Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
27Activity
0 of .
Results for:
No results containing your search query
P. 1
Ecuador's Bono de Desarrollo Humano Conditional Cash Transfer Program

Ecuador's Bono de Desarrollo Humano Conditional Cash Transfer Program

Ratings:

5.0

(1)
|Views: 4,995|Likes:
Published by Ben Turner
Program analysis of Ecuador's Bono de Desarrollo Humano program to increase human capital and to decrease consumption poverty.
Program analysis of Ecuador's Bono de Desarrollo Humano program to increase human capital and to decrease consumption poverty.

More info:

Published by: Ben Turner on May 05, 2009
Copyright:Attribution

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

05/11/2014

pdf

text

original

 
Ben TurnerMSFS-517, Policies for Poverty ReductionPolicy Analysis of Ecuador's Bono de Desarrollo Humano ProgramI. Introduction
Ecuador's large conditional-cash transfer program, Bono de Desarrollo Humano(BDH, or Human Development Bond), attempts to accomplish both 1) a reduction indemand-side income inequality through cash transfers and 2) establish co-responsibilities with poor citizens to keep their children in school and to keep theirchildren regularly visiting health services institutions, by using the incentive of cashtransfers to their households. This program is part of a larger policy that is attemptingto build human capital for the poor in the form of better education, nutrition, andhealth.
1
BDH was an incremental improvement upon prior Ecuadorian social assistanceprograms, and it has achieved the two goals above, but has it yet provided a completesolution towards building human capital? Does BDH accomplish more than its statedgoal of increasing human capital through increasing attendance in school and at clinics? Will further incremental reform and fine tuning of a social assistance program like BDH be politically possible, using prior decisions as a guide?
1
World Bank, "Bono de Desarrollo Humano", Project Appraisal Document, 2006. http://www-wds.worldbank.org/external/default/main?pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000112742_20060512122806
Page
1
of 
15
 
I.A. Poverty Issue
In 2003, Ecuador sought to make changes to its social assistance and socialinclusion policies so as to more directly address the large problem of income inequality  within the country. And this problem is large; the richest 10% of the population receivesthree times more income than the poorest 50% and 60 times more than the poorest10%. Ecuador has a Gini coefficient of 0.56
2
and has had a fluctuating economy and budget for social support systems, human capital investment, and education healthservices. This can be seen in budgeting priorities, where Ecuador invested only 5-6% of its GDP towards social assistance programs while the rest of South America contributed12% of their GDPs to the same programs within their own countries.Over 70% of the Ecuadorian population is uninsured, while children drop out of school after primary school because of rapidly increasing costs for schooling betweenthe ages of 11 to 15.
3
The poor are dropping out of school and out of the health system because they cannot afford it, and these poor consider themselves better off if they leavesuch national institutions in favor of pursuing work. As a result, poverty becomescyclical across generations, children grow up malnourished and stunted (to a degreehigher than one would expect from Ecuador's economic development level), andmacroeconomic growth is severely hampered as the poorest Ecuadorians neither havethe physical nor emotional growth to contribute fully to Ecuadorian GDP.
I.B. Policy Analysis and Previous Efforts at Reducing Poverty ThroughSocial Assistance and Inclusion
2
World Bank, 2006, p. 42.
3
World Bank, 2006, p. 2.
Page
2
of 
15
 
BDH was created to consolidate two previous Ecuadorian programs, BonoSolidario (an unconditional cash transfer program) and Beca Escolar plus Programa de Alimentacion Escolar (a conditional cash transfer to increase school attendance,combined with a meal program). BDH also used an improved targeting system calledSelBen (Sistema de Seleccion de Beneficiarios) to focus BDH conditional cash transferstowards the poorest and most-affected Ecuadorians. Thus, BDH was intended to fixknown gaps in targeting while expanding coverage to the poorest citizens, as a reformistimprovement over the older, outdated programs.Other efforts have been made to help reduce consumption poverty, to include vouchers for schooling, unconditional cash transfers, and geographic targeting. Theproblem with these solutions is not so much that they may not be successful in reducingpoverty and raising human capital, but they offer weak targeting of the specific groupsmost affected by poverty. Furthermore, they do not imply any conditionality uponreceiving the benefits and so assume good faith usage by those who receive them.BDH in its implementation remedies both problems with its SelBen means-basedtargeting as well as with conditionality of attendance determining the amount of thecash transfer. So BDH with SelBen is the most promising among its alternatives interms of achieving Ecuador's poverty-reducing policy goals.
I.C. Roadmap of Paper
In order to answer the question of how complete a solution the conditional cashtransfer program BDH will be for Ecuador, this paper will first describe the context
Page
3
of 
15

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->