Looking at extreme cases
In another follow-up post about the role of the government, I came across this article reporting on the situation in Brazil. Brazil represents an emerging economy, where more and more people are participating in a broader economy.
Bolsa Familia is a celebrated conditional cash transfer programme. Essentially, in a conditional cast transfer programme, a poor family receives cash from the government to support the family in educating children and ensuring healthy paediatric development through vaccinations. The families served by programmes like Bolsa Familia are those families living in extreme poverty. Often times, these families live in areas where the money just does not flow. When you have the Amazon rainforest, isolated rural areas, and a large land mass, it should be fairly easy to see that money doesn’t move everywhere in the country. Additionally, Bolsa Familia is still trying to track down eligible participants for the initiative but runs into the problems of “geographical isolation, poor information or administrative shortcomings.”
However, it’s worth noting that in the planned expansiveness of the Bolsa Familia programme, we see the government making attempts to help money flow easier. Remember: the crux of the role of the government is to monitor money flows to make sure that it actually is flowing. The Bolsa Familia programme is next trying to add public services to the areas where families live and also has the goal of providing job opportunities, vocational training, and harness entrepreneurial creativity of the people living in these areas.
By keeping track of what’s going on at the bottom, the government can enable money to flow more smoothly through society.