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December 14, 2007
News
Maclean’s Magazine Focuses on Opportunity NYC
A recent issue of Maclean’s, a Canadian national newsweekly, features a story, “We Pay Cash for Good Behaviour,” by Dafna Izenberg, that profiles Mayor Bloomberg’s conditional cash transfer (CCT) program, Opportunity NYC, and places it in the context of other financial incentive programs around the world. MDRC has helped design and is evaluating Opportunity NYC, which offers poor families new forms of temporary cash payments when they meet particular conditions related to children’s education, family preventive health care practices, and parents’ workforce efforts. The goal is to boost their income in the short-term while building their capacity to avoid longer-term and second-generation poverty. In mid-December, more than 1,400 families received their first cash transfers.
Here is an excerpt from the Maclean’s article:
… Incentive programs were originally developed largely as a foil to what many consider the ultimate infantilizer: welfare. In the late ‘80s, policy-makers woke up to the reality that social assistance, as delivered in North America, was addictive, offering a better standard of living than many low-wage jobs. “There was a real sense that we had thought about welfare incorrectly,” says Gordon Berlin, president of MDRC, the New York-based social policy research organization that is evaluating Bloomberg’s initiative. “That it had mostly been about supporting people when they didn’t work, and maybe it should be about supporting them when they did….”
… Berlin similarly thinks Bloomberg’s plan is less about trying to get people to behave well than it is about clearing the way for them to do things they already want to do. For instance, the program pays $200 per family member for annual medical checkups, and $100 each for doctor-recommended follow-up visits. This would go a long way, says Berlin, to offset money lost by people whose jobs don’t pay for sick time or medical appointments. “The important thing is to step back from ideological debates,” says Berlin. “The mayor’s saying, ‘let’s see whether it works….’”
… By early this month, the family-focused component of Opportunity NYC was nearly full, with 4,500 out of 5,000 participants registered (half of whom are in a control group that gets no aid). Each family received $50 to open a fee-free bank account; their first “good behaviour payments” are being deposited this month. After that, the payments will come every two months. In the course of one year, families in the study group could theoretically net as much as $5,000 (if they meet all requirements) — nothing to sneeze at. At program orientations, says Berlin, there is a cautious sense of optimism. “They know they have a lot to do,” he says. “They think they're doing these things now, but they’re not sure.”
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