What is the background and context of Conditional Cash Transfer (CCT) programs in Latin America?

Conditional Cash Transfer (CCT) programs originated in Latin America in the late 1990s as a means to reduce poverty, increase school attendance, and improve health outcomes. The programs provide cash payments to poor households on the condition that they comply with certain behavioral requirements, such as ensuring their children attend school or receive preventative health care.

The first CCT program, Progresa (now called Oportunidades), was introduced in Mexico in 1997. It was designed to address the intergenerational transmission of poverty by providing cash transfers to families in exchange for regular school attendance, health clinic visits, and nutritional support. The program was considered a success and has been replicated in various forms in over 40 countries.

In 2001, Brazil launched its own CCT program, Bolsa Familia, which has become the largest CCT program in the world, reaching over 14 million families. The program has been credited with significant reductions in poverty and inequality, and improvements in education and health outcomes.

The success of these programs in Latin America has influenced poverty reduction strategies worldwide. CCT programs are now considered a key tool in the fight against poverty, and are being implemented in various forms in Africa, Asia, and other regions.

The context in which CCT programs operate in Latin America is characterized by high levels of poverty and inequality, and challenges in access to education and health services. These programs aim to address these issues by providing financial incentives for poor families to invest in their children's human capital.