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Conditional Cash Transfers: Social Work and Eradicating Poverty in Chile
Conditional Cash Transfers: Social Work and Eradicating Poverty in Chile
research-article2016
ISW0010.1177/0020872816631601International Social WorkReininger et al.
Article i s w
Taly Reininger
Universidad Andres Bello, Chile
Borja Castro-Serrano
Universidad Andres Bello, Chile
Marcela Flotts
Universidad Andres Bello, Chile
Mónica Vergara
Universidad Andres Bello, Chile
Ana Fuentealba
Universidad Andres Bello, Chile
Abstract
The following article revises conditional cash transfers (CCTs) in Latin America, followed by
an examination of the history of poverty reduction programs in Chile since the 1960s and the
installation of CCT programs in the country with a particular focus on the role of social work in
their design and implementation. The article concludes with a discussion of the challenges social
work faces in actively participating in the redesign and implementation of the new CCT model
from a human rights and social justice focus.
Keywords
Chile, conditional cash transfers, ethical family wage, Latin America, poverty
Introduction
Since the late 1990s, conditional cash transfer (CCT) programs have been heralded as the ‘magic
bullet’ for overcoming poverty (Adato and Hoddinott, 2007; Bastagli, 2010; Fiszbein and Schady,
Corresponding author:
Taly Reininger, Escuela de Trabajo Social, Universidad Andres Bello, Av. Republica 252, Santiago de Chile, Chile.
Email: treininger@unab.cl
Downloaded from isw.sagepub.com at University of Sussex Library on June 4, 2016
2 International Social Work
2009; Smith et al., 2013). Originating in Latin America, CCT programs have now begun to spread
throughout the developing world, with new programs sprouting rapidly in Asia as well as in parts
of Africa (Fiszbein and Schady, 2009).
The widespread adoption and exponential growth of CCTs are largely due to the publication of
the positive effects of CCTs on health and educational outcomes as well as dominant political eco-
nomic ideologies that seek maximum program efficiency (Adato and Hoddinott, 2007). Fiszbein
and Schady (2009) also attribute the popularity of CCTs to the wide versatility of the program
model, which allows countries to specifically tailor programs according to the particular country’s
context. Such is the case, for example, of the Cash Transfer for Orphans and Vulnerable Children
in Kenya that targets orphans of HIV/AIDS, and the Female Secondary School Assistance program
in Bangladesh that specifically seeks to increase female education in the country.
The CCT program Puente, or Bridge Program in English, developed in Chile in 2006, has also been
identified as an innovative approach to cash transfers due to its family psychosocial accompaniment
component (Fiszbein and Schady, 2009; Larrañaga et al., 2014; Martorano and Sanfilippo, 2012).
Nevertheless, despite its innovative focus, recent political and economic developments in Chile have
led to a redesign of the Chilean CCT program. The following article revises CCTs in Latin America,
followed by an examination of the history of poverty reduction programs in Chile since the 1960s and
the installation of CCT programs in the country with a particular focus on the role of social work in
their design and implementation. The article concludes with a discussion of the challenges social
work faces in actively participating in the redesign and implementation of the new CCT model.
Table 1. Active conditional cash transfer programs in Latin America (15 countries).
in the region reveals the appeal of this policy for reducing poverty in the region. In terms of their
impact, results indicate that CCTs in Latin America tend to bring families closer to the poverty line
rather than overcoming poverty, due to their specific and targeted focus on families living in
extreme poverty (Cecchini and Madariaga, 2011). Table 1 shows the current programs imple-
mented in the region by country, identifying year of initiation as well as coverage.
health. The focus of poverty programs changed radically as well, seeking to insert individuals into
the market through employment programs rather than the empowerment of disenfranchised groups.
Emblematic programs implemented during this period were the Minimum Employment Program
(Programa empleo Mínimo (PEM)) initiated in 1975 and the Occupational Program for Heads of
household (Programa de Ocupación para Jefes de Hogar (POJH)), implemented in 1983, which
sought to curb the high unemployment rate through precarious employment insertion at the munic-
ipal level (Larrañaga, 2010).
