Jump to content

Universal basic income in Brazil: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous edit
Content deleted Content added
VisualWikitext
Moe33 (talk | contribs)
308 edits
changed 30.000 to 30 reals in the part about Quatinga Velho, Brazil and added reference!
Citation bot (talk | contribs)
Bots
5,408,822 edits
Added date. | Use this bot. Report bugs. | Suggested by Abductive | Category:Universal basic income by country and region | #UCB_Category 7/10
 
(65 intermediate revisions by 35 users not shown)
Line 1: Line 1:
{{Short description|none}}
{{notability|date=March 2012}}
⚫
In [[Brazil]], [[universal basic income]] has been discussed at least since the 1980s. In 2001 a law was introduced by Senator [[Eduardo Suplicy]] of the Brazilian Workers Party which mandated the progressive institution of such a welfare system. By this move Brazil became the first country in the world to pass such a law. Suplicy had previously introduced a bill to create a [[negative income tax]], but that bill failed to pass. The new bill called for a national and universal basic income to be instituted, beginning with those most in need. The bill was approved by the Senate in 2002 and by the Chamber of Deputies in 2003. President [[Lula da Silva]] signed it into law in 2004,<ref>[http://www.planalto.gov.br/ccivil_03/_ato2004-2006/2004/lei/l10.835.htm Lei Nº 10.835, de 8 de Janeiro de 2004. Institui a renda básica de cidadania e dá outras providências.] {{in lang|pt}}</ref> and according to the bill it is the president's responsibility to gradually implement the reform. Since then Brazil has started to implement the bill through the [[Bolsa Família]] program, which was a centerpiece of President Luiz Inácio Lula da Silva's social policy, and is reputed to have played a role in his victory in the [[Brazilian presidential election, 2006]].

⚫
'''Basic income''' has been discussed in modern [[Brazil]] at least since the 1980s. In 2001 a law was introduced by Senator [[Eduardo Suplicy]] of the Brazilian Workers Party which mandated the progressive institution of such a welfare system. By this move Brazil became the first country in the world to pass such a law. Suplicy had previously introduced a bill to create a [[Negative income tax|Negative Income Tax]], but that bill failed to pass. The new bill called for a national and universal basic income to be instituted, beginning with those most in need. The bill was approved by the Senate in 2002 and by the Chamber of Deputies in 2003. President [[Lula da Silva]] signed it into law in 2004, and according to the bill it is the president´s responsibility to gradually implement the reform. Since then Brasil has started to implement the bill through the [[Bolsa Família]]-program, which was a centerpiece of President Luiz Inácio Lula da Silva's social policy, and is reputed to have played a role in his victory in the [[Brazilian presidential election, 2006]].


== Bolsa Família ==
== Bolsa Família ==
[[File:Lulaspeech.jpg|thumb|President Lula giving a speech to recipients of Bolsa Família and other federal assistance programs in [[Diadema, São Paulo|Diadema]]]]
[[File:Lulaspeech.jpg|thumb|President Lula giving a speech to recipients of Bolsa Família and other federal assistance programs in [[Diadema, São Paulo|Diadema]]]]
{{main|Bolsa Família}}
{{main|Bolsa Família}}
'''Bolsa Família''' is a [[Social welfare provision|social welfare]] program of the [[Brazil]]ian government. The program attempts to both reduce short-term [[poverty]] by direct [[welfare benefit|cash transfers]] and fight long-term poverty by increasing [[human capital]] among the [[Poverty|poor]] through [[Conditional Cash Transfer|conditional cash transfers]]. It also works to give free education to children who cannot afford to go to school to show the importance of education.<ref name=LAW>[http://www.dji.com.br/decretos/2004-005209/2004-005209.htm Decree nº 5.209, de 17 de setembro de 2004 – Regulates a Law-010.836-2004 – Bolsa Família Program.]</ref> The part of the program that is about direct welfare benefits could perhaps best be described as a basic income with some prerequisites. Families with children, to be eligible for the income, must ensure that their children attend school and have been [[vaccination|vaccinated]]. The Bolsa Familia program has been mentioned as one factor contributing to the reduction of poverty in Brazil, which fell 27.7% during the first term in the [[Lula administration]].<ref name=MISERIA>[http://www.estadao.com.br/noticias/impresso,miseria-no-brasil-cai-277-no-1-mandato-de-lula,54881,0.htm BRANDÃO JR., Nilson Brandão e ARAGÃO, Marianna. ''Miséria no Brasil cai 27,7% no 1º mandato de Lula'', Economia e Negócios, O Estado de S. Paulo, 20/09/2007, p. B14]</ref> About 12 million [[Brazilian people|Brazilian]] families receive funds from Bolsa Família,<ref name="Gary Duffy Maranhao">{{cite news
'''Bolsa Família''' is a [[Social welfare provision|social welfare]] program of the [[Brazil]]ian government. The program attempts to both reduce short-term [[poverty]] by direct [[welfare benefit|cash transfers]] and fight long-term poverty by increasing [[human capital]] among the [[Poverty|poor]] through [[Conditional Cash Transfer|conditional cash transfers]]. It also works to give free education to children who cannot afford to go to school to show the importance of education.<ref name=LAW>[http://www.dji.com.br/decretos/2004-005209/2004-005209.htm Decree nº 5.209, de 17 de setembro de 2004 – Regulates a Law-010.836-2004 – Bolsa Família Program.] {{webarchive |url=https://web.archive.org/web/20121029081821/http://www.dji.com.br/decretos/2004-005209/2004-005209.htm |date=October 29, 2012 }}</ref> The part of the program that is about direct welfare benefits could perhaps best be described as a basic income with some prerequisites. Families with children, to be eligible for the income, must ensure that their children attend school and have been [[vaccination|vaccinated]]. The Bolsa Familia program has been mentioned as one factor contributing to the reduction of poverty in Brazil, which fell 27.7% during the first term in the [[Lula administration]].<ref name=MISERIA>{{cite web |url = http://www.estadao.com.br/noticias/impresso,miseria-no-brasil-cai-277-no-1-mandato-de-lula,54881,0.htm |author1 = Nilson Brandão Junior |author2 = Marianna Aragão |title = Miséria no Brasil cai 27,7% no 1º mandato de Lula |work = [[O Estado de S. Paulo]] |date = 20 September 2007 |page = B14 |language=pt}}</ref> About 12 million [[Brazilian people|Brazilian]] families receive funds from Bolsa Família,<ref name="Gary Duffy Maranhao">{{cite news |last = Duffy |first = Gary |url = http://news.bbc.co.uk/2/hi/world/latin_america/10122754.stm |title = Family friendly: Brazil's scheme to tackle poverty |publisher = [[BBC News]] |date = 25 May 2010 }}</ref> which has been described as "the largest programme of its kind in the world."<ref name="Gary Duffy Maranhao" />
By February 2011, 26% of the Brazilian population were covered by the program.<ref>{{cite news |url = https://www.theguardian.com/global-development/poverty-matters/2011/feb/21/social-protection-innovation-un |location = London |work = The Guardian |first = Claire |last = Provost |title = Social security is necessary and globally affordable, says UN |date = 21 February 2011 }}</ref> As of March 2020, the program covers 13.8 million families, and pays an average of $34 per month, in a country where the minimum wage is $190 per month.<ref name=NPR_1 >{{ cite news | url=https://www.npr.org/2020/08/31/906215778/coronavirus-hit-brazil-considers-major-public-funds-for-poor-and-unemployed | title=Coronavirus-Hit Brazil Considers Major Public Funds For Poor And Unemployed | last=Osborn | first=Catherine | newspaper=[[NPR]] | date=2020-08-31 | access-date=2020-09-02 | quote=Family allowance - Brazil is renowned for its massive, nearly 2-decade-old cash-transfer program for the poor, Bolsa Família (often translated as "family allowance"). As of March, it reached 13.8 million families, paying an average of $34 per month. (The national minimum wage is about $190 per month.) }}</ref>
| last= Duffy
| first= Gary
| url= http://news.bbc.co.uk/2/hi/world/latin_america/10122754.stm
| title= Family friendly: Brazil's scheme to tackle poverty
| publisher= [[BBC News]]
| date= 25 May 2010
}}</ref> which has been described as "the largest programme of its kind in the world."<ref name="Gary Duffy Maranhao" />
By February 2011, 26% of the Brazilian population were covered by the program.<ref>http://www.guardian.co.uk/global-development/poverty-matters/2011/feb/21/social-protection-innovation-un</ref>


