Federal Police in Brazil are investigating the cause of a rumor that spread over the May 18th weekend causing many to believe that the Bolsa Família program was ending. The rumor sparked an outburst that led to thousands of poor Brazilians storming bank branches pursuing payment of their monthly family allowance. Crowds gathered at Caixa Economica Federal government banks throughout Brazil, some irate recipients shattering glass doors and ATMs in protest.
The rumor spread like wildfire among the country’s 50 million Bolsa recipients and put a strain on the state banks when hundreds of thousands of families sought to receive their Bolsa Família cash grant in a single weekend. The rumor was later declared unfounded, but in spite of reassurances, thousands of citizens lined the streets in a panic seeking to claim their benefits.
According to CNBC, Brazilian President Dilma Rousseff announced May 20th that she was launching an investigation into the rumor’s source, assuring members of the public that they would continue to receive the benefits many Brazilians have come to rely on. “This government money is sacred. We guarantee these payments. We will not give up the Bolsa Família,” President Rousseff declared in her address. Calling the rumor “inhuman,” Rousseff stated, “We have put the Federal Police on the case to find out who started this rumor that was aimed at unsettling Brazilians who have been rising from extreme poverty for 10 years.”
The Bolsa Família program provides cash to poor Brazilian families in an effort to boost millions out of poverty. Nearly twenty-five percent of Brazil’s citizens currently receive benefits under the program, which provides payments no lower than R$70 ($34.42) per month to eligible households. To qualify for the monthly aid, parents must keep their children up-to-date on vaccinations, take them to regular doctor appointments, and demonstrate that they are attending school.
Boasting the seventh-greatest economy in the world, Brazil is now suffering from a worsening economic condition that has caused some experts to urge a reduction of social benefits and a redirection of public spending toward industrial output and renovating the country’s run-down infrastructure. Critics also contend that the Bolsa Família program is expensive, costing about R$10.7 billion last year. Opponents argue that Bolsa Família recipients have become dependent on the government and thus lack the incentive to work and earn a living.
Still, supporters of the program assert that it costs a fraction of the country’s GDP in return for tangible results. Financial Times reports, “In the 10 years leading up to 2011, the proportion of the population in extreme poverty fell from 14 percent to 4.2 percent. The income of the poorest 20 percent rose seven times faster than the richest during the same period.”
Just two months earlier, President Rousseff signed an order for an additional disbursement of R$773million ($395 million) this year to 2.5 million Brazilians living in extreme poverty to complement what they are receiving under the Bolsa Família program. “We must find them,” she said. “The state should not wait for them to come knocking on our door.”
