Poverty, Inequality Reduction and Social Inclusion in Latin America: New Approaches FORUM OF THE AMERICAS 13 March 2006 Inter-American Development Bank (IADB)

Poor People: 11.2 million families (44 million people)* Extremely Poor People: 4.5 million families* * Ipea and IBGE, 2003 (2001 PNAD/IBGE data) The 10% richer holds 44.7% of national income The 50% poorest holds 14.1% of national income Brazil is among the 10 countries with the highest income concentration in the world. * CPS/IBRE/FGV, 2005 (2004 PNAD/IBGE data) GDP - Per capita: US$ 4 500,00 Brazil: one fourth of its population living below the poverty line. Brazil – An Overview Population: 185 million Area: 8.5 million km² 26 states, 1 Federal District and 5,564 municipalities

The Brazilian Government strategy to overcome poverty and inequality goes beyond economic growth: it is based on the establishment and consolidation of an effective social protection network, which has been strengthened in the last decades. Brazilian Government Strategy

Ministry of Social Development and Fight against Hunger - MDS The Ministry of Social Development and Fight against Hunger was created in January 2004, in order to deal with social policies in a coordinated way. Its creation has been an important historical turning point on social policies’ development. Fome Zero (Zero Hunger) is a strategy addressing the reduction of poverty and hunger developed by the Government of President Lula. It is coordinated and implemented by the MDS.

Fome Zero aims at the promotion of the human right of access to adequate food, especially for the population facing social exclusion. The strategy is working in a context of promotion of food and nutrition security and integrated actions in an attempt to achieve social inclusion and citizenship rights for the population most vulnerable to hunger. Fome Zero

Social Assistance The scope of action related to Social Assistance developed by the Government is the implementation of the Social Assistance Single System (SUAS). Its main objective is organizing social assistance network and promoting resources allocation based on criteria stated by the three Government levels. Food and Nutrition Security Programmes: Food Procurement Programme – PAA Cisterns Popular Restaurants Food Banks Community Kitchens Community Gardens CONSADs (Food and Nutrition Security and Local Development Consortium)

The Bolsa Família Programme, a multisectorial public policy launched in October 2003, is the main actions within the Fome Zero strategy. The Programme constitutes a conditional cash transfer to poor families. The Programme works in: Short term: alleviating immediate poverty conditions; Medium term: enhancing educational and health conditions. Bolsa Família

Benefits transferred monthly varies from US$ 7 to US$ 44 (US$ 29 average) 8.7 million families benefited (by December 2005); Works in all 5,564 Brazilian municipalities and the Federal District. In 2005, US$ 3 billion were transferred, which corresponds to 0.36% of the Brazilian GDP.

Conditions that families have to fulfill: Education: a) Register children and adolescents from 6 to 15 at regular schools, according to current educational legislation; b) Guarantee a minimum of 85% school attendance in the school year, informing the school about absences and presenting medical excuses and/or other documents, if possible. To pregnant and nursing women: 1) Register to pre-natal care and go to doctor’s appointments at the closest health center. Vaccination: 1) Take the child to the health centre or to the vaccination place and keep the vaccination card updated according to what the Ministry of Health establishes. Bolsa Família

The failure to fulfill the conditionalities by the beneficiaries has not been noticed, at first, as a matter to be punished, but rather as an indicator of family vulnerability. Monitoring cases of failure in the fulfillment of the conditionalities is important to identify vulnerable social situations, and, in this sense, to manage public actions not only to suspend the benefits, but also to preserve the rights of the beneficiaries.

Bolsa Família – Complementary Programmes PETI - Child Labour Eradication Programme It benefits 1.1 million children in infant labor risk through two main actions: financial benefit and social assistance activities. PAIF - Comprehensive Family Care Programme It is developed in the Social Assistance Reference Centres (CRAS) and it monitors families which receive the benefit of Bolsa Família. In 2005, there were 1,777 CRAS in 1,200 municipalities. It is planed to increase this number in 500, so each municipality will have one Center. PRONAF - National Programme for Strengthening of Family Agriculture It concedes credit and technical support to family farming entrepreneurship.

Bolsa Família – Complementary Programmes Productive Inclusion in Cooperation with the Ministry of Labour and Employment (MTE) Intense coordination process to increase professional qualification oriented to productive inclusion. Medium term solutions for job creation and income generation, such as the Solidary Economy.

Brazil-IADB Cooperation Cooperation with the IADB is strengthening the Brazilian social protection system. It is a long-term strategic partnership to promote social and economic development in Brazil.

Ministry of Social Development and Fight against Hunger Minister Patrus Ananias de Sousa Website: (61) CONTACT US