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EDITORIAL: CCT program, budget to combat poverty [The Manila Times, Philippines](Manila Times (Phillipines) Via Acquire Media NewsEdge) June 29--THE Conditional Cash Transfer, or CCT, program seems like a good strategy to fight poverty given the success of similar projects in other countries. But the CCT needs a performance review before it receives more funding as requested by the Department of Social Welfare and Development (DSWD). President Benigno "Noynoy" Aquino 3rd, according to reports, has asked for justification for the proposed increases in the 2012 budget, including that for the CCT. We support that move and urge him to hold off giving more money to the CCT until 2013. Remember that the budget for the CCT was nearly doubled this year to P21.9 billion from P12 billion in 2010. The proposed budget for the CCT in 2012 is P35 billion. The Department of Budget and Management explained that with the additional allocation, the Social Welfare department would be able to increase the number of beneficiaries by about 700,000 households. The target this year is to help 2.3 million. Remember too that the substantial increase in this year's allocation for the CCT drew flak. Members of the opposition, including former President Gloria Arroyo who started the program, questioned the capability of the Social Welfare department to expand the program so much, so soon. Some economists and others also questioned the policy of giving dole outs and instead argued for other poverty-alleviation projects. However, few can argue with the success of conditional dole outs, particularly in Latin America like the "Bolsa Escola" and "Bolsa Familia" in Brazil, the "Red de Proteccion Social" in Nicaragua, the "Programa de Asistencia Familiar" in Honduras, "Program of Advancement through Health and Education" in Jamaica, and "Subsidio Unico Familiar" in Chile and "Oportunidades" in Mexico, which pioneered in programs of this kind. Philippine authorities, including the secretaries of the Social Welfare and Education departments, have gone out of their way to study the Mexican program. In Latin America--and here in the Philippines--the challenge is effective execution. A major problem is leakage, meaning the government assistance does not always reach the poor but gets diverted to non-poor families because of mistakes in the identification process or mischief perpetrated by corrupt officials. In a recent radio interview, Social Welfare Sec. Dinky Soliman did speak about these challenges. She said that thousands of households have been removed as beneficiaries, and that there was a continuing process to ensure that the government assistance goes only to legitimately deserving poor Filipino families. This corroborates an earlier report in which Sec. Soliman told a congressional oversight committee that the CCT program was suspended in three towns in Maguindanao Province because of anomalies. In that report, she mentioned that 50,000 to 80,000 families were affected by the suspension. We think that the cleaning-up process needs more time, even if it is a continuing effort. As it is, the DSWD has yet to fully implement the program. Instead of expanding the scope now, it seems more prudent to check whether the program is working as intended. Good intentions are not enough. The results also have to be good. Comprehensive program needed The review of the CCT should include verification of whether the needed infrastructure is in place. For instance, are there schools or classrooms available in the areas where the government is offering cash assistance? In many public schools, classrooms are already filled to capacity. In other places, students hold lessons outdoors. Presumably, the targeted households are located in depressed areas, where classrooms and other basic necessities are in short supply. As it is, the backlog of classrooms nationwide is 66,800, and the public school system needs some 103,600 more teachers. Also, the Social Welfare department should rethink the means of delivering the cash assistance. Sec. Soliman acknowledged that her department was considering tapping rural banks, a multinational remittance company, and the remittance service of a local telecommunications firm to send the dole out to needy households in remote areas where there is no Landbank branch. Working with rural banks is a good move. They know the locals, and like the government, they have a mission to help the poor in rural areas. The other options mentioned should be reconsidered. For instance, instead of expanding to new areas, why not saturate the places that are now accessible? And as for texting the dole out, perhaps the Social Welfare department should study whether those with mobile phones and can afford to pay for the prepaid load are legitimate beneficiaries. Use the money to build Instead of increasing the CCT budget that will require contracting private firms to reach remote areas, perhaps the government can use the money to build roads and bridges leading to those places. Doing so would not only make those areas more accessible to the Social Welfare department and to others, but also allow the entry of other opportunities for development. Infrastructure projects also immediately create jobs. Furthermore, more money should be allocated to build classrooms. That way, poor children receiving financial assistance will not have to be crammed into already overflowing classrooms or be made to endure the elements as they listen to their lessons. President Aquino himself seems keen on building basic infrastructure, such as airports that could further boost tourism. That seems like a better plan that will generate jobs and allow people to help themselves. Perhaps, the President should also consider building seaports, along with more roads and bridges, as these things will also help not only tourism but also regional commerce and inter-island travel. Doing these things does not mean discarding the CCT, which we recognize as an effective tool against poverty. But since its budget was just nearly doubled, perhaps the more prudent next step is to maintain the status quo and to check whether the program is working as intended. In the meantime, the government should pursue other options to help the poor. ___ To see more of The Manila Times, or to subscribe to the newspaper, go to http://www.manilatimes.net. Copyright (c) 2011, The Manila Times, Philippines Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail [email protected], or call 866-280-5210 (outside the United States, call +1 312-222-4544) |