April/2014

POVERTY MAP Increasing capabilities and opportunities Increasing capabilities and opportunities Higher income Improved welfare Higher income Improved welfare Income Transfers Income Transfers Rural and Urban Productive Inclusion Enhanced access to Public Services Enhanced access to Public Services BRAZIL WITHOUT EXTREME POVERTY PLAN

BOLSA FAMILIA Source: MDS. 1. Alleviates poverty 2. Increases school attendance and reduces dropout rates 3. Improves access to health services for children and for pregnant and breastfeeding women Cash transfers (RS$ billions) Number of families (millions)

Fonte: MDS. BOLSA FAMILIA

POLL WITH FAMILIES INCLUDED IN THE SINGLE REGISTRY Around 70% of respondents say they never have monthly surplus for saving Among the others, 15% use spare money to buy food and clothing and 13% save In small and medium cities in the poorest regions in Brazil, there is limited access to financial services and products More than 40% said the reason for not having a banking account is the minimum deposit requirement In terms of financial products, the most common are: 1. simplified banking account (debit card); 2. savings account; 3. credit card; 4. checkbooks; 5. funeral insurance; 6. health insurance; 7. saving bonds; 8. life insurance

BOLSA FAMILIA BENEFITS GO STRAIGHT TO FAMILIES ACCOUNTS ACCESS% Lottery Shops49,92 Banking account21,12 ATM20,22 Banking Correspondent7,31 Withdraw without the card from the cashier 1,38 Withdraw with the card from the cashier 0,05 3,77 million of families received by deposit in a banking account 86,7% of the amount deposited in banking account are spend with a debit card Source: CEF, dez/ % of cardholders' of Bolsa Família are women

8,2 million 4,1 million (50%) CRESCER Oriented Productive Microcredit (*) Operações realizadas por pessoas físicas e microempreendedores individuais. Fonte: MF e MDS em dezembro/2013. Opportunities for structuring and expanding businesses with the support of oriented productive microcredit Total operations* Operations carried out by Bolsa Familia beneficiaries Operations carried out by people from the Single Register 2,8 million (34%)

Leadership and government priority  Eradicating extreme poverty and create opportunities for all is the number 1 priority of Brazil’s federal government Large scale and simplicity for easy replication  In a country as large and diverse as Brazil, we needed a scaled program that could easily be reproduced  Money goes straight to the beneficiaries – cash transfers through debit card Partnerships  Working in articulation with the municipalities is paramount to implement the policies and reach the target population  The partnership with public banks to design specific products to this public is also important Economic context KEYS TO SUCCES