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Program Conditionality and Food Security: The Impact of PROGRESA and PROCAMPO Transfers in Rural Mexico

Author

Listed:
  • M.Ruiz-Arranz

    (International Monetary Fund, Washington DC, USA)

  • B.Davis, S.Handa

    (Food and Agriculture Organization of the United Nations, Rome, Italy)

  • M.Stampini

    (University of North Carolina at Chapel Hill, NC, USA)

  • P.Winters

    (American University, Washington DC, USA)

Abstract

This paper examines the PROGRESA and PROCAMPO cash transfer programs in Mexico and evaluates their impact on household food security and nutrition. These two programs differ in their targeting and design: PROGRESA is aimed at women and program conditionality is linked to current consumption and human capital investment; PROCAMPO benefits male farmers and program conditionality is linked to agricultural production. The main question addressed by the paper is whether a cash transfer program geared to agricultural production can have the same impact on food security as a cash transfer program geared to consumption through purchases. Our results suggest that monetary payments linked to a productive asset -land- can have as large or larger impact on food security as cash transfers not linked to a productive asset. We show that both programs boost total food consumption and caloric intake in similar proportions. However, increased food security is achieved through different channels - for PROGRESA through purchases while for PROCAMPO through investment in home production. This suggests that the choice of program design depends on objectives beyond total food consumption and caloric intake, such as consumption from specific food categories, diversity of food consumption, investment in agricultural production, and the degree of access to retail food markets.

Suggested Citation

  • M.Ruiz-Arranz & B.Davis, S.Handa & M.Stampini & P.Winters, 2006. "Program Conditionality and Food Security: The Impact of PROGRESA and PROCAMPO Transfers in Rural Mexico," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 7(2), pages 249-278.
  • Handle: RePEc:anp:econom:v:7:y:2006:i:2:p:249-278
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    File URL: http://www.anpec.org.br/revista/vol7/vol7n2p249_278.pdf
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    References listed on IDEAS

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    1. Sadoulet, Elisabeth & Janvry, Alain de & Davis, Benjamin, 2001. "Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico," World Development, Elsevier, vol. 29(6), pages 1043-1056, June.
    2. Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October.
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    4. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-1361, September.
    5. Handa, Sudhanshu, 1994. "Gender, headship and intrahousehold resource allocation," World Development, Elsevier, vol. 22(10), pages 1535-1547, October.
    6. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
    7. David Sahn & Ari Gerstle, 2004. "Child allowances and allocative decisions in Romanian households," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1513-1521.
    8. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    9. Hoddinott, John & Haddad, Lawrence, 1995. "Does Female Income Share Influence Household Expenditures? Evidence from Cote d'Ivoire," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 77-96, February.
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    Citations

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    Cited by:

    1. Teresa Molina-Millan & Tania Barham & Karen Macours & John A. Maluccio & Marco Stampini, 2016. "Long-term Impacts of Conditional Cash Transfers in Latin America: Review of the Evidence," IDB Publications (Working Papers) 96136, Inter-American Development Bank.
    2. Fitz, Dylan, 2013. "Development Chutes and Ladders: A Joint Impact Evaluation of Asset and Cash Transfers in Brazil," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150254, Agricultural and Applied Economics Association.
    3. Teresa Molina-Millan & Tania Barham & Karen Macours & John A. Maluccio & Marco Stampini, 2016. "Long-term Impacts of Conditional Cash Transfers in Latin America: Review of the Evidence," IDB Publications (Working Papers) 7891, Inter-American Development Bank.
    4. Lina Salazar & Julián Aramburu & Mario González & Paul Winters, 2015. "Food Security and Productivity: Impacts of Technology Adoption in Small Subsistence Farmers in Bolivia," IDB Publications (Working Papers) 87853, Inter-American Development Bank.
    5. Pangaribowo, Evita Hanie, 2011. "Supporting Household Consumption in the Time of Economic Crisis: Evidence from Food Security Program in Indonesia," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103650, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Cash Transfer Programs; PROGRESA; PROCAMPO; Food Security;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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