The Brazilian Social Protection Policies and Experience June

The Brazilian Social Protection Policies and Experience June, 9 th, 2008 Dakar, Senegal

Brazil: some figures • Population 2007: 191 millions inhabitants • Size: 8. 5 millions km² • GDP 2007 – US$ 1 trillion • Per Capita GDP 2007– US$ 5, 640 • Federal republic with 26 States, and 5, 564 municipalities and 1 Federal District • Poor population - 2006: 25% • Extremely poor population: 9. 4% Currency rate R$1, 00 = USS$ 1. 66 • Gini Coefficient 2006 = 0. 562

Integrated Programmes Access to food Strengthening the Family Bolsa Família School food (PNAE) Agriculture Cisterns PRONAF Popular Restaurants Family Agriculture Insurance Urban Agriculture / Community Gardens Harvest Insurance Food banks Family Agriculture’s Food Acquisition Programme Food to specific population groups Healthy food / Health habits promotion (PAA) Vitamin A and iron distribution Food and nutrition for indigenous groups Food and nutritional education SISVAN Worker feeding (PAT) Basic Food Basket ZERO HUNGER Income Generation Articulation, mobilization and social control Social and professional qualification Solidary Economy and Productive Inclusion Family Home (CRAS/PAIF) CONSADs Citizenship education and social mobilization Poor communities’ productive organization Public agents training (PRODUZIR) Help and donations mobilization Ragpickers cooperatives development Alliances with enterprises and entities Oriented productive micro credit Social control councils

MDS Actions SENARC SESAN SNAS National Secretariat of Citizenship Income National Secretariat of Food and Nutritional Security National Secretariat of Social Assistance • Bolsa Família • Cadastro Único • Programa de Aquisição de Alimentos – PAA • Cisternas • CONSADs • Restaurantes Populares • Bancos de Alimentos • Cozinhas Comunitárias • Distribuição de Cestas de Alimentos • Agricultura Urbana • Educação Alimentar e Nutricional • Cartilhas • Apoio a Comunidades Quilombolas • Carteira Indígena • BPC/LOAS/RMV : Idosos e PCD • Programa de Atenção Integral à Família – PAIF • Centro de Referência de Assistência Social – CRAS • Centro de Referência Especializado de Assistência Social – CREAS • Serviços Continuados para o atendimento à criança, à família, à pessoa idosa • Programa de Erradicação do Trabalho Infantil - PETI • Projeto Agente Jovem de Desenvolvimento Social e Humano • Programa Sentinela

Single Registry • Contains socio-economic data from families with per capita income of up to ½ minimum wage; • Allows the identification of household needs and caracteristics and also of individuals; • Used to select beneficiaries of several social programmes; • Constant update. Information collected is valid for two years.

CadÚnico – Single Registry CadÚnico Data Family Data Personal Data § Address § Identification § Household § Documents Characteristic § Schooling § Quantity of § Professional Life Vulnerable § Family Relations Members § Participation in Targeted Programs 15. 6 MM registered 14. 1 MM self reported poor 60. 7 MM registered 56. 5 MM self reported poor

Single Registry: Highlights • Data collection and entry is decentralized to the municipalities; • Database consolidation and management is centralized; • Gender equality: Women (mothers) are preferentially indicated as potential receiver of the benefit; • Increasing effort to include the most vulnerable categories (indigenous populations, street dwellers etc. ).

Bolsa Familia Program Income Transfer focused conditioned free use of cash Objectives Immediate poverty relief (income) Rupture of the poverty intergenerational cycle (Conditionalities) Family development (complementary actions)

Benefits • Basic Benefit: US$ 34. 87 Extremely poor Families: monthly per capita income of US$ 36, 14 or less 1 R$ = US$ 1, 66 • Variable Benefit: US$10. 82 per children under 15 years old up to the limit of 3 benefits (US$ 32. 46). • Variable Benefit for the Young (16 -17 y. o. ): US$18. 03 per children up to the limit of 2 benefits (US$36. 06). Poor Families: monthly per capita income between US$ 36, 14 and US$ 72, 28 • Variable Benefit: up to 3 members • Variable Benefit for the Young: up to 2 members • With this benefits menu, income transfers range from US$ 10. 82 to US$ 99. 40. • BFP makes payments via the banking system, through CAIXA, which credits benefits payments to beneficiaries’ electronic benefit cards (EBC) on monthly basis according payroll.

Conditionalities: Access to Rights Education - Health School attendance for all family´s children aged 6 -15 years old (85% daily attendance) and 16 -17 years old (75% d. a. ) • Completion of vaccines according recommended schedule, and growth monitoring for children ages 0 -7 years old. • Pre- and pos-natal checkup for pregnant women • The Ministries of Health and Education are responsible for promoting the training of state and municipal managers in monitoring human capital conditionalities. They also are responsible for consolidating conditionality compliance information and reporting this to MDS.

Bolsa Família’s Coverage November 2003 December 2007 3. 6 milion benefits paid as of november 2003 11. 1 milions benefits paid Estimated number of Poor Families – 11. 2 million (2003) Estimated number of Poor Families – 11, 1 milhões (2006 l) : R$ 9 bilhões - (US$ 5 2007 Expenditure billions) 2008 Budget: US$ 6. 253 billions) Impact on Budget: 0. 35% GDP Management Costs: 5% Fonte: MDS/IBGE/IPEA

Income inequality evolution Gini index Source: CPS/BRE/FGV using HH Survey (Pnad/IBGE) Bolsa Família is responsible for 21% of inequality reduction 2003 -2005

National Secretariat for Food and Nutrition Security ($ 395 millions) • Food Acquisition Program (PAA): Its objective is to guarantee the access to foods in necessary amount, with quality and regularity to the populations in situation of food and nutritional insecurity and to promote the social inclusion by strengthening family agriculture. ($ 277 millions) • Cisterns: viable alternative of water supply for human consumption in the semi-arid. Appropriate technology, the use is easy, household use, low cost of maintenance, simple maintenance, high durability. ($ 46 millions) • Popular Restaurants: They cook and sell healthy meals, offered with subsidized and accessible prices in great urban centers. ($ 18 millions) • Food Banks: Private donation of food. The food is selected, packed and distributed to social assistance entities. ($ 3, 5 millions) • Community Kitchens: They are part of a strategy to offer balanced meals, produced with quality and compatible with the requirements for a healthy meal, they also promote the social inclusion. ($ 3 millions)

Food Acquisition Program (PAA) • Income from commercialization of PAA beneficiaries’ rural production is almost three times higher than the non-beneficiaries’. • Prices paid by PAA are, among different products, higher than those offered in other forms of commercialization. • Strengthening of Women: • Access to credit • Planning that can be made from the budget • Improvement of self-esteem • Reduction in the dependence with partners • Reduction in the domestic violence

Continuous Cash Benefit • Social Pension targeting the elderly (over 65) and disabled; • Managed with the Ministry of Social Security; • Vulnerable elderly with income of less than ¼ minimum wage; • Benefit: 1 minimum wage.

Summary • Group of actions which target the same group – creating synergy; • Further integrate policies and programmes; • Increasing effort to include other vulnerable groups; • Effort to link with programmes from Ministry of Labor.

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