Photo: ESCAP 2013

ESCAP flagship Survey calls for a paradigm shift in macroeconomic policies to make growth inclusive and sustainable

Brasilia, 18 April 2013 – Asia-Pacific economies will see subdued growth in 2013 after last year’s sharp slowdown caused by external factors, the United Nations said in its annual regional social and economic report released today in Brasilia. The Economic and Social Survey of Asia and the Pacific 2013: Forward-looking macroeconomic policies for inclusive and sustainable development adds that efforts to stimulate demand must go hand in hand with macroeconomic course correction to promote broad-based and sustainable development. The Survey 2013 was presented in the Seminar entitled “Asia and Brazil: Perspectives for Inclusive Growth”, organised by UNDP’sInternational Policy Centre for Inclusive Growth (IPC-IG) and the Brazilian Institute of Applied Economic Research (Ipea).

While  the  Asia-Pacific  region  has  weathered  the  financial  crisis  better  than  many other parts of the world, there is an urgent need to adapt macroeconomic policies to address the challenges of sustainable development and assist the poorest and most vulnerable” said Ban Ki-moon Secretary-General of the United Nations.

The recommendations in this issue of the Survey seek to assist these countries to advance economically, socially and environmentally, citing that such measures will lead the region towards a more inclusive and sustainable growth path. “These efforts can assist the achievement of the Millennium Development Goals. Greater progress will fuel confidence in, and mobilize support for an ambitious post-2015 development agenda”, says Jorge Chediek, United Nations Resident Coordinator and UNDP Resident Representative in Brazil.

Inclusive and environment-friendly growth is key to creating new sources of economic dynamism amidst the persisting global uncertainty, says the flagship publication of the Bangkok, Thailand-based United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) which estimates that economic policy uncertainty in the eurozone and the United States since the onset of the global crisis has shaved 3 per cent off regional GDP – a loss of $870 billion in output.

“The 2013 Survey suggests the need for new macroeconomic policies in Asia. The Brazilian example shows us that social policies can play a vital role in achieving inclusive and sustainable development”, says Claudio Hamilton dos Santos, Director of Macroeconomic Studies and Policies, Ipea.

“The Latin American experience has shown that public social investment, such as conditional cash transfer programmes, non-contributory social pensions, access to health care and education, can contribute to both GDP growth and domestic consumption demand by empowering millions of economically and socially marginalized people” added Fabio Veras, research coordinator IPC-IG/UNDP.

Limited pick up in growth

The expected improvement in global demand arising from steady growth in the United States and the limited rebound in major emerging economies is projected to help raise developing Asia-Pacific growth to 6.0 per cent in 2013 from 5.6 per cent last year.

China is estimated to record a moderate increase in growth from 7.8 per cent in 2012 to 8 per cent while India is projected to recover somewhat from last year’s low of 5 per cent to 6.4 per cent in 2013.

Oil and gas exporting North and Central Asia will continue to benefit from high global energy prices, maintaining steady growth. In South and South-West Asia, the economies of Afghanistan, Bangladesh, Bhutan and Sri Lanka are projected to grow 6 per cent or more in 2013.

The export-led economies in East and North-East Asia as well as South-East Asia are expected to gain from “improved, although still tepid, global trade”. However, domestic demand will be the main economy driver in Indonesia, giving it a robust growth of 6.6 per cent in 2013. Strong private consumption will support growth in the Philippines (6.2 per cent in 2013) and Thailand (5.3 per cent in 2013) while Viet Nam’s economy is expected to pick up in the second half of 2013 to 5.5 per cent.

Growth is expected to decelerate in Pacific island developing economies in 2013 due to a sharp, energy sector-led slowdown in Papua New Guinea, the largest Pacific island economy.

“New normal” of lower growth underlines need to make development inclusive and sustainable

The Survey cautions that “much lower growth compared to recent years could become a new normal for many regional economies if present economic trends were to continue” and this could cause an estimated economic output loss of about $1.3 trillion by end-2017.

Long-term structural issues, such as rising inequality, energy and infrastructure shortages are compounding the regional slowdown and the Survey says the “structural solution to invigorating the domestic drivers of growth will lie in making the development process more inclusive and sustainable”.

With the region home to nearly two-third of the world’s poor and having more than a billion people with insecure livelihoods, the Survey highlights the economic benefits of social protection. It makes a first-time estimation of the public investment requirement of a package of social protection and sustainable development policies comprising a job guarantee programme, a universal pension scheme, disability benefits, increased public health spending, universal school enrolment and universal access to modern sources of efficient energy.

