Quantcast

ADB cites PH cash-for-poor program

By |



The Philippines has set an example for countries on how to effectively carry out a conditional cash transfer program that will curb extreme poverty and help out millions of people without spending too much, according to the Asian Development Bank (ADB).

In its evaluation study “Social Protection Strategy,” ADB found convincing evidence that social protection programs, especially well-designed safety nets that transferred resources to the poor, could effectively reduce the depth and severity of poverty and inequality.

“In the Philippines, for example, the government’s conditional cash transfer (CCT) program to uproot extreme poverty costs less than 0.5 percent of the country’s gross domestic product, yet reaches 15 million people,” the ADB said in a statement regarding the study.

Mothers get regular cash payments under the CCT program when they meet conditions, such as regular medical checkups and class attendance for their children at public clinics and schools, respectively.

“After just three years of implementation, evaluation findings show positive results on elementary education school enrollment and beneficiary households spending more on the health and education of their children,” the ADB said.

Social protection systems in most Asian countries fall far short of meeting the needs of the vulnerable even though better safety nets can be affordable for poorer countries, the ADB reported.

Despite high economic growth in much of the region, public spending on social protection in Asia and the Pacific is lower than in any part of the world, except for sub-Saharan Africa, the multilateral agency said.

While safety nets such as the CCT could reduce poverty, it was noted that some countries still preferred to retain food and fuel subsidies for their social programs. But the ADB pointed out that such subsidies would generally cost more.

They are vulnerable to misuse and leakage, may benefit the better-off relative to the poor, and are “politically difficult to unwind,” it added.

The ADB found that, based on its experience in helping countries build comprehensive social protection systems, most governments are reluctant to borrow for social protection except in times of crisis. Lending surged during the global economic crisis of 2008–2010, before declining sharply.


Follow Us






Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

  • http://profile.yahoo.com/TGSMKB6ZWYHH3GYXFHISXVSBHU Modesto

    kudos to pres pinoy in general,sec soliman in particular for the initial success in their CCT scheme. i hope that this national program could be effectively managed  continously long term for the benefit of the poor filipinos.

  • noelpogi

    It would have been more productive if it were divided among the number of provinces and use it to promote livelihood projects and generate jobs.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement
Marketplace