Safety Nets for the Poor

The IDB supports the creation and expansion of social safety nets in the region to protect the most vulnerable. Conditional cash transfer programs such as Oportunidades in Mexico and Bolsa Família in Brazil have provided millions with the opportunity to break the cycle of poverty from one generation to the next.

The Bank has been financing the implementation and expansion of such programs throughout the region. These programs help address the root causes of poverty: poor nutrition and education. The programs provide the poor with income while ensuring children attend school and get adequate health care.

Empirical studies show that the first benefits of cash transfers to the poor are increased expenditure on food and more diverse diets. Eighteen countries of the Bank's 26 borrowing members have conditional cash transfer programs in place. The Bank works or finances 16 such programs.

Recently, the IDB financed conditional cash transfer programs in Mexico, Honduras and Guatemala. The Bank has also supported efforts to improve the efficiency of the programs in Paraguay and Mexico.