Mexico s Conditional Cash Transfer Program (CCT) October 28 th, 2010
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1 Mexico s Conditional Cash Transfer Program (CCT) October 28 th, 2010
2 Table of Contents Poverty in Mexico Oportunidades, a Human Development Program General Processes 4 31 Implemented Innovations 5 External Evaluation
3 Poverty in Mexico
4 Evolution of Poverty in Mexico Even with the hike in food prices and the global economic recession, the increase of poverty in Mexico between 2006 and 2008 was only 4.8% - thanks to Oportunidades. Percentage of population in poverty in Mexico Patrimonial Insufficient income to buy a basic food basket, to make the necessary expenditure in health and education, as well as, in housing, clothing and transportation. Capacities Insufficient income to buy a basic food basket and to make the necessary expenditure in health and education. Food (Extreme poverty) Insufficient income to buy a basic food basket (daily consumption of 2,200 kilocal per person) CONEVAL (National Council of Social Developmet Policy Evaluation)
5 Impact of the Cash Transfers Without Federal Government Transfers*, the number of people living in extreme poverty would have increased by 2.6 million (13.5%) according to CONEVAL. People living in extreme (alimentary) poverty Additional 2.6 million people in food poverty without Oportunidades without Transfers* *Transfers = Oportunidades, Becas del Gobierno, Procampo y Adultos Mayores According to SEDESOL (Social Development Agency) estimates based on the ENIGH (National Survey of Households Incomes and Outflow) 2008 from INEGI (National Institute of Geography and Statistics)
6 Oportunidades, a Human Development Program
7 Oportunidades Objective Develop and strenghten capabilities of families living in extreme poverty conditions Achievement of better welfare standards and the improvement of education, health and nutrition options
8 Oportunidades Interventions Seniors Support Infantil Vivir Mejor (Live Better for Children) Vivir Mejor (Live Better) Energetic Component Nutrition Health Education Nutritional Support Jóvenes con Oportunidades (JOP s (Opportunities for youth) Scolarships and school supplies Oportunidades covers the entire life cycle of benificiary families.
9 Components and benefits offered by Oportunidades (In US Dollars) 1 USD = 12.6 MXP Component Support Amount What is it? Corresponsability Responsible Live Better $ 9.52 (per family) Emergent temporary support to lessen the impact of the international increase of food prices Attendance to health promotion workshops The whole family Nutrition Nutritional $ (per family) Economic aid to improve family members nutrition Nutritional supplement for children under 5 and pregnant or nursing women Attendance to health promotion workshops The whole family Energetic Component $ 4.76 (per family) Additional resources for energy consumption Attendance to health promotion workshops All family members older than 15 Children under 6 Children from 6 to 9 $ 7.93 (per child) Cash support for children under 9 years old Birth certifcate School enrollment certificate The whole family
10 Components and benefits offered by Oportunidades (In US Dollars) 1 USD = 12.6 MXP Component Support Amount What is it? Corresponsability Responsible Health Basic health package Seniors Support $24.19 (per senior) Preventive Health (PREVENIMSS and Life Lines Health and nutrion workshops Cash transfer for the elder members of beneficiary families (over 70 years old) Attendance to health promotion workshops Attendance to health check-ups every 6 months (proof of life) All family members older than 15 Seniors over 70 years old
11 Components and benefits offered by Oportunidades (In US Dollars) 1 USD = 12.6 MXP Component Support Amount What is it? Corresponsability Responsible Education Scholarships School suplies $11.49 $ $28.95 (per student) Educational grants for children and teenagers from 3rd grade of Elementary School to senior year of High School Cash support for school supplies every 6 months Regular attendance to classes (at least 85%) All scholarship holders Jóvenes con Oportunidades $ (per student) Savings account for students who finish High School education ConcludIng High School before turning 22 years old and opening up their own savings bank account Scholarship holders who finish Middle School
12 Educational Support Structure (Scholarships) Year 2000 Without gender compensatory scholarships Year 2010 With gender compensatory scholarships Boys Girls Elementary School 3rd USD 4th USD 5th USD 6th USD Middle School 1st USD USD 2nd USD USD 3rd USD USD High School 1st USD USD 2nd USD USD 3rd USD USD * 1 USD = 12.6 MXP
13 Oportunidades and PAL in numbers (2009) Households served by type of area Rural Semiurban Urban < 2,500 hab. 2,500 15,000 hab. > 15,000 hab. Oportunidades PAL Families 5,2 million 261,964 People Children under nutritional control 25 million (25% of Mexico s population) Scolarship holders 5,102,133 Elementary School 2,487,271 Middle School 1,765,086 High School 849,773 JOP s bank accounts 253,895 Seniors In areas with more than 10,000 inhabitants 1,102, million 130,238 75,229 Areas (localities) 97,922 39,681 Rural 94,789 (96.8%) 39,652 Semiurban 2,596 (2.7%) 17 Urban 537 (0.5%) 12 Municipalities 2,445 (100%) 1,983 States 32 (100%) 32 (100%)
14 Oportunidades and PAL in numbers (2010) Where we will be at the end of Million Families 0.26 Million Families 1 Million Families 6.5 Million Families in over 135,000 localities PAL New incorporations
15 2010 Oportunidades and PAL Budget IN MILLIONS OF USD 1 USD = 12.6 MXP PAL TOTAL Social Development Agency Public Education Agency Health Agency 2, , , , TOTAL 5, ,412.5 Oportunidades handles the biggest budget for a Federal Government program in Mexico. Its operative cost (less than 3% of each invested peso) makes it one of the most efficient Conditional Cash Transfer programs worldwide.
