INTERNATIONAL overty Centre P Country Study number 9 September, 2007 The International Poverty Centre is jointly supported by the Brazilian Institute for Applied Economic Research (IPEA) and the Bureau for Development Policy, United Nations Development Programme, New York. COUNTRY STUDY CASH TRANSFER RESEARCH PROGRAMME THE CHALLENGES OF EL SALVADOR’S CONDITIONAL CASH TRANSFER PROGRAMME, RED SOLIDARIA Tatiana Feitosa de Britto Visiting Researcher, International Poverty Centre The views expressed in IPC publications are those of the authors and do not necessarily reflect the views of IPC, IPEA or UNDP. Copyright© 2007 International Poverty Centre United Nations Development Programme International Poverty Centre SBS – Ed. BNDES,10o andar 70076 900 Brasilia DF Brazil [email protected] www.undp-povertycentre.org Telephone +55 61 2105 5000 Fax +55 61 2105 5001 Rights and Permissions All rights reserved. The text and data in this publication may be reproduced as long as the source is cited. 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Country Studies of the Cash Transfer Research Programme are available online at http://www.undp- povertycentre.org and subscriptions can be requested by email to [email protected] COUNTRY STUDY PUBLISHED BY THE INTERNATIONAL POVERTY CENTRE THE CHALLENGES OF EL SALV AD OR’S COND ITIONAL CASH TRANSFER PROGRAM M E, RED SOLIDARIA∗ Tatiana Feitosa de Britto∗∗ CASH TRANSFER RESEARCH PROGRAM M E This study is art o! a "u#h $ar%er resear#h ro%ra""e on #ash trans!ers in &oth Latin A"eri#a and su&'Saharan A!ri#a( su orted &y the De art"ent !or Internationa$ De)e$o "ent( *T+ and UNDP, ABSTRACT In the #onte-t o! the in#reasin% ro"inen#e o! #onditiona$ #ash trans!ers .CCTs/ in the de)e$o "ent a%enda o! "any de)e$o in% #ountries( this Country Study ro)ides an ana$yti# o)er)ie0 o! the #ha$$en%es !a#ed &y E$ Sa$)ador1s CCT ro%ra""e( Red Solidaria, (Solidarity Netw ork), The ur ose is to %enerate an in!or"ation &ase !or #o" arati)e studies on the ros e#ts and otentia$ di!!i#u$ties o! i" $e"entin% CCTs in #ountry settin%s di!!erent !ro" those o! the ioneer ro%ra""es( su#h as in Bra2i$ and 3e-i#o, The study des#ri&es Red Solidaria4s ori%ins and #o" onents and dis#usses "a5or as e#ts o! its desi%n and i" $e"entation, A arti#u$ar e" hasis is $a#ed on the ro%ra""e1s #o'res onsi&i$ities( e-it ru$es and tar%etin% strate%y, The study a$so #o)ers the to i#s o! institutiona$ stru#tures( interse#tora$ #oordination and o$iti#a$ su ort !or su#h ro%ra""es, The #on#$usion is that Red Solidaria is an in!or"ati)e e-a" $e o! ho0 a s"a$$ #ountry 0 ith $i"ited resour#es #an su##ess!u$$y set u a #o" $e- CCT ro%ra""e, Sti$$( the study notes that there are endin% issues and re"ainin% #ha$$en%es !or the ro%ra""e, These re$ate( in arti#u$ar( to stren%thenin% "e#hanis"s o! $o#a$ arti#i ation6 #oordinatin% the CCTs 0 ith other di"ensions o! Red Solidaria( su#h as rodu#ti)e ro5e#ts6 $en%thenin% the duration o! &ene!its !or "eetin% hu"an'#a ita$ o&5e#ti)es6 #$ari!yin% e$i%i&i$ity re7uire"ents and ho0 #han%es in !a"i$y #onditions #an a!!e#t su#h re7uire"ents6 and distin%uishin% #onditiona$ities !ro" ordinary ro%ra""e #o'res onsi&i$ities, An issue o! o)erridin% i" ortan#e is to de)e$o a &roader $on%' ter" so#ia$ rote#tion strate%y !or E$ Sa$)ador( 0 ith 0 hi#h CCTs 0 ou$d &e inte%rated instead o! &ein% re%arded as a stand'a$on% ro%ra""e, ∗ I would like to acknowledge the useful remarks received from Fabio Veras of the International Poverty Centre, who was the internal peer reviewer of this study, and Matthias Rompel and Nicola Wiebe of GTZ, who were the external peer reviewer. I also thank the Red Solidaria and FISDL staff for logistical support and collaboration during the research fieldwork in El Salvador. Thanks are also extended to Terry McKinley, Acting Director of IPC, who helped edit the final version of