Bolsa-Família: template for poverty reduction or recipe for dependency?

I. Brazilian’s situation 
A. Poor population 
 Economic aspect  
Brazil is a country which is always in full growth. It doesn’t stop to evolve over time. Admittedly, it isn’t the world’s top superpower, but it’s a big power in the making.
Indeed, Brazil has been the sixth economic power since 2011 while overtaking the United Kingdom and being just behind France, according to the CEBR (Center for Economics and Business Research).   
According to the forecast of the CEBR, Brazil ends with the sixth global GDP. This news makes the headlines because it’s the first time that a country in South American finds one’s way in front of Great Britain. Moreover, the director of the CEBR who is Douglas McWilliams

published a humorous comment which was “Brazil has beat the European countries at football for a long time but to beat them is a new phenomenon”. 
In ten years, we can notice a high increasing of GDP. In 2012, it was about 2 252 of dollars against 430.53 of dollars in 1992. 
Brazil is an agricultural power in owning of a vast area of cultivable lands and in being the first world producer of coffee, sugar, citrus fruit and the second for the production of soya and bovine. It’s also a mining, power because it’s the first producer of iron and owns in its basement exploitations of ore. 
 It’s equally the ninth industrial producer in the world with a production which has multiplied per four since the sixties and owning a diversified industry with the textile, the shoes… There are enormously incoming tides of merchandise’s exchange with others countries. It’s about imports and exports. Brazil has owned a liberalized economy since 1990. The industrial sector represents 38 % of Brazilian GDP.  
Admittedly, Brazil distinguishes itself at the level of its GDP, but we can’t say it has the same position in HDI (Human Development Index). In 2012 Brazil comes 85th in spite of an increasing of HDI, which rises from 0, 6 in 1992 to 0,730 in 2012.  
 Demographic aspect  
We can add that Brazil is a power that’s the demographic weight is a powerful factor. Moreover, with China and India they represent 40 % of the world population and 47% of the population of South Countries. This demographic weight fuels enormous internal market of actual and potential consumer.  
This country is known a fast development of the middle classes because today they are composed of seventy-five million persons namely 50 % of the total population.  A researcher of Center of social policies of the FGV (Foundation Getúlio Vargas) indicated in 1992, the middle class represented only a third of the population and added that the social inequality has reduced since 2001.   

To 2001 at 2009, the income per person for poorest progressed of 6,79 % per year against 1,49 % for richest. The rich are in possession of 50 % of the country’s income so we note that the country stays very unequal. It’s with this strong demographic weight that the western countries are afraid to be overwhelmed with crowds of this population very numerous. 
 Social aspect 
Concerning the GINI coefficient, Brazil is classified in the number 16. This index measures the degree of inequality in the sharing out of family income in a country. It rises from 0,627 in 1990 to 0,567 in 2012. 
Since a few years, Brazil has succeeded in withdrawing 28 million of Brazilian of the poverty and in bringing 36 million at the middle class.  We can note the development following:  
In 1992, there was 23 million of the population who died of hunger on a total population of 184 million. It’s one Brazilian on seven or approximately 14%.
In 2012, it doesn’t remain that 13, 6 million on 200 million of the total population namely 6 %. In spite of a very strong reduction of the poor population, we notice that it’s always very strongly present.  
B.  Poor population 
 Poorest have at one’s disposal in one year the same income that richest in eleven days. There is a very strong disparity between inhabitants of this country. 
We note very strong social inequalities within Brazil in particular for education, health, flats….
Concerning the problem of access to education, we can note that 68 % of Brazilian doesn’t finish four years of studying. 
This problem is due to an inequality in the distribution of income. In addition, the educational level is particularly low.    

We can add that the social mobility in Brazil is inferior to the one in most neighboring countries. We observe a strong correlation between the relative levels of education of the generation individual at another: the probability for a Brazilian to have the same relative level of education that his parents are of 70%.   
We will add that the under-investment in the education is all the more detrimental that it set out at Brazil a very high return, higher than that observed in the rest of the Latin America:  
On average, an additional year of education is associated with an increased remuneration of 15%. It’s due at a middle level of education less higher and so at a great rarity of qualified workers. It generates an opportunity cost very high of the early exit of the school.  Since a few years, we have noted a low demand of labor and a slow development towards sector with content higher in added value.   
In this country, the illiteracy rate is higher. We must put forward the child labour. The boys are particularly worker in the field of farming and the girls as servants. 
About problem of access to flat, we can note the considerable number of favelas on the Brazilian territory. In Brazil, the shanty towns have been called favelas.  The shanty towns are beginning to bear when persons being at the research of a job leave the village or the lands to try to find a job in town. This person is too many numerous for the town could welcome them. That’s why they settle in the favelas.  
These occupied grounds are public and few developed. The authorities take advantage of the arrival of the favela, thanks to cheap labor, which doesn’t stop to increase and which is necessary for industry in full expansion. Inside these ones we can note that the persons living in the hard conditions because there is little drinking water, violence, lack of the refuse collection…. 
On health care, we can say that the mortality is stronger for poor that rich. It is due at the difficulty of access to medical services, but also because of his owns deficiency of his body in particular for the living persons in the favelas. Moreover, some medical persons don’t dare to go in these favelas where the risk is very high. We can note an infant mortality rate extremely high. 

