Foreign Policy Blogs

Handouts with Conditions

Another Economist article caught my eye this week, it discusses a conditional cash transfer (CCT) program in Brazil, Bolsa Familia (Family Fund). CCT programs give poor families money if they meet certain conditions, usually participation in public health programs or educational sessions. Programs like the one in Brazil have been tried in many Latin American countries, and I believe the first was Progresa in Mexico. They have been shown to have very positive effects on poverty.

A web search for “conditional cash transfer” gives an enormous number of studies on the subject, all with varying levels of good things to say about them. I think they’re a terrific idea. The economist gives three potential concerns, to which I would like to add one.

1. Fraud, the money may not go to the right people

2. Dependence, the CCTs could become a part of the state-citizen relationship, rather than a catalyst for economic growth.

3. Corruption, CCTs may be a simple case of vote-buying

My concern is related to these, and I freely admit that it may be alarmist. But I’ve worked in too many states that did not have the best interests of their people in mind to really trust this kind of program without strong assurances that what is going on is ethical.

So much depends on what conditions are set. Get your child vaccinated? That seems fine. But what if China set a CCT for abortions or permanent surgical contraception? This isn't a reason not to love Bolsa Familia, just a concern for where the movement could go if we don't pay attention.

 

Author

Kevin Dean

Kevin Dean is a graduate student pursuing a master's degree in international conflict management and humanitarian emergencies at Georgetown University. Before returning to school in Fall 2006, he spent six years working in the former Soviet Union - most of that time spent in Central Asia. He has managed a diverse range of international development programs for the US State Department and USAID. He has also consulted for several UN agencies and international NGOs, and is fluent in Russian. Kevin is originally from Des Moines, Iowa and studied Russian, East European, and Eurasian Studies at the University of Iowa.