Paper short abstract:

The paper aims to show how the investment of CTPs for human development has resulted in contrasting outcomes in similar communities. Based on fieldwork in indigenous Mexican municipalities, the paper provides empirical evidence about the factors that shape the outcomes of human development funding.

Paper long abstract:

In the last 15 years, the Mexican government has increased the amount of CTPs aimed at supporting the poorest social groups. Particular attention has been given to funding human development (HD) in rural areas with indigenous population. The aim of this paper is to show how the investment of government funds, such as the programme 'Oportunidades', has resulted in contrasting outcomes in similar communities. Based on fieldwork carried out in two indigenous municipalities from Oaxaca, Mexico, the paper provides empirical evidence about the factors that, beyond the technical design of transfers, shape the outcomes of human development funding. The communities analysed are, according to the United Nations Development Programme, among the 20 with the highest increase in the Human Development Index within the country. The evidence suggests that no matter the amount of social spending, if the agency capacity of this kind of communities is not strengthened, the outcomes from those resources will not be effective neither sustainable. The study may contribute to the debate about the complexity of overcoming poverty in less developed countries.