16 Oportunidades Evolution Oportunidades is the utmost Social Development Program in Mexico, besides from being an important instrument of Social Policy. $ 3 million USD $ 3.7 million USD $ 5 million USD Very important growth: From 2.5 million families assisted in 2000 to 5.8 million families assisted in 2010 in 95,135 localities from 2,444 municipalities, throughout 32 states of Mexico.
17 Legal Framework Expenditure Budget of the Federation ARTS. 23, 26, 27 Operating Rules DOF 31/12/2007 Planning Law DOF 05/01/1983 ARTS. 5, 21, 22, 23 Regulation of the General Law of Social Development DOF 18/01/2006 National Development Plan DOF 31/05/ Equal Opportunities Social Development Sector Program DOF 10/04/2008 Decree of Creation August 8 th, 1997 DOF 06/03/2002 Mexican Constitution DOF 05/02/1917 ARTS. 26, 49, 80, 90 General Law of Social Development DOF 20/01/2004 Chap. III. Finance and Expenditure
18 General Processes
19 General Processes 1 Targeting 1.1 Localities targeting 1.2 Families targeting 2 Incorporation Incorporation of families 3 Coresponsibilities Certification of the fullfilment of families conditionalities 4 Supports delivery 4.1 Calculation of the amount of the cash transfers for each family 4.2 Delivery of supports
20 How coresponsibilities are certified
21 How transfers are calculated and delivered (cash)
22 How transfers are calculated and delivered (card)
23 Identification of families Survey 1 hr Analysis of the socioeconomic information of the household Identification Of the elegible families Each Social Promoter makes an average of 10 surveys per day, to ensure their quality With the support of: Cuestionario Único de Información Socioeconómica H1 (CUIS) Mobile Device (DM) H2 Social Promoter (PS)
24 Implemented Innovations
25 New actions in Alternative model of management and attention in urban areas to enhance the impact in the development of families capacities. Includes : New multidimensional targeting model Increased coverage of health services that respond to the dynamics of cities Increase the amount of money given by the scholarships, due to the higher costs of education and living in urban areas Replacing Elementary school scholarships with compensatory support for families with young children School performance bonus New conditionality scheme, giving greater flexibility in complying Payment by debit card
26 New actions in New Cash Transfer: Live Better for Children 8 USD per child under 9 years old, (up to 3 children per family)
27 New actions in Increase in the number of families Specially in urban areas Oportunidades increase of 600,000 families Programa de Apoyo Alimentario increase of 400,000 families
28 New actions in Joint Operation: Of the two programs, Oportunidades and PAL (Programa de Apoyo Alimentario = Alimentary Support Program) This will improve planning and facilitate the transfer of people between programs
29 External Evaluation Results
30 Integral Evaluation Model Treatment gropus Comparison groups: without program, during different exposure times Experimental & quasiexperimental External and independent Evaluation Advisory Groups Renowned academic and investigation institutions (IFPRI, CIDE, INSP, CIESAS, COLMEX) Technical suppor from IDB and CONEVAL Focus groups Topics Social / Demographic Economic Biological / Anthroprometric Cognitive abilities, skills Behavioral patterns Society and Family dynamics Comunity dynamics and infrastructure Processes and managment Integral Evaluation Temporal Dimension Approaches Levels of Analysis Quantitative Qualitative Of impact Operative/of processes Families and individuals Age groups, ethnicity Communities / regions / states Health and Education Services providers, Oportunidades Headquarter Transversal Longitudinal (CP, MP, and LP) Ex pre (simulaciones) and ex post
31 External Evaluation Results Education Less beneficiaries inherit their parents social, economic and working conditions. Agudo Sanchís, Alejandro. Cómo se explica el impacto educativo del Programa Oportunidades? Actores, factores y procesos.
