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Solidarity Income: Building Futures With Cash Transfers

Solidarity IncomeMillions of Colombian citizens live in abject poverty. As of 2022, the overall poverty rate was approximately 37%. However, the country has significantly improved in decreasing poverty over the past few decades, mainly due to its cash transfer programs, which provide regular cash assistance to low-income families.

Programs such as Families in Action, Youth in Action and Solidarity Income have proven imperative in promoting youth education and improving the health and well-being of citizens. They also provide emergency financial assistance. The nation has implemented these initiatives to support vulnerable communities in achieving long-term economic stability and building futures in Colombia.

Families in Action

In 2000, Colombia started its main conditional cash transfer program, Families in Action. The program aims to assist low-income families with consistent financial support if they meet specific conditions. These include ensuring their children attend school regularly and get routine health checkups for children aged less than 5.

Since its inception, Families in Action has helped around 2.7 million Colombian families and about 10 million people. The program has increased the use of preventive health care services. More families are taking their children to growth and development check-ups and ensuring increased diversity in rural children’s diet. The program aims to break the intergenerational cycle of poverty and help future generations lead successful lives by building futures in Colombia.

The program is supported by numerous international agencies such as the World Bank and the Inter-American Development Bank (IDB). These influential partners ensure that the program is running smoothly and has enough funding, which is crucial to continued success.

Youth in Action

Another initiative launched by the Colombian government in 2001 is Youth in Action. Aimed at easing the challenges many low-income youth face during their transition to adulthood, the program supports individuals aged 14 to 28 in college or attending vocational training programs. It provides regular cash payments to eligible students, which help pay for important expenses such as transportation, school supplies and housing. The main goal is to reduce youth unemployment and help students stay in school.

The initiative has been able to help approximately 300,000 young people through job training in semi-skilled trades, particularly in major cities where many struggle with unemployment. The program also connects these students with essential career services and job placement programs, guaranteeing their education leads to future opportunities.

The program has helped increase earnings and employment. For example, earnings for women increased by almost $18 per month (at the time of the evaluation). Additionally, 20% of program beneficiaries work in government-recognized firms, compared with 17.4% of other women. Overall, Youth in Action is an investment in Colombia’s future workforce and a strategic tool for building futures in Colombia through a fairer society.

Solidarity Income

Social inequalities among informal workers and families excluded from traditional social safety nets were exacerbated by the COVID-19 pandemic. In response, the government launched Solidarity Income in 2020 to provide unconditional cash transfers to support families not protected by other assistance initiatives.

Unlike Families in Action, Solidarity Income has no conditions. Instead, it is specifically designed to quickly help struggling people who lost jobs and could not afford food during the pandemic. The program used data from government databases and financial institutions to pinpoint exact households, allowing them to send money, even to those in remote areas.

In only a few years, the initiative reached more than three million families, with most in extreme poverty. An example is Heidy Barrera, who said, “this money will allow me to buy food for my household.” Solidarity Income was crucial during the height of the pandemic, when many other forms of financial support were unavailable.

Conclusion

Colombia’s Families in Action, Youth in Action and Solidarity Income programs show the impact of how organized cash transfer programs can positively influence millions of lives. These initiatives provide short-term relief and long-term development by helping people grow through education and health, which are essential in preventing regression and help build futures in Colombia. Strengthening and expanding these programs will be of utmost importance to create a more equitable society for the future generation of Colombians.

– Rafe Photopoulos

Rafe is based in Gainesville, FL, USA and focuses on Good News for The Borgen Project.

Photo: Flickr