The reaction from [[multilateralism|multilateral]] institutions to Bolsa Família has generally been enthusiastic. During a trip to Brazil in 2005, the former president of the [[World Bank]], [[Paul Wolfowitz]] said, "Bolsa Familia has already become a highly praised model of effective social policy. Countries around the world are drawing lessons from Brazil’s experience and are trying to produce the same results for their own people." <ref>[http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20702063~pagePK:64257043~piPK:437376~theSitePK:4607,00.html News and Broadcast – Brazil’s Bolsa Familia Program Celebrates Progress in Lifting Families out of Poverty<!-- Bot generated title -->]</ref> Economic thinker and philosopher [[Joseph Heath]] praised the program in his 2010 book ''[[Filthy Lucre: Economics for People Who Hate Capitalism|Economics without Illusions]]'', citing it as an example of how to manage incentives of people whose poverty results from [[hyperbolic discounting]]. Heath wrote, "What makes programs such as this so successful is that they do not change people's incentives: They merely rearrange the temporal sequence in which these incentives are experienced. ... This has proven to be more valuable than a thousand recitations of the fable of the ant and the grasshopper."<ref name="Filthy Lucre">{{cite book |last=Heath |first=Joseph |title=Economics without Illusions: Debunking the Myths of Modern Capitalism |publisher=Broadway Books |year=2010 |location=New York, NY |isbn=978-0-307-59057-2 |page=270}}
The reaction from [[multilateralism|multilateral]] institutions to Bolsa Família has generally been enthusiastic. During a trip to Brazil in 2005, the former president of the [[World Bank]], [[Paul Wolfowitz]] said, "Bolsa Familia has already become a highly praised model of effective social policy. Countries around the world are drawing lessons from Brazil’s experience and are trying to produce the same results for their own people."<ref>[http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20702063~pagePK:64257043~piPK:437376~theSitePK:4607,00.html News and Broadcast – Brazil’s Bolsa Familia Program Celebrates Progress in Lifting Families out of Poverty<!-- Bot generated title -->]</ref> Economic thinker and philosopher [[Joseph Heath]] praised the program in his 2010 book ''[[Filthy Lucre: Economics for People Who Hate Capitalism|Economics without Illusions]]'', citing it as an example of how to manage incentives of people whose poverty results from [[hyperbolic discounting]]. Heath wrote, "What makes programs such as this so successful is that they do not change people's incentives: They merely rearrange the temporal sequence in which these incentives are experienced. ... This has proven to be more valuable than a thousand recitations of the fable of the ant and the grasshopper."<ref name="Filthy Lucre">{{cite book |last = Heath |first = Joseph |title = Economics without Illusions: Debunking the Myths of Modern Capitalism |publisher = Broadway Books |year = 2010 |location = New York, NY |isbn = 978-0-307-59057-2 |page = 270 }}
</ref>
</ref>


