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Rethinking Family Allowances as infantile poverty relief policy in Uruguay

International Conference “When families and children live in poverty: ¿Which policies should be adopted?. Rethinking Family Allowances as infantile poverty relief policy in Uruguay. Social Security Bank Ec. Anna M. Caristo. París Jun, 2006. Main items.

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Rethinking Family Allowances as infantile poverty relief policy in Uruguay

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  1. International Conference “When families and children live in poverty: ¿Which policies should be adopted? Rethinking Family Allowances as infantile poverty relief policy in Uruguay Social Security Bank Ec. Anna M. Caristo París Jun, 2006

  2. Main items ... • Human development and poverty in Uruguay • Family Allowances program managed by the BPS • Family Allowances expenses in terms of other variables • Monetary benefit level • Beneficiaries evolution • Coverage • Income distribution, poverty and FA • Concluding remarks

  3. Human development • Human Development Index • Health - long healthy life • (life expectancy at birth) • Education - useful knowledge acquisition • (adult literacy rate and combined gross enrolment ratio) • Life standard level - enough financial resources • (gross domestic product per capita)

  4. Human development ...

  5. Human development ... Fuente: PNUD, 2005 y Desarrollo Humano en Uruguay, 2005

  6. Poverty • Poverty as lack of income • Lines: • Absolute lines • Relative lines • Poverty incidence in Uruguay • World Bank line • CEPAL absolute line • INE absolute line

  7. Poverty ...

  8. Poverty ... Fuente: INE, 2004 y 2005

  9. Poverty ...

  10. Family Allowances in Uruguay • First FA Law in 1943 • Currently three kinds of FA programs: • Civil servants • Private sector employees in formal employment • Low income households (HMR) - assistance • The BPS serves the last two

  11. BPS Family Allowances Program • A) FA for contributors • Beneficiaries • Children and adolescents under age 18 • Disabled • Pregnant women • Benefits • Monetary benefits • Non monetary benefits

  12. BPS Family Allowances Program ... • B) Family Allowances Program for low income households (HMR) • 17139 Law - July, 1999 • 17758 Law - May, 2004

  13. BPS Family Allowances Program ... • First Low HMR • Household income lower than 3 National Minimum Wages • Requirements: • women - heads of families - only household income • unemployed who finished receiving unemployment benefits • pregnant women • Second Law HMR • Extension of coverage to all low income households (income lower than 3 NMW)

  14. Family Allowances expenses in terms of others variables

  15. Family Allowances expenses in terms of others variables ...

  16. Monetary benefit level • In terms of: • Purchasing power • Poverty and destitution lines

  17. Monetary benefit level ...

  18. Monetary benefit level ...

  19. Beneficiaries evolution

  20. Coverage • Three coverage approaches: • population under age 18 • population who meet legal requirements • poor infantile population

  21. Coverage ...

  22. Coverage ...

  23. Coverage ...

  24. Income distribution, Poverty and Family Allowances • Summary of three research reports • Bucheli, 1997 • Amarante y Arim, 2005 • Vigorito, 2005

  25. Concluding remarks • Reinforce FA as relief policy for destitute children • Increase coverage among poor children • Review monetary benefit level per child • Keep the program as a two fold goal policy? • Keep in kind benefits only for workers in formal sector? • Asses outcomes of similar experiences and new impact studies on welfare

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