Mexico’s Conditional Cash Transfer Program (CCT)

International Day of Families, New York, 05/12/2011

Living betterLiving better

• Allowing people a full social participation, to develop and enhance their capabilities (nutrition, education, health, dwelling and social infrastructure)

• Caring and improving the environment by promoting social cohesion

• Incorporating sustainability criteria in social policy

• Raising the productivity of people to have better employment and income options

Living better strategy guides all government actions and policies to a common goal: sustainable human development

Living better strategy guides all government actions and policies to a common goal: sustainable human development

To achieve this common goal the strategy focuses on: To achieve this common goal the strategy focuses on:

Oportunidades’ Objective Oportunidades’ Objective

Achievement of better welfare standars and the

improvement of education, health and nutrition options

Achievement of better welfare standars and the

improvement of education, health and nutrition options

Develop and strenghten capabilities of families living

in extreme poverty conditions

Develop and strenghten capabilities of families living

in extreme poverty conditions

Oportunidades covers the entire life cycle of benificiary families.

Oportunidades’ InterventionsOportunidades’ Interventions

SeniorsSupport

Education

Vivir Mejor (Live Better)

Nutrition

Health

Infantil Vivir Mejor(Live Better for Children)

Jóvenes con Oportunidades (JOP’s(Opportunities for youth)

Scolarships and school supplies

Energetic Component

NutritionNutrition

Components and benefits offered by Oportunidades Components and benefits offered by Oportunidades (In US Dollars)

HealthHealth

ResponsibleCorresponsabilityWhat is it?AmountSupportComponent

Components and benefits offered by Oportunidades Components and benefits offered by Oportunidades (In US Dollars)

EducationEducation

Components and benefits offered by Oportunidades Components and benefits offered by Oportunidades (In US Dollars)

Educational Support Structure (Scholarships)Educational Support Structure (Scholarships)

Evolution of Poverty in Mexico 1992-2008Evolution of Poverty in Mexico 1992-2008

Percentage of population in poverty in Mexico

CONEVAL (National Council of Social Developmet Policy Evaluation)

PatrimonialInsufficient income to buy a basic food basket, to make the necessary expenditure in health and education, as well as, in housing, clothing and transportation.

CapacitiesInsufficient 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)

Households servedby type of area

Oportunidades in Numbers 2009Oportunidades in Numbers 2009

2009 Oportunidades’ Budget2009 Oportunidades’ Budget

Oportunidades handles the bigest 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.

Oportunidades handles the bigest 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.

Oportunidades is the utmost Social Development Program in Mexico, besides from being an important instrument of Social Policy.

Oportunidades is the utmost Social Development Program in Mexico, besides from being an important instrument of Social Policy.

Very important growth: From 2.5 millon families assisted in 2000 to 6.5 millon families in 2010assisted in 95,135 localities from 2,444 municipalities, troughout the 32 states of Mexico.

Oportunidades EvolutionOportunidades Evolution

$ 38

,072

MD

P

$ 47

, 845

MD

P

$ 63

,089

MD

P

General ProcessesGeneral Processes

TargetingTargeting11

IncorporationIncorporation22

CorresponsabilitiesCorresponsabilities33

Supports deliverySupports delivery44

1.1 Localities targeting1.2 Families targeting

Incorporation of families

Certification of the fullfilment offamilies’ corresponsabilities

4.1 Calculation of the amount of the cash transfers for each family

4.2 Delivery of supports

IdentificationOf the elegible families

IdentificationOf the elegible families

Identification of families Identification of families

¿Con qué?

Analysis of the socioeconomic

information of the household

Analysis of the socioeconomic

information of the householdSurvey

1 hrSurvey

1 hr

Each Social Promoter makes an average of 10 surveys per day, to ensure their quality

Promotores Sociales (PS)

Dispositivos Móviles (DM)Diap. XXX

Cuestionario Único de Información Socioeconómica(CUIS) Diap. XXX

Alternative model of management and attention in urban areas, more effectively in the processes of care and operation of the program, to enhance the impact in the development of families’ capacities

New model in urban areas 2009New model in urban areas 2009

New multidimensional targeting modelNew multidimensional targeting model

Includes :

Increased coverage of health services that respond to the dynamics of cities.Increased coverage of health services that respond to the dynamics of cities.

Increase the ammount of money given by the scholarships, given the higher opportunity costs in urban areas

Increase the ammount of money given by the scholarships, given the higher opportunity costs in urban areas

Replacing Elementary shool scolarships with a compensatory support for families with young children Replacing Elementary shool scolarships with a compensatory support for families with young children

School performance bonusesSchool performance bonuses

New conditionality scheme, giving greater flexibility in complyingNew conditionality scheme, giving greater flexibility in complying

Payment by debit cardPayment by debit card

increase of 400,000 families

increase of 600,000 families

New actions in 2010New actions in 2010

Specially in urban areas

Oportunidades Oportunidades

Programa de Apoyo AlimentarioPrograma de Apoyo Alimentario

Increase the numberof families11

8.9 USD for children from 0-9 years old in both programs (up to 3 kids per family)

New actions in 2010New actions in 2010

New cash transfer: Live Better for Children

22

Without Federal Government Transfers*, the number of people living in extreme poverty would have increased 2.6 millions (13.5%) according CONEVAL.

Impact of the Cash TransfersImpact of the Cash Transfers

*Transfers = Oportunidades, Becas del Gobierno, Procampo y Adultos Mayores

People

living in extreme (alimentary) poverty

Additional

2.6million

peoplein food

poverty

without Oportunidades

without Transfers*

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)

What makes Oportunidades a succesful CCTWhat makes Oportunidades a succesful CCT

Empirical evidence of the positive effects of the Program Empirical evidence of the positive effects of the Program

Consider external and internal evaluations results in order to improve the operation and its effects

Consider external and internal evaluations results in order to improve the operation and its effects

Capacity of adaptation to both national and international context Capacity of adaptation to both national and international context

Clear objectives and structure Clear objectives and structure

Positive incentives for people to comply with their corresponsabilities Positive incentives for people to comply with their corresponsabilities

Quality in health and education services Quality in health and education services

Adequate targetingAdequate targeting

Time line: well defined entry and exit requirements Time line: well defined entry and exit requirements

• European Union• Guatemala• Ecuador• Guinea Bissau• Morocco• Tanzania• Panama• Japan• Honduras• Paraguay• Chile• Brazil• Pakistan• Brundi• Phlipines• New York City

• Ford Foundation• Gates Foundation• Wold Bank• UN - WFP• American University

Between 2008 and 2009 Oportunidades wellcomed 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.

Between 2008 and 2009 Oportunidades wellcomed 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

International CooperationInternational Cooperation