REPUBLIC OF HONDURASREPUBLIC OF HONDURASFAMILY ALLOWANCE PROGRAM FAMILY ALLOWANCE PROGRAM

PRAFPRAF

Mother and Child Voucher

(Bono Materno-Infantil – BMI)

Family Allowance Program PRAF

November 2006

What is PRAF?PRAF is a Social Investment Program, created through an executive agreement on July 17, 1990. It began as a social compensation program aimed at attenuating the effects of the Adjustment Programs among Honduras’ poorest population. [1]

It is a decentralized entity under the Presidency of the Republic, with national jurisdiction and indefinite duration.

[1] Memoria Institucional Cuatrianual. PRAF, 1994-1997 Period.

Working Areas [2]

Mother and Child Voucher (BMI) School Voucher (Voucher for Female Head

of Household) Elderly Voucher Program for the Integrated Development

of Women School Satchel Youth Voucher

[2] Bono Materno Infantil, Consultant Report. Hernández, Nelson. PRAF, October 1998.

Objectives of the BMIa) Improve the basic diet of women and children

under 5 who are malnourished or at risk of malnutrition, with the goal of achieving higher protein and calorie intake.

b) Increase health service coverage in prenatal care, control of growth and development, vaccination, environmental sanitation, control of infectious or contagious diseases, health education and nutrition education.

Objectives of the BMIc) Reduce the risks of acute respiratory

infections and diarrheal infections, through periodic health controls.

Targeting until 1998 [3]

Targeting was determined in two stages using technical instruments.

The first:

•Poverty map

•Height census of first grade school children

The second:

Selection of the Health Units that presented a combined poverty index based on a weighted sum of the unsatisfied basic needs (UBN) and the malnutrition index for each geographic unit

[3] Memoria Institucional. PRAF, 1996.

Targeting in 1999 The Phase II pilot project, through 1999, introduced a

new method for selecting beneficiaries that was more objective and transparent, as follows:

Identification of the poorest municipalities in the country based on the chronic malnutrition rates obtained in the height census of first grade school children, carried out in 1997

During 2004 and 2005, the selection of beneficiaries was carried out based on household income level, using data from the Multiple Purpose Household Survey (EHPM)

Targeting Methodology in 2006

The current targeting methodology is the same as the proximate variables methodology:

1. Water2. Electricity3. Overcrowding4. Average years of schooling of household head5. Number of children between 0 and 5 years of age

The database for estimating the poverty level is the National Living Standards Survey (ENCOVI, 2004), instead of the Household Survey.

The projected variable for measuring poverty is Monthly Per Capita Expenditure (MPCE), estimated as a function of a series of common variables from the ENCOVI questionnaire and the 2001 National Population Census questionnaire.

The threshold for classifying extreme poverty is the Extreme Poverty Line from the ENCOVI, approximately 510 Lempiras per capita per month.

This categorization is carried out for all of the villages in the country.

The independent variables are selected based on the size of the coefficients in the econometric estimates.

Targeting Methodology in 2005

Selection of BMI beneficiaries

1990 – 2005: Identification of poor families living in the area served by the Health Units (UPS), which have women and children who are minors and which meet the conditions for receiving the voucher (maximum of 4 people per family) [5]

2006: Registry of Beneficiaries (SIRBHO)(Household Head)

[5] Bono Materno Infantil, Consultant Report. Hernández, Nelson. PRAF, October 1998.

Distribution of the BMI [4]

Until 2005: The process for soliciting the vouchers was carried out in 2 ways:

1. From the PRAF to the Central Bank (Voucher issuance).2. From the PRAF to the Departments (UPS personnel).

2006: Using a listing of the Household Heads that have met the co-responsibility requirement, payment is carried out through the national banking system.

[4] Bono Materno Infantil, Consultant Report. Hernández, Nelson. PRAF, October 1998.

Voucher AmountsYearYear Monthly Amount Monthly Amount

(per beneficiary)(per beneficiary)Yearly Amount Yearly Amount

(per beneficiary)(per beneficiary)

1990 - 1994 L. 20.00(US$ 4.57)

L. 240.00(US$ 54.8)

1995 L. 30.00(US$ 3.1)

L. 360.00(US$ 37.2)

1996 L. 40.00(US$ 3.4)

L. 480.00(US$ 40.8)

1997 - 2005 L. 50.00(US$ 3.1)

L. 600.00(US$ 37.7)

2006& L 2,150.00(US$ 113.00)

2007# L. 275.00 – L. 358.00(US$ 14.5 – US$ 18.8)

L. 3,300 – L4,300.00(US$ 135.00 - US$ 226.00)

& Solidarity Voucher, one-time distribution during the implementation of the beneficiaries’ census.

# Proposed voucher amount, awaiting approval from the Finance Secretary.

Average price for the sale of the dollar in the financial system, monthly series, 1990-2006. Central Bank of Honduras.

Updated on:01/11/2006

BMI Beneficiaries and Investments from 1990 - 2005

Total Number of Beneficiaries

Amount in Lempiras

Amount in Dollars

Total 1,491,137 766,994,400.00

56,209,957.51

Yearly average 93,196

47,937,150.00

3,513,122.34

BMI Beneficiaries and Investments from 1990 - 2006

Beneficiaries of the Mother Child Voucher (BMI). Historical Trend, 1990 - 2006

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Years

# of

peo

ple

Source: General Directorate for Public Investment - DIGIP, based on data provided by the PRAF Planning Department. November 2006.

BMI Beneficiaries and Investments from 1990 - 2006

Annual Programmed Amounts for the Mother Child Voucher (BMI). Historical Trend 1990-2006

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

8,000,000.00

9,000,000.00

10,000,000.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Years

US$

Mill

ions

Source: DIGIP, based on data provided by the PRAF Planning Department. November 2006.

Results Obtained through the distribution of the BMI

There have been no studies about the health impact attributable to the BMI. However, in an evaluation of the PRAF/IADB 1026 Project, it was demonstrated that beneficiaries:

Increased their use of health services (women and children)

Demonstrated greater awareness of the importance of self-care in health

Improved feeding and nutritional practices through the AIN-C strategy (400 monitors)

Institutional StrengtheningPRAF/IADB SF HO 949 Project, Phase I (1995 – 1997)

Investment US$ 20,000,000.00

Objectives: Restructuring of the PRAF Systematization of the height census Financial accounting system

No conditions for the beneficiaries

Institutional StrengtheningPRAF/IADB 1026/SF-HO Project (1998 – 2004)

Investment US$ 50,351,000.00 External funds: 45,226,000.00 National funds: 5,125,000.00

45,000 households

Objective of the PRAF/IADB 1026/SF-HO Project

General objective:

Reorient PRAF activities from a model of social compensation to one that builds human capital, by improving the conditions of the children from the country’s poorest families

Components Health

Education

Institutional strengthening

Health and Nutrition Voucher 2000 - 2003

L. 55.00 (US$ 3.4) monthly (US$ 40 yearly) per beneficiary

2 beneficiaries per household

2004 – 2005 L. 110.00 (US$ 5.9) monthly (US$ 70.8 yearly)

per household 2 beneficiaries per household

Integrated Social Protection Program PIPS. PRAF/IADB 1568/SF-HO

General objective:

To contribute to improving the human capital of the country’s poorest families, through an integrated social protection strategy.

InvestmentUS$ 22,200,000.00IADB Funds: US$20,000,000.00National Funds: US$2,200,000.00

Beneficiaries: 20,000 households

Components Health

Education

Institutional strengthening

Program that is conditional on meeting co-responsibility