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Launched in October 2003, the Bolsa Família (‘Family Grant’) was established under Luiz Inácio Lula da Silva Worker’s Party government and provides financial assistance to poor families in Brazil.  The grants are given to families on a monthly income of lower than 140 Brazilian reais based on the following conditions:

(i) that their children go to school (attendance levels are checked);

(ii) that their children get vaccinated;

(iii) the family must make use of designated health cards and other social services.

The aim of the programme is to fight inter-generational poverty via investing in human capital whilst increasing the education and health of the population.  The Bolsa Família formed the centre of Lula da Silva’s election victory in 2006 and is currently the largest conditional cash transfer programme in the world – currently serving over 12.4 million Brazilian families and rising (52.7 billion reais has been spent since its inception).  The main initiatives tied to the Bolsa Família are developing literacy skills; employment and income generation programmes (the latter two are tied to the Ministry of Labour and Employment).  Furthermore, the programme has partnered with several micro-credit projects in the North East to assist what is, evidentially, the poorest part of Brazil.

Despite certain sectors of Brazilian society opposing the grants (from both the left and right wing as well as the Catholic church), the programme is widely believed to be one of the main contributory factors leading to the reduction of poverty in Brazil, which had fallen by 28% during Lula’s first term in government.  Indeed, since 2003 the number of people living on less than $1 a day has dropped by 21% – from 15.4 million to 11.3 million in 2008 (a figure that continues to drop).  Evidence, published in 2009, has also pointed to the fact that over half a million Brazilian children and adults that received benefits through the Bolsa Família or registered in the country´s social programs database became literate in 2006 and 2007.  At the same time, the number of people entering literacy programmes increased by 12 percentage points – 88% of which were from the country’s North East region.  The Ministry of Social Development expects the programme to extend its reach to 12.9 million families in 2010.

The basic grant is 68 reais per month, plus 22 reais per child under 16 years of age and 33 reais per adolescent (there is extra flat sum available to those who are classed to be in ‘extreme poverty’).  The money is given to the female head of the household via ‘debit cards’ which can be used at any Caixa Econômica Federal (this form of payment was used to reduce the level of corruption and ensure that the trail of money transfers can be monitored).  The names of every family on the programme needs to be registered via the Portal da Transparência .

Since its inception, several surveys conducted by the government have pointed to the fact that money is spent in order of priority, on food, school supplies, clothing and shoes (contrary to the belief by some that the money is being squandered).  A study conducted by the University of Pernambuco concluded that 87% of the money is used, by families living in rural areas, to buy food.  The success of the programme has prompted a number of adaptations in several countries around the world including Chile, Mexico,  Indonesia, South Africa, Turkey, and Morocco.  New York has also consulted with Bolsa Família officials in the development of its Opportunity NYC social assistance initiative.

The future of the Bolsa Família, according to the federal government, is to expand its impact in the form of further integration with labour markets and youth services whilst continuing to provide support for the municipalities to administer and expand the programme.