Requiring between 5 and 8 per cent of GDP in many Asia-Pacific countries surveyed, this can be self-financed by most countries, although least developed countries, some geographically disadvantaged nations and small island developing states would also require external support.

Moreover, these investments do not carry any risk of macroeconomic destabilization.

Thailand and China show the way

Among measures to support inclusive development, the Survey makes a case for a minimum wage policy which can also benefit employers and the economy. It estimates that the recent minimum wage hikes in Thailand could increase job growth by up to 0.6 per cent and real GDP growth by 0.7 per cent by 2015.

Another model of a pro-inclusive growth policy is the ongoing rebalancing of China’s economy which aims to reduce reliance on exports and boost domestic consumption-driven demand by promoting inclusive and sustainable growth. ESCAP estimates this will also benefit intraregional trade, triggering an additional $13 billion worth of exports by other Asia-Pacific countries to China during 2013-2015 and cause regional export growth to pick up by up to 0.5 percentage points above the level it would otherwise have been.

Download full report:  http://www.ipc-undp.org/pressroom/files/ipc827.pdf

For more information, please go to: http://www.ipc-undp.org/ or follow us on Facebook at http://www.facebook.com/ipc.undp, on our Twitter https://twitter.com/UNDP_IPC or on YouTube at http://www.youtube.com/ipcundp.

For more information, please contact:

Brasilia:
Ms Mariana Hoffmann
Communications Officer, IPC-IG
T: (55) 61 2105 5036/ M (55) 61 8125 6469 E: mariana.hoffmann@ipc-undp.org

Bangkok:
Ms. Francyne Harrigan
Chief, Strategic Communications and Advocacy Section, ESCAP
M: (66) 81 835 8677, E: harriganf@un.org

Launch event in Brazil:

Seminar “Asia and Brazil: Perspectives for Inclusive Growth”

Launch of the Economic and Social Survey of Asia and the Pacific 2013 in Brazil

Date: Thursday, April 18, 2013 Time: 9 a.m.

here: Institute of Applied Economic Research (IPEA) / SBS, Quadra 1, Edifício BNDES, Auditorium 16º floor – Brasília – DF, Brazil
Agenda

9h –  Breakfast to welcome guests

10h – Opening event

Mr. Claudio Hamilton dos Santos, Director of Macroeconomic Studies and Policies, the Institute of Applied Economic Research (IPEA) 

10h20 – Release of the report entitled “Economic and Social Survey of Asia and the Pacific 2013: Innovative Macroeconomic Policies for Inclusive and Sustainable Development”

Mr. Jorge Chediek, United Nations Resident Coordinator and UNDP Resident Representative in Brazil

10h40 – The conjunction of macroeconomic policy and inclusive and sustainable development

Mr. Claudio Hamilton dos Santos, Director of Macroeconomic Studies and Policies, the Institute of Applied Economic Research (IPEA) 

11h – Emerging counrtries: Prospects for inclusive growth policies

Mr. Fabio Veras, Coordinator of Research, the International Policy Centre for Inclusive Growth (IPC-IG)/United Nations Development Programme (UNDP), Brasília

11h20 – Parallels between Latin America and Asia in the current global context

Mr. Carlos Mussi, Economic Commission for Latin America and the Caribbean (ECLAC, United Nations), Brasília

11h40 – Opportunities for dialogue between Brazil and Asia

Mr. Renato Baumann, Director of Studies and Economic Relations and International Policy, the Institute of Applied Economic Research (IPEA)

12h – Q & A session with the speakers

12h20 – Closing of the Meeting

Photo: ESCAP 2013

Brasília, 11 April 2013 –  Amidst widening income inequalities and depleting natural resources, the Asia-Pacific region is facing subdued growth in 2013. The United Nations Economic and Social Survey of Asia and the Pacific 2013 analyses a wide range of areas including economic growth, trade, inflation, employment, and labour migrations. The 2013 Survey will be presented at the Seminar “Asia and Brazil: Perspectives for Inclusive Growth” jointly organized by the Brazilian Institute of Applied Economic Research (IPEA) and the International Policy Centre for Inclusive Growth (IPC-IG) of the United Nations Development Programme (UNDP) on April 18^th, 9h am in Brasilia.

