Bolsa Família Programme Patrus Ananias de Sousa Minister of Social Development and Fight against Hunger Federative Republic of Brazil Committee on Employment and Social Policy, International Labour Organization, Governing Body Geneva, 18 March 2009

BRAZIL Population: 190 million inhabitants Area: 8,5 million km² 26 States, 5,563 municipalities and Federal District GDP (2007): R$ 2,6 trillions (US$ 1,3 trillions) HDI: 0.8 Poverty rate (2007): 18% Extreme poverty rate – 1 dollar PPP (2007): 4.9% Gini index (2007): 0.55 (although still high, it is the lowest of the historical series)

Ministry of Social Development and Fight against Hunger - MDS Created in January 2004 Coordination of food and nutrition security, social assistance and cash transfer actions Structuring the integrated public policy systems: –Single System of Social Assistance –National Food and Nutrition Security System

Single System of Social Assistance - SUAS Consolidates Social Assistance as a State Policy, guaranteeing rights Promotes the management of social policy in an integrated approach, in the entire national territory Institutes a new organisational model of the social assistance services and benefits, by hierarchical levels of complexity and with territorial base.

National Food and Nutrition Security System - SISAN Established in 2006 by Federal Law Combines programs and intersectorial actions focused on the promotion of the human right for adequate food Covers, amongst other actions:  Local equipments to facilitate the access to food and water (people’s restaurants, food banks, community kitchens, tanks);  Policies for agro-food supply, agrarian reform, school food, healthy food, etc.  Policies for strengthening family farming (financing, technical assistance and guarantee of purchase).

Bolsa Família Program Conditional cash transfer program, created in 2003, established by Federal Law. Articulates the social development strategy focused on poor families in the entire national territory. Beneficiates 11,1 million poor families, with a monthly income up to R$ per capita (US$ 60.00). National coverage will reach 12,4 million until the end of 2009: phased expansion of 300 thousand in May, 500 thousand in August and 500 thousand in October of Budget: R$ 11,4 billion (approx. US$ 5 billion) % GDP Operational low cost: 5% of the program’s budget.

Bolsa Família Program Beneficiaries’ selection is made through means of computerised procedures, based on predefined criteria of the Unified Registry data for the Federal Government Social Programs. The benefits are paid by the Federal Government directly to the families, who withdraw them on a monthly basis in the banking network and outsourced agencies, using a magnetic card.

Financial Benefit Formed by the sum of three components: (a) basic benefit (US$ 27.00): paid to families with monthly income per capita up to US$ regardless of the number of children, adolescents or youngsters (b) variable benefit (US$ 8.00): paid to families with monthly income per capita up to US$ per children or adolescents until 15 years old ( a maximum of 3 benefits per family) (c) variable benefit to youngster: paid to families with income up to US$ with youngsters from 16 to 17 (a maximum of 2 benefits per family)  The amount paid to the families varies between US$ 8.00 and US$ depending on their composition and poverty level.  Average amount: US$ per family

Local management and Bolsa Família Municipal managers are responsible for the identification and enrolment of families, services supply and monitoring the families in the health, education, social assistance and food education areas. The Federal Government supports municipalities through transfers calculated from the number of beneficiary families and a performance index of the municipal management – o IGD (Decentralised Management Index). IGD is calculated from the information on the quality of CADÚNICO data and the monitoring of health and education conditionalities. In 2008, R$ 282 million (US$ 123 million) were transferred to municipalities for local management support of Bolsa Família.

Conditionalities Health and nutrition monitoring: for pregnant women and children between 0 and 6 years old School attendance: above 85%: for children and adolescents between 6 and 15 years old above 75%: for adolescents between 16 and 17 years old Socio-educational activities: for children in risk of child labour (PETI)

Conditionalities -Aim at expanding the skills of future generations, presenting a sustainable alternative of emancipation from poverty. -Responsibility for breaking the intergenerational cycle of poverty shared between families and public authority. -Emphasis on the guarantee of rights rather than the punitive aspect: non-fulfilment as an indicator of vulnerability.