A second historic development during Pinochet’s dictatorship was the creation of the socioeco-
nomic characterization survey (ficha de caracterización socioeconomic (CAS)) that sought to effi-
ciently identify and target state aid to those in need of or those ‘worthy of’ state aid (Ruz and
Palma, 2005). These programs were insufficient in adequately responding to the needs of a grow-
ing poor population and in 1990, when Chile began its transition to a democratically elected
government, the country registered close to a 40 percent poverty rate (Denis et al., 2010).
The return of democracy in 1990 marked a sharp paradigm shift with regard to state programs
aimed at reducing poverty. The government announced the objective of striving toward greater
equality and social justice, not only targeting priority groups such as children, youth, female heads
of household, ethnic minorities, older adults, and people with disabilities (Ruz and Palma, 2005),
but also with a focus on human rights and active citizen participation (Raczynski, 2008). Nevertheless,
while the poverty rate presented a constant reduction from 1990 to 2006, the indigent rate, or extreme
poverty, remained stagnant. It was due to the stagnation of extreme poverty that in 2006, the Lagos
presidency (2000–2006) announced the creation of the Chile Solidarity Social Protection system
(Chile Solidario) whose objective was to address the needs of families living in extreme poverty.
One of the pillars of the Chile Solidario system was the Bridge program (Programa Puente) that
sought the active participation of indigent families in overcoming poverty through their insertion
in the public welfare system (Larrañaga and Contreras, 2010). As shall be discussed in this article,
social work played a central role in the Bridge program. Social workers not only implemented the
program on the ground, but also played a protagonist role in its design, utilizing theories and meth-
ods espoused by the profession as well as a human rights framework (Saracostti, 2008).
Despite its innovative design, however, the Bridge program struggled with various implementa-
tion problems as well as evidence of its effectiveness (Carneiro and Galasso, 2007; Galasso, 2006;
Perticara, 2007; Raczynski, 2008). It was with the arrival of the first right wing government since
the return of the democracy in 2010 that Chile began a redesign of its poverty programs, imple-
menting the Ethical Family Wage program (Ingreso Etico Familiar), which borrowed heavily from
the conditional cash program designs that had been overtaking poverty policy in Latin America and
the rest of the developing world (Fiszbein and Schady, 2009).
The Bridge program (programa Puente) was perhaps the most celebrated and innovative aspect
of the Chile Solidario system in that it provided families with an individually tailored psychosocial
support program designed with the family and in coordination with a family support professional
(apoyo familiar). This component of Chile Solidario was designed under the supposition that pov-
erty was a multidimensional phenomenon that required a holistic family-based intervention (Ruz
and Palma, 2005). The Bridge program had a two-year duration in which families were expected
to complete 53 minimum conditions in seven distinct dimensions, which included identification
(i.e. having the necessary state documents), health (i.e. being enrolled in the local health clinic),
education (i.e. children enrolled in school), family dynamics (i.e. participating in family sessions),
housing (i.e. adequate housing), employment (i.e. being employed), and income (i.e. securing the
minimum income required). At the end of the 24 months, participating families were expected to
meet the 53 basic conditions of the program in order to successfully graduate.
Family support professionals played a key role in working with families in order to meet the 53
minimum requirements by establishing a family work contract at the beginning of the program as
well as monitoring their completion. Family support professionals were expected to work with
families in a participatory manner through home visits, developing family skills and empowerment,
as well as assistance in accessing state programs and subsidies. Family support professionals were
considered the ‘entryway’ into the social protection system (Larrañaga and Contreras, 2010; Ruz
and Palma, 2005).
While Chile Solidario was organized in the Ministry of Planning (Ministerio de Planificación),
the implementation of the Bridge program was the responsibility of the solidarity and investment
fund (Fondo de Solidaridad e Inversión Social (FOSIS)) and was put into practice locally in
coordination with municipalities throughout the country. Family support professionals were either
employed directly through FOSIS or employees of the local municipalities. Professionals employed
by FOSIS consisted primarily of professionals or para-professionals from the social sciences,
while in the case of municipalities, family support professionals were not required to comply with
the same professional profile and were often professionals who had been employed in the munici-
palities for many years (Raczynski, 2008).
