World Bank Defends Expansion of Bolsa Familia Social Welfare Program in Brazil

03/13/2017 - 11h36

The Brazilian government should expand the Bolsa Familia social welfare program (part of the Fome Zero network of federal assistance programs) to prevent poverty from growing during recession, said the World Bank in a study published in February.

"If it is possible – Brazil has to make the decision," the World Bank told Folha as it was questioned on whether the proposal was viable.

The World Bank says that stopping the advance of poverty during the crisis depends on the increase of investments in the Bolsa Familia program from R$ 28 billion (US$ 8.8 billion) in 2016 to R$ 30.4 billion (US$ 9.6 billion) this year. The government expects to spend R$ 29.3 billion (US$ 9.2 billion) in 2017.

This would be the most effective way to avoid an increase of 2.5 million new poor people in the country between 2015 and 2017 - a major defeat in the fight against inequality in the last decade. The World Bank says that, between 2004 and 2014, more than 28 million people were lifted from poverty in Brazil.

Without this investment, the World Bank estimates that the number of extremely poor people (with a per capita income below R$ 70 - US$ 22.2) will increase from 3.4% in 2015 to 4.2% in 2017. With the expansion of the welfare program, that number would fall to 3.5%.

Translated by THOMAS MUELLO

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