Coping With Crisis

  • October 2019
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Coping with Crisis

Leonardo A. Lanzona, Jr. Professor, Economics Department Ateneo de Manila University

Social Indicators  Even before the crisis, the social welfare has not

been faring well, even as the country was experiencing unprecedented growth.  More importantly, the situation is bound to worsen because of the absence of social safeguards that will allow the poorest regions to withstand any crisis.  The crisis is so large that no amount of remittances can cover for the damages.  In almost all cases, the situation in Mindanao has not improved or even worsened.

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Poverty Incidence

Subsistence Incidence

2

Primary School Drop-out Rates

High School Drop-Outs

3

Potable Water

Sanitary Toilets

4

Living in Makeshift Housing

Malnutrition

5

Current Spending per Student

11

Per Capita Health Expenditures

6

Introduction of the CCT: Response to the Crisis Conditional Cash Transfers—monthly subsidies provided to the poorest households on condition that the parents send their children to school and provide themselves and their children the necessary health care  Transfers are minimum: P500 per child who is at schooling age  Began early this year and to be scaled up at the latter part of the year: the Government announced its intention to scale-up the APP program to 300,000 households in 2008 itself. Whereas DSWD was allocated P 299 million to reach 20,000 households in the GAA for 2008, it is now working to scale-up the program with the understanding that it will receive additional budgetary resources to do so.  Not to be confused with unconditional cash transfers (UCT) 

Objectives of the CCT  To reduce poverty now and in the

future  Poverty now can be decreased if the

poorest of the poor households are offered the subsidy  Poverty in the future can be minimized if the transfer is used to increase enrollments, improve health and to enhance the general welfare of the household, particularly in terms of their household composition and nutrition (food consumption).

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Crucial Steps  Targeting: Need to establish a uniform

and objective basis for deciding who are eligible  Monitoring and Evaluation: Regular monitoring and yearly assessment of the impact of the project Necessary for management process Necessary for the continued

implementation of the project

Main Components of Targeting  Geographic Targeting: To determine the

regions and provinces that are the poorest and in need of welfare assistance  Proxy Means Test: To identify the households within the poorest provinces who are eligible for the program, particularly in terms of their schooling, health and consumption needs  Verification: To check prior to the distribution of the cash transfer for the errors in the identification

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Key Issues  How do we scale-up the project?

Do we include Metro Manila?  How do we verify the eligible households?  How do we deal with the supply side?  How do we address the specific risks?  What is the role of the LGUs?

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