Another Economist article caught my eye this week, it discusses a conditional cash transfer (CCT) program in Brazil, Bolsa Familia (Family Fund). CCT programs give poor families money if they meet certain conditions, usually participation in public health programs or educational sessions. Programs like the one in Brazil have been tried in many Latin American countries, and I believe the first was Progresa in Mexico. They have been shown to have very positive effects on poverty.
A web search for “conditional cash transfer” gives an enormous number of studies on the subject, all with varying levels of good things to say about them. I think they’re a terrific idea. The economist gives three potential concerns, to which I would like to add one.
1. Fraud, the money may not go to the right people
2. Dependence, the CCTs could become a part of the state-citizen relationship, rather than a catalyst for economic growth.
3. Corruption, CCTs may be a simple case of vote-buying
My concern is related to these, and I freely admit that it may be alarmist. But I’ve worked in too many states that did not have the best interests of their people in mind to really trust this kind of program without strong assurances that what is going on is ethical.
So much depends on what conditions are set. Get your child vaccinated? That seems fine. But what if China set a CCT for abortions or permanent surgical contraception? This isn't a reason not to love Bolsa Familia, just a concern for where the movement could go if we don't pay attention.
