Conditional Cash Transfers in Latin America: The Impact of Juntos in Peru in Addressing Multi- Dimensional Poverty

Abstract

In this paper, I present an analysis of the Juntos Conditional Cash Transfer (CCT) program which is the largest component of social protection in Peru. This analysis highlights the root causes for why Peru needs to combat social exclusion and poverty through social safety nets. An additional review of the current program discusses relevant program achievements and program flaws in design and implementation. A comparative analysis of prominent CCT programs in Latin America, Bolsa Familia in Brazil and Prospera in Mexico, provide a basis for how improvements can be made to the Juntos program in order to address the issue of persistent multi-dimensional and multigenerational poverty in Peru. My analysis found that important design and implementation features could be reformed to improve the efficiency and equity of the program, taking into consideration the feasibility of the implementation. Even under perfect design and implementation measures, CCT programs alone cannot resolve the deep-rooted issues perpetuating multidimensional poverty in Peru. Reforms to the Juntos program will allocate resources more efficiently to maximize Peru’s investment in human capital.