paulo philippines
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CONDITIONAL CASH
TRANSFERSThe Philippine ExperiencePaulo Jose M. Mutuc 07222011
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KEY POINTSPhilippines conditional cash transfer program (4Ps) is an
intriguing large-scale policy experimentMuch bigger set of resources and responsibilities for arelatively small, lesser known executive government office
Very technical, yet very political as wellConsistently mentioned and highlighted by the President inreference to the anti-poverty and anti-corruption platform ofgovernance he campaigned on during the previous election (May2010)
Involves challenging policy implementation issues at thegrassroots level
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CONTEXT AND RATIONALEWhat are conditional cash transfers?
Periodic cash payments to women/household heads ofpoor families subject to monitored compliance with healthand education obligationsPreventive health care and school attendance
Goals: Immediate income support, long-term povertyreduction
Why conditional cash transfers?
Income and incentive effectsMore efficient , less costly (direct and objective targeting)Stimulates supply-side improvementsFavorable, cross-country empirical evidenceConsiderable poverty gap reductions (e.g. Brazil)
Double-digit increases in school enrollment and health service useImproved learning and health outcomes
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CONTEXT AND RATIONALE
Fragmented approach to social protection in the
PhilippinesCost-effectiveness of existing programs questionable due toarbitrary, varying modes of targeting
Share of poor in total Food for School transfers only 39.5%
Low, very variable amount of resources devoted to social
assistanceReal social assistance/poor person (1999-2006): Php81.75
(163.50)
Bala, A. R. (2010). The Philippine experience in social assistance., in S.W.Handayani & C. Burkley (Eds.)., Social Assistance and Conditional Cash
Transfers. Mandaluyong: ADB.
Achieving Philippine Millennium Development Goaltargets by 2015:Halve the proportion of Filipinos living below the national povertyand food subsistence thresholds
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A national poverty reduction program administered by the
Department of Social Welfare and Development (DSWD)
providing conditional cash grants to households that:
Live in the poorest municipalities as identified by the National
Statistical Coordination Board
At or below the provincial poverty threshold
Have children between 0-14 years old or have a pregnant woman
Agree to meet conditions
Target: 4.6 million beneficiary households by end-2016
Given Php21 billion (approx. 42 billion) in the 2011 budget
Represents 62 percent of DSWDs Php34 billion 2011
budget
Now being implemented in 98.7% of Philippine provincesEnabling administrative orders/circulars: DSWD AO 16 (2008), Joint Memo 2
PANTAWID PAMILYANG PILIPINO
PROGRAM (4Ps)
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Total maximum monthly grant: Php1,400 (approx.
2,800)
Total maximum yearly grant: Php15,000 (approx.
30,000)*
Grants are given up to a maximum of five years,
through cash cards from government bank branches*On average, about 20% of beneficiary-households annual income
Monthly Amount PurposePhp500 Health and Nutrition
Php300/child Education
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Purpose Budgeted
amounts
Share in
total
Actual cash grants Php17.1B 81%
Training Php1.6B 8%
Salaries Php0.7B 3%Administrative
expenses
Php0.6B 3%
Advocacy materials
& manuals
Php0.6B 3%
Capital outlay Php0.2B 1%
Bank fees Php0.1B 1%
PANTAWID PAMILYANG PILIPINO
PROGRAM (4Ps)
*Excludes Php0.1B (Php100M) for household targeting system
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Availing of pre- and post-natal care for pregnant women,
with childbirth overseen by trained health professional
Attendance in monthly family development sessions
Regular health check-ups and vaccines for children (0-5yrs.)
School attendance requirements*:
Daycare or preschool for children aged 3-5Elementary or high school for children aged 6-14
*Attendance in 85% of classes per month
Twice a year deworming for school age children*Additional conditions exist for some communities
CONDITIONS*
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ORGANIZATION
Lead Agency DSWD
Supporting Offices Departments of Health,Education, Interior and Local
Government, and Land Bank
National Implementing Arm DSWD-National Project
Management OfficeRegional Implementing Arm Regional Project Management
Offices
City/Municipality
Implementing Arm
City/Municipal Links for every
1,000 households
Local health and education
service providers (under DOH,
DepEd)
Funding and Technical
Support
World Bank, AusAID, ADB,
UNICEF, UNFPA
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ORGANIZATION
DSWD (Central) Oversight, supply assessment, target
area identification, technical
assistance, data repository, grievancesystem implementation, fund and
resource management
Regional DSWD offices Specific operational guidelines,
availability of health and educationsupplies at municipalities, resolution of
all regional concerns, preparation of
accomplishment reports and monthly
meetings
Department of Health Ensure health supplies, assist inlogistics, permanent support staff for
4Ps at all levels, monitoring
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ORGANIZATION
Department of Education Ensure education supplies, assist in
logistics, permanent support staff for
4Ps at all levels, monitoring
Department of Interior and Local
Government
Incorporation of pro-poor programs
and capacity building for local
governments, impact evaluation in
communities
National Anti-Poverty Commission Coordination and advisory functions,
provision of national poverty data,
regional oversight assistance
Local Governments Availability of health and education
supplies in target areas,
implementation and coordination of
municipal activities, reports to
regional govt, monthly meetings
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ORGANIZATION*DSWD Secretary Natl. Advisory
Committee
(DSWD, DepEd, DOH,DILG, NAPC, NAPC,
Budget, NutritionCouncil, NEDA)
Undersecretary/ProjectDirector
Asst. Sec./DeputyProject Director
Regional Teams
Program Manager,Project Management
Office17 Regional Directors,Asst. Directors
Regional, Provincial,Municipal Advisory
Committees
As per EO 43 (2011), the DSWD Secretary is the chair of the Cabinet
Cluster on Human Development and Poverty Reduction.
