1. Dr. Miguel Székely, Deputy Minister for Social Developement Cape Town, South Africa, 2005

2. Objectives Provide poor families with immediate assistance, while investing in human capabilities to break the poverty circle in the medium run

3. Four components Education Scholarships (higher for girls than for boys) conditional on assistance 25 dlls Average monthly cash transfer to the mother in the family Health Regular check-ups in health clinics In kind + Nutrition Cash transfer + Nutritional suplement conditional on women training 15 dlls 40 dlls + Total Assets 8 dlls Savings account, conditional on graduation

4. Oportunidades: operational aspects Families Incorporate into the program Identification of possible beneficiaries Families comply with conditionality Cash transfers every two months Monitoring Impact evaluation Certify existence of schools and health clinics Certify family conditions Community level targeting

5. 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

6. Change of paradigm 1.Targeted benefits to individual familiesTargeted benefits to individual families 2.Transparent mechanisms to select beneficiaries 3.Integrality 4.Shared responsibility 5.Cash transfers vs in kind benefits 6.Evaluation

7.  Before universal coverage benefits for groups (constituencies) communities vs families 1. Targeted benefits to families  Now 1st stage : Geographic targeting 2nd stage: Family targeting

8. 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

9. Registry of beneficiaries Family code Socioeconomic information Address Information on other social programs Targeting of poor households

10.  Before Independent actions by each ministry 3. Integrality  Now Coordination for : Education Health Nutrition

11. Integrality in Oportunidades Human development. Savings accounts Health Health care and Training in better health practices Nutrition Cash transfer + supplement Education Scholarships

12.  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

13. 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 +

14. 5. In kind vs cash transfer Implicit assumption: People know what they need and they are responsible  Before Occasional transfers with no shared responsibility Food packages Construction Implicit assumption: governments know what the poor need  Now Women receive $ Certainty Firms vs bureaucracy

15. Food 71% Clothing 5% Hygiene 7% Health 2% Education 1% Other 14% Use of cash transfers

16.  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

17. 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

18. Education Increase in secondary school enrollment 25% general enrollment 33% women 16% men

19. Health 12% reduction in child morbidity Morbidity under 2 years of age

20. Health Morbidity for adults 19% number of days not working due to sickness

21. Nutrition 16% increase in height and weight Malnutrition under age 3

22. 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

23. Effects on poverty reduction between 2000 and 2002 44% 40% 72% 48% 33% 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 Procampo Remesas Oportunidades Remuneraciones Otros 36% Precios 14% Pobreza deCapacidades 28% PobrezadePatrimonio 44% 40% 72% 48% 33% 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 Procampo Remesas Oportunidades Remuneraciones Otros 36% Precios 14% Pobreza deCapacidades 28% PobrezadePatrimonio 44% 40% 72% 48% 33% 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 Procampo Remittances Oportunidades Wages Other 36% Prices 14% CapabilitiesPoverty ( 5.4 points ) 28% Asset Poverty ( 2 points )

24. 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

25. 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

26. 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