The role of social work in Chile Solidario and the Bridge program
Social work played a key role in both the design and the implementation of the Bridge program
(Saracostti, 2008). In 2000, the Ministry of Planning, preoccupied with a stagnant indigent rate,
undertook the mission of assessing the situation of families living in situations of extreme poverty
in the country and designing a program in order to meet their needs. The assessment and design
of the new program were led by Veronica Silva, a social worker, head of the social department in
the Ministry of Planning. Several programs run by municipalities and non-governmental organi-
zations (NGOs) were examined in the development stage, and a number of elements were bor-
rowed from programs implemented by Fundación Rodelillo as well as the municipalities of La
Florida and Quillota.
These programs were unique due to their holistic and integral focus in which interventions were
targeted specifically to families living in poverty. Based on these previous experiences, the Bridge
program was designed utilizing social capital, social networks, and crisis intervention as concep-
tual frameworks (Ruz and Palma, 2005), theories, and models widely used in social work.
The role of social workers in the design of the Bridge program was also reflected in its ideologi-
cal values. The program, as well as the larger social protection policy, was devised under a human
rights framework seeking to guarantee families social, economic, and cultural rights. Specifically
the Bridge program, through its mission of informing families of their rights and guaranteeing their
preferential access to state services and resources, concretized a human rights approach (Ministerio
de Planificación Social, 2004). While such a human rights focus was an innovation for social poli-
cies and programs in Chile, human rights have been a central and foundational value of the social
work profession (Ife, 2008; International Federation of Social Workers (IFSW), 2014). One could
suppose then that the participation of the social work profession in the design of the Bridge program
as well as the social protection system played a role in the adoption of a human rights framework.
Social work also played a key role in the implementation of the Bridge program (Saracostti,
2008). Family support professionals employed by FOSIS were mostly professionals or para-
professionals from the social sciences, with FOSIS openly preferring social workers to assume
this role. It was presumed that social workers had the necessary skills required to work closely
and intimately with families under a crisis intervention model, while using empowerment tech-
niques in order to increase families’ social capital and insertion in the state’s social protection
system (Larrañaga et al., 2014; Ruz and Palma, 2005).
The family support component and the professionals who implemented the program were the
highest evaluated features of the Bridge program (Larrañaga et al., 2014). Families consistently
identified the relationship forged with the family supports, as well as the information obtained from
family supports through home visits, as the aspects they most valued in the program. Participants
who had once qualified the State as distant and uninterested, highly valued the State’s initiative in
forging closer relationships through family support professionals. Personalized home visits not
only permitted tailoring interventions specific to each family’s context but also a space from which
to reflect on their goals and processes (Trucco and Nun, 2008).
Nevertheless, despite their central role in the implementation of the Bridge program, family
support professionals worked under precarious labor conditions. Family support professionals
were paid little and were hired on a part-time basis, thus excluding them from health and security
benefits. Family supports were often expected to attend a caseload of over 70 families without the
necessary infrastructure to do so, specifically lack of transport and technology. Due to the precari-
ous labor conditions, the Bridge program had a very high professional turnover, which restricted to
some degree the relationship that could be forged between participants and family support profes-
sionals (Raczynski, 2008). Other critiques of the program also abounded, centering on the lack of
success in supporting families out of poverty, critiques which ultimately led to the demise of the
program.
that all should have the right to escape poverty through employment and entrepreneurship, the pro-
gram proposal centered its focus on increasing employment options for the poor (Kast, 2013). The
original proposal developed by the commission recommended an extension of the youth employ-
ment subsidy to all those living in poverty, as well as increasing the amount of the monetary family
subsidy. The receipt of the subsidy was, however, conditioned on school attendance and child health
checkups as well as employment training initiatives, borrowing heavily from traditional CCT pro-
gram methodologies (Huneeus and Repetto, 2013).
Taking into consideration the elements proposed by the commission, as well as the positive
evaluations of the psychosocial accompaniment of the Bridge program, the new program expanded
on its bases and included a socio-employment accompaniment component (Hernando, 2013). The
socio-employment component consisted of an individually tailored accompaniment by a profes-
sional in the area of employment-seeking. This professional was to aid the family in accessing
training, employment opportunities, and the development of business entrepreneurships. Socio-
employment professionals and family support professionals were to work in collaboration with
one another, but interventions were to be separate and undertaken by different professionals.