*1 Operations Cluster per 20,000 households
*1 Municipal link per 1,000 households
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IMPLEMENTATION HISTORY
November 2006 DSWD and World Bank begin
work on 4PsMarch 2007 Pilot implementation 4,459
households in three regions
February 2008 320,000 households in 27provinces, 160 cities
December 2009 665,542 households in 63
provinces, 446 cities
December 2010 1 million households in 79
provinces, 729 cities
June 2011 2 million households reached
December 2011 2.3 million households
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Fernandez, L. & Olfindo, R. (2011). Overview of the Philippines conditional cash transfer
program: the Pantawid Pamilyang Pilipino Program (Pantawid Pamilya). Philippine Social
Protection Note No. 2. World Bank and Australian Government Aid Program.
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Fernandez, L. & Olfindo, R. (2011)
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PROGRAM CYCLE
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IMPLEMENTATION
1. Targeting and enumeration
Development ofNational Household Targeting SystemPoorest provinces identified (Family Income and Expenditure
survey)
Poorest cities and municipalities identified within poorest provinces
Outside poorest cities, poor communities identified via datafrom Presidential Commission on Urban Poor and local
social indicators
In poorest cities, communities are selected based on local govt
dataDSWD deploys enumerators to gather socioeconomic information
via house-to-house interviews (questionnaire about household
assets)
Households incomes estimated using interview response data
Lists of potential eligible households posted in communities for
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IMPLEMENTATION
2. Verification and disbursement
Eligible households sign agreement and are organized intocommunity assemblies (with elected leaders) for monitoring
Actual cash disbursements made every two months, to coincide with
compliance checks by DSWD program management offices
Payroll process: NPMO
DSWD Cash Division check
DSWDProject Director and Manager approval Land Bank
3. Updating (Management Information System)
Individual households responsible for updating information
Updates flow from community upward to NPMO, for encoding
Updates presented at monthly community assemblies, verified by
links
Third non-compliance offense/change in household eligibility results
in termination of payments
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IMPLEMENTATION
Compliance Verification System
NPMO (compliance forms) RPMO (compliance forms) Cityschools & health centers RPMO (via municipal links) NPMO
updates MIS and issues compliance forms for next period
Grievance Redress System
Grievance application and process via MIS being testedComplaint reporting mechanisms (text hotline, e-mail, social
networking)
4. Program monitoringAside from internal monitoring by DSWD and World Bank, biannual
spot checks done by a third party (Social Weather Stations in 2010)
President has mandated Senate and House Oversight Committees
on Public Expenditures to monitor 4Ps implementation
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IMPACTCompliance with conditions
As of Q1 2011 (April 18, 2011)
Condition Compliance
Day care attendance 95.71%
Primary and secondary school
attendance
97.50%
Check-ups for children and
pregnant women
96.99%
Deworming for school-age
children
97.29%
Family development sessions 97.30%
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IMPACTIncome effects
Fernandez & Olfindo (2011)
Potential reduction in beneficiaries income gap: 5.3 points
Potential reduction in beneficiaries poverty severity: 4.3
points
Average increase in per capita income among
beneficiaries: 12%Potential long-run increase in school attendance among
poor households: 8 points
Potential long-run decrease in poverty incidence: 13
points
Simulated health and education outcomes
Son, H.H. (2008). Simulation of impact of conditional cash transfers on schoolattendance and poverty: the case of the Philippines. Presentation made at the 46thannual meeting of the Philippine Economic Society.
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Results of Northern Samar field spot check in 2010*:
In general, the CCT in Northern Samar is successful.
The CCTs mechanisms for monitoring are in place in
Northern Samar, though its unpaid extra work for the
teachers and health workers who must record the
compliance of the grantees with the conditionalities.
Mangahas, M. (2010, November 26). A conditional cash transfer spot check.
Philippine Daily Inquirer
(Mangahas is president of Social Weather Stations, a leading Philippine publicopinion and social research institute.)
*Northern Samar was identified in a 2008 national development mapping survey
as one of the countrys three poorest provinces.
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Inadequate support infrastructure
The decision to expand and accelerate the programwasmade without adequate due diligence in
assessing supply-side, implementation, and program
delivery requirements.
Of the 409 CCT towns and cities audited, an
overwhelming majority are not meeting seven of the
nine quantity benchmarks for education, and all three
benchmarks for health personnel ratios to population.
Philippine Center for Investigative Journalism
Too much, too soon?
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As of October 2010, only around 59 percent of Set 1 and
71 percent of Set 2 active beneficiary households receivepayments through LBP cash cards. Even for municipalities
with LBP branches, issuance and distribution of cash
cards to beneficiary households have been particularly
challenging
Proposed project cycle not exactly followed
4Ps scaled up even as assessment of health and
education in communities remain unfinished
Concerns about govt. capability and accountability
Doubling of DSWD staff and budget
Larger issue of state of local schools and health facilities
Sustainability of 4Ps financing
WEAKNESSES
Fernandez, L. & Olfindo, R. (2011)
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INSIGHTS
Promising initial results, but too early to tell whether 4Ps
truly make a difference
Administrative challenges and financing issues need to be
discussed more openly and tackled more directly
There may be a need to distinguish or prioritize between
social protection and social development aims
Policy ownership may be an issue given considerable input
by foreign aid organizations