Tuesday, October 1, 2013

Programa Oportunidades

            After reading about the cash transfer program I wanted to learn more about it from the Mexico Point of View. Being Mexican and having lived in Texas my whole life I think that I will be able to translate what the “Oportunidades” programs means for the people of Mexico, in a short blog[1].
Recently in Durango, Mexico 1,406 families were initiated into the program. Needless to say the “Duranguenses” were very happy. [2]Initially the program begun in 2002, and  was called “Progresa” today it is called Oportunidades. The main goal is to combat poverty. Not to eradicate or eliminate poverty, but to fight it off. Below is the amount of families that the program helped in 2010, 2011, and 2012.
            The program faces government funding challenges just like any social policy initiative in the states. If a new president does not endorse the program, it is at risk for discontinuing to exist. [3] Mexican economic development must also keep up with the changes the program is developing. More kids are going to school, going to doctors appointments, and staying healthy. The con is that once these kids are graduating from their primary and secondary education but may not be able to offer those grown children, well now adults, an opportunity for a job.
            Although, the program faces these challenges critics do endorse the design and the concept of the program to help reduce poverty. The program overall is doing well and the people of Mexico like it. I could not find criticism on it except that the kids growing up may not be able to find a job. The President Pena Nieto just endorsed a $600 million dollar loan from the Inter-American Development Bank.[4] 
My posing questions is: Would this direct cash transfer program work in the United States? Does it mean this program is a failure if the "educated" kids cannot find a job? What can Mexico do to mitigate for this end result?




[1] http://opinionator.blogs.nytimes.com/2011/01/03/to-beat-back-poverty-pay-the-poor/?_r=0
[2] http://www.oem.com.mx/elheraldodechihuahua/notas/n3138029.htm
[3] http://books.google.com/books?hl=en&lr=&id=31zD_hBNs4YC&oi=fnd&pg=PP1&dq=program+oportunidades+mexico&ots=FB9AxeOpip&sig=Mtis9r6o5wrfXtHLIzGD5JrBCSs#v=onepage&q=program%20oportunidades%20mexico&f=false
[4] http://eleconomista.com.mx/finanzas-publicas/2013/09/17/bid-presta-mexico-600-mdd-programa-oportunidades

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