Thursday, April 17, 2008

Conditional cash transfer programmes: a useful step in the fight against poverty


Conditional cash transfer programmes constitute an important tool for reducing poverty and promoting social inclusion – two key objectives of the International Labour Organization. Mexico has one of the most successful programmes of this type, which was recently the focus of a seminar at the ILO headquarters in Geneva. But as it was clear from the discussion that followed, these programmes are not exempt from risks.

Salvador Escobedo Zoletto likes to use the word co-responsibility when he discusses “Oportunidades”, the conditional cash transfer programme that is helping 25 million Mexicans – or nearly a fourth of the total population – deal with poverty.

“Co-responsibility is a key factor in this programme, because each family plays an active role in its own development”, says Dr. Escobedo, who has been coordinator for Oportunidades since December 2006.

In general terms, the programme works very simply. In order to receive the cash transfers, low income families have to visit health units regularly and send their children to school.

The idea is also to strengthen the position of women within the family structure. The mothers are the benefit holders of the programme, and the cash goes from the federal government directly to them, without any intermediaries.

See full Press Release.