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    Philippine Institute for Development Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas

    The PIDS Discussion Paper Series constitutes studies that are preliminary and subject to further revisions. They are be- ing circulated in a limited number of cop- ies only for purposes of soliciting com- ments and suggestions for further refine- ments. The studies under the Series are unedited and unreviewed.

    The views and opinions expressed are those of the author(s) and do not neces- sarily reflect those of the Institute.

    Not for quotation without permission from the author(s) and the Institute.

    The Research Information Staff, Philippine Institute for Development Studies 5th Floor, NEDA sa Makati Building, 106 Amorsolo Street, Legaspi Village, Makati City, Philippines Tel Nos: (63-2) 8942584 and 8935705; Fax No: (63-2) 8939589; E-mail: publications@pids.gov.ph

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    January 2013

    Promoting Inclusive Growth Through the 4Ps

    DISCUSSION PAPER SERIES NO. 2013-09

    Celia M. Reyes, Aubrey D. Tabuga, Christian D. Mina, and Ronina D. Asis

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    Promoting Inclusive Growth through the 4Ps

    Celia Reyes, Aubrey Tabuga, Christian Mina and Ronina Asis

    Abstract The year 2013 marks the fifth year of the Pantawid Pamilyang Pilipino Program (4Ps) implementation in the country since its inception in 2008. The first batch of beneficiaries will be graduating from the program in several months time. Meanwhile, the government continues to expand the implementation, devising along the way, several variants that it deems necessary to address the many facets of poverty. The 4Ps is by far the largest poverty reduction and social development program the Philippine government has ever conceived. Approximately 120 billion pesos have already been allocated to the program up to 2013. The program’s dual objectives are social assistance and social development. It provides cash assistance to poor families to alleviate their immediate needs and aims to “break the intergenerational poverty cycle through investments in human capital.” As program graduation nears, many questions arise of what to expect of this program. It is rather fitting at this point to draw together assessments that have been conducted so far and to look into some important issues in terms of design and implementation. The paper seeks to answer whether expanding the program would likely yield better results or not. It discusses the outstanding issues most especially those on the aspects that have a bearing on the program’s ability to facilitate inclusive growth. Keywords: Pantawid Pamilyang Pilipino Program, 4Ps, Proxy Means Test, PMT, Propensity Score Matching, PSM, conditional cash transfer program, Philippines, poverty, social assistance, education, school attendance

  • 2

    Promoting Inclusive Growth through the 4Ps

    Celia Reyes, Aubrey Tabuga, Christian Mina and Ronina Asis

    January 2013 DRAFT: For comments only

    1. Introduction

    The year 2013 marks the fifth year of the 4Ps implementation in the country since its inception in 2008. The first batch of beneficiaries will be graduating from the program in several months time. Meanwhile, the government continues to expand the implementation, devising along the way, several variants that it deems necessary to address the many facets of poverty. As program graduation nears, many questions arise of what to expect of the most expensive and infamous social protection program of the Philippine government. It is rather fitting at this point to draw together assessments that have been conducted so far and to look into some issues that the program has encountered. By framing the issues, we can achieve two objectives. First, we would know what things to look out for in fine-tuning this program if necessary. Second, we can come up with concrete bases, useful insights that can be utilized to modify or enhance existing programs to function in complement to the 4Ps or create new ones, if necessary, to serve the same purpose. This chapter proceeds by providing a comprehensive review of the literature on the Philippines’ 4Ps experience followed by listing the outstanding issues not only in terms of the design and implementation of the program but most importantly on the aspects that have a bearing on its ability to help the poorest of the poor with respect to enhancing human capital. The paper starts with a brief description of the Philippine CCT – the 4Ps. A review of the assessments that have been conducted so far in terms of impact on school enrolment, targeting, and poverty follows. The next section discusses the design and implementation issues. The insights partly revolve around the experience of Latin American countries’ experiences from where the 4Ps is supposed to be modelled from. The paper also looks at the situation of Filipino children in terms of school participation, the salient features of the program design, and how best the 4Ps could be fine-tuned for it to achieve greater impact. After this, an assessment of the characteristics of 4Ps beneficiaries based on the 2011 Annual Poverty Indicators Survey (APIS) is presented. This is followed by an analysis of school attendance of children in 4Ps and non-4Ps families, the reasons for not attending school, and child labour, among others. The paper concludes with some recommendation. 2. Features of the 4Ps (the Philippine CCT)

