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SONA 2015: Government’s flagship poverty reduction program

Metro Manila (CNN Philippines) — Marilou de Jesus, a single mother of four, peddles candy and soap in the streets. She earns around P2,000 a month.

Of this amount, P1,400 goes to water and electricity and P800 to renting a cramped room – with nothing left to feed her children and send them to school, De Jesus needs help to get by.

In large part, help comes in the form of a cash transfer from the Department of Social Welfare and Development (DSWD) amounting to P1,400 a month.

The De Jesus family is among the beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) — the Aquino administration’s flagship poverty reduction measure.

The program provides cash assistance to the poor in exchange for improving maternal health and providing education for school children.

To qualify for 4Ps, families should fall below certain standards for income and quality of life. There are 337,000 families covered by 4Ps in 2008 and 4.4 million families in 2015.

4Ps report card: success or failure?

Has the program achieved its goals seven years into its implementation?

In the short term, it has worked in general, according to Ernesto Pernia, professor emeritus of the University of the Philippines School of Economics.

In a 2014 study, the World Bank found improvements in health and education indicators among beneficiaries.

The program has also taken in more beneficiaries — from 337,000 families in 2008 to 4.4 million families or 19 million individuals in 2015.

The country’s 4Ps is now the world’s fourth largest conditional cash transfer program based on number of beneficiaries behind India, Brazil, and Mexico.

But as for the program’s aim of solving poverty in the long term, Pernia said the reduction of poverty during the Aquino administration has not been dramatic.

Making ends meet

Some beneficiaries say the financial aid has been a big help, but it’s still not enough.

“Nakakatulong malaki pero pag inisip mo, kulang pa rin talaga lalo na sa tulad kong solo parent,” De Jesus says.

[Translation: It has greatly helped, but when you think about it, it still isn’t enough. especially for a solo parent like me.]

“Hindi pa rin sapat, kasi yung asawa ko hindi naman ano e. Ano lang yung trabaho niya e paminsan-minsan,” Teresa Nambatac, another 4Ps beneficiary says.

[Translation: It still is not enough because my husband doesn’t have a permanent job. ]

The DSWD admits that the program alone cannot solve poverty. He said that they also need the private sector to provide more jobs.

“Kahit na mayroon tayong grant para sa health at saka sa education, kailangan din ng mga benepisyaryo natin ng tuluy-tuloy na mapapagkakitaan,” says Leonardo Reynoso, national director for 4Ps and the DSWD.

[Translation: Even with education and health grants, beneficiaries still need a steady source of income.]

Challenge for the next administration

Despite its limitations, Pernia believes the conditional cash transfer (CCT) could work in the long-term.

“The idea is if children are able to gain from education, they should perform better in terms of employment later compared with their parents.”

He adds that the next administration should pursue the program with some tweaks.

“Yes, I think they should, but the program has to be improved in terms of targeting and administration… The CCT programs of other countries like Brazil are much older. For a younger program, you will have teething problems.”

Reynoso says the DSWD has been working on Pernia’s suggested changes.

“Dito sa second round may plano na i-identify hindi lamang yung poor and non-poor kung hindi pati na din yung near poor.

[Translation: In the second round, we are looking at identifying not only the poor and non-poor, but also the near poor.]

In less than a year, the fate of 4Ps will be in the hands of a new administration.

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