Bolsa Família as an opportunity articulator for inclusion Data from Cadastro Único allows the localisation of families and the identification of their characteristics, targeting public services supply according to their profile and contributing for the autonomy and emancipation of the families. Some examples:  adults literacy  popular housing  access to electricity  banking inclusion

Bolsa Família and Labour Agenda  Integration of Bolsa Família and Child Labour Eradication Program - PETI  Social reintegration of victims saved from forced labour  Actions focused on income raising, professional skills and insertion in the labour market

Bolsa Família Integration and Child Labour Eradication Program – PETI –Created in 1996, PETI was articulated with the Bolsa Família Program in –PETI demands the fulfilment of conditionalities and the participation in socio-educational actions. –Apart from cash transfers to families, R$ 205 million were transferred to municipalities in 2008 for investment in the socio-educational actions (Jornada Ampliada – Extended Day Program) –In 2008: 875 thousand children reached, in the entire country of Brazil.

Bolsa Família and social reintegration of victims saved from labour similar to slavery The Ministry of Social Development and Fight against Hunger (MDS) and the Ministry of Labour and Employment (MTE) have established a partnership, in December 2005, aiming at the social reintegration of citizens saved from labour similar to slavery. –Families from people rescued from forced labour are enrolled in the CadÚnico. Those who are in compliance with Bolsa Família’s requirements are inserted in the program. –Approximately 567 families of saved victims were entitled to the benefit from the MDS/TEM partnership.

Actions towards income raising and insertion in the labour market PlanSeQ Bolsa Família – Construction Industry –Inclusion of adults from beneficiary families in opportunities generated by investments in PAC’s infrastructure (Growth Acceleration Program). –Professional qualification from data in Cadastro Único – articulation between MDS and Ministry of Labour and Employment, under the coordination of the Civil House. –Target for the first phase of the initiative: capacitation of 185 thousand members of beneficiary families.

Actions towards income raising and insertion in the labour market PlanSeQ Bolsa Família - Tourism –Inclusion of adults from beneficiary families in opportunities generated by the rise in the demand for workers due to the expansion of the segment and the holding of major events in the country – including the 2014 World Cup. –Professional qualification from data in Cadastro Único – articulation between MDS and Ministries of Labour and Employment and Tourism, under the coordination of the Civil House. –Target of qualification: 27,6 thousand beneficiaries Partnerships with companies and organisations of Civil Society

Actions towards income raising and insertion in the labour market Oriented Productive Microcredit Data from Cadastro Único indicates the existence of over 1 million people belonging to PBF’s beneficiary families that are independent workers, being therefore potential microentrepreneurs. Credit supply initiatives for that target: –PNMPO - Program for Productive and Oriented Microcredit – Managed by the Ministry of Labour and Employment: support to Oriented Productive Microcredit institutions in the provision of microcredit to PBF’s beneficiaries. –CrediAmigo. Managed by the Banco do Nordeste – BNB. From its 400 thousand clients, almost 205 thousand are PBF’s beneficiaries, corresponding to 51% of the clientele.

Outcomes Studies indicate that Bolsa Família has immediate and significant effects on the living conditions of the poor population, contributing to the: – Promotion of food and nutrition security – Reduction of poverty and inequality – Reduction of child malnutrition – Reduction of the risk of child labour – Dynamisation of local economies – Equity of gender – empowerment of women – Access to basic consumer goods that improve quality of life and self-esteem Moreover, studies show that the program does not generate disincentive to work.

Final Considerations Bolsa Família Program should not be seen as a self-sufficient strategy for reducing poverty and inequality; its results can only be properly sized when considered in its insertion into the wider network of protection and social promotion of Brazil. In times of crisis, social policies should be seen not only as a palliative, but also as a fundamental element of the solution, promoting a more equitable, inclusive and solid pattern of development. Entrepreneurs also need to show their responsibility and commitment towards the precept of the social function of property, preserving their jobs.

Thank You! Patrus Ananias de Sousa Minister of Social Development and Fight against Hunger of Brazil e.mail: (61)