Furthermore, the title used to refer to the roles of family supports was changed to ‘family advisors’,
due to what was considered a transition from a welfare dependency model to one of empowerment
(Kast, 2013). The shift in ideologies between the Bridge program and the Ethical Family Wage
program is perhaps best visualized in this addition of an employment accompaniment component.
Unlike the Bridge program in which the empowerment of families was sought through the psycho-
social accompaniment of the family and incorporation into the public welfare system, in the Ethical
Family Wage program, empowerment was theorized as being a product of inclusion in the market
through formal employment and/or entrepreneurship ventures.
The emphasis on the protagonism of the market with regard to the Ethical Family Wage pro-
gram was also evidenced in the name of the program (including ‘Wage’ in the title versus Bridge
as the previous program name) as well as the increased attention to the cash transfer component
of the program. While the Bridge program also included a cash transfer component, it was mini-
mal in value and not considered a central element to the program. The Ethical Family Wage
program in comparison introduced three separate but complementary categories, or ‘pillars’, of
cash transfers.
The first cash transfer pillar of the Ethical Family Wage program consists of a ‘dignity cash
transfer’ which consists of two separate transfers, the first of which is a ‘base transfer’ per family
and the second, a ‘protection transfer’ calculated per person. The base transfer translates into
approximately US$27 and the per person transfer approximately US$13 per person. The second
pillar, called the ‘duties transfer’, consists of CCTs for healthy child checkups as well as 90 percent
school attendance for elementary and middle school children and 85 percent school attendance for
high school students. The amount for the CCTs translates into approximately US$17 monthly.
Finally, the third pillar of the family wage program constitutes the ‘achievement transfers’, consist-
ing of cash transfers for female employment, school achievement, and high school graduation. The
female employment transfer is a monthly transfer and is calculated based on the wage received by
each woman. The school achievement transfer is a yearly transfer and applies for those children
who are at the top 30 percent (approximately US$63) and top 15 percent (approximately US$104)
of their class. The high school graduation transfer is a single transfer of approximately US$125
(Cecchini et al., 2012).
The Ethical Family Wage program was partially implemented in 2011, under the name of the
Family Allocation program, and in May of 2012 was signed into law as the Ethical Family
Wage program (Hernando, 2013). Critiques and commentaries of the program were quick to
appear. Some argued that it differed little from the Bridge program, since on paper the Bridge
program also included CCTs through the family subsidy but those conditions were never
enforced (Hernando, 2013). Others pointed out that the main difference lay in the socio-
employment accompaniment component (Irarrázaval et al., 2012; Larrañaga et al., 2014); how-
ever, concerns were raised on implementing the socio-employment component separately from
the psychosocial accompaniment component due to the fragmentation of services. Concerns
were also raised with regard to the low wages and lack of benefits workers implementing the
psychosocial component faced, an issue that failed to be addressed by the new design of the
program (Irarrázaval et al., 2012). Others critiqued the transfers for school achievement, argu-
ing that it pitted children living in poverty against each other since they were competing against
each other in order to achieve a place in the top 15 and 30 percent of their class (Henoch and
Troncoso, 2013; Irarrázaval et al., 2012). It was also pointed out that in Chile, school attend-
ance was above 85 percent and the coverage of healthy child checkups was relatively high even
before the implementation of the Ethical Family Wage program, thus calling into question the
effectiveness and efficiency of the conditional transfers (Henoch and Troncoso, 2013).
core principles are social justice and human rights. Social workers are ascribed the social and
political responsibility of influencing and contributing to the design and implementation of such
programs and policies. Here lies the central role of our discipline.
Social work can specifically contribute to the design of social policies aimed at decreasing
poverty both in identifying the particularities of each territory and in the recognition of poverty’s
complexity and multidimensionality. The importance of identifying the particularities of each
territorial context is key to meeting the specific needs of the individuals living in that particular
area (Oneto, 2000). Social workers, through their direct insertion in specific contexts, acquire
knowledge that is crucial to translating local needs to central-level social policy design (Oneto,
1996, 2003). Furthermore, social work can play a central role in fomenting local participation in
the design and development of poverty programs through participatory action mechanisms. Such
actions would allow for the design of flexible programs that recognize territorial differences.
