Two years of the Family Allowance Programme
16 October 2005
Unofficial translation of the column
Panorama Econômico
(Economic Outlook), published in O Globo on
16 October 2005.
This Thursday, 20 October, is the second anniversary of the creation of the Family Allowance programme. According to the World Bank, in twenty-four months it has become the most extensive income-transfer programme anywhere in the world, and the best focused of all such programmes in Brazil. It has reached every single municipality in the country, directly benefiting 8 million families – and by Christmas that figure will have risen to 8.7 million. The target for next year is a total Family Allowance budget of R$8.7bn (approx US$4bn) covering 11.2 million households.
This year the total budget is R$6.5bn (US$2.9bn), from which individual families receive between R$15 (US$7) and R$95 (US$43) per month – the average amount is R$66 (US$30). The controversial implementation phase having passed, the programme is now receiving positive evaluations from the Ministry for Social Development and the World Bank. From the Brazilian government comes the information that two-thirds of the money dispensed through the programme is spent on food – and as most of the recipient families' purchases are made at shops close to their homes, the programme has also provided welcome stimulation for local economies.
Other positive results of the programme are being ever more closely monitored. Eighty percent of the schools attended by children whose families are receiving money from the programme have provided statistics on pupils' attendance, and they report that between May and June 97% of the children in question were present for at least 85% of their lessons. (In comparison, in autumn 2003 the report compiled by the School Allowance programme – which has since been incorporated by the Family Allowance – contained information on school attendance from 19% of the schools involved).
Kathy Lindert, an economist with the World Bank, has followed the progress of the Family Allowance since the beginning. She is very enthusiastic about the programme, which is well on the way to becoming a yardstick for the World Bank in its evaluation of other such initiatives around the world. She states that no other programme in Brazil focuses so effectively on the poor: the figures for 2003 show that 73% of funds were directed to recipients who were among the poorest 40% of Brazil's population. (Only one other income-transfer programme, Solidario in Chile, achieves better targeting of the poorest segment of the population.)
The development of the Family Allowance has been remarkably rapid given the scale of the project, and of the country itself. The registration process has improved, and operating costs have fallen from 5.3% of total budget in 2002 to 2.5% today.
This Thursday, 20 October, is the second anniversary of the creation of the Family Allowance programme. According to the World Bank, in twenty-four months it has become the most extensive income-transfer programme anywhere in the world, and the best focused of all such programmes in Brazil. It has reached every single municipality in the country, directly benefiting 8 million families – and by Christmas that figure will have risen to 8.7 million. The target for next year is a total Family Allowance budget of R$8.7bn (approx US$4bn) covering 11.2 million households.
This year the total budget is R$6.5bn (US$2.9bn), from which individual families receive between R$15 (US$7) and R$95 (US$43) per month – the average amount is R$66 (US$30). The controversial implementation phase having passed, the programme is now receiving positive evaluations from the Ministry for Social Development and the World Bank. From the Brazilian government comes the information that two-thirds of the money dispensed through the programme is spent on food – and as most of the recipient families' purchases are made at shops close to their homes, the programme has also provided welcome stimulation for local economies.
Other positive results of the programme are being ever more closely monitored. Eighty percent of the schools attended by children whose families are receiving money from the programme have provided statistics on pupils' attendance, and they report that between May and June 97% of the children in question were present for at least 85% of their lessons. (In comparison, in autumn 2003 the report compiled by the School Allowance programme – which has since been incorporated by the Family Allowance – contained information on school attendance from 19% of the schools involved).
Kathy Lindert, an economist with the World Bank, has followed the progress of the Family Allowance since the beginning. She is very enthusiastic about the programme, which is well on the way to becoming a yardstick for the World Bank in its evaluation of other such initiatives around the world. She states that no other programme in Brazil focuses so effectively on the poor: the figures for 2003 show that 73% of funds were directed to recipients who were among the poorest 40% of Brazil's population. (Only one other income-transfer programme, Solidario in Chile, achieves better targeting of the poorest segment of the population.)
The development of the Family Allowance has been remarkably rapid given the scale of the project, and of the country itself. The registration process has improved, and operating costs have fallen from 5.3% of total budget in 2002 to 2.5% today.