Second International Workshop on Conditional Cash Transfer Programs - CCTs. São o Paulo Brazil April 26-29, 29, 2004

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1 Second International Workshop on Conditional Cash Transfer Programs - CCTs São o Paulo Brazil April 26-29, 29, 2004

2 Poverty reduction: ,6 32,6 27,5 25,7 23,8 23,2 19,9 12,9 8,8 7,6 17,4 21,7 20,6 16,1 14,9 5,8 5,6 5, Indigent Poor not indigent Total poverty Stagnation in poverty reduction Problems in the targeting of intra poverty Dispersion of public supply Social programs designed based on demand

3 A Social Protection System? Background to a public policy decision Analysis of public supply directed towards the priority groups that are included in the social policy Social Ministries Committee - MIDEPLAN. Design of an integral intervention strategy targeted towards families in extreme poverty 2000 MIDEPLAN. Analysis of social protection situation of poor individuals and families 2001 Budget Division World Bank. Pilot program of integral attention to families in extreme poverty ty 2002 FOSIS.

4 A Social Protection System? Alternatives for a public policy decision to reduce extreme poverty 1. Reallocate resources from targeted social programs that are dispersed among different institutions, and create one direct cash transfer that is targeted towards families in extreme poverty in order to reach a per capita income that surpasses the indigence line. 2. Review current targeted social programs and keep only those that contribute to reducing extreme poverty. 3. Expand to national coverage a pilot program (currently in execution), which is targeted towards families in extreme poverty and offers personalized attention to families via the municipalities.

5 The chosen solution The Chile Solidario System is a governmental initiative that is a result of targeting extreme poverty by combining the following elements into one single intervention: The progressive creation of an integral social protection system for Chilean families living in conditions of extreme poverty. Personalized attention to families in extreme poverty so as to integrate them effectively into the network of services and programs targeted towards them. La combinación de ambos elementos les permitirá superar su condición de extrema pobreza.

6 The Chile Solidario System, coordinated by the Ministry of Planning, is a social protection system targeted towards the 225,000 poorest families in the country. CHILE SOLIDARIO FAMILIES Psycho-social support and temporary economic support Guranteed monetary subsidies Preferential access to social promotion programs

7 The expected result for the Puente Program is that at least 70% of the participating families... Are families that: possess practices of mutual support, integrate themselves to the locale where they live, effectively access the social benefits that are offered to them, integrate themselves to the existing local networks, and have an income per capita that is above the extreme poverty line.

8 The previously mentioned objective can be achieved by having each of the participating families reach a combination of 53 minimium conditions of quality of life, which are defined by the Program. These conditions are organized into 7 categories or dimensions: Identification Health Education Family dynamic Housing Work Income A family has surpassed its condition of extreme poverty when it possesses the 53 minimum conditions of quality of life, of which income is only one.

9 The Program is based upon 4 principal components Personalized attention to the families is given to them at their home; families are selected via the CAS card. A Family Support person is assigned to each family for 24 months, contact with the family decreases over time. During this period the family receives a conditional cash transder, whose amount decreases every six months. The intervention is developed on the basis of a specially designed methodology, which is based on working sessions with the family, and the signing of contracts between the family and the Family Support person. This process is supported by an instrument that facilitates communication. Monitoring and evaluation

10 Administration Model of the Puente Progam National Supervision Team Regional coordination and provincial support Municipality Family Intervention Unit FAMILIES Local Intervention Network Collaboration agreement: FOSIS - Municipalities

11 Family Support Individuals Provided by the institutions that make up the local networks (Municipalities Education Health, preferably), and by FOSIS, in order to complement the required training. Monthly income must be equivalent to that of the Local Family Support individuals with whom they work. The national average is US$ 400/month. Selected after an initial training process and carried out by the Program s national team. Those provided by FOSIS are preselected on the basis of a public competitive bidding process, which is organized jointly by FOSIS and the corresponding Municipality. All sign a performance agreement in the Program.

12 Family Protection Transfer Given after the first contract with the family is signed (during the middle of the second month). Geared towards helping the family insert itself socially. Preferably given to the woman, whether or not she is the head of household. Has a duration of 24 months. Terminated if the family does not comply with its commitments. The value is independent of family size. Compatible with all of the other benefits given by the State. Its value decreases every 6 months: US$ (month 1-6) US$ (month 7-12) US$ 9.20 (month 13-18) US$ 5.80 (month 19-24) equivalvent to the value of one family allocation.

13 Regional and national supervision and support National Team 13 regions Region 42 provinces Region Province Province Province Province Province UIF UIF UIF UIF UIF UIF UIF 332 UIF s

14 Continuous training of key actors PUENTE Learning Community A system of training in modalities of?, virtual, and distance education. FOSIS FLACSO agreement. Seeks to perfect the social intervention that is realized through the experience of permanent reflection (individual and collective). Interactive system with 5 basic resources: Circles of Practice Analysis (CAPs) Agency of Internships and Contacts Institute: courses and workshops University: higher degree specializing in social work. Technological platform-web.

15 Monitoring via the internet System for registration, monitoring, and evaluation via the internet. Registers each family, with standardized cards. The Family Support individuals update the registration. The Family Protection Transfer is assigned via this system. The Family Support individual, on behalf of the Program, signs a confidentiality agreement with the family in the participation contract. Provides statistics and official information of the Program, and at the same time serves as the data base for the processes of evaluation.

16 What does the Chile Solidario System offer families? The families enter via the Puente Program, during the first two years. While they are in the Puente Program, the Chile Solidario System guarantees them a set of subsidies, depending on the number of requirements with which they comply. Agreements and conditional transfer of resources with the social programs that are geared towards providing support to families that comply with the 53 minimum quality of life conditions defined by the Program. Those families that comply with the entire Puente Program receive a Graduation Bonus, which has a duration of 3 years, is compatible with the rest of the benefits provided by the State, and is equal in value to a Single Family Subsidy.

17 Status of Progress to date The law that created the Chile Solidario System has been approved. 110,000 families from 332 comunas benefitted by more than 2,500 Family Support individuals (60% locals). 85,000 families receive a Family Protection Transfer. Approximately 20,000 families have met the 53 minimum conditions. Agreements with 20 public institutions in order to target their programs to the families protected by the System. New programmatic offer for those minimum conditions for which no social programs existed. Adjustments to some current social programs.

18 Main challenges Difference between coordinating programs and working in a network with the beneficiaries themselves (complementarity). Different working styles and rhythms between the different levels of government. Adjusting the programmatic supply to the characteristics and necessities of the families that participated in Chile Solidario. Lack of programmatic supply for some of the minimum conditions.

19 Key factors that have facilitated results Political will. Clear results for institutions and families. Registration and monitoring systems. Clarity in access mechanisms. Local execution with the support of an institution with experience and national presence. Allocation of Family Protection Transfer via the internet. The total cost per family to access the Chile Solidario System (via the Puente Program) is US$ 330, of which US$ 275 correspond to the Protection Transfer.

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