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More calories or more diversity? An econometric evaluation of the impact of the PROGRESA and PROCAMPO transfer programs on food security in rural Mexico

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  • Ruiz -Arranz, Marta
  • Davis, Benjamin
  • Stampini, Marco
  • Winters, Paul
  • Handa, Sudhanshu

Abstract

This paper examines the PROGRESA and PROCAMPO cash transfer programs in Mexico and evaluates their impact on household food security and nutrition. These two programs differ in their gender targeting, with PROGRESA aimed at women and PROCAMPO generally at men, and program conditionality, with PROGRESA linked to development of human capital of children in the households and PROCAMPO linked to agricultural production. We try to answer the following questions. First, can a cash transfer program geared to agricultural production have the same impact on food security as a cash transfer program geared to consumption through purchases? Second, do eligibility requirements (gender of the recipient) and conditionality in the provision of cash transfers matter? Our results suggest that, contrary to conventional wisdom, men do not just drink away cash transfers and that monetary payments linked to a productive asset 'land- can have as large or larger impact on food security as cash transfers not linked to a productive asset. We show that both programs boost total food consumption and caloric intake in similar proportions. However, PROCAMPO has a larger impact on meat and vegetables consumption and PROGRESA on the other food category. Furthermore, increased food security is achieved through different channels: PROGRESA through purchases while PROCAMPO through investment in home production. We also find that cash transfers linked to information on nutrition and health increase food diversity. PROCAMPO households that also receive PROGRESA, and the information that goes with it, are more likely to be eating a more varied diet than households that get PROCAMPO only. All this suggests that the choice of program design in terms of food security depends on objectives beyond total food consumption and caloric intake, such as consumption from specific food categories, food diversity, investment in agricultural production, and the degree of access to retail food markets.

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  • Ruiz -Arranz, Marta & Davis, Benjamin & Stampini, Marco & Winters, Paul & Handa, Sudhanshu, 2002. "More calories or more diversity? An econometric evaluation of the impact of the PROGRESA and PROCAMPO transfer programs on food security in rural Mexico," ESA Working Papers 289105, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    • Handle: RePEc:ags:faoaes:289105
    DOI: 10.22004/ag.econ.289105
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    1. Davis, Benjamin & Handa, Sudhanshu & Ruiz -Arranz, Marta & Stampini, Marco & Winters, Paul, 2002. "Conditionality and the impact of program design on household welfare: comparing two diverse cash transfer programs in rural Mexico," ESA Working Papers 289104, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
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    Cited by:

    1. Kostas Stamoulis & Alberto Zezza, 2003. "A Conceptual Framework for National Agricultural, Rural Development, and Food Security Strategies and Policies," Working Papers 03-17, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Anjani Kumar & Ashok K. Mishra & Sunil Saroj & Shahidur Rashid, 2022. "Government transfers, COVID‐19 shock, and food insecurity: Evidence from rural households in India," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 636-659, July.
    3. Marie Gaarder & Amanda Glassman & Jessica Todd, 2010. "Conditional cash transfers and health: unpacking the causal chain," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 2(1), pages 6-50.
    4. Cesar Martinelli & Susan W. Parker, 2003. "Do School Subsidies Promote Human Capital Accumulation among the Poor?," Working Papers 0306, Centro de Investigacion Economica, ITAM.
    5. David Magaña-Lemus & Ariun Ishdorj & C. Parr Rosson & Jorge Lara-Álvarez, 2016. "Determinants of household food insecurity in Mexico," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-20, December.
    6. Dragan Filipovich & Miguel Niño-Zarazúa & Alma Santillán Hernández, 2018. "Campaign externalities, programmatic spending, and voting preferences in rural Mexico: The case of Progresa-Oportunidades-Prospera programme," WIDER Working Paper Series wp-2018-27, World Institute for Development Economic Research (UNU-WIDER).
    7. Dragan Filipovich & Miguel Niño-Zarazúa & Alma Santillán Hernández, 2018. "Campaign externalities, programmatic spending, and voting preferences in rural Mexico: The case of Progresa-Oportunidades-Prospera programme," WIDER Working Paper Series 027, World Institute for Development Economic Research (UNU-WIDER).
    8. Benjamin Davis & Sudhanshu Handa & Marta Ruiz-Arranz & Marco Stampini & Paul Winters, 2002. "Conditionality and the Impact of Programme Design on Household welfare: Comparing two diverse cash transfer programmes in rural Mexico," Working Papers 02-10, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    9. Basurto Hernandez, Saul & Maddison, David & Banerjee, Anindya, 2018. "The effect of PROCAMPO on farms’ technical efficiency: A Stochastic Frontier Analysis," 2018 Annual Meeting, August 5-7, Washington, D.C. 274376, Agricultural and Applied Economics Association.
    10. Nisreen Salti & Jad Chaaban & Alexandra Irani & Rima Al Mokdad, 2021. "A Multi-Dimensional Measure of Well-being among Youth: The Case of Palestinian Refugee Youth in Lebanon," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(1), pages 1-34, February.

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