PH urged to look into increasing financial assistance to 4Ps beneficiaries

While one of the Philippines’ biggest social safety net (SSN) programs, the Pantawid Pamilyang Pilipino Program (4Ps), has proven itself effective in reducing poverty in the country, increasing beneficiaries’ financial assistance to account for recent inflation rate changes will have a greater impact on the country’s most vulnerable individuals, said a World Bank economist behind the recently published report “The State of Social Safety
Nets 2018.”

The report, now on its third edition, “examines trends in coverage, spending and performance” of SSN or social assistance (SA) programs using the World Bank Atlas of Social Protection Indicators of Resilience and Equity updated database.

Administrative data from 142 countries, as well as household survey data from 86 countries, were analyzed for the study.

Programs that are classified as SSN or SA include unconditional and conditional cash transfers, noncontributory social pensions, food and in-kind transfers, school feeding, public works, workfare and direct job creation, and
fee waivers and targeted subsidies.

The report also serves as a benchmarking and reference tool for individual programs and countries, and as baseline for their future work.

In a recent interview in Manila, the report’s main author Oleksiy Ivaschenko, senior economist at the World Bank’s Social Protection and Jobs Global Practice, said the Philippines still had room to increase its spending on programs such as 4Ps, based on data that the country spends only 0.7 percent of its gross domestic product on SSN/SA, or around half of the global average (1.5 percent).

Another challenge lies in the amount provided to beneficiaries, Ivaschenko added.

Globally, SSN transfers account for 19 percent of the welfare of a country’s poorest population; here in the Philippines, only 9 percent is covered by the 4Ps benefit.

While Ivaschenko suggested that government review the cash transfer amount—which has not happened since 2008—and take into account recent financial developments such as inflation, he also noted that such decisions have budget implications and “will depend on the government’s priorities.”

Compared to the global average, however, the Philippines’ 4Ps’ population coverage is higher—based on the report, it covers 68 percent of the country’s poorest population, while worldwide, the average is only at 56 percent.

The program has also seen rapid expansion: In 2009, only 4 percent of beneficiaries were able to receive assistance, a number that grew to 20 percent by 2015.

Ivaschenko also highlighted the fact that 4Ps have had a positive impact on human development in the country when it comes to health (10 percent reduction in severe stunting among beneficiary kids, more mothers delivering babies in health care facilities in the past five years, drastically decreased alcoholism in beneficiary households), education (enrollment of elementary age children in 4Ps households near universal at 98 percent, higher gross enrollment rate for beneficiary high school students, seven days less of child labor days in a month for 4Ps households), and behavior (household head, spouse and other adults encouraged to work, improved parents’ perception of their situation and children’s future).

Focusing on disaster, Ivaschenko said that globally, making social protection programs adaptive or “schock-responsive” is a global challenge. What’s good about the Philippines, he continued, is that the nation already has plenty of experience when it comes to that specific area, particularly in utilizing the 4Ps program to respond to those affected.

“Safety net [programs] … when combined with complementary programs, such as those supporting sustainable livelihood activities and greater investments in health and education, can enhance the resilience of [beneficiary] households’ resilience,” Ivaschenko said. —ANNELLE TAYAO-JUEGO