The Economic and Social Survey of Asia and the Pacific, the oldest and most comprehensive annual review of economic and social development in the region, analyses the short and medium-term challenges for the region and the outlook for the year ahead. The special theme of 2013 argues for a shift in the macroeconomic policy paradigm to achieve more inclusive and sustainable development in Asia and the Pacific.

NOTE TO EDITORS:

You or your representatives are cordially invited to the launch of the 2013 ESCAP Survey. The report launch will be followed by a question and answer session.

What: Seminar “Asia and Brazil: Perspectives for Inclusive Growth” – Release of the Economic and Social Survey of Asia and the Pacific 2013 in Brazil

Who: Mr. Claudio Hamilton dos Santos, Director of Macroeconomic Studies and Policies, the Institute of Applied Economic Research (IPEA) 

Mr. Jorge Chediek, United Nations Resident Coordinator and UNDP Resident Representative in Brazil

When: Thursday, April 18, 2013 at 9 a.m.

Where: Institute of Applied Economic Research (IPEA): SBS, Quadra 1, Edifício BNDES, Auditorium 16º floor – Brasília – DF, Brazil

Agenda

For further information about the Press Conference or to set up separate interviews, please contact:

Ms. Mariana Hoffmann
Communications Officer (IPC-IG)
T: (+ 55 61) 2105 5036
M: (+55 61) 81256469
E: mariana.hoffmann@ipc-undp.org

Ms. Lauren Core
Communications Assistant (IPC-IG)
T: (+ 55 61) 2105 5022
M: (+55 61) 92464645
E: lauren.core@ipc-undp.org

‘Ghana Child Ambassadors on youth radio show in Washington DC.’ Photo: Ubantu Village Inc./IPC-IG

Brasília, April 04, 2013 –  Friday April 5th marks 1000 days until the Millennium Development Goals (MDGs) are anticipated to be achieved. Momentum 1000 is a worldwide rally organized by the UNDP that aims to enhance cooperation and advocacy throughout the final leg towards achieving the MDGs.

The International Policy Center for Inclusive Growth (IPC-IG) of the United Nations Development Programme (UNDP) has published a number of publications related to better understanding how to achieve each of the eight MDGs. In line with this, the following IPC-IG publications apply a critical lens to the development framework presented by the MDGs:

Global Development Goal Setting as a Policy Tool for Global Governance: Intended and Unintended Consequences

MDGs: Misunderstood Targets?

Measuring MDG Achievements: Rate of Progress Matters Most

Achieving the Millennium Development Goals: A Measure of Progress

Towards an MDG-Consistent Debt Sustainability Concept

How Should MDG Implementation Be Measured: Faster Progress or Meeting Targets?

The MDGs and Beyond: Pro-Poor Policy in a Changing World

The aforecited IPC-IG publications serve to inform policymakers in advancing human development and to leverage policy research on inclusive growth in the pursuit of achieving the MDGs. The featured research attempts to address the key challenges presented by each MDG, ranging from development innovations to gender equality. The IPC-IG invites you to visit the following links provided below each MDG that may help critically inform efforts to improve lives around the world. In addition to relevant news and publications, each MDG is accompanied by illustrative photographs from the IPC-IG’s Humanizing Development Global Photography Campaign.

MDG 1: Eradicate Extreme Poverty and Hunger 

Photo: ‘Humanizing Development Global Photography Campaign’/IPC-IG

Bolsa Família after Brasil Carinhoso: an Analysis of the Potential for Reducing Extreme Poverty

Analysing and Achieving Pro-Poor Growth

MDG 2: Achieve Universal Primary Education

Photo: ‘Humanizing Development Global Photography Campaign’/IPC-IG

Covariates of efficiency in education production among developing pacific-basin and Latin American countries

Social Innovation: Tackling Poverty through Home Grown School Meal Programmes

MDG 3: Promoting gender equality and empowering women

Photo: ‘Girls in the hairdressing class at Pro-Link Danfa School in Ghana’/Alice Wong of Canadian Crossroads International

Greening the Economy and Increasing Economic Equity for Women Farmers in Madagascar

The Implications of Water and Electricity Supply for the Time Allocation of Women in Rural Ghana

The Role of Gender Inequalities in Explaining Income Growth, Poverty and Inequality: Evidence from Latin American Countries

MDG 4: Reducing child mortality rates

Photo: Inter-American Social Protection Network (IASPN)

Monetary Transfers for Children and Adolescents in Argentina: Characteristics and Coverage of a “System” with Three Components

