Here we briefly discuss some ways in wich having and using a savings account can contribute to the conditional cash transfer program´s objectives, gathering testimonies of Peruvian women savers and the experiences of the book "Portfolios of the poor".
The Sierra Sur Development Project, hereafter referred to by its Spanish name, Sierra Sur, is a public investment project of the Peruvian government, mainly financed with resources from external debt and implemented by the Ministry of Agriculture through AgroRural. Sierra Sur receives technical and financial support from IFAD. This brief paper describes the Sierra Sur Project’s efforts to promote financial inclusion, and is based on information provided by the project.
The project’s mission is to facilitate processes and initiatives that enhance human, natural, physical, financial and social activities, contributing to increased opportunities for generating income and improving living conditions for residents of Peru’s southern highlands.
This report will focus only on the following countries: Mexico, Colombia, Peru, Chile and Ecuador. While these countries use the same modus operandi in implementing programs (the CCTs are delivered in cash and are subject to certain conditions, particularly related to health and education), there is a significant difference in the ways in which each program relates to the payment agencies and the countries’ financial systems, which actually handle the transfers.
We will finally present the relationship between the CCT programs and the development banks.
Financial education appears as a useful instrument for encouraging better management of household economies, and it is hoped that it might even prompt householders to save. However, achieving this goal in the case of poor households might not be feasible –at least, not through financial education alone– given their characteristic subsistence consumer levels.
Although FE, as mentioned, can serve different purposes, its effectiveness depends to a large extent on having clearly defined goals and, in turn, on those goals being set bearing in mind the limitations of financial education.
This study was prepared for the Capital Project, an initiative that supports the design and implementation of public policies that combine social protection with financial inclusion. The study examines conditional cash transfer (CCT) programs in Latin America, which are regarded as being at the vanguard in terms of technical modernization of social protection programs.
The study begins with a comparative analysis of CCT programs underway in Latin America to determine their similarities and differences. We gave special attention to the following points: origin and objectives of programs; their targeting systems; distribution of management responsibilities by level of government; cash transfer allocation criteria; systems of conditions; monitoring/evaluation tools, and linkage to the financial system in each country. This part of the study required the preparation of individual reports (see annexes to the original report) on the following programs: Bolsa Familia (Brazil), Programa Puente - Chile Solidario (Chile); Familias en Acción (Colombia); Bono de Desarrollo Humano (Ecuador); Progresa (Mexico); Red de Protección Social (Nicaragua), and Programa Juntos (Peru).
As part of the Capital Project activities, we asked five young consultants to prepare assessments of the countries where the program operates (Peru, Ecuador, Colombia, Chile and Mexico). The assessments addressed four areas: poverty and social policies, conditioned transfer programs, the relationship of conditioned transfer programs to the financial system, and characteristics of the financial system in relation to the savings of the poor.
Proyecto Corredor es una iniciativa del Estado peruano que promueve el desarrollo de pobladores rurales en la sierra sur del país. Es un proyecto que busca facilitar el acceso y la relación con el sistema financiero. Se presentarán los resultados del proyecto que se ha realizado con el primer grupo de mujeres ahorristas. El objetivo principal del estudio fue averiguar qué harían las mujeres ahorristas, una vez que culminara su contrato de ahorro bonificado con Proyecto Corredor
This document evaluates the component of the Puno-Cusco Corridor Project looking to strengthen financial services .Its goal is to include rural women in the financial system through the use of savings accounts.
One of the study’s conclusions is that savings accounts have become a positive asset for the women. The beneficiaries found that financial savings helped reduce their economic vulnerability and strengthened them psychologically.
The Capital Project is a public intervention whose goal is to facilitate and supplement existing conditioned cash transfer (CCT) programs. The project encourages savings by poor people and their inclusion in the banking system, asset formation for them, and access to know-how essential for their enterprises, as well as promotion and facilitation of their productive investments and reduction of their vulnerability.