=== Criticism ===
⚫
However, the program is far from being universally accepted by Brazilian society. Among the various criticisms it receives, one of the most recurrent is the assertion that it could discourage the search for employment, encouraging laziness of people. Under this premise, many people would give up trying to find a job, content, instead, to live on the Bolsa Família program.<ref>http://www.democraticunderground.com/110817686</ref><ref>[http://veja.abril.com.br/blog/reinaldo/geral/lula-e-a-poesia-da-miseria/ "Lula and the poetry of misery", Reinaldo Azevedo, 29/7/09] (in Portuguese)</ref> The [[Catholic Church]], through its powerful [[Roman Catholicism in Brazil|National Conference of Bishops of Brazil]] (CNBB), maintains<ref>[http://www.cnbb.org.br/site/articulistas/dom-cristiano-jakob-krapf/2196-uma-politica-economica-do-poder-do-dinheiro-para-o-dinheiro "An economic policy of the power of money for money", CNBB, 1 March 2010] (in Portuguese)</ref><ref>[http://www.cnbb.org.br/site/articulistas/dom-cristiano-jakob-krapf/4270-um-plebiscito-para-dividir-fazendas "A Referendum" to divide farms?", CNBB, 27 July 2010] (in Portuguese)</ref> that "the program is addictive" and leads its beneficiaries to an "accommodation". This, however, is not what the [[World Bank]] finds. Having conducted several surveys on the subject, the World Bank came to the conclusion that the program does not discourage work, nor social ascension. On the contrary, says Bénédicte de la Brière, responsible for the program monitoring at the institution:


⚫
However, the program is far from being universally accepted by Brazilian society. Among the various criticisms it receives, one of the most recurrent is the assertion that it could discourage the search for employment, encouraging laziness of people. Under this premise, many people would give up trying to find a job, content, instead, to live on the Bolsa Família program.<ref>{{Cite web | url=http://www.democraticunderground.com/110817686 | title=Rumors about the end of family allowance are 'criminal', says Dilma | date=2013-05-21 | publisher=Democratic Underground}}</ref><ref>[http://veja.abril.com.br/blog/reinaldo/geral/lula-e-a-poesia-da-miseria/ "Lula and the poetry of misery", Reinaldo Azevedo, 29/7/09] {{in lang|pt}}</ref> The [[Catholic Church]], through its powerful [[Roman Catholicism in Brazil|National Conference of Bishops of Brazil]] (CNBB), maintains<ref>[http://www.cnbb.org.br/site/articulistas/dom-cristiano-jakob-krapf/2196-uma-politica-economica-do-poder-do-dinheiro-para-o-dinheiro "An economic policy of the power of money for money", CNBB, 1 March 2010] {{Webarchive|url=https://web.archive.org/web/20120311063317/http://www.cnbb.org.br/site/articulistas/dom-cristiano-jakob-krapf/2196-uma-politica-economica-do-poder-do-dinheiro-para-o-dinheiro |date=11 March 2012 }} {{in lang|pt}}</ref><ref>[http://www.cnbb.org.br/site/articulistas/dom-cristiano-jakob-krapf/4270-um-plebiscito-para-dividir-fazendas "A Referendum" to divide farms?", CNBB, 27 July 2010] {{Webarchive|url=https://web.archive.org/web/20120311063450/http://www.cnbb.org.br/site/articulistas/dom-cristiano-jakob-krapf/4270-um-plebiscito-para-dividir-fazendas |date=11 March 2012 }} {{in lang|pt}}</ref> that "the program is addictive" and leads its beneficiaries to an "accommodation".
⚫
::"Adult work is not impacted by income transfers. In some cases adults will even work harder because having this safety net encourages them to assume greater risks in their activities"' <ref name=WBANKc>[http://terramagazine.terra.com.br/interna/0,,OI1906421-EI6578,00.html BRAMATTI, Daniel. ''Banco Mundial vê Bolsa Família como modelo.'', São Paulo: Política, Terra Magazine, Sep. 17, 2007, 08h18]</ref>


⚫
This, however, is not what the [[World Bank]] finds. Having conducted several surveys on the subject, the World Bank came to the conclusion that the program does not discourage work, nor social ascension. On the contrary, says Bénédicte de la Brière, responsible for the program monitoring at the institution: "Adult work is not impacted by income transfers. In some cases adults will even work harder because having this safety net encourages them to assume greater risks in their activities".<ref name="WBANKc">[http://terramagazine.terra.com.br/interna/0,,OI1906421-EI6578,00.html BRAMATTI, Daniel. ''Banco Mundial vê Bolsa Família como modelo.'', São Paulo: Política, Terra Magazine, Sep. 17, 2007, 08h18] {{in lang|pt}}</ref>
⚫
Another heavy criticism of the government program is the fact that it is perceived by opponents of the currently ruling party as a program meant to "buy" votes of poor people, creating clientism.


⚫
Another criticism of the program is the fact that it is perceived by opponents of the currently ruling party as a program meant to "buy" votes of poor people, creating clientism.
⚫
Surveys conducted by the Federal Government among Bolsa Família's beneficiaries indicate that the money is spent, in order of priority, on food; school supplies; clothing; and shoes.<ref name=SURVEY>[http://veja.abril.com.br/idade/exclusivo/bolsa_familia/08.html ''Bolsa Família, Perguntas e Respostas, Veja Online]</ref> A study conducted by The Federal University of Pernambuco, using sophisticated statistical methods, inferred that 87% of the money is used, by families living in rural areas, to buy food.<ref name=FOOD>[http://www.bnb.gov.br/content/aplicacao/Eventos/ForumBNB2007/docs/impactos-do-programa.pdf DUARTE, Gisléia Benini, et al. ''Impactos do Programa Bolsa Família Sobre Os gastos Com Alimentos De Famílias Rurais.]</ref>


