The chapter aims to contribute to a deeper understanding of the social investment approach in Latin America by analysing their conditional student grants, so called conditional cash transfers (CCTs). Despite empirical evidence that CCTs contribute significantly to social investment, the analysis shows fundamental shortcomings in the welfare systems which, in the long run, limit the impact of the CCTs.
Abstract:
This chapter aims to understand the viability of the social investment approach in Latin America by focusing on the extent to which conditional cash transfers (CCTs) fulfill the stock, flow, and buffer functions of social investment. Despite evidence that CCTs make important social investment contributions, our analysis shows that they are inadequately supported by policies impacting before (e.g. early childhood education and care, and pre-school), during (e.g. educational reforms to increase quality of teaching and learning), and after educational trajectories (e.g. labour market policies).
This points to the vast importance of policy context in planning, designing and implementing social investments. Programs like CCTs have to date been implemented on the margins of existing welfare and social policy systems and gaps could be addressed in the short and medium term through a comprehensive social investment approach that ideally pursues three interrelated objectives.