No Child Left Without: A Universal Benefit for Children in Brazil

MDG 5: Improving maternal health

Photo: ‘Humanizing Development Global Photography Campaign’/IPC-IG

Regression Discontinuity Impacts with an Implicit Index: Evaluating El Salvador’s Comunidades Solidarias Rurales Transfer Programme

IPC-IG Joins UNFPA on the 7 billion Actions Global Campaign

MDG 6: Combating HIV/AIDS, malaria, and other disease

Photo: ‘Humanizing Development Global Photography Campaign’/IPC-IG

Scaling-up HIV/AIDS Financing and the Role of Macroeconomic Policies in Kenya

Gearing macroeconomic polices to manage large inflows of ODA: The implications for HIV/AIDS programmes

The Macro-Micro Nexus in Scaling-Up Aid: The Case of HIV and AIDS Control in Kenya, Malawi and Zambia

MDG 7: Ensuring environmental sustainability

Photo: ‘Humanizing Development Global Photography Campaign’/IPC-IG

Raindrops for Education: How To Improve Water Access in Schools? 

Managing Resource-Dependence Amidst Opportunities and Challenges: Defining a New Sustainability Narrative for Caribbean Coastal Economies 

Low-Cost Technologies Towards Achieving the Millennium Development Goals: The Case of Rainwater Harvesting

MDG 8: Developing a global partnership for development 

Photo: ‘Humanizing Development Global Photography Campaign’/IPC-IG

South-South Cooperation for Inclusive Green Growth

South-South Cooperation in Times of Global Economic Crisis

China and The World: South-South Cooperation for Inclusive Green Growth

‘A farmer harvests sorghum.’ Source: Fred Noy, UN Photo

Brasília, March 27, 2013 – The International Policy Center for Inclusive Growth hosted a 10-day E-discussion between February 10^th and March 4^th on the topic of climate-smart agriculture (CSA) with support from the UK Department for International Development. The discussion attempted to address the key tensions that exist at the intersection of climate change and agriculture in Africa, particularly emphasizing ‘climate-smart’ solutions. In so doing, the e-discussion yielded critical information from a portfolio of sources as well as strategies for improving CSA. The e-discussion also afforded the opportunity for diverse actors involved in climate change and agriculture across the world to engage in debate through an innovative online platform: a Google Groups.

Climate Smart Agriculture (CSA) is an approach to farming that aspires to support smallholders through risk-averse and environmentally sensitive agricultural practices. As the world is experiencing increasingly erratic weather patterns due to a changing global climate, efforts to enhance agricultural resilience are of critical importance. Investing in knowledge for smallholders may not only inform debates on social protection but may also improve the knowledge base for food security and climate change adaptations.

A follow-up to  a seminar on the ‘Role of South-South Cooperation in Agricultural Development in Africa’ held in Brasilia on 17 May 2012,  the e-discussion aimed to continue in this vein of policy and research related to knowledge innovation around sustainable agriculture and climate change. The e-discussion involved more than 60 participants from a range of institutions with differing professional and academic backgrounds, such as federal government representatives and farmers. It facilitated greater engagement and discourse between civil society actors on South-South Cooperation. Participants were also afforded the opportunity to offer practical and hands-on experiences to complement the more theoretical discussion.

The e-discussion sought to inform ongoing debates on CSA while recognizing the particular relevance for Brazil-Africa agricultural cooperation. In particular, the discussion set out to “deepen the conversation with civil society and organizations that represent small farmers, as well as individuals researching small farmer issues.” As such, the debate was structured around the following three objectives:

• Objective 1: To understand the value of climate-smart agriculture for smallholder farming 
• Objective 2: To serve as a platform for knowledge sharing on climate-smart agricultural innovations in the South
• Objective 3: To promote a gendered approach to climate-smart agriculture.

The resulting knowledge product, entitled Climate Smart Agriculture in Africa, is a report that provides a broad based overview of CSA policies as well as nuanced and practical examples from the field. It highlights areas of contention as well as consensus with respect to best practices and key challenges. Compellingly, original case studies as well as newly available literature are identified.

The DFID and the IPC-IG in Brazil aspire to continue cultivating a meaningful dialogue related to adaptation and initiatives for climate change. Stay tuned for a separate evidence paper on Climate Smart Agriculture that will be made available in the near future by the IPC-IG. The e-discussion served as an innovative avenue of knowledge cooperation that will inform the evolution of climate smart agriculture policy and practice in Africa and beyond.

