Bolsa Familia in Brazil

On January 8, 2004, President Luiz Inacio Lula da Silva[1] signed a law which provides for the introduction of a basic income. Since the introduction was depending on state budget to date only the poorest Brazilians could benefit from government assistance. By May 2014 the family support program “Bolsa Familia” reached already 14 million families, representing about one quarter of all Brazilians.

The payment is linked to the condition that children are vaccinated and attend school. Since the introduction until 2012 the proportion of residents who are living in extreme poverty has fallen from 8.8 percent to 3.6 percent, school attendance has increased from 40% to 70% (Watts, 2013). According to government the scheme is also cost effective at a cost of less than 0.5% of GDP and with a return of 1.78 reais[2] to the economy for every 1 reais spent (Watts, 2013). One of the main criticisms of “Bolsa Familia” is that it does little to address inequality because it keeps the poor just above a subsistence level, without the means to move up the social ladder. But there is an element of the programme that makes it a long-term investment in the future. “Bolsa familia” is used as an enforcement method for public health and education goals. Parents who fail to have their children vaccinated or send them to school are penalised with reduced payments.

[1] Luíz Inácio Lula da Silva (born 27/10/1945) is a Brazilian politician and President of Brazil from 2003 to 2011. He is as well one of the founding members of the Brazilian Workers' Party.