Cash transfers for families and children in Argentina, Brazil and Chile: segmented expansion or universal benefits?

Abstract

Over the past two decades, most Latin American countries have developed cash transfer programmes for poor and low income families not covered by the social security system. These programmes now benefit about 127 million people throughout Latin America and in some countries they include more children than the family allowances of the social insurance system. How have these innovations changed the structure of child benefits in Latin America? This article discusses this issue by looking at the experiences of Argentina, Brazil, and Chile. In these three countries, a wide-ranging programme of non-contributory cash transfers for low income families now operates alongside a pre-existing scheme of family allowances for formal sector workers. This has contributed to expand coverage of cash benefits for families and children, while at the same time keeping a segmented benefit structure. In contrast, a universal child benefit could overcome this segmentation and guarantee equal rights to all children.