Xavier University – Ateneo de Cagayan

A Case Study Analysis

Pathways Out of Poverty: Progresa/Oportunidades in Mexico

Submitted by:
Dagaraga, Farrah Angela
Dingcong, Maxine Andrea
Montebon, Sharra
Nagac, Monica
Tamayo, Krislyn Joy

Submitted to:
Mrs. Marie Antonette Emata

7 September 2018
I. Background of the Case
Education and health can be seen as vital components of growth and
development. Health is central to well-being, and education is essential for a
satisfying and rewarding life. These two are closely related in economic
development. Greater health capital may improve the return to investments in
education and vice versa.

Children growing up in poverty often receive poor education, little medical

attention, and inadequate nutrition. As a result, they may enter adulthood without the
basic capabilities necessary to take advantage of labor market opportunities and pull
themselves out of poverty.

In order to break this transmission of poverty, Mexico created a program called

Progresa/Oportunidades, spearheaded by Santiago Levy, a development economist.
It is a government social assistance (welfare) program in Mexico. It focuses on
helping poor families in rural and urban communities invest in human capital—
improving the education, health, and nutrition of their children—leading to the long-
term improvement of their economic future and the consequent reduction of poverty
in Mexico.

Progresa/Oportunidades has been hailed a success by many in Mexico and

globally. It has also become a model for programs instituted in other countries.

II. Statement of the Problem

Evaluations of Progresa/Oportunidades in Mexico indicate that its indicated
approach has been highly successful, with large improvements with the well-being of
the participants. However, poverty reduction does not only focus in improving
education, nutrition, and health but also requires complementary improvements to
be fully effective.
 III. Objectives
1. To identify complementary improvements to effectively reduce poverty
2. To identify possible solutions and recommendations for the full effectiveness of
the program

IV. Areas of Consideration

● Improvement and development of infrastructure
● Revise a more detailed qualification policy for those who can avail the program

V. Alternative Courses of Action

ALTERNATIVE COURSE OF ADVANTAGES DISADVANTAGES
ACTION
Allocate funds for the  the poor can get  reallocation of
improvement and their products to other development
development of infrastructure market and get project funds
access to safe
water and electricity
 the program can
reach a wider scope

Develop an integrated social  the government can  development of

information system to identify learn what type of social information
who the poor are, where they support is needed system may cost a
are, and what they need huge amount of
money
Government projects on ● parents have a ● willingness of the
livelihood for the parents counter-part while parents to work
their children are ● costly
learning
● gain income
VI. Conclusions/Recommendations
Progresa/Oportunidades is a proof that in order to combat poverty, you must start
from its roots. However, focusing only on a single factor may sometimes not lead to
its full effectiveness. It should also include complementary improvements to be fully
effective. It is, therefore, recommended to allocate funds for the improvement and
development of infrastructure so the poor can get their products to market and get
access to safe water and electricity, and for the program to reach a wider scope.
Giving more attention on the improvement of human capital, specifically on their
education and health, is a great investment for a country’s development. With
greater health and education, together with other complementary improvements,
higher productivity and incomes are possible.