Conditional cash transfers in a neoliberal era : the evolution of Mexico’s Progresa-Oportunidades

Abstract

Conditional Cash Transfer (CCTs) programs are increasingly becoming the new face of poverty reduction in the global South. Often called a magic bullet, the most common goals of a CCT is to break the intergenerational cycle of poverty. These programs transfer cash to families in extreme impoverishment provided they comply with pre-determined conditions. These conditions usually involve school attendance for children and health check-ups. By linking cash to nutrition, health, and education, CCTs aim to increase the human capital of the poor. It is through this accumulation of human capital that enables them to break the intergenerational cycle of poverty. However, many CCTs have been unable to demonstrate significant reductions of poverty in a long-term, sustainable manner. Why is this so? In this thesis, I argue that the macroeconomic policies influence the design and implementation of conditional cash transfer programs. Using Mexico’s Progresa-Oportunidades, the first CCT of its kind, as my case study, presents a unique opportunity to examine this relationship. Mexico has faced deepening neoliberal reforms since the 1980s that continue to this day, while Progresa-Oportunidades has remained the principle poverty reduction strategy. Nevertheless, poverty levels in Mexico continue to grow. I argue that the suite of policy regimes associated with neoliberal macroeconomic planning have adversely affected the objectives, implementation, and outcomes of the Progresa-Oportunidades program.