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How Does Boella Familia Combat Poverty?

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4. Limits of Bolsa Familia
Bolsa Familia is not a perfect solution to poverty. “As much as CCTs might have an important role in structural poverty reduction, there are limits to what these interventions can achieve.” (Cornia 2002) Complementary macroeconomic policies such as social protection and macroeconomic stabilization are needed for poverty reduction to be sustainable. Bolsa Familia is a tool that is used to mitigate poverty while policies such as education are implemented, expanded and promoted.
There is no argument that basic income provided by CCTs are the difference between life and death for families living in poverty or extreme poverty. However, coming up with a solution for poverty is much more complicated than just cash transfers. Giving these families money do not guarantee that they will use it to increase their asset, human capital or capabilities. There must be a complete social system in place in order to combat poverty as a whole. The system needs to solve urgent needs (through cash transfers for example), create systems for people to sustain their condition out of poverty (job creation) and offer opportunities to improve their capabilities (education).

5. Conclusion …show more content…

By attending school, these families are investing in human capital which allows them to increase their productivity and incomes in the future. The conditions that come with the programs gives an incentive for families to prioritize education and take care of their health, which improves their general health conditions and increase investments in human capital. Not only does this decrease inequality in the short run, it also prevents inequality in the long run by increasing intergenerational

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