Brazil has not only reduced poverty but also successfully reduced income inequality (where earning of the poor is rising faster than the rich). Through a program called Bolsa Familia (Family Grant), they identified the poor and started making a small direct payment to the family or specifically the women.

This payment come with some conditions - the children must attend school, the family must go for regular medical check ups and the women must attend workshops on disease prevention and nutrition.

The payments start from $40 (for those in extreme poverty) and goes up by $15 per child (up to 3 kids, 15 years of age).

They have shown that this can break the back of poverty today and disrupt the cycle of poverty tomorrow. Now 40 countries are trying to follow suit. In Mexico they found that use of contraceptives rose in rural areas and child labor declined.

Will this work for India?

We have seen that trickle down theory take too long. Small loan to households as poverty alleviation schemes (started during Indira Gandhi's time) to promote small artisans had limited impact. However, none of these could break the perpetuating cycle of poverty due to lack of education, continued malnutrition and diseases.

We can put our trust back into poorest of the poor families and handhold them to fight their way out. It will benefit the nation!

Note that womenfolk are the key to this program...something Gramin Bank discovered right at its inception.