Income distribution programs: How Brazil has become a model for poverty alleviation for underdeveloped countries

Evelin Françoise dos Santos, 30, is a single parent of three children in Brazil. After being fired from her job in 2013, Santos found herself in an uncomfortable position: she could not pay her rent or provide food for her children. Her only source of income at the time was the child support sent by the father of her eldest daughter.

That was when she registered for the Bolsa Família Program (PBF), a Brazilian cash transfer program deployed in 2003. "I went to CRAS, a reference center for social assistance in my neighborhood, where I completed the registration form," says Santos.

After 40 days, she received a beneficiary card by mail. "I checked at the bank, and my benefit of R$192.00 (US$48) was already there." Currently, the Program serves 14 million Brazilians in economically and socially vulnerable conditions similar to those of Santos.

"Now, after more than 15 years, PBF is recognized around the world as a successful cash transfer program designed to help families in poverty — those who live on less than U$ 5.50 per day, and in extreme poverty — U$ 1.90 per day, according to the World Bank criteria," Santos says.

Since its implementation, 29 million Brazilians have overcome their impoverished condition.

The Program's core business follows a similar idea to the Triple Bottom Line concept: income distribution to relieve poverty immediately; conditionalities as a mechanism to reinforce good practices — school attendance and health monitoring for children and pregnant women.

According to Brazilian anthropologist and associate professor at the University of Paraíba (UFPB), Flávia Pires, the Program has an essential characteristic that benefits the people who depend on it: its regularity.

"The recipients can rely on it and count on monthly cash transfers. They can make plans for the future. It prevents high levels of vulnerability by providing people with more humane conditions," says Pires.

Cash Tranfer Programs

Letícia Bartholo, manager of the Brazilian National Conditional Cash Transfer Programs between 2002 and 2016, explains that Brazil has already collaborated with several countries on developing income transfer programs.

"Bolsa Família has created one of the largest systems for identifying and characterizing poor or vulnerable families: the Single Registry for Social Programs."

The registry works to ascertain who these families are, where they live, and identify their particular needs. Hence, says Bartholo, it allows public authorities to direct people in need toward several initiatives, ranging from Bolsa Família to programs fostering access to electricity, vocational training, and incentives for family farming.

Two years after starting to receive the benefit, Santos began working again. The payments were automatically canceled. However, Santos still benefits from a low electricity bill. Her daughter has been registered in the Minor Learning Program, which refers teenagers to internship jobs, and after training, they may obtain registered employment.

According to IBGE, the official statistics institute of Brazil, 326,000 people left the Program voluntarily.

"I don't need to pay rent anymore, and I live in a decent house with my daughters. The eldest, Pietra, is in high school and ready to start working. My second daughter Emily, six years old, is in the first grade and stays all day at school," concludes Santos.