Tuesday, October 6, 2015

Comparison of ‘paying the poor’ across continents

This week’s reading have introduced me to ‘Bolsa Familia’ of Brazil and ‘Oportunidades’ of Mexico. Compelled by my instincts to compare such programs with the one in Pakistan, I did some research on a particular large cash programs known as ‘Benazir Income Support Programme (BISP)’. It was a program launched in 2009 and so far has disbursed $ 2.67 billion[1] to a base of 4.7 million people via monthly payments. It is the third largest budgetary provision in the national budget of Pakistan.

The BISP is also funded / technically supported by some of the international donor agencies including but not limited to the World Bank, Asian Development Bank, UK’s Department for International Development (DFID) and US Agency for International Development (USAID). Looking at the details of the progress since its inception, this program was started off as an initiative to provide budgetary support to households with some vague beneficiary selection parameters. There is ample use of technology for the disbursement mechanism by providing a smart card which comes with a debit card feature and a mobile bank account.

There are two areas that I feel have been absolutely ignored. First one is that the BISP has remained largely an unconditional budgetary support program. It is astonishing to learn that the policy makers in Pakistan did not account for a cohesive system delivering as one. In a country which has 50% of its population of 200 million under the age of 21 and one third of children not going to school, did not bring into fold the conditions of getting children educated or having some other long term welfare aspect tied to it. It is a sheer underutilization of the potential that this program has. Although very recently the program has started a branch for enrolling children in school as an additional monetary incentive and not made it a compulsion.

The second aspect of the program which I feel critical about is the selection of the beneficiaries. The BISP website states that the new methodology of the selective criteria is through a poverty score card whereas some news articles from the past state that beneficiary selection has been overshadowed by politics. Most of the initial base of beneficiaries were selected from areas where the ruling coalition formed their government from. Such ingredients in a welfare program kills the essence of any welfare in it. It is welcoming to know that poverty scorecards are the basis of any newer selection but it should also be a tool to verify all past beneficiaries.

I have never liked such income support programs except for emergency cash-for-work initiatives but after knowing the successes of such programs in South America, I am interested in knowing more for my own consumption and maybe contribute to them in other areas of the world.

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