Summaries in English and Portuguese are now available on the IPC-IG website.

Source: IPC 819 and IPC 812, DFID 

Take a closer look at research on food security, climate change and inclusive growth through the following IPC-IG publications:

Market Alternatives for Smallholder Farmers in Food Security Initiatives: Lessons from the Brazilian Good Acquisition Programme

Public Support to Food Security in India, Brazil and South Africa: Elements for a Policy Dialogue

Providing Incentives to Women Farmers for Sustainable Food Production

Food Security Policy Context in Brazil

Integrating Public Works and Cash Transfers in Ethiopia: Implications for Social Protection, Employment and Decent Work

‘Recipients of the Bolsa Famila Programme’ Source: Bruno Spada/MDS

On March 18, the Minister of Social Development and Fight Against Hunger (MDS) Tereza Campello said that the funds invested by the Brazilian government in the Bolsa Familia programme reached 0.46% of the Gross Domestic Product (GDP) in 2012. According to MDS data, the budget for the programme reached USD $ 10.7 billion last year. This amount invested in Bolsa Familia is expected to rise to USD $ 12.3 billion by the end of 2013. “The amount spent on Bolsa Familia in Brazil is nothing,” said Yoshiaki Nakano, the Director of the School of Economics of São Paulo’s Getulio Vargas Foundation (FGV) who was with Minister Teresa Campello shortly after she delivered the 2013 inaugural lecture at the SP school.

Nakano conveyed information about his experience working with the economic department for the supermarket chain Pao de Acucar in 1979: “One day, the chain’s CEO Abilio Diniz asked me how much would need to spend to end poverty in Brazil…I did my calculations, and at that time it would take something between 1% and 1.5% of GDP.”

According to Minister Tereza Campello, Bolsa Familia currently serves a population of 50 million people and data from the Institute of Applied Economic Research (IPEA) indicates that Bolsa Familia is very effective as the programme succeeded in reducing extreme poverty by 89% in Brazil. “We are exporting this social technology to other countries without reimbursement, as our purchase of ethanol,” said Minister Campello. “We have no budget problems. On the contrary, the Ministry of Finance has made the resources we need available to meet the priorities of President Dilma Rousseff’s government,” she said while smiling at the Secretary of Economic Policy, Márcio Holland.

Extreme poverty

The minister pointed out that there are still approximately 700 thousand families in Brazil who live in extreme poverty (i.e. extreme poverty is considered to be those with a per capita income of less than USD 35.00 per month). “By the end of the mandate of President Dilma Rousseff, our objective is to ensure that almost 2.5 million people may benefit from the Bolsa Familia program,” said Tereza Campello to Estadao.

According to the minister, it is very difficult to find families living in conditions of extreme poverty. “They’re not in the rural areas, rather they are in the big cities at points so distant that they cannot have access to information about the programme,” she said.

According to the Ministry of Social Development and Fight Against Hunger, 22 million families enrolled in Family Grant lived in extreme poverty. That number has been reduced over the two years of the Dilma government and now there no single family enrolled in the program that is still in this condition.

“Now we are looking after them. If there are 700 thousand, 650 thousand and 600 thousand families, field work will help us reach out to the families,” said the minister.

Source: Estado de S. Paulo

The IPC-IG has extensively researched the impacts of Bolsa Familia in Brazil and this month the IPC-IG launched a Policy Research Brief (PRB) on Bolsa Família after Brasil Carinhoso: an Analysis of the Potential for Reducing Extreme Poverty

Read more about social policy and inclusive growth in the following publications:

Brazil explains flagship programme to eradicate extreme poverty by 2014

Bolsa Familia as Seen Through the Lens of the Decent Work Agenda

Assessment of the Implications of the Bolsa Família Programme for the Decent Work Agenda

Integrating Public Works and Cash Transfers in Ethiopia: Implications for Social Protection, Employment and Decent Work

The Consolidation of Social Assistance Policy in Brazil

How Effective are the Non-monetary Components of CCT Programs?

Three Models of Social Protection

 

‘Delegation from Senegal Discusses Social Protection and Policies’ Source: IPC-IG/Lauren Core

A delegation from Senegal comprised of political leaders and United Nations representatives convened at the IPC-IG/UNDP on March 18, 2013 to better understand the successes of social protection policies in Brazil. The Senegalese delegation is visiting Brazil to attend the International Seminar on Social Policy for Development offered by the Brazilian Ministry of Social Development and Fight Against Hunger (MDS) (more information in Portuguese available here). The MSD seminar provides the opportunity for policymakers from different countries to come together and collectively exchange ideas for poverty alleviation.