According to Norma Fóscolo (2006), the epochal ethos tends toward the valorization of certain
epistemological and practical worldviews, and social work today must fight against the trend
toward the mere technical and non-critical implementation of social programs and policies (Muñoz
and Vargas, 2013). As highlighted by Saül Karsz (2007), the relevance of social work lies in its
capacity to navigate complex contexts in which economic, political, legal, educational, moral, and
sexual dimensions intertwine. It is in this complex scenario that social work must co-construct
policies and programs that prioritize human rights, personal and family autonomy, and empower-
ment in order to overcome situations of poverty.
On a larger scale, it is necessary and urgent that social work expands opportunities for reflect-
ing on its practice as well as the foundations, design, and implementation of social programs. The
contribution of social work lies in its practice (Muñoz and Vargas, 2013); however, it is chal-
lenged to overcome a ‘tecnified’ practice that lacks clear epistemological and theoretical roots
(Matus, 2004). It is through this reflection that social change and transformation can come about.
It is necessary for social work to argue for a holistic multidimensional understanding of poverty
that allows for the design of integrated social programs that aim to successfully intervene in com-
plex social realities, taking into account multiple dimensions. Furthermore, social work can also
enrich policies and programs with a citizenship approach as well as a human rights and social
justice framework, through the recognition of difference (Muñoz, 2008). This challenge is no
small feat for social work.
To add a further challenge, while CCT programs may serve redistributive purposes, further
awareness must be raised with regard to the role of recognition (Fraser and Honneth, 2006). The
focus of social justice over the last 150 years has primarily centered on the redistribution of
resources and wealth with some recent but minimal linkage to the recognition of differences (Fraser
and Honneth, 2006).
According to Fraser and Honneth (2006), however, social justice must address not only eco-
nomic inequality, but also the recognition of difference. Under this framework, addressing structural
injustices will not be achieved through cash transfer programs since they do not recognize cultural
and structural inequalities and their impact on poverty. This calls for not only a change in program
methodologies, but also the promotion of cultural changes aimed at the construction of greater
equality and justice in community relationships. These are interesting challenges for social work.
As previously discussed, social work can play a relevant role in adding this component to CCT
programs. There is a need and a challenge to build a ‘culture of recognition’. This allows for the
de-stigmatization of the programs’ beneficiaries as well as generating a change in the structural
reproductions of poverty, highlighting the importance of human rights, autonomy, and empower-
ment (Aquín, 2014; Muñoz, 2008). This allows for dialog between the economic and cultural
dimensions of the program.
With regard to the concept of recognition, social work ethics play a central role. Our profession
and academic discipline identifies as its first imperative the recognition of an ‘other’ through its
values of social justice, human rights, collective responsibility and respect for diversities (IFSW,
2014). Chile’s current ethical code of conduct also identifies recognition as a key element of social
work (Colegio de Trabajadores Sociales de Chile, 2015), further strengthening social work’s ethi-
cal responsibility in reducing poverty in the country.
In this final section, we have addressed challenges to the profession with regard to CCT pro-
grams as well as broader social policies. Furthermore, the specific challenges for social workers in
Chile with regard to the Ethical Family Wage program lie in recapturing a protagonist position in
the design, implementation, and evaluation of the program, as was the case during the previous
Bridge program. In order to effectively address poverty in the country, social policies in Chile must
favor an empowerment approach in which human rights and diversities are recognized.
Funding
This research was funded by the Jorge Millas Grant, Universidad Andres Bello.
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Author biographies
Taly Reininger, PhD. professor and researcher at the School of Social Work, Universidad Andres Bello, Chile.
Her research interests include social work and education, poverty and social policy.
Dr. Borja Castro-Serrano, professor and researcher at the School of Social Work, Universidad Andres Bello,
Chile. His research interests include ethical and political philosophy, mental health and poverty.
Marcela Flotts, doctoral candidate in Social Science and director of the School of Social Work, Universidad
Andres Bello, Chile. Her research interests include inequality, poverty and social policy.
Monica Vergara, professor and researcher at the School of Social Work, Universidad Andres Bello, Chile. Her
research interests include migrantion, social work and family studies.
Ana Fuentealba, professor and researcher at the School of Social Work, Universidad Andres Bello, Chile. Her
research interests include forensic social work, family violence, and family studies.