=== Surveys and research ===
⚫
According to research promoted by some universities and the Brazilian Institute of Geography and Statistics (IBGE) the program has clearly contributed to Brazil's recent improvements in its fight against poverty. An [[ex ante]] [[econometric]] evaluation of Bolsa Escola did find significant effects on both school attendance rates and the number of children involved in [[child labor]].<ref>[http://papers.ssrn.com/sol3/papers.cfm?abstract_id=358407 SSRN-Ex-ante Evaluation of Conditional Cash Transfer Programs: The Case of Bolsa Escola by Francois Bourguignon, Francisco Ferreira, Phillippe Leite<!-- Bot generated title -->]</ref><ref name=WBANKRESULTS>[http://go.worldbank.org/L7RZYL07J0 RAWLINGS, Laura B. e RUBIO, Gloria M. ''Evaluating the Impact of Conditional Cash Transfer Programs - Lessons from Latin America, Volume 1, World Bank Policy Research Working Paper 3119, August 2003'', The World Bank, 2003.]</ref>
⚫
Surveys conducted by the Federal Government among Bolsa Família's beneficiaries indicate that the money is spent, in order of priority, on food; school supplies; clothing; and shoes.<ref name=SURVEY>[http://veja.abril.com.br/idade/exclusivo/bolsa_familia/08.html ''Bolsa Família, Perguntas e Respostas''] {{Webarchive|url=https://web.archive.org/web/20071022050516/http://veja.abril.com.br/idade/exclusivo/bolsa_familia/08.html |date=2007-10-22 }}. [[Veja (magazine)|Veja]] Online {{in lang|pt}}</ref> A study conducted by The [[Federal University of Pernambuco]], using sophisticated statistical methods, inferred that 87% of the money is used, by families living in rural areas, to buy food.<ref name=FOOD>[http://www.bnb.gov.br/content/aplicacao/Eventos/ForumBNB2007/docs/impactos-do-programa.pdf DUARTE, Gisléia Benini, et al. ''Impactos do Programa Bolsa Família Sobre Os gastos Com Alimentos De Famílias Rurais''] {{Webarchive|url=https://web.archive.org/web/20120208112441/http://www.bnb.gov.br/content/aplicacao/Eventos/ForumBNB2007/docs/impactos-do-programa.pdf |date=2012-02-08 }} {{in lang|pt}}</ref>


⚫
According to research promoted by some universities and the Brazilian Institute of Geography and Statistics (IBGE) the program has clearly contributed to Brazil's recent improvements in its fight against poverty. An [[ex ante]] [[econometric]] evaluation of Bolsa Escola did find significant effects on both school attendance rates and the number of children involved in [[child labor]].<ref>[https://ssrn.com/abstract=358407 SSRN-Ex-ante Evaluation of Conditional Cash Transfer Programs: The Case of Bolsa Escola by Francois Bourguignon, Francisco Ferreira, Phillippe Leite<!-- Bot generated title -->]</ref><ref name=WBANKRESULTS>{{Cite web |url=http://go.worldbank.org/L7RZYL07J0 |title=RAWLINGS, Laura B. e RUBIO, Gloria M. ''Evaluating the Impact of Conditional Cash Transfer Programs - Lessons from Latin America, Volume 1, World Bank Policy Research Working Paper 3119, August 2003'', The World Bank, 2003. |access-date=2010-10-16 |archive-url=http://webarchive.loc.gov/all/20101016133501/http://go.worldbank.org/L7RZYL07J0 |archive-date=2010-10-16 |url-status=dead }}</ref>
⚫
The World Bank, which provided a loan to assist the Brazilian government in managing the Bolsa Família Program,<ref name=BFP>[http://www-wds.worldbank.org/external/default/main?pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000160016_20040610095010''Brazil – Bolsa Familia Project'', The World Bank]</ref> declares that "Although the program is relatively young, some results are already apparent, including: (...) contributions to improved education outcomes, and impacts on children’s growth, food consumption, and diet quality".<ref name=WBANK>[http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20702063~pagePK:64257043~piPK:437376~theSitePK:4607,00.html ''Brazil’s Bolsa Familia Program Celebrates Progress in Lifting Families out of Poverty'', News & Broadcast, The World Bank, Brasilia, Brazil, December 19, 2005]</ref>


⚫
The World Bank, which provided a loan to assist the Brazilian government in managing the Bolsa Família Program,<ref name=BFP>{{Cite web |url=http://www-wds.worldbank.org/external/default/main?pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000160016_20040610095010 |title=– Bolsa Familia Project'', The World Bank |access-date=2012-12-08 |archive-url=https://web.archive.org/web/20120207125658/http://www-wds.worldbank.org/external/default/main?pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000160016_20040610095010 |archive-date=2012-02-07 |url-status=dead }}</ref> declares that "Although the program is relatively young, some results are already apparent, including: (...) contributions to improved education outcomes, and impacts on children’s growth, food consumption, and diet quality".<ref name=WBANK>[http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20702063~pagePK:64257043~piPK:437376~theSitePK:4607,00.html ''Brazil’s Bolsa Familia Program Celebrates Progress in Lifting Families out of Poverty'', News & Broadcast, The World Bank, Brasilia, Brazil, December 19, 2005]</ref>
⚫
A study by the UNDP's [[International Policy Centre for Inclusive Growth]]<ref>http://www.ipc-undp.org/</ref> found that over 80% of the Bolsa Familia benefits go to families in poverty (making under half the minimum wage per capita), thus most of the benefits go to the poor. Bolsa Familia was also found to have been responsible for about 20% of the drop in [[Economic inequality|inequality]] in Brazil since 2001, which is welcome in one of the most [[Brazil#Poverty|unequal]] countries on the planet.<ref>[http://www.undp-povertycentre.org/newsletters/WorkingPaper21.pdf untitled<!-- Bot generated title -->]{{dead link|date=October 2013}}</ref>