32 External Evaluation Results Education In 2000, 5 of each children in the Program finished Elementary education; in of each 10 finished it. Agudo Sanchís, Alejandro. Cómo se explica el impacto educativo del Programa Oportunidades? Actores, factores y procesos.
33 External Evaluation Results Education Oportunidades has contributed to close two important gaps in education: ethnic and gender. School enrollment years have increased more among indigenous population and among women. Agudo Sanchís, Alejandro. Cómo se explica el impacto educativo del Programa Oportunidades? Actores, factores y procesos.
34 External Evaluation Results Nutrition Beneficiary children from 24 to 71 months old increased their height an average of inches compared to non beneficiaries. Neufel, L.; Mejía, F.; Gaxiola, A.; García Guerrera, A. Diagnóstico situacional del estado nutricional de niños menores de dos años de edad y sus madres, beneficiarios de Oportunidades en zonas rurales.
35 External Evaluation Results Nutrition Levels of health and motor skills as well as physical development of children improved considerably compared to non beneficiaries. 22% increase of total food consuption in rural areas and 16% in urban areas, especially fruits, vegetables and high protein meals. Arroyo Ortiz, J.P. Estudio sobre los efectos de Oportunidades a diez años de intervención, en el consumo e inversión de las familias beneficiarias en zonas rurales.
36 External Evaluation Results Nutrition Reduction in the prevalence of anemia in beneficiaries under two years old, from 61% to 35.8%. Neufel, L.; Mejía, F.; Gaxiola, A.; García Guerrera, A. Diagnóstico situacional del estado nutricional de niños menores de dos años de edad y sus madres, beneficiarios de Oportunidades en zonas rurales.
37 External Evaluation Results Health Less consumption of alcoholic beverages among young people between 22 and 24 years old exposed to Oportunidades. Gutiérrez, J.P. Comportamientos de riesgo y sus consecuencias para la salud, bienestar y probabilidad de participación laboral.
38 External Evaluation Results Health 35% increase of health assistance in rural areas and 20% in urban areas. Rodríguez Ortega, E.; Pasillas Torres, Mireya. Efectos de Oportunidades en la economía e infraestructura local en zonas rurales a diez años de intervención del Programa Oportunidades (Evaluación Cualitativa)
39 External Evaluation Results Health Being a beneficiary of Oportunidades facilitates access to other Federal and State Social Programs such as Seguro Popular (Popular Health Insurance) Gutiérrez, J.P. Comportamientos de riesgo y sus consecuencias para la salud, bienestar y probabilidad de participación laboral Rodríguez Ortega, E.; Pasillas Torres, Mireya. Efectos de Oportunidades en la economía e infraestructura local en zonas rurales a diez años de intervención del Programa Oportunidades (Evaluación Cualitativa)
40 What makes Oportunidades a succesful CCT Consider external and internal evaluation results in order to improve the operation and its effects Quality in health and education services Clear objectives and structure Adequate targeting Positive incentives for people to comply with their core responsabilities Time line: well defined entry and exit requirements Empirical evidence of the positive effects of the Program Capacity of adaptation to both national and international context
41 International Cooperation Between 2008 and 2010 Oportunidades welcomed more than 30 countries, international organizations and foundations that were interested in knowing and learning about the Program, as well as in recieving counsel. This activities allowed the exchange of experiences and the development of projects. Countries and Internationals Organizations European Union Guatemala Ecuador Guinea Bissau Morocco Tanzania Panama Japan Honduras Paraguay Chile China Colombia Brazil Pakistan Burundi Philipines New York City Ford Foundation Gates Foundation Wold Bank UN - WFP American University
42 Gracias!
43 H1 Identification of families Single Socioeconomic Information Questionnaire (CUIS) Data is collected on household characteristics and housing conditions for estimating whether a family is poor or not. Contains data on the geographic situatuion of the house, its current characteristics and equipment, as well as economic and demographic information of each member of the household.
44 H2 Identification of families Mobile Devices (DMs) Survey methods Time: BEFORE: Traditional (Pen & paper) 90 days from the making of the survey to the incorporation of the family NOW: Mobile Device 50 minutes with Online Incorporation Costs: Savings NOW: 55.3 USD per family * 1 USD = 12.6 MXP 45.7 USD per family 17.4 % saving Paper (-2.8 million surveys) Storage (-196 tons of paper) Computer equipment, lease and basic energy services (- 2,500 computers, - 230,000 USD in light and energy costs) Savings in the FUTURE: Reduction in costs of personnel thanks to the immediate response in the permanent atention to beneficiary families.
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