In addition to the Senegalese representatives, leaders from other countries in Latin America, Asia, and Africa have arrived for the MDS conference. An Ethiopian delegation will also be received by the World Food Programme Center for Excellence Against Hunger upon completion of the MDS conference.

The meeting at the IPC-IG involved the discussion of issues such as the type of conditions involved in cash transfer programmes and the key challenges of implementing large-scale social protection initiatives. The Senegalese delegation strategized ways to develop strategies to fight poverty and hunger, keeping in mind the unique challenges facing Senegal. In addition to the MDS conference and technical meetings, foreign delegations are attending field trips to study sites to gain first-hand experience about the impacts of social protection policies in Brazil.

Upon completion of the visit to Brazil, it is envisioned that the Senegalese representatives will have the opportunity to build context-specific social protection policies that emulate the successes of the Brazilian case. In particular, programmes such as Bolsa Familia and Brazil Without Extreme Poverty Plan may serve as exemplar for the design and implementation of social protection programmes. Cooperation agreements may also be drafted that promote South-South knowledge sharing. The global dialogue that began with the IPC-IG visitation will not cease following the visit but rather will continue through knowledge cooperation related to social policies.

Read more publications related to social policy and protection in French:

Support à la production alimentaire et à l´accès à la nourriture via des achats publics locaux : les leçons du Brésil

Les Programmes de Transfert Monétaire Assorti de Conditions Sont-ils Viables Dans les Pays à Faible Revenu ?

Programmes Sociaux de Transferts D’espèces en Zambie : Quel en est L’impact ?

Les Pays à Faible Revenu Peuvent-ils Adopter des Politiques Anticycliques ?

Un seul Instrument Pour Plusieurs Cibles : Le Défi Posé par la Politique Macroéconomique du Timor-Leste

Les leçons de la crise de l’électricité en Afrique du Sud

Portuguese version available at: UNDP Brazil

The IPC-IG, MDS, IPEA, and World Bank sign an agreement to fight poverty worldwide. By Ana Nascimento, MDS

Brasília, March 6, 2013 – In an unprecedented partnership, four institutions that have been recognized for their commitment to fighting poverty joined forces this week in Brasília to expand the exchange of knowledge and best practices related to the promotion of successful social policies. The ‘Initiative for Knowledge and Innovation for Poverty Reduction’ was signed on Tuesday, March 3, 2013 by the International Policy Centre for Inclusive Growth of the United Nations Development Programme (IPC-IG/UNDP), The Ministry of Social Development and Fight Against Hunger (MDS), the Institute of Applied Economic Research (IPEA) and the World Bank.

The initiative will serve as a source of reference for other countries wishing to build or enhance their social inclusion policies based on the Brazilian Bolsa Família programme as well as Brazil Without Extreme Poverty. “Brazil has become a worldwide model for development,” said the UNDP Resident Representative to Brazil and Director of IPC-IG Jorge Chediek. “Brazil has designed a social policy that is not separate from economic policy or the general policy of the country. Rather, this social policy is central to the development of the country,” he continued.

In Brazil, the Bolsa Familia programme has managed to end extreme poverty for approximately 20 million people. Due to the ‘Single Registry System’ of the Bolsa Familia programme, the increased income and social development of approximately 50 million Brazilians provides a promising outlook. Thanks to the policies of conditional cash transfer, there has been significant growth of the Brazilian middle class in the last 20 years. According to Minister Tereza Campello of the MDS, Bolsa Familia is “the basis for constructing policies for overcoming extreme poverty, not only for being innovative on several issues, but also because we have an understanding that in order to implement social technologies, the programme has to have national size, impact, and scale. That is why the Bolsa Familia policy is so successful.”

The President of the IPEA, Marcelo Neri said that “this project is an opportunity to expand our cooperation with other countries, states and cities and exchange practical knowledge produced between public institutions, multilateral, civil society and people.” Besides the Brazilian experience in the area of poverty eradication, the initiative will provide benefits through exchanges with similar platforms created by the World Bank in China on the development of public transport as well as that of South Africa on the public health service.

