Cash Transfers Helping Poverty, but Only for Now

Brazil, at one point, was one of the most unequal countries in the world being described as parts looking like southern California and parts looking like Haiti, explains Tina Rosenberg in “To Beat Back Poverty, Pay the Poor.”  Brazil’s economy for the poor has recently begun to improve. The income of the poor is growing faster than the income of the rich with falling numbers of those in poverty. This can be attributed to programs like the “Bolsa Familia” which exists in Brazil and other countries, aids families in poverty by offering conditional cash transfers if the families keep up with specific requirements.

Even though these programs are seen as successful, Rosenberg still acknowledges there are skeptics, and I consider myself one of them.  After learning about Bolsa Familia (Brazil) and Oportunidades (Mexico), I question what happens when the money for this program and programs like it run out. Breaking down the amount of cash given in one of these programs: families are paid $13 for kids ages fifteen and younger (up to three kids), and $19 for kids ages 16 and 17 (up to two kids).  Some families also receive an additional amount of $40 just because they are living in poverty.  

Currently in Brazil there is government backing for this program, but what happens when funding for this program is decreased or disappears entirely? Where does this leave families who rely on this funding to transition out of poverty? When the funding is gone, families may or may not have a plan to move forward and they could slip back into deeper poverty. This money families are allotted to their bank accounts is a crutch.  There is no responsibility on the end of the “earner” except making sure the children in the family are in school and are healthy.  If there were more strict requirements like giving back to society in some way (volunteering, working), there would be more purpose and value to the money that is being awarded to families.  These programs are helping to better the lives of children, but I am trying to find a way that the adults live are becoming better, too.

Cash transfers are decreasing poverty levels in countries that need it the most. Programs like Bolsa Familia and Oportunidades exist to assist those in poverty to move slowly out of poverty into more livable circumstances. Though these programs have a great track record for children, there needs to be more accountability for the adults in the families to assure that if funding for this program is ever cut, families will not spiral back to into poverty.