⚫
A study by the UNDP's [[International Policy Centre for Inclusive Growth]]<ref>{{cite web |url=http://www.ipc-undp.org/ |title=IPC-IG Home |website=ipc-undp.org | archive-url=https://web.archive.org/web/20190308160259/http://www.ipc-undp.org/ | archive-date=2019-03-08}}</ref> found that over 80% of the Bolsa Familia benefits go to families in poverty (making under half the minimum wage per capita), thus most of the benefits go to the poor. Bolsa Familia was also found to have been responsible for about 20% of the drop in [[Economic inequality|inequality]] in Brazil since 2001, which is welcome in one of the most [[Brazil#Poverty|unequal]] countries on the planet.<ref>{{Cite web | url=http://www.undp-povertycentre.org/newsletters/WorkingPaper21.pdf | title=Cash transfer programmes in Brazil: impacts on inequality and poverty | archive-url=https://web.archive.org/web/20071216075541/http://www.undp-povertycentre.org/newsletters/WorkingPaper21.pdf |archive-date=2007-12-16 }}</ref>
Research promoted by the [[World Bank]] shows a significant reduction in [[child labor]] exploitation among children benefited by the Bolsa Família program.<ref name=CHILDLABOR>YAP, Yoon-Tien, Guilherme Sedlacek and Peter Orazem. 2001. ''Limiting Child Labor Through Behavior-Based Income Transfers: An Experimental Evaluation of the PETI Program in Rural Brazil''. World Bank, Washington, DC</ref>
Research promoted by the [[World Bank]] shows a significant reduction in [[child labor]] exploitation among children benefited by the Bolsa Família program.<ref name=CHILDLABOR>YAP, Yoon-Tien, Guilherme Sedlacek and Peter Orazem. 2001. ''Limiting Child Labor Through Behavior-Based Income Transfers: An Experimental Evaluation of the PETI Program in Rural Brazil''. World Bank, Washington, DC</ref>


One positive effect of the program which is not immediately apparent is that it makes a significant impact on the ability of the poorest families to eat. Children in public schools receive one free meal a day—two in the poorest areas—and so less of their family's limited income is needed to pay for food. In a survey of Bolsa Familia recipients, 82.4% reported eating better; additionally, it was reported to increase the incomes of the poorer families by about 25%.
One positive effect of the program which is not immediately apparent is that it makes a significant impact on the ability of the poorest families to eat. Children in public schools receive one free meal a day—two in the poorest areas—and so less of their family's limited income is needed to pay for food. In a survey of Bolsa Familia recipients, 82.4% reported eating better; additionally, it was reported to increase the incomes of the poorer families by about 25%.


== Quatinga Velho, Brazil ==
== Other programs ==

⚫
[[Quatinga Velho]] is a Brazilian village which is becoming well-known because of the basic income-project which is taking place there. The project started 2008 and is organized by the non-profit organization [[ReCivitas]]. The funding has so far been based entirely on private donations. In June 2011 83 people in the village got 30 Brazilian reals per person and month<ref>[http://recivitas.org/2013/11/26/uma-analise-sobre-a-experiencia-da-oscip-recivitas-em-uma-comunidade-rural-paulista/]</ref>. The organization hopes that all people in the village will eventually get the basic income, and also that similar projects will get going in other villages in and outside Brazil. The organizers are currently building a social bank, so that the basic income in the future can be financed through investments rather than donations. The idea is that the bank will operate as an investment bank, but the profit will go to basic income instead of a dividend to shareholders and managers. One plan is to use some of the first revenue to support the basic income project in Otjivero, Namibia, and then to initiate similar projects in different parts of Brazil.<ref>[http://binews.org/2011/06/brazil-recivitas-expands-its-local-big-to-83-people-as-it-charters-the-%E2%80%9Cbig-social-bank%E2%80%9D/ BRAZIL: RECIVITAS expands its local BIG to 83 people as it charters the “BIG Social Bank"] BI News 2011-06</ref>
=== Quatinga Velho ===
{{main|Quatinga Velho}}
⚫
[[Quatinga Velho]] is a Brazilian village in the Quatinga district of the [[Mogi das Cruzes]] municipality, which is becoming well-known because of the basic income-project which is taking place there. The project started 2008 and is organized by the non-profit organization [[ReCivitas]]. The funding has so far been based entirely on private donations. In June 2011, 83 people in the village got 30 Brazilian reals per person and month.<ref name= "ReCivitas.org official website">{{Cite web |url=http://recivitas.org/2013/11/26/uma-analise-sobre-a-experiencia-da-oscip-recivitas-em-uma-comunidade-rural-paulista/ |title=ReCivitas.org official website |access-date=2013-11-28 |archive-url=https://web.archive.org/web/20131203004552/http://recivitas.org/2013/11/26/uma-analise-sobre-a-experiencia-da-oscip-recivitas-em-uma-comunidade-rural-paulista/ |archive-date=2013-12-03 |url-status=dead }}</ref> The organization hopes that all people in the village will eventually get the basic income, and also that similar projects will get going in other villages in and outside Brazil. The organizers are currently building a social bank, so that the basic income in the future can be financed through investments rather than donations. The idea is that the bank will operate as an investment bank, but the profit will go to basic income instead of a dividend to shareholders and managers. One plan is to use some of the first revenue to support the [[Omitara#Basic Income Grant project|basic income project in Otjivero, Namibia]], and then to initiate similar projects in different parts of Brazil.<ref>[http://binews.org/2011/06/brazil-recivitas-expands-its-local-big-to-83-people-as-it-charters-the-%E2%80%9Cbig-social-bank%E2%80%9D/ BRAZIL: RECIVITAS expands its local BIG to 83 people as it charters the “BIG Social Bank"] {{webarchive|url=https://web.archive.org/web/20131203011245/http://binews.org/2011/06/brazil-recivitas-expands-its-local-big-to-83-people-as-it-charters-the-%E2%80%9Cbig-social-bank%E2%80%9D/ |date=2013-12-03 }} BI News 2011-06</ref>