    The 4Ps is a social program that entails monetary and non-monetary transfers to the poor or poorest families who have school-aged children on the condition that they meet the program’s terms that are aimed at improving their capacities (Cecchini and Madariaga 2011). Brazil and Mexico were the first countries that implemented that 4Ps program. The main objective was to provide cash to families who are in extreme poverty in exchange for some education and health care commitments. Since then, many countries, including the Philippines, have attempted to replicate their examples.

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    The Pantawid Pamilyang Pilipino Program, or 4Ps, is the Philippines’ version of the conditional cash transfer. Based on the Department of Social Welfare and Development Studies (DSWD) primer, the 4Ps is a poverty reduction and social development strategy of the national government. It provides cash transfers to extremely poor households to help improve their health, nutrition and education. The program specifically targeted poor families with children aged 0-14. The two main objectives of the program are social assistance and social development. The former aims to alleviate the poor’s immediate needs, hence it can be termed as a short-term poverty alleviation measure. The latter, however, aims to break the intergenerational poverty cycle by investing in human capital. Meanwhile, the 4Ps helps in fulfilling the country’s commitment in the Millennium Development Goals particularly in: (1) eradicating extreme poverty and hunger; (2) achieving universal primary education; (3) promoting gender equality; (4) reducing child mortality; and, (5) improving maternal health.

    The 4Ps has two components, namely: health and education. Under the health component, the program provides PhP6,000 annually (PhP500 per month) to each family- beneficiary for their health and nutrition expenses. Under the education component, it provides PhP3,000 per child for one school year (i.e., 10 months) for meeting educational expenses. Each family beneficiary shall receive for up to a maximum of 3 children under the educational grant.

    In return, the family-beneficiaries have to commit themselves to the following conditionalities: (1) pregnant women must avail of the pre- and post-natal care and be attended during childbirth by a trained medical professional; (2) parents must attend family development seminars; (3) children aged 0-5 must undergo regular preventive health checks and receive vaccines; (4) children aged 3-5 must attend day care or preschool classes at least 85 percent of the time; (5) children aged 6-14 must enroll in elementary or high school and attend at least 85 percent of the time; and, (6) children aged 6-14 must receive de-worming pills twice a year. The family-beneficiaries will receive the grant for at most five years, provided that they comply with the conditionalities.

    The eligible beneficiaries of the 4Ps are families: (1) from the poorest municipalities; (2) whose condition is equal to or below the provincial poverty threshold; (3) with children aged 0-14 and/or a pregnant woman at the time of assessment; and, (4) that agree to meet the program's conditionalities. The Department of Social Welfare and Development (DSWD) has chosen the poorest municipalities based on the results of the 2003 Small Area Estimates (SAE) generated by the National Statistical Coordination Board (NSCB). For municipalities with poverty incidence higher than 50%, all barangays are assessed. But for those with poverty rate lower than 50%, the criteria for selecting barangays are the “pockets of poverty” based on the available socioeconomic profile of the municipality.

    To identify the poorest households within the selected municipalities, the DSWD uses the National Household Targeting System for Poverty Reduction (NHTS-PR). The system employs a Proxy Means Test (PMT) model to identify the poor families. The PMT model was estimated using data from the 2006 FIES and the 2006 Labor Force Survey (LFS). The assessment is conducted by using certain proxy variables like ownership of assets,

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