The initiative is part of an overall effort by the World Bank and partner countries to produce and share knowledge about effective implementation of public policies, often defined by the World Bank President Jim Yong Kim as the “science of delivery.” According to Kim, high-performing companies stand out by the way they meet the expectations of their customers to deliver goods and services, but this ability is also crucial for the public sector as part of its social contract with citizens.

“The agreement signed today, March 3, recognizes Brazil as a global leader in reducing poverty and inequality. The advances made over the last decade have been remarkable and the world may obtain a great education from the Brazilian experience,” said Jim Yong Kim.

Initiative for Knowledge and Innovation for Poverty Reduction

In Brazil, the agreement between the World Bank, the IPC-IG/ UNDP, IPEA and MDS will unfold in three activities. The first is to create a knowledge repository, bringing together existing studies by the IPC-IG, IPEA, World Bank and other institutions on the Bolsa Familia and Brazil Without Extreme Poverty plan.

The second activity will focus on reviews and case studies of Brazilian experiences at the national, state and municipal scales. The intention of the second activity is to examine what makes particular actions successful and to adopt innovations that have the potential to expand beyond the challenges, difficulties, and lessons that may be relevant in Brazil and worldwide.

In the third stage, the initiative aims to gather inputs to find solutions to any problems implementing the actions and policies of poverty reduction, based on the experiences of Brazil and other countries.

“What we are planning today will likely not only be an interinstitutional agreement, but also a tool for millions of people in the world somewhere, in some corner of our planet – considering the totality of the institutions that are participating – for improved conditions of life by applying the ideals of Brazil and Brazil’s social technologies,” explains the UNDP Brazil Resident Representative and Director of IPC-IG.

Source: UNDP and MDS and IPEA

Other topics of this issue – which presents a total of nine new publications – include an application of Multidimensional Poverty Index to Arab States and how to make biofuel production more sustainable based on the experiences of Brazil, India and Indonesia. It also brings a the Policy Research Brief written by Rafael Osorio and Pedro Ferreira which has been quite influential in the recently changes in Bolsa Familia transfers as part of the Brazil Without Extreme Poverty (Brasil sem Miseria) Plan.

News on recent announcements on social protection programmes in Mexico, India and Brazil and on the 3rd meeting of the Social Protection Inter-agency Cooperation board are also presented as well as on the recent visit to Brazil of the Norwegian Minister for International Cooperation. We also share the links for public consultations on the global framework that will replace the Millennium Development Goals (MDGs) convened by UNDP and highlith an interesting website hosted by ODI on the transformative features of Cash Transfers.

Brasília, February 21, 2013 – An extension of the Bolsa Familia programme was enacted by the Brazilian President Dilma Rousseff on February 19^th that aims to extend the complementary benefit to overcome extreme poverty of Brazil Carinhoso (see PRB 41) to all families still living in extreme poverty after the Bolsa Familia standard transfers regardless of whether they have children or not. Through this measure around 2,5 million people will start receiving the complementary benefit.

‘Brazil Without Extreme Poverty’ Plan is coordinated by the Ministry of Social Development (MSD) and builds upon the last ten years of the Bolsa Familia programme from 2002-2012. The new plan is designed to improve the lives of approximately 16 million people that have an income of less than 70 Brazilian reais (around USD 35) a month per person. Payments for the beneficiaries identified as still living in extreme poverty will begin in March 2013. The new plan also integrates measures in addition to cash transfer such as technical assistance and enhanced access to public goods and services. According to the Government of Brazil, the new plan aims to improve access to the following: water supply, electricity, health, education, and housing.

The Government of Brazil also highlighted the focus on determining the remaining portion of the population living in extreme poverty that are not yet identified. It is estimated that approximately additional 700,000 thousand families still living in extreme poverty have not been located and registered for the Bolsa Familia benefit. Therefore the new strategy involves an ‘Active Search’ for this portion of the population that will be carried out with the cooperation of states and municipal governments. According to the Government of Brazil, the ‘Active Search’ will involve search campaigns, cross registrations, and training of public managers.   

Drawing a complete map of those in need of social protection in Brazil may not only help implement the most efficient programmes but also contribute to the effort of completely eradicating extreme poverty.

Chile is also trying to eradicate extreme poverty through a government programme called Ingreso Etico Familiar (IEF). The programme also complements the income of extreme poor families so that they can cross the extreme poverty line. For more information see IPC’s Policy Research Brief # 26: “The Expansion of Cash Transfers in Chile and its Challenges: Ethical Family Income”.