this study. ∗∗ Visitin% Resear#her( Internationa$ Po)erty Centre, 2 Country Study n8 9 1 INTROD U CTION Conditiona$ #ash trans!ers .CCTs/ ha)e &een !re7uent$y hi%h$i%hted as an inno)ati)e too$ o! so#ia$ rote#tion, They #o"&ine the short'ter" o&5e#ti)e o! a$$e)iatin% o)erty 0 ith in#enti)es !or !a"i$ies to in#rease their in)est"ents in hu"an #a ita$ so as to &rea: inter%enerationa$ o)erty tra s, Sin#e their !irst introdu#tion in $ar%e( "idd$e'in#o"e #ountries( su#h as 3e-i#o and Bra2i$ in the "id';99<s( they ha)e &e#o"e o u$ar a#ross Latin A"eri#a( harnessin% su&stantia$ su ort !ro" "u$ti$atera$ a%en#ies and donors, This Country Study dis#usses one o! the "ost re#ent CCTs i" $e"ented in the re%ion( Red Solidaria( initiated &y the %o)ern"ent o! E$ Sa$)ador in =<<>, In the #onte-t o! in#reasin% CCT ro"inen#e in the re%ion1s de)e$o "ent a%enda( the re $i#a&i$ity and sustaina&i$ity o! these ro%ra""es in #ountry settin%s 0 here !inan#ia$ and o erationa$ !ra"e0 or:s are 0 ea:er is an issue o! "a5or #on#ern, Thus( our ur ose is to ro)ide a des#ri ti)e and ana$yti# o)er)ie0 o! Red Solidaria that #an %enerate in uts !or #o" arati)e studies on the ros e#ts and otentia$ di!!i#u$ties !a#ed &y CCTs in #ountries 0 ith settin%s di!!erent !ro" those in the CCT ioneers, This study is &ased on data !ro" three "ain sour#es? ;/ a re)ie0 o! #on#e tua$ and o erationa$ do#u"ents and re orts on Red Solidaria1s desi%n and i" $e"entation6 =/ se"i' stru#tured inter)ie0 s 0 ith ro%ra""e "ana%ers and sta:eho$ders at the nationa$( $o#a$ and internationa$ $e)e$s6 and @/ on'site o&ser)ation o! i" $e"entation ro#esses #arried out in three "uni#i a$ities tar%eted &y the ro%ra""e, A $ist o! inter)ie0 s and !ie$d )isits that ha)e in!or"ed this study is resented in the A endi-, In Se#tion = 0 e resent an o)er)ie0 o! Red Solidaria1s #o" onents and ori%ins, Se#tion @ dis#usses :ey desi%n and i" $e"entation as e#ts, Se#tion A !o#uses on the ro%ra""e1s #o'res onsi&i$ities 0 hi$e Se#tion > introdu#es the issue o! e-it ru$es or &ene!i#iary %raduation, Se#tion B dea$s 0 ith tar%etin% #riteria and "e#hanis"s, Se#tion C dis#usses institutiona$ stru#tures and i" $e"entin% #a a#ity, Se#tion D ana$yses the Red1s interse#tora$ #o'ordination, Se#tion 9 addresses the issue o! sustaina&i$ity( ta:in% into a##ount !inan#ia$ #osts and o$iti#a$ su ort, Se#tion ;< #on#$udes &y identi!yin% endin% issues and #ha$$en%es !a#ed &y the ro%ra""e, 2 RED SOLIDARIA’S COM PONENTS AND ORIGINS Red Solidaria is the "ain %o)ern"ent ro%ra""e tar%eted at the oorest o u$ation o! E$ Sa$)ador, Besides the #ash trans!er( it #o" rises t0 o other #o" onents re$ated to i" ro)e"ents in the su $y o! so#ia$ ser)i#es and in!rastru#ture and to in#reases in the rodu#ti)ity and di)ersi!i#ation o! the in#o"e sour#es o! oor !a"i$ies .see Bo- ;/, The Red1s desi%ners tra#e its ori%ins to the %o)ern"ent $an !or =<<A'=<<9 o! President Antonio E$ias Sa#a( a #andidate o! the ri%ht'0 in% Alianza Republicana N acionalista .ARENA/, This $an out$ined the #reation o! a so#ia$ sa!ety net !or the #ountry1s "ost )u$nera&$e o u$ation,; Interestin%$y( the %o)ern"ent $an o! the $e!tist Frente Farabundo M artí para la Liberación N acional .F3LN/ Ethe other stron% #ontestin% arty in the =<<A e$e#tionsE "entioned under its edu#ationa$ riorities the esta&$ish"ent o! #ash trans!ers to #o"&at s#hoo$ dro 'outs( $o0 rates o! attendan#e in s#hoo$ and #hi$d $a&our, Internationa$ Po)erty Centre 3 BOF ; Com ponent o! Red Solidaria Component 1 Component 2 Component 3 Family Solidarity Network Network of Basic Services Family Sustainability Network Cash transfer targeted to families Supply-side programmes in Promotion of productive projects with pregnant women and children education (Effective Schools and micro-credit schemes in the under 15 years old who have not Network), health and nutrition targeted municipalities.