=== Santo Antônio do Pinhal ===

In November 2009, the mayor of the [[Santo Antônio do Pinhal]] municipality passed into law<ref>{{cite web |url = http://www.senado.gov.br/senadores/Senador/esuplicy/img/rbclei1090.pdf |title = Lei Número 1.090, de 12 de Novembro De 2.009 - "Institui a Renda Básica da Cidadania de Santo Antônio do Pinhal e Dá Outras Providências." |publisher = Prefeitura Municipal de Santo Antônio Do Pinhal |date = 12 November 2009 |language = pt |access-date = 21 December 2014 |archive-url = https://web.archive.org/web/20141221170356/http://www.senado.gov.br/senadores/Senador/esuplicy/img/rbclei1090.pdf |archive-date = 21 December 2014 |url-status = dead }}</ref> a basic income program that would reserve 6% of its tax revenue to fund an unconditional dividend for all persons who have resided in the municipality for five years or more.<ref>{{cite web |url = http://www.cartacapital.com.br/educacao/renda-minima-para-todos |title = Renda mínima para todos? |author = Luiz Antonio Cintra |publisher = CartaCapital |date = 8 October 2010 |language = pt |access-date = 21 December 2014 |archive-url = https://web.archive.org/web/20141221200046/http://www.cartacapital.com.br/educacao/renda-minima-para-todos |archive-date = 21 December 2014 |url-status = dead }}</ref>

{{As of|November 2011}}, Santo Antônio do Pinhal was the only municipality in Brazil which had implemented a basic income program.<ref>{{cite web |url = https://www.youtube.com/watch?v=SL8-Kb9vfD8 |title = Sen. Eduardo Suplicy pede recursos para o Programa de Renda Básica de Santo Antonio do Pinhal |website = [[YouTube]] |date = 28 November 2011 |language=pt}}</ref>
Senator Eduardo Suplicy has praised the municipality for being a pioneer in implementing such a program at a municipal level in Brazil.<ref>{{cite web |url = https://www.youtube.com/watch?v=Xq73W5ZU9z8 |title = Eduardo Suplicy (PT-SP) cita Santo Antônio do Pinhal (SP) como exemplo da aplicação da Renda Básica |date = 3 July 2014 |publisher = TV Senado |language=pt}}</ref>

=== Apiaí ===

In November 2013, the [[Apiaí]] municipality adopted a similar law to Santo Antônio do Pinhal's, with the difference that no portion of the municipality's tax revenue was directly allocated to the fund, due to a veto to that clause.<ref>{{Cite web |url=http://cmapiai.sp.gov.br/portal/?p=3099 |title=Lei municipal nº 041 de 11 de Novembro de 2013 — Institui a Renda Básica de Cidadania no Município de Apiaí |access-date=2017-01-25 |archive-date=2017-02-02 |archive-url=https://web.archive.org/web/20170202042157/http://cmapiai.sp.gov.br/portal/?p=3099 |url-status=dead }}</ref>

⚫
== References ==
{{reflist|2}}


== External links ==
== External links ==
* [http://www.cpj.ca/en/blog/chandra/basic-income-brazil Article at cpj.ca]
* [https://web.archive.org/web/20120418045306/http://www.cpj.ca/en/blog/chandra/basic-income-brazil Article at cpj.ca]
* [http://www.globalincome.org/English/BI-worldwide.html Growing support for Basic income], published at globalincome.org
* [http://www.globalincome.org/English/BI-worldwide.html Growing support for Basic income], published at globalincome.org
* [http://www.dailykos.com/story/2011/03/21/958716/-Letter-on-Basic-Income-Handed-to-President-Obama-in-Brazil A basic income-letter given to president Obama by Eduardo Suplicy 2011]
* [http://www.dailykos.com/story/2011/03/21/958716/-Letter-on-Basic-Income-Handed-to-President-Obama-in-Brazil A basic income-letter given to president Obama by Eduardo Suplicy 2011]
* [http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/0,,contentMDK:21447054~pagePK:146736~piPK:226340~theSitePK:258554,00.html Bolsa Familia on WorldBank.org]
* [https://www.worldbank.org/en/news/feature/2010/05/27/br-bolsa-familia Bolsa Familia on WorldBank.org]


{{Basic income}}
⚫
== References ==
<references/>


[[Category:Basic income by country and region|Brazil]]
[[Category:Universal basic income in Brazil| ]]
[[Category:Universal basic income by country and region|Brazil]]
[[Category:Welfare in Brazil]]

Latest revision as of 00:13, 20 October 2024

In Brazil, universal basic income has been discussed at least since the 1980s. In 2001 a law was introduced by Senator Eduardo Suplicy of the Brazilian Workers Party which mandated the progressive institution of such a welfare system. By this move Brazil became the first country in the world to pass such a law. Suplicy had previously introduced a bill to create a negative income tax, but that bill failed to pass. The new bill called for a national and universal basic income to be instituted, beginning with those most in need. The bill was approved by the Senate in 2002 and by the Chamber of Deputies in 2003. President Lula da Silva signed it into law in 2004,[1] and according to the bill it is the president's responsibility to gradually implement the reform. Since then Brazil has started to implement the bill through the Bolsa Família program, which was a centerpiece of President Luiz Inácio Lula da Silva's social policy, and is reputed to have played a role in his victory in the Brazilian presidential election, 2006.

