Human Capital versus Basic Income: Ideology and Models of Anti-Poverty Programs in Latin America

Latin America underwent two significant transformations during the 2000s: the widespread election of left-leaning presidents and the diffusion of conditional cash transfer programs (CCTs). This book argues that this ideology greatly influenced both the adoption and design of CCTs, with two distinct models of CCTs: a "human capital" model based on means-tested targeting and strict enforcement of program conditions, and a more universalistic "basic income" model with more permissive enforcement of conditionality. Left-wing governments operate CCTs that cover more people and spend more on those programs than their center or right-wing counterparts, and program design is shaped by government ideology.

Format: Hardback
Length: 288 pages
Publication date: 23 February 2022
Publisher: The University of Michigan Press

Latin America experienced significant transformations during the 2000s, marked by the widespread election of left-leaning presidents and the proliferation of conditional cash transfer programs (CCTs). These innovative social programs aimed to alleviate poverty by providing regular stipends to poor families, contingent upon their children's attendance at school. Challenging the conventional notion that these two transformations were unrelated, Human Capital versus Basic Income: Ideology and Models of Anti-Poverty Programs in Latin America delves into the profound influence of ideology on both the adoption and design of CCTs.

The book, authored by Fabián A. Borges, employs a comprehensive approach, combining cross-national quantitative research covering the entire region with in-depth case studies based on field research. The author demonstrates that this ideology played a pivotal role in shaping both the adoption and implementation of CCTs.

Two distinct models of CCTs emerged: the "human capital" model, characterized by means-tested targeting and strict enforcement of program conditions, exemplified by Mexico's program under the right-wing government. On the other hand, the "basic income" model featured more permissive enforcement of conditionality, exemplified by Brazil's program under the left-wing government. These models subsequently spread across the region, with right and center governments, with assistance from international financial institutions, implementing CCTs based on the human capital model. Meanwhile, the left, with support from Brazil, adopted CCTs based on the basic income model.

Quantitative analyses, encompassing the entire region, and in-depth case studies in three countries further substantiate the existence of these two distinct types of CCTs and their relationship to ideology. Left-wing governments were found to operate CCTs that covered a larger population and allocated more resources to these programs compared to their center or right-wing counterparts. Furthermore, a subsequent analysis of the 10 national programs revealed that left-wing governments exhibited a stronger commitment to social welfare and poverty reduction, as evidenced by their willingness to expand program coverage and increase program spending.

In conclusion, Human Capital versus Basic Income: Ideology and Models of Anti-Poverty Programs in Latin America offers a valuable contribution to our understanding of the complex dynamics between ideology, policy, and poverty alleviation in the region. By examining the influence of ideology on the adoption and design of CCTs, the book sheds light on the ways in which political beliefs and values shape the implementation of social programs. This insightful analysis provides valuable insights for policymakers, researchers, and advocates working to address poverty and promote social justice in Latin America and beyond.

Weight: 596g
Dimension: 235 x 157 x 26 (mm)
ISBN-13: 9780472132928