Updates On the Conditional Cash Transfer (CCT) Program Of the Philippines

Philippines Conditional Cash Transfer ProgramWhat is the CCT Program?

Also knowns as the “Pantawid Pamilyang Pilipino Program” (4Ps), the Conditional Cash Transfer (CCT) Program of the Philippines provides cash grants to indigent families on the condition that they send their children to school, have infants immunized from diseases, and that mothers visit community health centers.

Its objective is to increase household incomes and at the same time ensuring that in the future, Filipinos will no longer be fully dependent on the government.  This can be achieved by ensuring Filipino children are educated, remain healthy, and productive, giving them better chances at a brighter future when they mature.

 

Updates on the CCT Program:

 

September 6, 2011:

§       The CCT Program is slated to end by 2015.  By this time, there should be enough job opportunities in the industries the Philippine government is currently nurturing to fill the gap.

§       The CCT Program’s coverage is now increased to 3 million households.

§       The CCT Program has a 2011 budget of P21 billion and a 2012 budget of P39 billion.

August 20, 2011:

§       World Bank (WB) and the Australian Agency For International Development (AusAID) reports that the CCT Program can raise annual incomes of poverty-stricken families by 12.6%, and reduce poverty incidence by 6.2%.

§       The Philippines aims to reduce food poverty in areas covered by the CCT Program by 5.5%.

§       Mandaluyong Mayor Benhur Abalos has previously pledged that Mandaluyong City will provide one job per family to support the CCT Program by partnering with the private sector.  Jobs include carpentry, welding, and automotive jobs.  To date, 400 people have been provided with jobs.

§       Public schools in the areas where the CCT Program is being implemented has seen a drastic increase in enrolments due to the program.

 

Background:

§       The Philippines’ Department Of Social Welfare And Development (DSWD) manages the program.

§       The program started in 2008, with the first batch of beneficiaries graduating from school in 2013.

§       Currently, about 150,000 families are benefiting from the program.

§       Those who graduate from the program will also be given cash capital to start a business.*

 

Testimonials:

“The P1,400. cash grant I receive every month has been a big help to my family.  Now I can buy food and school needs of our children,” – Melanie Encabo, Mandaluyong City

“Aside from being able to buy for the needs of my children, I can now buy them vitamins.  We hope this program will continue,” – Marilyn Soria

“I and my brothers and sisters are now able to go to school with allowance.  We are very thankful to President Aquino and hope that he will continue this program,” – Colleen Nubia, Grade 6 student

 

Footnotes:

* Business is always a high-risk venture and the probability of failure far exceeds the probability of success.  We hope that instead of giving graduates of the CCT Program capital to start a business, the DSWD should form partnerships with the private sector to provide the graduates with job opportunities instead.