The closing of the National Scholarship Fund (Fonabe) released 2.2 billion yen to allocate more financial aid to students in conditions of poverty or social vulnerability.
These resources equate to approximately 4,600 new annual Avancemos scholarships for 10th, 11th, and 12th graders (40,000 per month), or 6,100 new Avancemos scholarships for 7th, 8th, and 9th graders (30,000 per month).
This was the amount spent on administrative and duplication expenses at Fonabe, a body attached to the Ministry of Public Education (MEP), which provided financial aid to nursery, primary and secondary students, despite the fact that the Mixed Institute of Social Assistance (IMAS) also performs this function.
Due to the serious shortcomings of the said institution, the government decided to withdraw the management of 210,000 scholarships for students, in February 2019, and transfer this responsibility to IMAS.
Finally, in September 2020, the Executive was able to end the shutdown of the National Scholarship Fund, by approving a bill in the legislature.
In order to close it, the government also argued that by having two institutions allocating scholarships, many students lost the economic benefit when moving from school to college, because secondary scholarships were focused, mostly, by IMAS.
1200 million in two copies
In addition, with the transfer of management of all scholarships to the Mixed Institute of Social Assistance, it was revealed that families who received a double scholarship for their children or who did not even need the scholarship. Duplicates removed added to over 1,200 million yen annually.
It was the National Information System and Individual Registry of State Beneficiaries (Sinirube) databases that discovered the dual economic benefits for these families.
“When we started administration, we set out on a path that would allow us to positively influence indicators of poverty and inequality and, at the same time, restore citizens’ confidence in the efficient use of public resources managed by social programmes,” highlighted Juan Luis Bermúdez, CEO of IMAS.
Promise to follow
Likewise, with the transfer of responsibilities, the government has promised comprehensive monitoring of minors growing up in poor families until they finish high school, with programs Red de Cuido, followed by Crecemos (scholarships for primary schools) and Avancemos (scholarships for secondary). the school).
By the end of 2021, a total of 184,000 high school students received the Avancemos subsidy, while another 200,000 preschool and primary school students were protected through Crecemos Transfers.
In a brief analysis of his four years in office, before leaving the presidential house, President Carlos Alvarado included the closure of Fonabí in his list of eight government reforms, in which he summarized his time at the head of the country.