We state that the poverty is very present in Brazil, which brings me to the second part which the establishment of Bolsa Familia. 
Indeed, Brazil knowns a fast growth by investing in social policies in particular through the Bolsa Familia program which creates a virtuous circle between social policies and growth.  
II. Bolsa Familia
A. The program of Bolsa Familia 
 Historical  
          In front of the economic and social situation of 2000’s and for struggle against inequalities and improve living standard of the population, the Brazilian government have decided to set up a conditioned transfer program under the name “Bolsa Familia” (family grant).   
This program has been introduced in 2004 by the government of LULA DA SILVA, government worn by the worker’s movement. It takes the basics components of the older program named “Bolsa Escola”. However, the new program reviews these access conditions in order to cover a larger part of the population.  
In spite of the former program, Brazil remains a country where inequalities are more and more important between poor and rich and we wonder how the new program will face the challenge of poverty in Brazil.  
In short term, the objective is to reduce poverty by cash transfers and in long term, it aims to improve human capital through education and health obligations.   
 Measures and access conditions  
       It’s the world’s largest program because it benefits more than 12 Millions of Brazilians. To answer the social challenge, Bolsa Familia suggests redistributing income. However, to improve socials conditions on a long term, as well as economic and social development, families must their children go to school and are vaccinated.   

This program has several components:   A transfer of income: the objective is to satisfy the basic (primary) needs of families. The allocation depends of income.  Conditions for benefit of the program: children must go to school, to enable the new generation to learn. Moreover, there is an obligation of medical monitoring to reduce the infant mortality.  Complementary programs because there are 19 others programs   
To benefit from this program, you must meet conditions base on family income. 
There are two categories of concerned people:   “extremely poor families” whose income is less than 70BRL   “poor families” whose income is between 70 and 140 BRL  
Extremely poor families benefit from financial aid of 70 Reais per month. It’s a fixed help.  They can have a variable aid according to the family composition: 32 Reais by child under 15 years old but the limit is to 3 financial support.  For 16 and 17 years old children, its 38 Reais but limited to 2 financial aids. For extremely poor families, helps go from 70 to 242 Reais.  
For poor families, financial assistant is the same but she doesn’t benefit to fixed help of 70 Reais. Aids go from 32 to 172. 
The aid is paid to the legal representative (mothers, sisters…) on a bank account. She can use the money thanks to a debit card.   
B) Effect of Bolsa Familia  
 Results 
       In 2014, the program helps more than 13 millions of families (or ¼ of the total population). Since 2003, it has helped about 36 million to live above the poverty line.
Moreover, it allowed about 16 million of young people to have access to education and improve their human capital. 
The International Social Security Association awarded to Brazil a prize for an « exceptional contribution to the social Security » for the Bolsa Familia Program. 
In spite of positives aspects, program shows limits.  
First, financial aids create a situation of dependence towards government. Indeed, according to the text, about 1, 7 million beneficiaries can’t live without.  Indeed, Bolsa Familia permits to satisfy primary needs of families such as food, to pay their rent and their electricity, gas…. Families depend on it.  
Financial aids have a negative impact on the labour market. Indeed, families aren’t incited to work or look for a job.     Moreover, many people without children are excluded from system because there is an obligation of schooling a child.  
 Model for others countries
         Bolsa Escola then Bolsa Familia has established as a model for the struggle against poverty. Indeed, many countries based their social policies on cash transfers with education and social obligations. 
The south Africa, Kenya, Ethiopia so set up a conditional program. Turkey, Cambodia and Pakistan follow similar programs to reduce their poverty. 
In Latin America, several countries have followed the Brazilian example. The municipality of New York is also based of the Bolsa Famila to develop their program named “Opportunity”.
Finally, we can say that the United Nations (ONU in French) recommends in developing countries to base the social program on Brazilian Model. 
Bolsa-Família: template for poverty reduction or recipe for dependency? Reviewed by on samedi, janvier 28, 2017 Rating: 5 I. Brazilian’s situation  A. Poor population   Economic aspect   Brazil is a country which is always in full growth. It doesn’t stop to evo...

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