Social networking as strategy to overcome poverty in Chile: A data -mining evaluation of the Chile Solidario System

Poverty reduction remains as one of the main challenges globally. New measurements indicate that poverty has been declining in most Latin American countries since 2002. Some countries have pioneered the implementation of new poverty policies and programs, including components of social capital. This is the case of the Chile Solidario System (CSS), a national program created in 2002 based on the assumption that extreme poverty can be reduced by linking families to public social services. This research attempts to examine whether poverty reduction can be achieved through a social capital strategy and more specifically, by relating the poorest Chilean families to formal public social service organizations.;The general objective of this research is to evaluate the early impact of the CSS on social networking and economic well being indicators of Chilean families living in extreme poverty.;A Data-Mining Evaluation is the methodology chosen for this study. The primary data source is the CASEN survey, the National Socio-Economic Characterization Survey carried out by the Chilean department of Social Planning.;For the nation as a whole, this monitoring study provided some clues as to whether the incidence and magnitude of social networking dimensions and economic well being have improved or worsened in this early stage of CSS implementation. In fact, this study showed that the CSS had a moderate but statistically significant positive impact on the social participation level of the household heads, the level of family registration in medical centers or in public primary health establishments, and on the application to government housing programs. Second, CSS had a moderate but statistically significant positive impact on the employment activities of the household heads and on the level of autonomous family income. Third, CSS had no significant impact on the dental care and healthcare received by the household heads. Fourth, CSS had a small but statistically significant impact on the level of participation of the household heads in employment specialization courses, and on the level of the total family income. Finally, indigent families participating in the CSS made less use of homeownership subsidies than those indigent families that did not participate in the program.;This research should be interpreted as a monitoring study providing baseline results for a future evaluative study. Thus, if programs want to build social capital, long-term evaluations should be developed in the future, using information over long periods in order to learn the effects of Chile Solidario on social and economic conditions of extremely poor households.