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Targeted Cash Transfer Programmes in Brazil: BPC and the Bolsa Familia

  • Marcelo Medeiros

    ()

    (International Poverty Centre)

  • Tatiana Britto

    ()

    (Visiting researcher, IPC)

  • Fabio Veras Soares

    ()

    (International Poverty Centre)

We describe several characteristics of the two most important targeted cash transfer programs in Brazil, the Continuous Cash Benefit (BPC) and the Bolsa Familia. We discuss their institutional aspects, long term sustainability, beneficiaries and levels of targeting. We also address the need for conditionalities, the effects of the transfers on labor market participation, as well as the relevance of the so called ?exit doors?. Our conclusion is that, on the one hand, the programs are accomplishing the goals they were designed to achieve. They reduce poverty and inequality, under costs which are compatible with the Brazilian budgetary capacity. On the other hand, the programmes have no negative effects on incentives to work and contributions to the pensions system. Consequently, we argue that these programmes should be kept in place and, if possible, expanded in the near future.

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File URL: http://www.ipc-undp.org/pub/IPCWorkingPaper46.pdf
File Function: First version, 2008
Download Restriction: no

Paper provided by International Policy Centre for Inclusive Growth in its series Working Papers with number 46.

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Length: 19
Date of creation: Jun 2008
Date of revision:
Publication status: Published by UNDP - International Poverty Centre, June 2008, pages 1-19
Handle: RePEc:ipc:wpaper:46
Contact details of provider: Web page: http://www.ipc-undp.org
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  1. Fabio Veras Soares & Sergei Soares & Marcelo Medeiros & Rafael Guerreiro Osório, 2006. "Programas de Transferência de Renda no Brasil: impactos sobre a desigualdade," Discussion Papers 1228, Instituto de Pesquisa Econômica Aplicada - IPEA.
  2. Maurício Cortez Reis & José Márcio Camargo, 2007. "Rendimentos Domiciliares com Aposentadorias e Pensões e as Decisões dos Jovens Quanto à Educação e à Participação na Força de Trabalho," Discussion Papers 1262, Instituto de Pesquisa Econômica Aplicada - IPEA.
  3. Sergei Suarez Dillon Soares & Rafael Guerreiro Osório & Fabio Veras Soares & Marcelo Medeiros & Eduardo Zepeda, 2007. "Conditional Cash Transfers in Brazil, Chile and Mexico: Impacts upon Inequality," Working Papers 35, International Policy Centre for Inclusive Growth.
  4. Sudhanshu Handa & Benjamin Davis, 2006. "The Experience of Conditional Cash Transfers in Latin America and the Caribbean," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 513-536, 09.
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