Monday, December 22, 2008

Oportunidades

Gulzar Natarajan summarizes in Oportunidades and the role of CCTs Tina Rosenberg's NYT article A Payoff Out of Poverty?. From Natarajan's summary:
"The program gives the poor cash, but unlike traditional welfare programs, it conditions the receipt of that cash on activities designed to break the culture of poverty and keep the poor from transmitting that culture to their children. Its success has catapulted Conditional Cash Transfer (CCT) schemes to the forefront of poverty fighting strategies throughout the world.

Oportunidades focuses on providing cash grant to parents for sending children to school (and maintaining good attendance); basic food grant if children and ante-natal women attend regular health checkups, take nutrition supplements, besides attending a monthly workshop on a health topic, like purifying drinking water. The cash payments are made to the women, ... It forces the poor to imbibe many of the structural and behavioural traits that the middle class takes for granted. It seeks to offer the "new paternalism" of the State in the form of "tough love", instead of unconditional love of the old nanny state. It enforces outcomes and dispenses off with targets and impersonal subsidies. "
The original article says that "At least 30 countries have now adopted Oportunidades, most of them in Latin America, but not all: countries now using or experimenting with some form of conditional payments include Turkey, Cambodia and Bangladesh. Last year, officials from Indonesia, South Africa, Ethiopia and China contacted or visited Mexico to investigate. Perhaps the most startling iteration is in New York City. Opportunity NYC, a pilot program begun last year after Mayor Michael Bloomberg visited Mexico, will test whether the Oportunidades model can help the New York neighborhoods where poverty is passed down from parent to child."

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