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.
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?
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