OUR LIFE GOT BETTER Real Per Capita Household Income Growth by quintile (%) – 2002/2012 6.4 6.0 5.4 4.1 2.5 20% poorest 2º quintile 3° quintile Source: IBGE/PNAD. Note: Harmonized Data: Brazil, disgarding the Rural North 4° quintile 20% richest Minimum Wage Evolution (R$ and % real variation) 671 622 510 465 350 200 240 260 380 415 300 Source: Banco Central. Note: Developed by Ministry of Finance. Data: R$ and Var % real (deflated by INPC) 545 Formal Jobs Evolution (in million) 27.2 2001 28.7 29.5 2002 2003 31.4 2004 33.2 2005 Source: RAIS/MTE. Note: Balanced by the end of the periods 35.2 2006 37.6 2007 39.4 2008 41.2 2009 44.1 2010 48.7 46.3 47.4 2011 2012 Sep-13 BOLSA FAMILIA PROGRAM OUR LIFE GOT BETTER Bolsa Família Program: Main Goals 1. Alleviate poverty and hunger 2. Increase education attendance and reduce school dropout rates 3. Improve access to health services for children, pregnant and breastfeeding women Bolsa Família Expansion Brazil Without Extreme Poverty Plan 12.0 10.1 8.7 4.1 0.5 1.7 2001 5.5 6.6 7.9 14.1 12.8 9.2 2.1 3.6 0.0 2000 4.8 6.1 7.2 2002 2003 2004 2005 Cash transfers (US$ billions) 2006 2007 2008 2009 2010 2011 2012 Families in Bolsa Família (millions) 2013 HEALTH FOR BOLSA FAMÍLIA’S CHILDREN HAS IMPROVED OUR LIFE GOT BETTER 50% increase in prenatal healthcare 14% reduction in premature birth rates Less babies born underweight 99.1% children get vaccinated OUR LIFE GOT BETTER Children aged from 0 to 5 years old 46% decrease in diarrhea mortality rates 58% decrease in malnutrition mortality rates OUR LIFE GOT BETTER Prevalence of stunting (%) in children up to 5 years old in the Bolsa Família Program 16.8 16.2 15.6 15.1 14.5 EDUCATION FOR BOLSA FAMÍLIA’S CHILDREN HAS IMPROVED OUR LIFE GOT BETTER Almost 16 million students are monitored for attendance OUR LIFE GOT BETTER BF improves school performance of poor children Approval rates in public schools in 2012 85,2 Bolsa Família Without Bolsa Família 88,2 79,7 75,7 50 Basic/Middle School High School Bolsa Família reduces educational inequality % of 15 years old students at public schools at the appropriate grade level % de estudantes de 15 anos da rede pública na série/ano esperado 73.2 63.1 19,4 -37% 31.0 53.8 32.1 20% poorest people 80% rest of the population BOLSA FAMÍLIA IMPACT ON POVERTY AND EXTREME POVERTY OUR LIFE GOT BETTER Modeling BF impact with variable benefits US$ 1.25/ day per capita Closing the gap Bolsa Família Monthly family income per capita • Bolsa Família increased by 55% over inflation • For the poorest the value of benefits increased by 102% OUR LIFE GOT BETTER Bolsa Família keeps 36 million people out of extreme poverty Extreme poverty reduction (%) Rate by age 10 8 6 4 2 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 Age Without Bolsa Família With Bolsa Família before “Brazil Without Extreme Poverty Plan” With Bolsa Família after “Brazil Without Extreme Poverty Plan" ACTIVE SEARCHING The poor shall no longer seek the State for help The State shall go where poverty is Every extremely poor family must be part of Bolsa Familia 919 thousand families have been located and included 600 thousand yet to be found (estimate) ACTIVE SEARCHING ACTIVE SEARCHING – SOCIAL ASSISTANCE 1,197 social assistance mobile teams 113 speedboats for the mobile teams ACTIVE SEARCHING 919 thousand families located and included in the Registry ACTIVE SEARCHING Single Registry for Social Programs The Single Registry is the main door to other policies and services (Brazil Without Extreme Poverty Plan) One third of Brazilian families are registered Social Benefits (coverage) Benefit Types Contributory Old Age and Disability Pensions; Sickness and Work Injury Benefit (84.4 million) NonContributory Unemployment Insurance (7.8 million) Social Assistance Benefits (Old Age; Disability) Bolsa Família Program (28.9 million) (14.1 million families) POSITIVE EFFECTS OF BOLSA FAMÍLIA ON THE ECONOMY OUR LIFE GOT BETTER US$ 1.00 GDP Multiplier Effect = US$ 1.78 OUR LIFE GOT BETTER OUR LIFE GOT BETTER Bolsa Família does so much for Brazil that every Brazilian benefits ENDING EXTREME POVERTY IS ONLY THE BEGINNING Full-time Education Schoool Expansion in the most vulnerable areas Priority to schools with more than 50% students as Bolsa Família beneficiaries Source: SIMEC/MEC, July 2013.