Dr. Miguel Székely, Deputy Minister for Social DevelopementCape Town, South Africa, 2005

Objectives

Provide poor families with immediate assistance,

while investing in human capabilities

to break the poverty circle in the medium run

Four components

EducationScholarships (higher for girls than for boys) conditional on

assistance25 dlls

Average monthly cashtransfer to the mother in

the family

HealthRegular check-ups in health

clinics

In kind

+

NutritionCash transfer

+

Nutritional suplement conditional on women training

15 dlls

40 dlls

+

Total

Assets 8 dllsSavings account, conditional on

graduation

Oportunidades: operational aspects

FamiliesIncorporate

into the program

Identification ofpossible beneficiaries

Families complywith conditionality

Cash transfersevery two months

Monitoring

Impactevaluation

Certify existenceCertify existenceof schools andof schools andhealth clinicshealth clinics

Certify family conditions

Community level

targeting

4.- Five Phases of Oportunidades

Contents

1.-Change of paradigm

3.- Strong effects on poverty reduction

2.- Strong effects on education, health and nutrition outcomes

Change of paradigm

1.Targeted benefits to individual families

2.Transparent mechanisms to select beneficiaries

3. Integrality

4.Shared responsibility

5.Cash transfers vs in kind benefits

6.Evaluation

Before

• universal coverage

• benefits for groups (constituencies)

• communities vs families

1. Targeted benefits to families

Now

• 1st stage : Geographic targeting

• 2nd stage: Family targeting

2. Transparent mechanisms to identify beneficiaries

Before

• No clear rules (discretionary)

• Driven by political demands

Now

• Transparency : Means test to each family

•Systematic procedures to identify eligible households

• Creation of the first beneficiary registry

Registry of beneficiaries

Family code

Socioeconomic

information

Address

Information on other social programs

Targeting of poor

households

Before

• Independent actions by each ministry

3. Integrality

Now

• Coordination for :

Education

Health

Nutrition

Integrality in Oportunidades

Human

development.

Savings accounts

Health

Health care and

Training in better health practices

Nutrition

Cash transfer + supplement

Education

Scholarships

Before

• Short term support through assistance and welfare

4. Shared responsibility

Now

• Shared responsibility:

• A) change in family behavior to trigger long term effects

• B) Self-targeting

4. Shared responsibility by families

Nutrition

Education

School attendance

Children and

youth (family)

Savings

Graduating from high

school

Youth

Health

Health check ups:

Preventive care

Nutritional check up

Training for hygiene and health practices

Family

Woman h of h

+

5. In kind vs cash transfer

Implicit assumption:People know what theyneed and they are responsible

Before

•Occasional transfers with no shared responsibility

• Food packages

• ConstructionImplicit assumption: governmentsknow what the poor need

Now

• Women receive $

• Certainty

• Firms vs bureaucracy

Food71%

Clothing5%

Hygiene7%

Health2%

Education1%Other

14%

Use of cash transfers

External evaluation by renowned international academic centers

Rigorous scientific evaluation

3 benefits from evaluation:

a)Knowing the effect of the program

b)Transparency and accountability

c) Improved information for budget allocation

6. Evaluation

4.- Five Phases of Oportunidades

Contenido

1.- Change of paradigm

3.- Strong effects on poverty reduction

2.- Strong effects on education, health and nutrition outcomes

Education

Increase in secondary school enrollment

25% general enrollment

33% women

16% men

Health

12% reduction in child morbidity

Morbidity under 2 years of age

Health

Morbidity for adults

19% number of days not working due to sickness

Nutrition

16% increase in height and weight

Malnutrition under age 3

4.- Five Phases of Oportunidades

1.- Change of paradigm

3.- Strong effects on poverty reduction

2.- Strong effects on education, health and nutrition outcomes

Contenido

Effects on poverty reduction between 2000 and 2002

44%

40%

72%

48%

33%

2%

2%

12%

6%

4%

10%

- 40%

3% -10%

4%

5%

2%

- 1.0

- 0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Pobreza Alimentaria

Negocios

ProcampoRemesas

Oportunidades

Remuneraciones

Otros

36% Precios

14%

Pobreza de Capacidades

28%

Pobreza dePatrimonio

44%

40%

72%

48%

33%

2%

2%

12%

6%

4%

10%

- 40%

3% -10%

4%

5%

2%

- 1.0

- 0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Pobreza Alimentaria

Negocios

ProcampoRemesas

Oportunidades

Remuneraciones

Otros

36% Precios

14%

Pobreza de Capacidades

28%

Pobreza dePatrimonio

44%

40%

72%

48%

33%

2%

2%

12%

6%

4%

10%

- 40%

3% -10%

4%

5%

2%

- 1.0

- 0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Food poverty

( 3.9 points )

Businesses

ProcampoRemittances

Oportunidades

Wages

Other

36% Prices

14%

CapabilitiesPoverty

( 5.4 points )

28%

Asset Poverty

( 2 points )

Contenido

4.- Five Phases of Oportunidades

1.- Change of paradigm

3.- Strong effects on poverty reduction

2.- Strong effects on education, health and nutrition outcomes

4. Four phases

1. Breaking through paradigms

2. Consolidation in 2000 and “surviving” into the new Administration

3. Improving design and scaling up

4. From structural poverty to the dynamics of poverty

Success factors

1) Rigorous evaluation

2) Consolidating disperse budgets

3) International support

4) Avoid political use

5) Beneficiaries as partners

6) Centralized coordination across sectors

7) Building on success

8) Political support