system through which, both the Dominican government and the beneficiaries are committed to. In order to receive the transfer, the beneficiaries need to meet some requirements as guarantee the school attendance of the children in at least 80% of the days per month. In this component, the program does not consider as conditionality to receiving the transfer the participation of the household´s head in promotion action – in the other component Eating Comes First participation in this meetings is part of the conditionality – such as meetings to share knowledge about preventive health, family planning, hygiene and environmental sanitation. Also the meetings are held for support and understanding of the conditionalities of the component (Manual Operativo del Programa de Transferencias Condicionadas de Solidaridad 2009, 22). Monitoring System of the conditionalities is held bimonthly starting on SeptemberOctober each year with enrollment and the starting of the school year. July/August is not monitored because of general holydays, where it is not paid. 3.2 BOLSA ESCOLA PROGRAM 3.2.1 CONTEXT OF THE PROGRAM The Bolsa Escola Program was first implemented by the government of the Campinhas municipality, located in the Southeast State of São Paulo, Brazil in 1995. Bolsa Escola programs are a poverty-targeted social assistance programs which gives chash transfers to poor families with school-age children on the basis on some conditionalities, such as attending school a minimal agreed. - 22 - In that same year of 1995, it started to be implemented a new version of the program in the Federal District of Brasilia. By 2001, 6 years later, 7 more States and around 200 municipalities were running Bolsa Escola-type programs (Villatoro 2004, 13). In 2003, in the context of the new poverty reduction strategy, Fome Zero, all the programs were included in the federal program Bolsa Familia, in which were centralized the administration of all the conditional transfer devices (Idem, 13-14). By 2005, Bolsa Familia program in Brazil was being introduced as an overarching welfare reform program that consolidated numerous smaller programs to become the largest CCT program internationally, in terms of both coverage and financing (Rawlings 2005, 135). 3.1.2 OBJECTIVES, TRANSFERS AND TARGETING OF THE PROGRAM According to the World Bank report, from 2001, Bolsa Escola Program has four central objectives, which are: Increase educational attainment Reduce short-term poverty and subsequently reduce poverty Reduce child labor in the long term. Act as a potential safety net Transfers in Bolsa Escola program are given to households with children from 6 to 15 years old which meet the requirements. But in this program, transfers do not depend on the number, age or gender of the children of the beneficiaries‟ households and they vary from one municipality to the other. It has been suggested that and adjustment of the amounts of the transfers according to the characteristics of the families could improve the efficiency and effectiveness of the program (Villatoro 2004, 14). Target of the programs are done geographically but through a national system. This means that the program start targeting geographically with the poorest neighborhoods within a municipality. Beneficiaries of those neighborhoods are chosen based on an income means test or the score system, which considers various aspects of the potential beneficiaries‟ living standards, such as housing status, engagement in the labor market, - 23 - educational attainment, number of children in the house, among others (World Bank 2001,8). The selection of eligible families is made for a federal government body, and the final selection of the beneficiary families is made at the local level with the participation of Social Boards, which include representatives of civil society organizations (Villatoro 2004, 14). Active beneficiaries are households with school-age children among 6 to 15 years old who are enrolled in primary or secondary school, and which belongs to families with monthly incomes below R$90 (approx. US$50). 3.1.3. CONDITIONALITIES As a Conditional Cash Transfer, Bolsa Escola is based upon a conditionality system through which, both the Bazilian government and the beneficiaries are committed to. In order to receive the money transfer, the beneficiaries need to meet some requirements as guarantee the school attendance of the children in at least 85% of the days per month. If the child does not meet the minimum attendance requirement for the month, then the cash transfer is not paid to the family. In order to assure the requirements, the monthly payment is made once school attendance is deemed satisfactory (BID 2001, 19). Monitoring system is held in a 3-month period (Rawlings 2005, 142). Participation of local stakeholders ensures good targeting and that monitoring occurs at various levels (BID 2001, 19). - 23 - 4. CONCLUSIONS The experience from Conditional Cash Transfer Programs in Latin America holds several lessons for the Dominican Republic to learn in terms of design, implementation and articulation with other poverty alleviation strategies. Among the lessons learnt in terms of the design of the program it can be said that there have been important advancements as to target criteria used to reach the eligible beneficiaries of the program. For instance, the creation of the SIUBEN has represented an important step forward on selecting people using technical criteria and diminishing the political patronage. However the system is still vulnerable to possible bad practices and to the use of the program for patronage purposes. A geographical system, as the one used in Bolsa Escola, seems to be stronger when diminishing the potential bad practices associated with targeting criteria (Cañete and Dotel 2007, 76). As mentioned above, the Solidarity Program provides in-kind transfers to the beneficiaries of the program through a debit card which can be used to buy in different authorized shops. Nevertheless, this system is prone to divert the funds which can lessen the benefits. Moreover, this manner minimize the freedom of the family in how spend the money (World Bank 2001, 12). Evidence from other CCT of the region – as Mexico and Brazil – demonstrate that families spend much of the money transfer on food and other basic necessities without need to coercion (IDB 2005, 62). The conditionalities represent a vital part of the ILAE program and the assurance of investing in the human capital of the beneficiaries, so, monitoring that children actually are attending school represent one of the most important elements of the programs. An adequate monitoring system both of the compliance of the conditionalities by the beneficiaries as well as the achievement of the objectives of the program, constitute a very important element for the - 24 - sustainability of the program. Without an adequate monitoring and evaluation system, ILAE can become a simple financial outlay with no more effects than of minimally soothe the immediate needs of poor families (Cañete and Dotel 2007, 77). Moreover, a monitoring and evaluation system would help the citizenship being accountable of the cost-effectiveness of the programs run by the State. In the Dominican Republic attending school does not necessarily results in enhancing the human capital of the children. Actually, although attendance rate has increase in the last 12 years, quality of education, compared with those from the region, is discouraging: 90% of the Dominican students in third-grade math have a performance that is at worst level or below, while, on average, only 46% of Latin-American student are placed in this two categories (ODH/IDH 2010, 34). In these sense, ILAE programs should be seen as a complement but never as a substitute for investments in school, either by the national government of by the municipalities (World Bank 2001, 24). Also these programs have revived the debate of providing accessible, high-quality health and education services in poor areas (Rawlings 2005, 152). Lastly, for poverty strategy to be effective in tackle poverty it needs to be articulated with other development instruments. For instance, CCT could be linked to other actions on promoting employment, so that the employment needs are met, once a person leaves the program. 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