Bolsa Família

[edit]
President Lula giving a speech to recipients of Bolsa Família and other federal assistance programs in Diadema
Main article: Bolsa Família

Bolsa Família is a social welfare program of the Brazilian government. The program attempts to both reduce short-term poverty by direct cash transfers and fight long-term poverty by increasing human capital among the poor through conditional cash transfers. It also works to give free education to children who cannot afford to go to school to show the importance of education.[2] The part of the program that is about direct welfare benefits could perhaps best be described as a basic income with some prerequisites. Families with children, to be eligible for the income, must ensure that their children attend school and have been vaccinated. The Bolsa Familia program has been mentioned as one factor contributing to the reduction of poverty in Brazil, which fell 27.7% during the first term in the Lula administration.[3] About 12 million Brazilian families receive funds from Bolsa Família,[4] which has been described as "the largest programme of its kind in the world."[4] By February 2011, 26% of the Brazilian population were covered by the program.[5] As of March 2020, the program covers 13.8 million families, and pays an average of $34 per month, in a country where the minimum wage is $190 per month.[6]

The reaction from multilateral institutions to Bolsa Família has generally been enthusiastic. During a trip to Brazil in 2005, the former president of the World Bank, Paul Wolfowitz said, "Bolsa Familia has already become a highly praised model of effective social policy. Countries around the world are drawing lessons from Brazil’s experience and are trying to produce the same results for their own people."[7] Economic thinker and philosopher Joseph Heath praised the program in his 2010 book Economics without Illusions, citing it as an example of how to manage incentives of people whose poverty results from hyperbolic discounting. Heath wrote, "What makes programs such as this so successful is that they do not change people's incentives: They merely rearrange the temporal sequence in which these incentives are experienced. ... This has proven to be more valuable than a thousand recitations of the fable of the ant and the grasshopper."[8]

Criticism

[edit]

However, the program is far from being universally accepted by Brazilian society. Among the various criticisms it receives, one of the most recurrent is the assertion that it could discourage the search for employment, encouraging laziness of people. Under this premise, many people would give up trying to find a job, content, instead, to live on the Bolsa Família program.[9][10] The Catholic Church, through its powerful National Conference of Bishops of Brazil (CNBB), maintains[11][12] that "the program is addictive" and leads its beneficiaries to an "accommodation".

This, however, is not what the World Bank finds. Having conducted several surveys on the subject, the World Bank came to the conclusion that the program does not discourage work, nor social ascension. On the contrary, says Bénédicte de la Brière, responsible for the program monitoring at the institution: "Adult work is not impacted by income transfers. In some cases adults will even work harder because having this safety net encourages them to assume greater risks in their activities".[13]

Another criticism of the program is the fact that it is perceived by opponents of the currently ruling party as a program meant to "buy" votes of poor people, creating clientism.

Surveys and research

[edit]

Surveys conducted by the Federal Government among Bolsa Família's beneficiaries indicate that the money is spent, in order of priority, on food; school supplies; clothing; and shoes.[14] A study conducted by The Federal University of Pernambuco, using sophisticated statistical methods, inferred that 87% of the money is used, by families living in rural areas, to buy food.[15]

According to research promoted by some universities and the Brazilian Institute of Geography and Statistics (IBGE) the program has clearly contributed to Brazil's recent improvements in its fight against poverty. An ex ante econometric evaluation of Bolsa Escola did find significant effects on both school attendance rates and the number of children involved in child labor.[16][17]

The World Bank, which provided a loan to assist the Brazilian government in managing the Bolsa Família Program,[18] declares that "Although the program is relatively young, some results are already apparent, including: (...) contributions to improved education outcomes, and impacts on children’s growth, food consumption, and diet quality".[19]

A study by the UNDP's International Policy Centre for Inclusive Growth[20] found that over 80% of the Bolsa Familia benefits go to families in poverty (making under half the minimum wage per capita), thus most of the benefits go to the poor. Bolsa Familia was also found to have been responsible for about 20% of the drop in inequality in Brazil since 2001, which is welcome in one of the most unequal countries on the planet.[21] Research promoted by the World Bank shows a significant reduction in child labor exploitation among children benefited by the Bolsa Família program.[22]

One positive effect of the program which is not immediately apparent is that it makes a significant impact on the ability of the poorest families to eat. Children in public schools receive one free meal a day—two in the poorest areas—and so less of their family's limited income is needed to pay for food. In a survey of Bolsa Familia recipients, 82.4% reported eating better; additionally, it was reported to increase the incomes of the poorer families by about 25%.

Other programs

[edit]

Quatinga Velho

[edit]
Main article: Quatinga Velho

Quatinga Velho is a Brazilian village in the Quatinga district of the Mogi das Cruzes municipality, which is becoming well-known because of the basic income-project which is taking place there. The project started 2008 and is organized by the non-profit organization ReCivitas. The funding has so far been based entirely on private donations. In June 2011, 83 people in the village got 30 Brazilian reals per person and month.[23] The organization hopes that all people in the village will eventually get the basic income, and also that similar projects will get going in other villages in and outside Brazil. The organizers are currently building a social bank, so that the basic income in the future can be financed through investments rather than donations. The idea is that the bank will operate as an investment bank, but the profit will go to basic income instead of a dividend to shareholders and managers. One plan is to use some of the first revenue to support the basic income project in Otjivero, Namibia, and then to initiate similar projects in different parts of Brazil.[24]

Santo Antônio do Pinhal

[edit]

In November 2009, the mayor of the Santo Antônio do Pinhal municipality passed into law[25] a basic income program that would reserve 6% of its tax revenue to fund an unconditional dividend for all persons who have resided in the municipality for five years or more.[26]

As of November 2011, Santo Antônio do Pinhal was the only municipality in Brazil which had implemented a basic income program.[27] Senator Eduardo Suplicy has praised the municipality for being a pioneer in implementing such a program at a municipal level in Brazil.[28]

Apiaí

[edit]

In November 2013, the Apiaí municipality adopted a similar law to Santo Antônio do Pinhal's, with the difference that no portion of the municipality's tax revenue was directly allocated to the fund, due to a veto to that clause.[29]

