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Applying Minimum Income Programmes in Brazil: Two case Studies
Sonia Rocha, May 2001

This paper examines the recent experiences of Belem and Belo Horizonte, two metropolitan nuclei where minimum income programmes have been implemented. The idea is to verify to which extent the financial conditions in each of these municipalities seem to be compatible with the implementation of the programme benefiting a significant share of the total number of the poor. Alternatives will be considered for defining the target population in terms of income and family characteristics, as well as for establishing the value of the monthly transfer. Besides the demographic and economic importance of Belo Horizonte and Belem, the choice of these municipalities has an empirical justification. In these municipalities, the National Household Survey (PNAD/IBGE) sample, which was dimensioned to be representative for each metropolitan area, is large enough to allow for the analysis of the programme's viability on the basis of different characteristics of the target population.

This paper has four chapters, besides the introduction. Section 2 focuses on Brasilia's experience as the basis for adopting the same policy in Belém and Belo Horizonte, the two metropolitan nuclei where the program has been implemented by local administrations elected for the 1997/2000 term. Section 3 and 4 describe the characteristics of programme design and operation in Belém and Belo Horizonte. Despite the fact that the two municipalities present quite different characteristics, which, in their turn, are quite diverse from Brasilia's, both programmes essentially adopted most operational parameters from the Federal District's programme. Data from the national household survey are used to evidence the operational limits which the programme faces in these two municipalities, given the size of the target population and financial restrictions. Although specific recommendations are presented at the end of each section, the general ones are assembled in the last section.
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Updated by LD. Approved by GS. Last update: 1 August 2001.