References

[edit]
  1. ^ Lei Nº 10.835, de 8 de Janeiro de 2004. Institui a renda básica de cidadania e dá outras providências. (in Portuguese)
  2. ^ Decree nº 5.209, de 17 de setembro de 2004 – Regulates a Law-010.836-2004 – Bolsa Família Program. Archived October 29, 2012, at the Wayback Machine
  3. ^ Nilson Brandão Junior; Marianna Aragão (20 September 2007). "Miséria no Brasil cai 27,7% no 1º mandato de Lula". O Estado de S. Paulo (in Portuguese). p. B14.
  4. ^ a b Duffy, Gary (25 May 2010). "Family friendly: Brazil's scheme to tackle poverty". BBC News.
  5. ^ Provost, Claire (21 February 2011). "Social security is necessary and globally affordable, says UN". The Guardian. London.
  6. ^ Osborn, Catherine (2020-08-31). "Coronavirus-Hit Brazil Considers Major Public Funds For Poor And Unemployed". NPR. Retrieved 2020-09-02. Family allowance - Brazil is renowned for its massive, nearly 2-decade-old cash-transfer program for the poor, Bolsa Família (often translated as "family allowance"). As of March, it reached 13.8 million families, paying an average of $34 per month. (The national minimum wage is about $190 per month.)
  7. ^ News and Broadcast – Brazil’s Bolsa Familia Program Celebrates Progress in Lifting Families out of Poverty
  8. ^ Heath, Joseph (2010). Economics without Illusions: Debunking the Myths of Modern Capitalism. New York, NY: Broadway Books. p. 270. ISBN 978-0-307-59057-2.
  9. ^ "Rumors about the end of family allowance are 'criminal', says Dilma". Democratic Underground. 2013-05-21.
  10. ^ "Lula and the poetry of misery", Reinaldo Azevedo, 29/7/09 (in Portuguese)
  11. ^ "An economic policy of the power of money for money", CNBB, 1 March 2010 Archived 11 March 2012 at the Wayback Machine (in Portuguese)
  12. ^ "A Referendum" to divide farms?", CNBB, 27 July 2010 Archived 11 March 2012 at the Wayback Machine (in Portuguese)
  13. ^ BRAMATTI, Daniel. Banco Mundial vê Bolsa Família como modelo., São Paulo: Política, Terra Magazine, Sep. 17, 2007, 08h18 (in Portuguese)
  14. ^ Bolsa Família, Perguntas e Respostas Archived 2007-10-22 at the Wayback Machine. Veja Online (in Portuguese)
  15. ^ DUARTE, Gisléia Benini, et al. Impactos do Programa Bolsa Família Sobre Os gastos Com Alimentos De Famílias Rurais Archived 2012-02-08 at the Wayback Machine (in Portuguese)
  16. ^ SSRN-Ex-ante Evaluation of Conditional Cash Transfer Programs: The Case of Bolsa Escola by Francois Bourguignon, Francisco Ferreira, Phillippe Leite
  17. ^ "RAWLINGS, Laura B. e RUBIO, Gloria M. Evaluating the Impact of Conditional Cash Transfer Programs - Lessons from Latin America, Volume 1, World Bank Policy Research Working Paper 3119, August 2003, The World Bank, 2003". Archived from the original on 2010-10-16. Retrieved 2010-10-16.
  18. ^ "– Bolsa Familia Project, The World Bank". Archived from the original on 2012-02-07. Retrieved 2012-12-08.
  19. ^ Brazil’s Bolsa Familia Program Celebrates Progress in Lifting Families out of Poverty, News & Broadcast, The World Bank, Brasilia, Brazil, December 19, 2005
  20. ^ "IPC-IG Home". ipc-undp.org. Archived from the original on 2019-03-08.
  21. ^ "Cash transfer programmes in Brazil: impacts on inequality and poverty" (PDF). Archived from the original (PDF) on 2007-12-16.
  22. ^ YAP, Yoon-Tien, Guilherme Sedlacek and Peter Orazem. 2001. Limiting Child Labor Through Behavior-Based Income Transfers: An Experimental Evaluation of the PETI Program in Rural Brazil. World Bank, Washington, DC
  23. ^ "ReCivitas.org official website". Archived from the original on 2013-12-03. Retrieved 2013-11-28.
  24. ^ BRAZIL: RECIVITAS expands its local BIG to 83 people as it charters the “BIG Social Bank" Archived 2013-12-03 at the Wayback Machine BI News 2011-06
  25. ^ "Lei Número 1.090, de 12 de Novembro De 2.009 - "Institui a Renda Básica da Cidadania de Santo Antônio do Pinhal e Dá Outras Providências."" (PDF) (in Portuguese). Prefeitura Municipal de Santo Antônio Do Pinhal. 12 November 2009. Archived from the original (PDF) on 21 December 2014. Retrieved 21 December 2014.
  26. ^ Luiz Antonio Cintra (8 October 2010). "Renda mínima para todos?" (in Portuguese). CartaCapital. Archived from the original on 21 December 2014. Retrieved 21 December 2014.
  27. ^ "Sen. Eduardo Suplicy pede recursos para o Programa de Renda Básica de Santo Antonio do Pinhal". YouTube (in Portuguese). 28 November 2011.
  28. ^ "Eduardo Suplicy (PT-SP) cita Santo Antônio do Pinhal (SP) como exemplo da aplicação da Renda Básica" (in Portuguese). TV Senado. 3 July 2014.
  29. ^ "Lei municipal nº 041 de 11 de Novembro de 2013 — Institui a Renda Básica de Cidadania no Município de Apiaí". Archived from the original on 2017-02-02. Retrieved 2017-01-25.
[edit]
Retrieved from "https://en.wikipedia.org/enwiki/w/index.php?title=Universal_basic_income_in_Brazil&oldid=1252139746"